Reply to Marc Elrich doesn’t think there “is demand for market housing.” He’s never going to fix our housing.

Forum Index » Metropolitan DC Local Politics

Reply to "Marc Elrich doesn’t think there “is demand for market housing.” He’s never going to fix our housing."

Subject:

Emoticons





More smilies

Text Color: Font: Close Marks

[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]Take 1 acre of land. Buy it for $1M. Build one house on it and sell it for $1.5-2M or build 8 condos and sell each for $300K-$400k.

In the first scenario I make $500k to $1M in profit. In the second I make $1.4M to $2.2M. I’ll take the second please and also have 8 times as many people living in the county, performing MC and LC jobs and paying sales tax and real estate tax in my county. It is not about affordable housing, it is about smart business and free markets and not letting rich NIMBYs have their way in hoarding land for large estates and preserved green space. [/quote]

Where are you going to get an acre of land for $1 million? In Chevy Chase, that’s 6-7 lots. It’s about the same in E Bethesda or Woodside. It’s a little less in Edgemoor. Land alone would be worth well over $1 million. You’d probably end up spending at least $2 million on land alone even around Woodside, and would be more like $6-$10 million around Bethesda or Chevy Chase.  In your sales plan, you’re under water before you’ve even built the structure. That could maybe work around Wheaton, but there are lower risk ways of making $1.4 to $2 million in profit, like building 4 SFH on your acre of land. [/quote]

Dumb a$$. It was a scenario.  Start with whatever base amount you’d like. More homes on the same space makes more money. [/quote]

DP. It matters because you need scale to get the profit. Take 1/3 acre, two or three condos at $300k or $400k and you are losing compared to a SFH at $1.5million. Building four condos on 1/3 acre is just about the break even point. Those are going to be small condos. You do know developers aren't stupid?[/quote]
Excellent points. Developers aren’t stupid but clearly pro-Thrive people are. [/quote]

Options

	Disable HTML in this message
	Disable BB Code in this message
	Disable smilies in this message

Review message

Search Recent Topics Hottest Topics