I crunched the numbers for new construction in Denver last year, and they work out to about a 6% return. You could do better in an index fund. Remember that much of the cost of new construction is in land, utilities development and rough construction. Finishes are a small part of the expenditures yet can take a year before you get a C.O. ( certificate of occupancy). ~3 years from land purchase/planning to move in. Tax incentives are a huge part of making it work but I didn't factor it in because I don't know that game as well. The hold time is 7-10 years from what the developers I've talked with recently. They rely upon REITs to purchase the building when they sell.
NYC to me proves the economy is fake and what is happening is that to create validation of printed value, they build assets, then equate the ridiculous numbers, and now the value is "real". They are making the gold mines instead of mining.
I crunched the numbers for new construction in Denver last year, and they work out to about a 6% return. You could do better in an index fund. Remember that much of the cost of new construction is in land, utilities development and rough construction. Finishes are a small part of the expenditures yet can take a year before you get a C.O. ( certificate of occupancy). ~3 years from land purchase/planning to move in. Tax incentives are a huge part of making it work but I didn't factor it in because I don't know that game as well. The hold time is 7-10 years from what the developers I've talked with recently. They rely upon REITs to purchase the building when they sell.
Everything is fake until proven gay.
All that Mafia money needs to get laundered somewhere and haven't you seen how bad Hollywood is performing that function lately ?
This is why mafia is in services , rentals and gambling.
By your calculations that’s 497 million per year you make it back in 2 years
It is not a rental. It is ownership. Those are purchase prices.
And that is if you sell 100% which most properties in NYC have 40% capacity.
They are probably renting the outer shell or the land to them. You own the "condo" but not the building. Essentially top dollar trailer parks
Lets say fuck the text and look at the picture and assume rentals .. 400 units between both buildings and forget the low income law in NYC
Avg insane 10K x 400 = 4M per month x 12 = 48M - 3M tax/overhead = 45M best case scenario
1B / 45M = 22.2 years to break even best case
That makes ZERO sense too
NYC to me proves the economy is fake and what is happening is that to create validation of printed value, they build assets, then equate the ridiculous numbers, and now the value is "real". They are making the gold mines instead of mining.
Exactly!