Quote:
Originally Posted by Slava
I think that today you get that bump, but do you get that if all the zoning is the same? And, as I said below, I should've put the purchase at less than the full value of the house to make this more realistic.
Ok, so they buy the house next door for land value, say for $600k and build a 4-plex. This was my point in saying that I was just making up numbers and I guess I shouldn't been so generous in saying that the developer was paying full freight for the house next door.
I debate the idea of the marketability though. I feel like a house between two SFHs is more attractive than one with a 4-plex next door.
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This still doesn't make sense though. Assuming that the homes/lots in a neighborhood are somewhat equivalent, who is going to sell a million dollar house/lot for $600k?
The basic premise of your argument is. If the price for a $1M house for some reason drops to $600k and then they build a 4 plex next door, my house won't be worth $1M anymore.
If the house next door sold for $600k, then yours was never worth $1M. And if yours is worth $1M, then the one next door will never sell for $600k.
Your basic argument is that if the value of your house drops, the value of your house drops, and for some reason that's because of zoning. Or you're arguing that if upzoning goes through, suddenly land values wil drop, which is most certainly not the case.
Either way, at best you're arguing in a circle.