Quote:
Originally Posted by Roughneck
Property value and house value can be two different things. If I have a property zoned for a single-family home that's worth $1.5M, somebody buys it, knocks it down to build a bigger single-family home, maybe they sell if for $2.5M
If my property can now have 8 units at an average of $500K each, my property is now worth more even if the individual housing units are valued less.
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I think your comparison numbers are off.
The problem is the $500K rowhouse is only worth $300K. when you consider the living conditions eg. parking, smaller living area, lack of trees, fire safety, neighbor conflict. Also land wise, that $500K might buy you the same amount of land, as the land the 4 rowhouses are on, with an upgradeable bungalow on it.