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by dev_dull
2420 days ago
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> The increase in price funds much of their retirement. What increase in price? Your “profits” were simply transferred to the other home owners profits. To extract real benefit you need to move out of state which is not what a lot of people want to do. |
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The increase in the value of the land when it's rezoned.
Suppose you have a house currently worth $500K because it's only zoned for single family homes. Rezone that area for higher density and developers could be willing to pay you $700K or more for the land so that they can build a dozen condos on it, sell them for $300K each and get back $3.6M. It's worth more after the rezoning because they weren't allowed to do that with the land before.
Then you take your $700K, buy a $500K home similar to your original one in an area still zoned for single family homes and have $200K left over for whatever you like. Or maybe you have $300K left over because you only have to pay $400K for that single family home once there is less housing scarcity because there are now lots of new condos ten miles down the road where you used to live.