Hacker News new | ask | show | jobs
by badpun 1203 days ago
Developers only provide a service of constructing a house on a plot of land. Whereas landlords actually provide the resources (capital) required to build it.
1 comments

What world do you live in where this is the case? Development is usually speculative and not done with prior investment by potential landlords.
Yes, of course - but ultimately, it's the landlords who park the capital for many decades in the properties, and not the developers. So, it's the landlords' capital which makes development possible in the first place. Developers are just providing a service. Well, that's not entirely fair, as they're also assuming a bit of risk on themselves - if they miscalculate the investment, or conditions change negatively before they sell, they'll end up holding the bag. But, majority of risk is on the landlords' side, as they hold the property for decades.