1562 West 440th Ave, MLS V872582
3,910 sqft old-timer, on large 93x100ft lot
Listed 25 Feb 2011; Ask Price $2,485,00
Price change 17 Mar 2011; Ask Price $2,350,000
From realtor blurb: “Tenants occupied, rental at $2,600/per month, on a month to month tenancy. Extremely well maintained. Great potential to build your dream home on this 93′ frontage.”
Okay, actually the ratio is 904. It was 956 with the original ask price. We just couldn’t resist the ‘1000 to 1’ headline. Is this a world record? Investors like ratios in the 150 to 175, perhaps 200, range, to put this into perspective.
And, yes, yes, we know that this is obviously a land value sale and thus you can argue that the ratio doesn’t ‘mean’ anything. (Aside: Another perfectly adequate functional building gets destroyed). The fact remains, however, that people are renting in this city for a very modest fraction of ownership costs.
If they understood and considered opportunity cost, wouldn’t almost all landlords sell, right now?
And, if they then added a consideration of market risk… hmmmm.
Stir in steadily falling prices… kaboooom! (all speculators exit left) -vreaa