landlord irrationality
May. 13th, 2006 06:20 pm![[personal profile]](https://www.dreamwidth.org/img/silk/identity/user.png){kind=small}
guslThe weather is nice today. Probably warmer than the Brazilian winter that I am going to in 3.5 weeks.
I just met with my real-estate agent at a café. He paid me for my Ikea curtains, and then invited me to watch the last 15 minutes of the Bundesliga. Then he made us pasta, which was good. He said something like the majority of landlords have an extreme form of risk-aversion.
He told about a customer of his that has several small apartments in one building. The apartments were 370EUR and occasionally hard to fill. The landlord trusted him completely, and gave him 2000EUR to work on each of them. He then raised the price of the apartments to 500EUR / month, and now people were waiting in line to live in them. 130EUR / month pays for the investment in about 18 months, so it's hard to understand why so few landlords do this.
Given the general stupidity of my competitors, I am very tempted to go in invest in real-estate... but a market saturated with idiots is still a saturated market. In fact, it's hard to understand why anyone would buy real-estate as an investment, rather than stock / bonds / etc.
--
A couple of guys in my courtyard improvised a tennis court, with a tape tied to a bicycle on one side and a door-handle-to-the-storage-room on the other serving as net. I was impressed.
I just met with my real-estate agent at a café. He paid me for my Ikea curtains, and then invited me to watch the last 15 minutes of the Bundesliga. Then he made us pasta, which was good. He said something like the majority of landlords have an extreme form of risk-aversion.
He told about a customer of his that has several small apartments in one building. The apartments were 370EUR and occasionally hard to fill. The landlord trusted him completely, and gave him 2000EUR to work on each of them. He then raised the price of the apartments to 500EUR / month, and now people were waiting in line to live in them. 130EUR / month pays for the investment in about 18 months, so it's hard to understand why so few landlords do this.
Given the general stupidity of my competitors, I am very tempted to go in invest in real-estate... but a market saturated with idiots is still a saturated market. In fact, it's hard to understand why anyone would buy real-estate as an investment, rather than stock / bonds / etc.
--
A couple of guys in my courtyard improvised a tennis court, with a tape tied to a bicycle on one side and a door-handle-to-the-storage-room on the other serving as net. I was impressed.