Re: Not always joking, it seems

In article <623mq7F21tpclU1@[EMAIL PROTECTED]
>,
 Sean O'Hara <seanohara@[EMAIL PROTECTED]
> wrote:

> In the Year of the Earth Rat, the Great and Powerful David Friedman 
> declared:
> > 
> > Don't you think that if it costs 60K to build and you could sell for 
> > 150K there would be an enormous number of firms building, and a huge 
> > number of houses being built? Which suggests that your figure is 
> > bogus--either omits im****tant costs, such as land, or expenses of 
> > getting permits, or ... --or is for a house people wouldn't want to 
> > build.
> 
> Or that there's a high demand for houses in Edinburgh which can't be 
> met for some reason, such as lack of room for expansion.

If that is happening, it will show up in land prices, at which point you 
can't build for 60K if you include the price of the land.

What is the cost of land to build on? It's the price at which you can 
get such land. It makes no sense to say "the price is only 15K, but at 
that price you can't buy any."

-- 
 http://www.daviddfriedman.com/
http://daviddfriedman.blogspot.com/
 Author of _Harald_, a fantasy without magic.
 Published by Baen, in bookstores now