Can an American explain this?

[Anonymous No.58067897]

>Mansion and land cost $30 millions but sold for $4.8 millions

https://youtu.be/EsZim3xfFFQ?feature=shared

https://youtu.be/hIhtCx0CMrg?feature=shared

https://youtu.be/xBFgKg_kyhI?feature=shared

[Anonymous No.58067919]

>>58067897
he got the call

[Anonymous No.58067984]

The land isn't close to anything or worth that much. In order for it to hold value you have to be in an area that rich people demand as only rich people will be able to afford the same price tag.

Let's say I'm rich, and arbitrarily pick a spot out in the desert to build a stunning palace. $100M spent. When I decide to sell, who's going to want to buy it? Who's even going to be able to afford it? My arbitrary interest in this random desertic spot isn't universal. It crushes the value.

Which is why land is always your first consideration if you want it to hold up or appreciate.

[Anonymous No.58068014]

What's to not understand?

Some rich retard bought land in the middle of no where (relatively) and built some absurdly stupid house that no one wants.

Only because you spent $30mil to build it doesn't mean it's worth that much

[Anonymous No.58069622]

>>58067897
Location. Nobody wants to live in Alabama right now. Everyone wants to be in deep red states like Florida and Texas or Tech places like California.

[Anonymous No.58069633]

>>58067897
They're going to pay 30 mill in maintenance over the years.

[Anonymous No.58069663]

>>58067897
$4.8 is a pretty good deal for this.

[Anonymous No.58069689]

>>58067897
>downsize mansion
>build fencing around land to keep cityboahs out

future countryboah gold. Urban sheetbox buyers will never understand smart bizness.

[Anonymous No.58069705]

>>58067897
20 ft away there is ugly suburbia. lol. A proper mansion should be more secluded

[Anonymous No.58069753]

>>58067897
Its only worth is material (structure) and agricultural (land) - if used. The fake number you slap on it is irrelevant outside of """monetary economics"""

[Anonymous No.58069927]

>>58067897
Cost doesn’t equal value
There are three approaches to value:
>cost - how much does it cost to buy the land and build (needs sales approach to value land)
>sales - how much do comparable properties sell for
>income - if it was a rental property, how much return on investment would you get after expenses

Cost is actually the value you throw out first and income approach doesn’t matter if the highest and best use of the property is for single family occupancy

[Anonymous No.58070107]

>>58069663
Maybe I’ll buy it with my APU stack once it reaches coinbase.

[Anonymous No.58070220]

Bro living in 18th Century England.

[Anonymous No.58070288]

>>58067897
Only worth what the market is willing to pay. Welcome to capitalism eurocuck

[Anonymous No.58070369]

>>58069663
Future /biz/ clubhouse

[Anonymous No.58070425]

1. negros
2. people are obviously stupid or else they would be buying cheap rural real estate as if their life depended on it

the empire is crumbling, every system be it food, manufacturing, every single sector in the united states is being ground into dust

the only logical option is to buy rural land to survive and feed yourself and your family

but gen x and boomers are a fundamentally stupid people that got handed everything in their lives on a silver platter, they watch cnn and they don't listen when you tell them to buy bitcoin at 3k, 8k, 12k, 15k, 18k and so on, they literally buy another stupid suburban house and doom you to having literally 0 inheritance, because they are mentally stunted children

I KNOW it is hard work to plant your own crops and raise animals, I KNOW it is physical labor to chop wood for a fireplace, but I'm smart enough to understand that the system is crumbling and I HAVE TO do this

[Anonymous No.58070502]

>>58067897
>Can an American explain this?
You see the same shit with cars all the time.

Rich guys can easily spend a quarter million or a half million dollars restoring and customizing a car.
And the car will still only be worth $50k or so after all that.