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0 pointsjessedhillon9y ago0 comments

Yes, but there's a reason why the crappy 2br costs as much as your house. That reason might not appeal to you, but it exists and has a specific monetary value.

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cmdrfred9y ago

Arbitrage primarily. Development of inexpensive housing is restricted tightly here. I lived in those apartments, everyone there wishes to own but they simply lack the credit history and down payment.

techthroway4439y ago

Could you explain the reason?

shostack9y ago

I'd guess it was referring to the fact that there are geographical, cultural preferences etc., not to mention employment opportunities that cause the Bay Area, NY, and other extremely expensive cities to be much more popular compared to Philly.

Not to knock your choice, but many people including myself would never consider living there.

cmdrfred9y ago

I don't think that explains why the apartment building 5 minutes away in a worse town (higher crime, access to lower rated schools) rents a 2 bedroom for more than the cost of my mortgage, taxes and insurance. My belief is that the people in that building don't have the access to capital to buy a home, and thus the landlord is able to arbitrage his access to capital via a bank in order to charge rents that are rather high in comparison.

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cmdrfred9y ago

Arbitrage primarily. Development of inexpensive housing is restricted tightly here. I lived in those apartments, everyone there wishes to own but they simply lack the credit history and down payment.

techthroway4439y ago

Could you explain the reason?

shostack9y ago

Not to knock your choice, but many people including myself would never consider living there.

cmdrfred9y ago

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