Showing all posts tagged #real-estate:

To rent or to sell, that is the question

September 10th, 2023

As a real estate developer, one of the big decisions you need to make is whether you will rent or sell the buildings you've built. Income from rentals flows in steadily over years, while income from sales hits all at once. This essential difference is simple but has many implications for your risk profile, upside potential, capital requirements, and business model. The following post is a writeup of my notes as I study real estate developmen...

Why do home buyers look at price/sqft more than renters?

January 9th, 2023

A question that's puzzled me for a while is why home buyers focus on price/sqft so much more than renters. I asked around for what other people thought and got some interesting answers, so I decided to write up my takeaways. I. Investments demand legibilityHomeownership is an investment and consumption good, while renting is just a consumption good. As a result, buyers are forced to think of it in more legible ways as opposed to just an amenit...