The rather unprepossessing house on a 112 x 33 foot lot at 1637 Victoria has just come onto the market and, without unduly picking on a single transaction, the recent history of this property provides a reflection of the meaningless bubble that Grandview real estate has become.
In April last year (2015), this property was listed for $888,000. It sold in May for $1,050,001. Now, structurally and cosmetically unchanged, it is listed for $1,349,900. It will no doubt sell, and the flippers will make their $300,000 profit on just 8 months financing.
None of this rise in price — from $888,000 to $1,349,900, or 52% in nine months — has anything to do with the actual need for housing. Nothing new has been created here, nothing improved; just the price jacked up. This is pure speculative capitalism: rent your million dollars out for nine months and get a bonus 30%…
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