Does the construction cost take the costs of one to infinity years of legal delays into account? I’m pretty sure if people could build affordable housing with a 25% yearly return, they’d already be doing it.
The idea of getting the funding from locals to make the delays less likely might help, although it only takes a small number of loud people to delay construction.
The construction cost estimates I referenced don’t consider delays at all. I agree delays make this less attractive.
We’re talking about building something so much taller that the land cost is only about 10% of the total cost, which means most of the delay happens before most of your expenses (the period when your capital is tied up) so this isn’t terrible, but it does still add a lot of uncertainty to the process.
Does the construction cost take the costs of one to infinity years of legal delays into account? I’m pretty sure if people could build affordable housing with a 25% yearly return, they’d already be doing it.
The idea of getting the funding from locals to make the delays less likely might help, although it only takes a small number of loud people to delay construction.
The construction cost estimates I referenced don’t consider delays at all. I agree delays make this less attractive.
We’re talking about building something so much taller that the land cost is only about 10% of the total cost, which means most of the delay happens before most of your expenses (the period when your capital is tied up) so this isn’t terrible, but it does still add a lot of uncertainty to the process.