Category: Land value

Double-entry urbanization: Part 3, 1J = 1A + 1C

26 August, 2015 (10:00) | Affordability, Apartments, Berlin, Cities, Economic development, Homeownership, Housing, Infrastructure, Land value, Markets, Rental, Supply and demand, Urbanization | No comments

  By: David A. Smith [Continued from yesterday’s Part 2 and the preceding Part 1.] Any object, wholly or partially immersed in a fluid, is buoyed up by a force equal to the weight of the fluid displaced by the object.  – Archimedes’ principle of buoyancy Urban displacement is inevitable While Philip Oltermann, Anglo-German correspondent […]

Double-entry urbanization: Part 2, DPV = DI + DM = DE = DC

25 August, 2015 (10:00) | Affordability, Apartments, Berlin, Cities, Economic development, Homeownership, Housing, Infrastructure, Land value, Markets, Rental, Supply and demand, Urbanization | No comments

By: David A. Smith [Continued from yesterday’s Part 1] For every action, there is an equal and opposite reaction. – Newton’s Third Law of Mechanics It used to be so cheap to live in London – not any more As we saw yesterday, the first law of urbanization and economics proves that when a city […]

Double-entry urbanization: Part 1, RC = RE = RI + RR = RPV

24 August, 2015 (11:15) | Affordability, Apartments, Berlin, Cities, Economic development, Homeownership, Housing, Infrastructure, Land value, Markets, Rental, Supply and demand, Urbanization | 1 comment

By: David A. Smith A = L + OE – The fundamental accounting equation As first documented in 1494 by Frater Luca Bartolomes Pacioli The father of accounting, or so they say Nothing in the universe acts without impact; all actions have consequences; and all changes to one side of the ledger likewise impact the […]

Built upon the lands of time: Part 3, 8.2% annual appreciation for 32 years

22 July, 2015 (10:00) | Apartments, Co-ops, Elevators, Housing, Land leases, Land value, Mobile homes, New York City, Rental, Reversionaries, Rule of four-sevenths, Urbanization, US News, Verticality | No comments

[Continued from yesterday’s Part 2 and the preceding Part 1.] By: David A. Smith After capital reinvetsment While the story reported in The New York Times (12 June 2015) of the Tower – Trump Plaza at 167 East 61st Street – Lease expiration imminent – has already had its Magus and its Fool, its land-sundered […]

Built upon the lands of time: Part 2, The Rule of Four-Sevenths

21 July, 2015 (10:00) | Apartments, Co-ops, Elevators, Housing, Land leases, Land value, Mobile homes, New York City, Reversionaries, Rule of four-sevenths, Urbanization, US News, Verticality | No comments

[Continued from yesterday’s Part 1.] By: David A. Smith End of lease approaching In yesterday’s Part 1 chronicling the happy if expensive ending of a 32-year saga of a co-op that ‘forgot’ to buy the land underneath its apartments, reported in The New York Times (12 June 2015), we had met our Magus, Marc Cooper […]