How could you be so daft thinking taxes are not passed on?
Its easier to rebut arguments when you make them up. I didn't say taxes were not passed on. I did say that you don't understand the real estate market.
When a contractor builds a spec home, he hopes to make a profit after all his expenses, cost of lot, materials, labor, etc. are met. The final price of the home, however, depends on the value of comparable homes in the neighborhood and the market.
For instance, a contractor built two spec homes in my neighborhood. By the time he completed them, we were in recession and the real estate market was soft to say the least. It took a year and a half to sell the homes. During that time, he reduced the price of the homes several times and had to pay property taxes while waiting for the homes to sell. In other words, his tax burden on the homes increased even as the market value of the homes decreased.
When the market is hot, the inverse is true; its not uncommon for the selling price to be significantly more than the asking price.
That you would post some silly anecdote about spec homes in your neighborhood and claim some expertise in real estate is laughable and indicates to everyone you got a big image of yourself.
You are confusing market risk with costs of production.
Every business that produces bears costs. Businesses expect a market to cover their cost and yield back a profit. That’s Business 101 for ANY business. But there is always market risk, ALWAYS! Again that is so basic a child can understand it.
But you have a problem understanding what a child can understand.
I’ll repeat what was said above:
“You are confusing MARKET RISK with COSTS of production.”
I understand the real estate market much better than you can ever hope to.
Let's test the depth of your knowledge in real estate with a question. During the real estate market collapse in California in 1990, why did home prices not fall on average in the four years following?
You’re out of your league here. Your arguments wouldn’t pass muster in a freshman class.