Demolition Costs

[cantdownloadit]

in addition to all those points why does it cost nothing to demolish or sell a firm ?

If I build a firm then demolish and sell the land all I lose is some of the amount I spent to build when demolition is in reality expensive

if I have 30,147,075

I build a large factory costing 2,500,000 + land cost of 12,800,000

I then have 14,847,075 left

If I then close the firm and sell the land I end up with 28,423,089

A cost of 1,723,986... which is less than building the itself cost....

[eleaza]

in addition to all those points why does it cost nothing to demolish or sell a firm ?

If I build a firm then demolish and sell the land all I lose is some of the amount I spent to build when demolition is in reality expensive

if I have 30,147,075

I build a large factory costing 2,500,000 + land cost of 12,800,000

I then have 14,847,075 left

If I then close the firm and sell the land I end up with 28,423,089

A cost of 1,723,986... which is less than building the itself cost....

This does happen when building near existing buildings where the land price might go up after building this new firm. When demolishing a building without selling the land, the total amount of cash doesn't seem to went down (sometimes even went up), since the value deduced (presumably the building cost) is reflected and spread within the land value changes. So if you build and sell the land after demolishing in remote area (or at location where the land value won't change due to this building), you get the right amount of cash deduction equal to the building cost itself. But in area where land value does change due to this new building, the land value and build cost deduction won't reflect in the right amount, like the example you showed above (and perhaps this has something to do with the incorrect amount for city budget you showed in another post http://www.capitalismlab.com/forum/view ... 838#p17319, since the city buys back land with the amount you sold).

Personally I think maybe we can call this recycling building materials or land value changes due to a recent new building. However, I remember there was once an exploit to artificially increase land plot price using similar tricks (no idea it got fixed or not)

[cantdownloadit]

you also should not realistically get 100% of the land cost back... its unlikely someone happens to want to pay the correct price just as you sell it....

personally they should add land rental as the main business method and make owning the land far more expensive.

[eleaza]

you also should not realistically get 100% of the land cost back... its unlikely someone happens to want to pay the correct price just as you sell it....

personally they should add land rental as the main business method and make owning the land far more expensive.

Since real estate for empty land doesn't exist, the only buyer (and seller) of empty land is the government, hence it is reasonable to get 100% land price either way. I think we should start with a simpler model, clear out bugs before adding new features.

Do you have any good suggestion about what the mechanism for rental, or even intermediary agencies to make such transaction? And how expensive would you suggested it should be? You can always make a new post in suggestion sub-forum.