Do you see this thing? Yeah, the remnants of what was once a steel-framed building are up for grabs. I was browsing ads on an eBay-style app and this thing popped up. It was listed among other real estate-related sale ads, but what differentiated it from everything currently being sold in my area is the price: 300,000 euros...
What you see in the pic is not the whole construction, I can't find any picture on my smartphone or laptop showing its entirety, but just to give you an idea of what I'm rambling about, this falling building is being sold for 300,000 euros by someone I know, and the whole thing has 191 square meters.
That translates to 1,570 euros per square meter. I bet you could find something nice for this price in Monaco... But the reality is that some of us living in this small town feel like somehow the town has turned into Monaco.
In reality, nothing of this sort happened. Aside from a few guest houses that rose here and there in town, the place is pretty much like it was when I was a teenager. If you ask me, it even looks worse than that, but this guy somehow has the audacity to ask such a price for this thing. I keep calling it a thing, but I can't say it's a building.
It's true that the construction was built inside the downtown park, but in order to sell something like that for such a price, you have to be doing it in some sort of high-potential area, which is not the case. We're supposed to be called a tourist area, but nothing spectacular happens here.
Also, if you spend 300,000 euros on such a falling construction, imagine how much you'd need to spend to make something out of it and do the best you can. The best you can do is a restaurant. If you've spent something like over 500,000 euros to put up a neat restaurant there, imagine how much you'd need to charge on your menu to make that a profitable business.
After finding out about the 18-year real estate cycle and knowing that we're at the end of it, nothing amazes me anymore in this regard. There are six-room guesthouses being sold here for half a million dollars. Again, this is not Monaco, and prices are not justified. Whoever believes that the prices are justified is living in a bubble.
That bubble is soon going to burst, and some will be left holding assets they paid insane amounts of money for that are probably actually worth half the money or less. I've been mentioning the everything bubble so often lately because there are signs everywhere that we're in such a bubble.
Solana meme coins are doing fantastic, NVIDIA is through the roof, and real estate is booming, but nothing in the economy is actually supporting the bubble staying inflated for too long. It's true that we trade markets, not the economy, but at some point, the markets will realize the economy is in deep shit, and the bubble will burst.
The signs were everywhere, and we can't say we haven't been warned... Enjoy the bubble while it lasts, and don't forget that during bear markets, a time that will follow the current everything bubble, cash is king.
Thanks for your attention,
Adrian
What is sad is that it's a beautiful building, it just needs to be repaired and looked after before it's too late. But at that price I guess it won't sell, and eventually it'll fall down and be lost forever.
Its time has passed.
300,000 euros is definitely a big amount for such a falling construction, that would actually fit any business model. May be someone who would invest black money, would buy it ?
You can buy working businesses for that money. Good ones.
Yeah.. the price is high but I think it's good for investment. 😊
You think so…
Yeah.. we don't know the future, in the past our square meter was just 10 dollars now it turns out into 40 dollars or more.
True. But we are near the end of the real estate cycle.
In your place or in the world?
Almost everywhere.
It means the real estate becomes affordable? 😁 Or no spaces for new ones?
Adrian's really skeptical about the current real estate prices in his town. He's definitely concerned that people are overpaying for properties that might not be worth it in the long run. I think this may actually be happening everywhere for real. Thanks for sharing this brother
The bubble will burst sooner than later.
You're so right on that man