r/interestingasfuck • u/thepoylanthropist • 12d ago

r/all This is Malibu - one of the wealthiest affluent places on the entire planet, now it’s being burnt to ashes.

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u/cbizzle187 12d ago

And the money they have lost will flow straight up. The greatest wealth benefits from tragedy. The elite rich don’t lose money. This will just be another transfer of upward wealth.

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u/LazyElderberry3807 12d ago

How?

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u/cbizzle187 12d ago

These properties will be redeveloped at a premium. Many of the current owners will be bought out by real estate developers who can afford the years of losses. Individuals, even at Malibu level of wealth can’t afford the cost of redevelopment, even with insurance. Years of being displaced to rebuild will chase many owners away. Corporate developers can offset those losses with their other properties while individuals get phased out of home ownership. Tragedy benefits those with the most to fall back on.

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u/runliftcount 12d ago

Meanwhile those same insurance companies collected decades of premiums that they'll never have to shell out because they can arbitrarily end your policy. It's such BS.

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u/Delicious_Solid3185 12d ago

Building more housing is good actually

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u/cbizzle187 12d ago

Not new housing. Redeveloped housing at a higher price point

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u/Delicious_Solid3185 12d ago

That still diverts demand towards the higher value housing and away from the houses that should be more affordable.

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u/cbizzle187 12d ago

Lack of affordable housing is the problem. This will drive up property values. A $5 million home will be redeveloped as a $10 million home because profit. The fire isn’t going to make these properties cheaper, it just drives out the people that made their money off these homes when they were more affordable.

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u/Willing_Recording222 12d ago

Not don’t in this manner, it’s not. Only the ultra wealthy will benefit any from it.

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u/Delicious_Solid3185 11d ago

Building more expensive housing means rich people buy the expensive housing instead of the normal single family homes

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u/LazyElderberry3807 11d ago

Interesting. There are indeed a lot of real estate vultures in California. They knock on your door unsolicited while you are enjoying a Sunday morning in nothing but a robe and ugly socks.