Quote:
Originally Posted by cheswick
Right. Assuming no passive income on it, it hasn't made much financial sense. No idea what the income stream is for parking in Winnipeg. But to the point above, proper taxation would make such propositions less financially viable.
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I once talked to someone whose family owned a bunch of very low-rent kind of land in town. Underused industrial lots, parking, etc.
The reason for that choice was basically that these assets generated just enough cash to support family lifestyles, are hard to mismanage even if they're run by idiot children, and are illiquid, so nobody can sell off their part of the family inheritance a few dollars at a time.
Basically, it's not a good investment, but it's a good investment vehicle for families with more money than financial acumen who value capital preservation over everything else.