If your analysis is correct, why is purchasing exactly ONE Abbey the correct decision? If meeting venues in general earn money and appreciate in value, then every dollar people donated to philanthropic causes would be better spent on more meeting venues, until the market is saturated with meeting venues and they cease to earn returns that make it worthwhile.
For that matter, why invest in real estate at all? A diversified portfolio of stocks and shares would give a higher rate of return and hedge against real-estate specific risk, such as another pandemic. I’m fairly sure you could get better than 2.4% if you were prepared to lock your money up for 8522 days.
It seems to me that your argument proves far too much, and is missing a very important ethical consideration that EA is primarily about doing altruism—there are critically important causes that need funding NOW, not funded at a higher rate in 20 years. The competing use of money is these causes, not real estate investment returns
Actually I tried to mention that I was not commenting on the ethics of the purchase just the economics as an organisation in the title but maybe that wasn’t good enough?
I also very foolishly made a mistake as we use 1 Lakh here instead of 100K.
The new values would further make the arguments stronger.
If your analysis is correct, why is purchasing exactly ONE Abbey the correct decision? If meeting venues in general earn money and appreciate in value, then every dollar people donated to philanthropic causes would be better spent on more meeting venues, until the market is saturated with meeting venues and they cease to earn returns that make it worthwhile.
For that matter, why invest in real estate at all? A diversified portfolio of stocks and shares would give a higher rate of return and hedge against real-estate specific risk, such as another pandemic. I’m fairly sure you could get better than 2.4% if you were prepared to lock your money up for 8522 days.
It seems to me that your argument proves far too much, and is missing a very important ethical consideration that EA is primarily about doing altruism—there are critically important causes that need funding NOW, not funded at a higher rate in 20 years. The competing use of money is these causes, not real estate investment returns
Actually I tried to mention that I was not commenting on the ethics of the purchase just the economics as an organisation in the title but maybe that wasn’t good enough?
I also very foolishly made a mistake as we use 1 Lakh here instead of 100K. The new values would further make the arguments stronger.