It assumes fixed wages and capital rental prices as well as idle resources.
For this to be an equilibrium, the wages and capital rental rate paid in the other sectors of the economy must be greater than what can be profitably paid by the secondary sector.
As funding completely dried up, the capital intensive rental business became unfundable.
The pair blew through their entire $1 million in seed capital, including rental fees on two 767 jets, to deliver the goods on time from Tel Aviv, Yes To's then home base, to the U.S. A month later the Home Shopping Network wanted 45,000 skin-product gift sets in 60 days.
British landlords earned £112bn from capital gains and rental income last year, in the latest example of the booming buy-to-let market.
Beck Street Capital bought the rental-apartment property in 2004, converted it to a condominium and then sold the apartments at prices up to about $3 million.
Housing costs are also significantly higher in London meaning a larger portion of Londoners' higher incomes go to fuel the capital's dysfunctional rental and property markets.
On the subject of capital growth and rental yield, Johnny Morris, research director at estate agent Countrywide, says: "Over the long term, rents tend to grow in line with incomes, with shorter-term market forces pushing prices up or down.
Finally, a report for the London Assembly [pdf] this year recommended a pilot of a land value tax in the capital – taxing the rental value of land, rather than buildings – to encourage development, especially for housing.
Durrani said that while 47% of those surveyed were motivated by capital gains and rental values, a quarter planned to use their acquisition as a second residence for themselves and their family.
