Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

Superstition Arbitrage

I am not superstitious. So, I have always been fascinated by real estate discounts due to deaths on a property. In many states, material facts must be disclosed and the standard is for any deaths on a property within the past three years count. I would happily pay a discount and hold it for long enough to season a property beyond the three year materiality standard. So, where can I find the world's biggest discount based on superstition?

Poveglia Island

This island is located right outside of Venice, is on the market, and the current high bidder is at 513,000 euros (around $700k). This is an amazing opportunity. It is a gorgeous island right outside of Venice and would make for a perfect little Mediterranean pit stop for sailors. The Italian government is strapped and they have to sell. I always love sellers in a crunch. A beautiful 17-acre island near Venice for under a buck? Yes please.

Catch? It is the world's biggest price discount due to superstition. It was quarantined due to the plague and subsequently used as a mental asylum. Ghosts are reputed to haunt the island. However, I assign a 0% probability to the island actually being haunted, which leads to these attributes being over weighted in the market price. Yes it is a bit of a fixer upper, but it isn't haunted.

The Italian government is selling another 148 properties and hopes to raise about half a billion Euros in the process; you might find some other bargains in the pile (but please don't bid on mine!).