So malinvestment is a good point but money does not disappear. For malinvestment to happen someone has to make good investment... Therefore the money does not disappear it goes to the person with better investments... Let me put it this way money transfers ( what i meant by it hides in someones pocket)

Coming back to your house... When you commissioned the house you paid for materials, salaries etc... therefore transfer of money.... Next when u bought the land u invested in a certain property for a certain value, the value was destroyed (due to whatever reason tsunami etc) so you lost money but the person who sold it to you gained (aka transfer of money)

Now if you talk about which building is worth building thats a whole new debate... Sorry I didn't explain it before... I was just talking about how banks usually have pretty good ways to make money... They invest in competitors cause no matter who wins... They get the interest...