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I'm not sure that it's Airbnb. if properties can appreciated at 10% per year. Then they are a much better investment and safer investment vehicle than most of
by segmondy 8y ago
I'm not sure that it's Airbnb. if properties can appreciated at 10% per year. Then they are a much better investment and safer investment vehicle than most of what is out there. If I truly believe I can buy a house somewhere and get 10% year in and year out. I'm going to buy one. I might keep it vacant since I don't feel like being a landlord or dealing with rent control laws. When it's time to get my money out, I'll sell and move on.
While some of us might not believe this, there are enough people who see real estate as such a safe investment. Some of them are from other countries and they're looking for a place to park their money that's not a bank or volatile like the stock market.
- yitianjian 8y agoPlus - housing is fairly secured and unlikely to ever go to zero, it's tied to an asset, and you can invest on loaned principal without extreme risk in case of failure.
- inscionent 8y agoGoing to zero has zero to do with real estate being a secure investment. Owning an underwater property and running into a situation where the investor can't continue to make the mortgage payments is just as bad as the asset going to zero for most. > you can invest on loaned principal without extreme risk in case of failure Yes, when this happens thousands upon thousands of times you have the 2008 world wide financial crisis.
- TuringNYC 8y agoAssuming you purchased your house with 20% down and 80% mortgage (which is very common), housing only has to go down 20% for you to "go to zero." Further, unlike stocks, buying/selling houses incurs fees (round-trip fees can be anywhere from 5% to 12% depending on your city/state/country), so really, a house going down 15% is like you going to zero.
- sitkack 8y agoThis is morally reprehensible.
- swarnie_ 8y agoHow so?