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I wonder if there is a way to hedge the potential losses by picking an underlying asset that follows the rental market more closely? The best I can come up with
by Bradlinc 5y ago
I wonder if there is a way to hedge the potential losses by picking an underlying asset that follows the rental market more closely? The best I can come up with is to own and rent a similar property to the one you would be renting via AirBNB. Unfortunately this seems unappealing to me, as in this scenario I still have many of the same trappings of owning a house (which is is the reason I wanted to live in AirBNBs in the first place!) The second solution I have thought about is to invest in a REIT that invests in residential real estate. I believe this can work but 7% would still feel too high for me. Also, one would have to pay tax on the income from either of these scenarios, which wouldn't be necessary if you owned your house outright.
- foogazi 5y agoMaybe own a property in LCOLA - earning income but also having a place to live during a downturn