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This is a win win win for all involved, owner, renter, and Airbnb. I converted stocks into a vacation home on puget sound and rent it out when we aren’t using i

This is a win win win for all involved, owner, renter, and Airbnb. I converted stocks into a vacation home on puget sound and rent it out when we aren’t using it. Demand is high enough that we don’t need to rent it out months in advance so we still feel like it’s mostly ours and we’re not just another guest fitting into Airbnb’s schedule. To your point I liked the liquidity of equities but it has been nice to do something with it beyond just watching a number in a spreadsheet. If we want a change in scenery it’s a wash to rent our own place out and stay in another.

yieldcrv 1y ago
Liquidity is a major factor for me thats kept me out of real estate in the past, have the money burning AI buyers helped make home trading more liquid?
- mancerayder 1y ago
  Supply and demand makes investments liquid. If there's no demand you're stuck trying to sell. If there's no supply you'll overpay. Why AI?
  - yieldcrv 1y ago
    I am referring to the speed of buying and selling even when there are buyers. In crypto and the stock market its minutes to one day to both sell and get cash in your bank account that can be used for anything else. For real estate its weeks to hundreds of days even if there are many buyers. The AI buyers accelerated that. I’m asking about people’s experience in a world where AI buyers have already existed for 3-5 years. You’ll have to take a time machine to debate that.
    - mancerayder 1y ago
      For price discovery and matching buyers and sellers? Maybe. The financial considerations still control decisions. Without much technology needing to be involved, you still have insane bidding wars in hot markets and decisions have to be made quickly (hence cash/no financing contingency being so popular). And if there's too much inventory or an area where people are exiting from, the opposite.
apwell23 1y ago
i am guessing an agency manages your airbnb? how does that work out financially?
- DANmode 1y ago
  Just google "property manager profit split".
ericmay 1y ago
Well, arguably it’s a win except for local populations in some areas where enough housing is converted to vacation housing that they complain and don’t like it for various reasons. There is a balance to be struck. I’m sympathetic to that complaint a bit but it’s also a bit like NIMBY. Generally I think the cheapness of travel has been an unsung net negative for humanity as a whole.
- ausbah 1y ago
  yeah seriously there isn’t enough housing in major cities so the little new construction that isn’t rentals has a good chance of turning into an “investment property” via someone buying the mortgage and immediately turning it into a rental unit or airbnb unit. I really think that cities should either outlaw these type of units or tax them heavily and divert all new funds into new housing construction, or just incentivize so much new housing it turns into a losing investment source: i live in seattle and my partner owns property where 1/4 of their neighbors are landlords in a new construction complex
  - mancerayder 1y ago
    NYC has outlawed them more than 30 days (unless it's just a room and you're in the unit). NY state has legally created a registry and now smaller towns are requiring permits. But Seattle and NYC Airbnbs aren't second homes, it's investments people were trying to play with. A vacation home is more a seasonal spot near a beach or a lake or mountain. That sort of stuff doesn't steal some middle class family's chances of renting something cheaper by pulling a unit off the rental market.
    - ericmay 1y ago
      Pied-à-terre is a thing in places like NYC, London, etc. Certainly you are right that there are differences and different cities have different features which attract different folks with different ideas. But I think vacation home can include not just a season spot near a beach or lake or mountain - people buy vacation homes in Mallorca, or Venice, or Provence, or wherever too. I am not really opposed to them or anything like that, I just wanted to point out there are some harmful effects for some places. The travel industry and the ease of travel is probably more of a concern, because instead of having a family buy a vacation property on a beach somewhere, you've got an entire industry turning that vacation spot into a zoo and for the number of people that do live in that vacation area it hollows it out a bit of any sort of meaning. The whole thing becomes a simulation of a vacation spot.

yieldcrv 1y ago

Liquidity is a major factor for me thats kept me out of real estate in the past, have the money burning AI buyers helped make home trading more liquid?

mancerayder 1y ago
Supply and demand makes investments liquid. If there's no demand you're stuck trying to sell. If there's no supply you'll overpay. Why AI?
- yieldcrv 1y ago
  I am referring to the speed of buying and selling even when there are buyers. In crypto and the stock market its minutes to one day to both sell and get cash in your bank account that can be used for anything else. For real estate its weeks to hundreds of days even if there are many buyers. The AI buyers accelerated that. I’m asking about people’s experience in a world where AI buyers have already existed for 3-5 years. You’ll have to take a time machine to debate that.
  - mancerayder 1y ago
    For price discovery and matching buyers and sellers? Maybe. The financial considerations still control decisions. Without much technology needing to be involved, you still have insane bidding wars in hot markets and decisions have to be made quickly (hence cash/no financing contingency being so popular). And if there's too much inventory or an area where people are exiting from, the opposite.

apwell23 1y ago

i am guessing an agency manages your airbnb? how does that work out financially?

DANmode 1y ago
Just google "property manager profit split".

ericmay 1y ago

Well, arguably it’s a win except for local populations in some areas where enough housing is converted to vacation housing that they complain and don’t like it for various reasons. There is a balance to be struck. I’m sympathetic to that complaint a bit but it’s also a bit like NIMBY. Generally I think the cheapness of travel has been an unsung net negative for humanity as a whole.

ausbah 1y ago
yeah seriously there isn’t enough housing in major cities so the little new construction that isn’t rentals has a good chance of turning into an “investment property” via someone buying the mortgage and immediately turning it into a rental unit or airbnb unit. I really think that cities should either outlaw these type of units or tax them heavily and divert all new funds into new housing construction, or just incentivize so much new housing it turns into a losing investment source: i live in seattle and my partner owns property where 1/4 of their neighbors are landlords in a new construction complex
- mancerayder 1y ago
  NYC has outlawed them more than 30 days (unless it's just a room and you're in the unit). NY state has legally created a registry and now smaller towns are requiring permits. But Seattle and NYC Airbnbs aren't second homes, it's investments people were trying to play with. A vacation home is more a seasonal spot near a beach or a lake or mountain. That sort of stuff doesn't steal some middle class family's chances of renting something cheaper by pulling a unit off the rental market.
  - ericmay 1y ago
    Pied-à-terre is a thing in places like NYC, London, etc. Certainly you are right that there are differences and different cities have different features which attract different folks with different ideas. But I think vacation home can include not just a season spot near a beach or lake or mountain - people buy vacation homes in Mallorca, or Venice, or Provence, or wherever too. I am not really opposed to them or anything like that, I just wanted to point out there are some harmful effects for some places. The travel industry and the ease of travel is probably more of a concern, because instead of having a family buy a vacation property on a beach somewhere, you've got an entire industry turning that vacation spot into a zoo and for the number of people that do live in that vacation area it hollows it out a bit of any sort of meaning. The whole thing becomes a simulation of a vacation spot.