That's some of it, definitely. But another part is that people who could sell, have chosen to rent, or Air BNB. The Rental and Air BNB bubble will basically destroy property prices in cities when it pops.
I bought my home just a few years back, which means it came with a bunch of fancy apps to track values and equity and all that.
And on every single one of them, there is a "If you Air BNB this many days of the month at this value, you can pay off your house by X!!" calculator attached. And its fucking juicy looking, like 7 years instead of 30 if you only do 12/30 days a month.
That's the kind of temptation that will get a lot of people, even those who aren't big rich investors looking into that market.
All those numbers depend on line go up forever and nothing bad happening to the market or economy or even AirBnB's terms of service (which everyone is leaving for hotels due to cleaning fees).
If you can pay for a house in cash and want to dabble in real estate, that's one thing. Mortgaging a house to rent is no different from buying stock on margin.
That's new, but that cost comes with the dangers (and laws) of renting and advertising. Investment properties are investments. You can lose your principle if you're not careful. Considering how many people are doing it, I'd suggest that we have a bubble because of it.
That's some of it, definitely. But another part is that people who could sell, have chosen to rent, or Air BNB. The Rental and Air BNB bubble will basically destroy property prices in cities when it pops.
I bought my home just a few years back, which means it came with a bunch of fancy apps to track values and equity and all that.
And on every single one of them, there is a "If you Air BNB this many days of the month at this value, you can pay off your house by X!!" calculator attached. And its fucking juicy looking, like 7 years instead of 30 if you only do 12/30 days a month.
That's the kind of temptation that will get a lot of people, even those who aren't big rich investors looking into that market.
All those numbers depend on line go up forever and nothing bad happening to the market or economy or even AirBnB's terms of service (which everyone is leaving for hotels due to cleaning fees).
If you can pay for a house in cash and want to dabble in real estate, that's one thing. Mortgaging a house to rent is no different from buying stock on margin.
That's new, but that cost comes with the dangers (and laws) of renting and advertising. Investment properties are investments. You can lose your principle if you're not careful. Considering how many people are doing it, I'd suggest that we have a bubble because of it.