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1
B.A.C.A.H.
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2021 Jul 11, 3:21pm
B.A.C.A.H.
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2021 Jul 11, 3:21pm
So many Hip And Cool ways to "invest" that are so much more exciting than boring mutual funds.
One thing I really like, about the mutual funds, there's no downside risk. I'm not talking about asset price drop risk. I'm talking about the risk of litigation.
Another thing that I really like about them, is the liquidity. If I change my mind, I can liquidate at no expense on the click of a mouse. If I want to liquidate a small portion of it to fund something small, say, like, - a weekend stay at someone else's airbnb or vrbo or whatever, - I can sell a small portion to get a bit of cash. Maybe even in a savvy way to harvest a tax loss. Difficult to do that with a large all-or-nothing "asset".
A third thing I like, is the maintenance costs. There aren't any.
It's not Hip, it's not Cool, it doesn't make me "smarter (or more savvy) than everyone else". It's boring, like a hipster friend told me, "Lazy and Stupid". Fine. Sticks and Stones.
One thing I really like, about the mutual funds, there's no downside risk. I'm not talking about asset price drop risk. I'm talking about the risk of litigation.
Another thing that I really like about them, is the liquidity. If I change my mind, I can liquidate at no expense on the click of a mouse. If I want to liquidate a small portion of it to fund something small, say, like, - a weekend stay at someone else's airbnb or vrbo or whatever, - I can sell a small portion to get a bit of cash. Maybe even in a savvy way to harvest a tax loss. Difficult to do that with a large all-or-nothing "asset".
A third thing I like, is the maintenance costs. There aren't any.
It's not Hip, it's not Cool, it doesn't make me "smarter (or more savvy) than everyone else". It's boring, like a hipster friend told me, "Lazy and Stupid". Fine. Sticks and Stones.
2
RWSGFY
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2021 Jul 11, 3:34pm
RWSGFY
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2021 Jul 11, 3:34pm
B.A.C.A.H. says
Even better: you can borrow against your holdings very cheeply, like all billionaires
do. Way cheaper than HELOC and doesn't require jumping through all the stupid hoops.
Another thing that I really like about them, is the liquidity. If I change my mind, I can liquidate at no expense on the click of a mouse. If I want to liquidate a small portion of it to fund something small, say, like, - a weekend stay at someone else's airbnb or vrbo or whatever, - I can sell a small portion to get a bit of cash. Maybe even in a savvy way to harvest a tax loss. Difficult to do that with a large all-or-nothing "asset".
Even better: you can borrow against your holdings very cheeply, like all billionaires
do. Way cheaper than HELOC and doesn't require jumping through all the stupid hoops.
3
B.A.C.A.H.
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2021 Jul 11, 3:41pm
B.A.C.A.H.
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2021 Jul 11, 3:41pm
FuckCCP89 says
Yep. Maybe I used a margin loan to purchase Tacoma back in the day, as a sort of "bridge loan". The investment interest, deductible against gains, was way less than the tax bill would have been on a sale (not so nowadays with the lower tax brackets).
Even better: you can borrow against your holdings very cheeply
Yep. Maybe I used a margin loan to purchase Tacoma back in the day, as a sort of "bridge loan". The investment interest, deductible against gains, was way less than the tax bill would have been on a sale (not so nowadays with the lower tax brackets).
4
YesYNot
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2021 Jul 11, 6:20pm
I'm not advocating one or the other. Our assets are in a mix of funds, real estate, and business. I certainly like having the option of liquid assets at my age, and I prefer the blandest of all - low cost index funds.
The topic at hand, though is the short term rental market. It has some appeal to us as a fun option. Real estate in many markets is safe to use leverage (safer than stocks), and current rates favor that. I do think the short term rental market is going to oversaturate, and there will be many people with dual purpose properties (short term rental / personal use) that end up not renting as well as hoped. Ideally, this won't happen shortly after a purchase.
The topic at hand, though is the short term rental market. It has some appeal to us as a fun option. Real estate in many markets is safe to use leverage (safer than stocks), and current rates favor that. I do think the short term rental market is going to oversaturate, and there will be many people with dual purpose properties (short term rental / personal use) that end up not renting as well as hoped. Ideally, this won't happen shortly after a purchase.
Comments 1 - 4 of 269 Next » Last » Search these comments
I'm thinking of doing this in the Shenandoah region in VA, which has very low inventory and lots of short term rentals on the market. I assume that as more and more people do this, the market will saturate. I'm not sure how long that will take, and exactly how that will play out - plenty of thoughts though. In particular, I think if people insist on working from home, the far flung mountain retreat type areas outside of cities will do very well. I'm thinking that people wouldn't commute long distance every day, but might be willing to commute further once or twice a week. So, the high property values in/close to cities will continue to spread outward.