Re:Redfin: Vacation real-estate ‘toast’ as Airbnb owners rus...
by vmception on Monday May 11, 2020 @11:22AM
(#23143119)
> but some of that is intrinsic in what real estate is. You can go inside your house and it keeps the rain out, which is nice.
yeah and that remains true when real estate is exchanged for the amount of cash people have on hand, instead of how much cash they could theoretically produce in 30 years.
the game is trying to figure out how much of that intrinsic value is relevant right now, or how close is the current price to that 'intrinsic value' since they can be far far far away from each other. its just a commodity no matter how married you are to the asset class: if there is a glut of supply because people can't afford the mortgages or property taxes then prices go down. The banks and states don't care, they already earned what they wanted from the mortgage/property owner and are derisked. when you default they will get the property off their book as fast as possible.
yeah and that remains true when real estate is exchanged for the amount of cash people have on hand, instead of how much cash they could theoretically produce in 30 years.
the game is trying to figure out how much of that intrinsic value is relevant right now, or how close is the current price to that 'intrinsic value' since they can be far far far away from each other. its just a commodity no matter how married you are to the asset class: if there is a glut of supply because people can't afford the mortgages or property taxes then prices go down. The banks and states don't care, they already earned what they wanted from the mortgage/property owner and are derisked. when you default they will get the property off their book as fast as possible.