Re:How This Ends
by lazide on Monday May 23, 2022 @12:10PM
(#31480865)
The ‘cheap money’ issue isn’t a short term one. It’s been steadily dropping with only minor hiccups since the mid 80’s - about 40 years ago. The last time the US had a inflation hit, at that time due to the Oil crisis.
Mostly to keep juicing the economy, which has steadily been needing it more and more to grow/less responsive to stimulus.
Folks I know who have done the AirBnB route were often getting mortgages and buying properties to let out, using the short term cash flows to pay the (low interest rate) mortgage.
Which makes sense as an investment, because the mortgage was cheap (cheap money) compared to current cash flows.
It has become more and more
pervasive, until it stopped being able to make money due to saturation. Younger folks traveling around during Covid using AirBNBs helped (they were trying to avoid lockdowns and ‘dirtier’ hotels), but not sure how it is going to play out now.
Anyone who had a 30 year mortgage they got then is going to do pretty fine though as long as they have cash flow.
Mostly to keep juicing the economy, which has steadily been needing it more and more to grow/less responsive to stimulus.
Folks I know who have done the AirBnB route were often getting mortgages and buying properties to let out, using the short term cash flows to pay the (low interest rate) mortgage.
Which makes sense as an investment, because the mortgage was cheap (cheap money) compared to current cash flows.
It has become more and more pervasive, until it stopped being able to make money due to saturation. Younger folks traveling around during Covid using AirBNBs helped (they were trying to avoid lockdowns and ‘dirtier’ hotels), but not sure how it is going to play out now.
Anyone who had a 30 year mortgage they got then is going to do pretty fine though as long as they have cash flow.