🔴 AIRBnB a bust? | Luxury home of the week | (LOW sales by volume)
- AIRBnB a bust?
- Luxury home of the week 35 Barry Lane Atherton, California 94027
- Willow Glen Listings
- Bay Area 10 County Report
🔴 AIRBnB a bust? | Luxury home of the week | (LOW sales by volume)
AIRBnB a bust? https://www.tiktok.com/@hellomatthewlong6/video/7328565621136870661?_r=1&_t=8jQSyfpDCgc&social_sharing=1
Bay Area 10 County Report
Airbnb going bust. We'll talk about it. Luxury Home of the Week, Willow Glenn Home of the Week, and the 10 County Market Report. Let's get moving. Most of you know that I'm addicted to TikTok,
only because I spiral down into specific rabbit holes that can present certain topical information to help this video, this channel out.
And the whole reason why I do that is because I want to see what's going on, not just my little myopic corner of the world in San Jose, California, Santa Clara County, California. This lady is, I believe she's in Arizona and I follow a couple of different people, but I wanted to share with you this video to talk about the mindset if you're going to become an investor.
let me see if I can queue this up real quick.
And I had been telling this to all of my recreational buyers here in the local Arizona estate market, that buying an Airbnb between 2021 and 2022 was a horrible idea. And most of it was predicated on speculative buying and investing. While a lot of people were out there using lower rates to leverage into these speculative financial instruments like an Airbnb and a short term rental, what they didn't realize is they never penciled out the investment to see if it actually would.
Make any type of cash flow if it had to be turned or converted into a 12 month long term rental and just like many Investors to include this poor gal who thought that these higher margins would materialize over the years They never did nor were they ever because everyone's brother sister was jumping into the business because everyone Who knew anybody that was investing in real estate said you got an airbnb and now i'll ask you the question Where do you think all these airbnbs are going to go if you can't rent them on a long term basis?
And going to the market right now is a really soft market. So most will take a loss because when they bought them, the interest rates were lower when the prices were much higher. So everybody's lost a tremendous amount of equity. Where do all these houses go? Be an interesting future to see what happens in the real estate market.
Let me know in the comments what you think. Alright, so this guy is a realtor in Arizona.
The Importance of a Well-Rounded Investment Strategy
I look at buying commercial property, apartments, businesses, about one or two hours every day. That's my goal. Sometimes it's a half hour, sometimes it's not at all, but I do a lot of stuff. Digging in to see what's going on, not just here in California, but across the United States, especially in the Southern states.
And the reason why is because I believe that there is going to be an opportunity. I keep taking temperatures of what's going on in the market. I talked to you about commercial, talk to you about apartments. I talked to you about businesses. And I also talk about it in my other channel, financial intelligence, which is down in the links below
the idea here is. Understand what's going on in the market, get a really good idea. And what your strategy has to be completely well rounded and start to finish. You have to have an, a buy strategy. You have to have a management strategy and you have to have an exit strategy. If you just go in and listen to these gurus.
They don't know what they're talking about. It's just like back in 2006, 2007, there was everyone who was a guru. And I'm not offering this course. I don't teach people this because I don't want to get into that. I don't want to be a guru. I'm not a guru on how to invest in property. This is for my own edification, for my own legacy, for my kids legacy.
And people just mamby pamby bought properties, overbought it, which is the horrible strategy in the beginning. They had no management strategy and they hoped that it would pencil in and eventually they could get equity or have it pay for itself. And now they're at a point where in this market, where it's soft, they say they are having to lose equity on the cell.
The Risks of Uneducated Investment Decisions
So whole Airbnb strategy, I think. It works great for a lot of people, but if you don't know what you're doing, you're going to get burned. And that's one strategy. This other lady that was in the beginning and that's the stitch, I guess it's called. She is also a realtor and she bought a house and she had to sell it because it just didn't work out for it.
Didn't pencil out. And if you remember, I talked to you about the house cards. If the house of cards happens to be tipped out by the card of homes, the housing market, not automotive. Like I think it's going to be, it would be because things like Airbnb horrible investment strategies and uneducated decisions.
I'm not saying people are stupid or whatever. It's just that they're uneducated decisions that make your decision to buy an investment have to pay for itself. And it, right now, the way the values are, the way the rates are, the way Airbnb is charging and the oversupply and the low demand of the oversupply of hosts.
In a specific city, i. e. Phoenix, Arizona, versus the demand, it's continuing to lower the per night stay. Just be careful when you do that, right? I always have this long counseling, I feel like I'm an old curmudgeon dad, talking to people when they say I want to buy an Airbnb. I want to make sure that you understand every aspect of the buy, the management, and the exit, because it's very important.
Enough said, that's six minutes of me ranting.
Luxury Home of the Week
Okay, let's talk about the luxury home of the week. This is by Compass and Mary Brent Gullickson. Mary Barry. Body. I don't know if you watch on HBO, but body.
The pictures are horrible. It's because it's stretched out. The formatting in this, it needs to be reformatted here.
But I could see myself being a mob boss, Vito, the mob boss, Vito Corleone. There you go. You got everything you ever need. You never need to leave this place. You can have people come to you. Gorgeous house. Everything about it is gorgeous. This is six beds, eight baths, 11, 257 square feet, 28 and a half million.
If you know anybody that wants to write a check, let me know.
Willow Glen Home of the Week
Willow Glen, a little bit more down to earth. This is a great buy except for one thing, and we'll go to it right now. It's a three bedroom, two bath. Typically houses like this in this condition are over 2 million, but there's one thing that's functionally obsolete about this property.
And it's right here. You can get a hint from this right here. And we'll see it when we do an an overview of this property, but it's a beautiful house. It's older. It's a ranch style. It's been updated, completely updated, really large rooms. I love this house. It's a great house. Right next to Willow Glen.
It is right on the corner of a busy street So if we open this up, you can take a look doesn't have a backyard It has a side yard and can't really see here, but it's on the corner. This is your backyard This is your neighbor your backyard really is Backing up against the driveway of your neighbor.
So it's like a zero lot line, like my house. This is going to be a little bit more difficult for people to buy into. So let's say the plat maps right here. I don't think it is just something to be aware of. Make sure you know what you're talking about. I think that's functionally obsolete. I could be wrong, at the end of the day, it doesn't really matter because you have a nice courtyard and you, but you do have Pine Avenue traffic noise.
And that would be enough for me to say no to that house. It's a beautiful house. Don't get me wrong.
10 County Bay Area Report
10 County Bay Area report. We are so below where we need to be on volume that the prices are going up continuing to go up. We've only sold 300 houses in Santa Clara County this year. So far year to date, 300 houses, right?
The demands there. We should be at 700. Or 1200 or 1900 or 900, sorry. So that's what I'm saying. We have to have about 900 houses, eight to 900 houses actively for sale at any given time. In Santa Clara County, we only have 552 active houses in Santa Clara County. I'm sorry. That's for San Jose. San Jose Should be about seven or 800.
We need about 2020 500 active homes for sale. At any given time in Santa Clara County for it to be a balanced market We're less than 10 days on average right 0. 39. That's 40 percent of a month. So 2016 17 days 14 12 13 Anyway, 309 Now I understand this is the beginning of the year. It's all Slowed down and it's because it's cold and cold months, etc.
I get that I totally understand that but We've been spiraling into a low inventory problem for a very long time. New houses are popping on the market all the time. I'd like to see something where the mad rush comes in and we get overabundance of supply in March, April, May. I don't think that's going to happen because of.
The Impact of Industrial Investors on the Housing Market
Airbnb because of investors, industrial investors, not the yeah, not the mom and pop. It's the ones that are buying thousands of homes every month. They're buying thousands of homes and taking that away from home buyers, potential home buyers. So keep that in mind when you're looking at houses are going to continue to go up in cost and value because there's short supply and rates.
Are looking to come down, right? Tomorrow we'll be talking about that.
Yeah it's bad everywhere, guys. Unless you're in like, Arizona, or Cape Coral, or somewhere else where you have a huge amount of inventory, like, where's Cape Coral? Right here, 7, 000 units for sale last week. There's a mass exodus out of Cape Coral. That's because the, there's a belief that Cape Coral or Florida will be underwater in the next hundred years.
And the last couple of years when storms come over, you see the hurricanes come over and Cape Coral floods out, right? But we're also seeing that in San Diego. So I don't know. I think it's cyclical. All right.
Conclusion: Is Airbnb Going to be a Bust?
Today we talked about, is Airbnb going to be a bust? Do you have an Airbnb? If you have an Airbnb it's probably better to talk to somebody.
Oper options. Because if you don't have your options now, you have your head in the dirt and you're gonna believe that everything's okay, which it's not going to be. At least know your options, right? And if you wait a couple months, it might be too late. And then we also talked about the luxury home of the year of the week.
That's a gorgeous house, that Tuscan house, and then the willow Glen house on Dale and the 10 County market report. I'm Vito with Abitano. We'll see you out there.
Real Estate Broker, Veteran, Dad
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Title: Is Airbnb Going Bust? A Deep Dive into the Future of Short-Term Rentals
In recent years, Airbnb has revolutionized the travel industry by offering unique accommodations and personalized experiences to travelers around the world. However, with the impact of the COVID-19 pandemic and changing market dynamics, questions have arisen about the stability and profitability of investing in Airbnb properties. In this blog post, we will explore the current state of Airbnb, analyze the insights provided by real estate professionals, and discuss the potential risks and opportunities for investors in the short-term rental market.
The Airbnb Bubble:
According to a video shared by a realtor in Arizona, there is growing concern about the long-term viability of investing in Airbnb properties. The video highlights the importance of considering the cash flow potential of an investment property and warns against speculative buying. The realtor emphasizes that many investors failed to analyze whether their properties could generate consistent income if converted into long-term rentals.
The Oversupply Challenge:
One of the key issues discussed in the video is the oversupply of Airbnb properties, particularly in specific cities like Phoenix, Arizona. This oversupply, coupled with a decrease in demand, has contributed to a soft market and lower per-night stay rates. The realtor advises caution when considering investing in Airbnb properties, as there is a risk of facing financial losses in the current market conditions.
Functionally Obsolete Properties:
As we explore the luxury home of the week, we come across an interesting case study in the Willow Glen area. While this property is aesthetically pleasing and has undergone significant updates, it faces a functional obsolescence challenge. The house is located on a corner lot, right next to a busy street, which affects its desirability for potential buyers. While the house itself is attractive, the issue of noise and limited backyard space raises concerns.
The County Market Report:
Taking a broader look at the real estate market, let's delve into the 10 County Bay Area report. The report shows that the demand for houses in Santa Clara County, California, exceeds the current supply. The limited inventory has resulted in increased competition among buyers, leading to rising prices. The report emphasizes the need for a higher number of actively for sale homes to create a balanced market.
Investing in an Uncertain Market:
Considering the current state of the real estate market and the challenges faced by investors in the short-term rental sector, it is crucial to approach investment decisions with caution. Real estate professionals stress the importance of having a well-rounded strategy, including a buy strategy, management strategy, and exit strategy. It is essential to thoroughly analyze the potential risks and rewards before diving into the world of Airbnb investment.
While the future of Airbnb remains uncertain, it is evident that the short-term rental market is facing challenges. Investors must carefully evaluate market conditions, consider the oversupply of properties, and assess potential risks before committing to an Airbnb investment. By being informed and knowledgeable about the market, investors can make sound decisions and minimize the chances of financial loss. It is always advisable to seek guidance from experts in the field to navigate this ever-changing landscape successfully.
1. "Is Airbnb Going Bust? 🏢 Find out the shocking truth about the future of Airbnb investments in this eye-opening video. Don't make a costly mistake! #Airbnb #RealEstate #Investment"
2. "Luxury Home of the Week 🏠 This stunning Tuscan-style mansion is a dream come true. Take a virtual tour of this $28.5 million masterpiece and indulge in the lap of luxury. #LuxuryHome #DreamHouse"
3. "Real Estate Market Update 📈 Discover the latest insights on the housing market in 10 County Bay Area. Is the low sales volume affecting prices? Stay informed and make smart decisions. #RealEstate #MarketUpdate"
Airbnb Investment Risks, Luxury Homes & Real Estate Market Update
This video discusses the potential risks of investing in Airbnb between 2021 and 2022, highlighted by real-life case studies from Arizona. It delves into the drawbacks of speculative buying and shortfalls associated with converting Airbnb investments into long-term rentals. The video also features an exploration of an elegant luxury home priced at $28.5 million, the Willow Glen Home of the Week, and a comprehensive 10 County Market Report. It concludes with a discussion on the ongoing low inventory problem in the real estate market and how it influences housing prices.
00:00 The Downside of Airbnb Investments
02:10 The Importance of a Well-Rounded Investment Strategy
03:58 The Risks of Uneducated Investment Decisions
05:39 Luxury Home of the Week
06:38 Willow Glen Home of the Week
08:12 10 County Bay Area Report
09:53 The Impact of Industrial Investors on the Housing Market
11:03 Conclusion: Is Airbnb Going to be a Bust?
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