Author Topic: Buying vacation homes in the US  (Read 5241 times)

Spekulatius

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Re: Buying vacation homes in the US
« Reply #70 on: August 05, 2020, 06:53:28 AM »
@BG, once COVID is done and we're out of Hurricane season. February is my target as King Mackerel fishing on the Gulf really heats up. Its only a 3/2 but there'd probably only be a half dozen folks here anyway as most are turned off by my frivolous engagement with the politics. Win/win for the thick skin! ...

[ ; - D ]

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thepupil

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Re: Buying vacation homes in the US
« Reply #71 on: August 05, 2020, 11:00:20 AM »
https://www.wsj.com/articles/why-your-house-could-be-your-best-performing-asset-class-11596629101?mod=hp_featst_pos4

Quote
Darin LaFramboise used to think of a house as a liability. He and his fiancée lived in an apartment in San Francisco, where they could go running in a nearby park, see a movie a block away and eat out regularly. The money saved on housing expenses went into the stock market. “All that changed when Covid hit,” said Mr. LaFramboise, a product manager for an identity-management software company. He and his fiancée, a legal analyst, worked from home, trying to insulate themselves from each other’s calls. They didn’t feel safe running on crowded paths. The living room became their gym. The kitchen suddenly felt too small.

So they went “looking for a space where we could live without a mask on: a backyard, a front yard, a kitchen to cook in.” Their Redfin agent found them a house in Lafayette, 25 miles east of San Francisco, with two spare bedrooms to serve as home offices, space for a Peloton exercise bike and a big backyard.

it's all kind of particularly funny for me, because I've always been the "don't buy a house, buy stocks" guy amongst my friends/acquaintances, but then Federal Realty Trust tried to raise my rent from $3,100 -->$3,500 and the personal circumstances allowed for a house purchase and I begrudgingly bought in a bidding war and that's done much better than any other pre-covid investment.

Anyways, I thought America (and to a much greater extent Canada, Australia, certain parts of Europe) were WAY too crazy about housing and I feel like covid has put steroids into that mentality, not to mention record low rates. there's massive unemployment, but for the well-off/employed, I feel like SFH is going to be ridiculously well bid. Obviously that's already playing out, but what I mean is that covid is going to reinforce the american (and world) psyche of being obsessed with allocating too much $ to their houses.

I bought my house for a 2% cap rate, so it's a double with only 100 bps of cap rate compression  ;D
« Last Edit: August 05, 2020, 11:40:45 AM by thepupil »

muscleman

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Re: Buying vacation homes in the US
« Reply #72 on: August 07, 2020, 06:29:57 AM »
https://www.wsj.com/articles/why-your-house-could-be-your-best-performing-asset-class-11596629101?mod=hp_featst_pos4

Quote
Darin LaFramboise used to think of a house as a liability. He and his fiancée lived in an apartment in San Francisco, where they could go running in a nearby park, see a movie a block away and eat out regularly. The money saved on housing expenses went into the stock market. “All that changed when Covid hit,” said Mr. LaFramboise, a product manager for an identity-management software company. He and his fiancée, a legal analyst, worked from home, trying to insulate themselves from each other’s calls. They didn’t feel safe running on crowded paths. The living room became their gym. The kitchen suddenly felt too small.

So they went “looking for a space where we could live without a mask on: a backyard, a front yard, a kitchen to cook in.” Their Redfin agent found them a house in Lafayette, 25 miles east of San Francisco, with two spare bedrooms to serve as home offices, space for a Peloton exercise bike and a big backyard.

it's all kind of particularly funny for me, because I've always been the "don't buy a house, buy stocks" guy amongst my friends/acquaintances, but then Federal Realty Trust tried to raise my rent from $3,100 -->$3,500 and the personal circumstances allowed for a house purchase and I begrudgingly bought in a bidding war and that's done much better than any other pre-covid investment.

Anyways, I thought America (and to a much greater extent Canada, Australia, certain parts of Europe) were WAY too crazy about housing and I feel like covid has put steroids into that mentality, not to mention record low rates. there's massive unemployment, but for the well-off/employed, I feel like SFH is going to be ridiculously well bid. Obviously that's already playing out, but what I mean is that covid is going to reinforce the american (and world) psyche of being obsessed with allocating too much $ to their houses.

I bought my house for a 2% cap rate, so it's a double with only 100 bps of cap rate compression  ;D

Charlie Munger: "We made most of our money waiting"
Jesse Livermore: "It is my sitting tight that made me the most money"

Real estate investments tend to work out better than stocks because it is so hard to buy and sell. You can't just wake up one day with a bad mood and log onto your app and close the position in seconds. It forces people to sit tight.
I am muslceman. I have more muscle than brain!