Quote:
Originally Posted by Patriam1066
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I don’t know the answer man, but my son, an optometrist, made $11 million in stocks and crypto (he had a ton of Bitcoin and ethereum) over the course of the pandemic, and he moved to Florida and retired. He owns two homes in Texas, one that he rents and one that is an airbnb, and neither him nor his wife work
Something is fucked up about that, and we’ve had higher marginal tax rates before. I don’t think thirty year olds should be retiring while others quite literally suffer. I am also not a fascist or a statist, so I wouldn’t throw my son into a gulag or force him to work, but I don’t know the answer. There has to be a happy medium between complete libertarian freedom and communism. Its also important to note that I’ve told my children to invest in index funds and my son has always done that, so a big part of the money he made was due to the Fed pumping money into the stock market. Our government has a lot to do with some market and real estate gains, so why not raise taxes back to Reagan levels? I never said 100%, and I am not saying increase taxes on anyone making under $100,000. However, the current situation is unsustainable. An Airbnb property should provide capital to the owner at 5x what a teacher makes? Doesn’t make sense if we want to incentivize hard work instead of everyone becoming an obese crypto shitlord
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Ok, I’m going to give you the benefit of the doubt that I am definitely the one that knows less about real estate, just going off personal experience
But what your son is choosing to charge for his Airbnb is a function of multiple things, right? It’s not just his whim, I’m assuming he’s basing the price around the competition? Because if the competition is charging significantly less, he wouldn’t get any customers. Unless his home is in some exotic location where there are no competitors
And is an Airbnb considered like rent? I’ve actually never stayed at a Airbnb but isn’t just really short term? When I think rent costs, I am thinking either month to month or leases you get into with the landlord. Not that those prices aren’t going up as well, but aren’t they different categorically to a 1 night stay at a BnB?
I’m going to assume a scenario where instead of a BnB, your son rents the property to someone, and makes money that way. Let’s assume he owns the property so the rent goes into his pocket and doesn’t have to go towards the property’s mortgage
That would mean your son has whatever the value of the home in $$ to invest into a way of making money. If he wanted, he could sell the property and have probably hundreds of thousands of $$ to invest in some other business venture. Had he chose, he could buy multiple store franchises for that (not chains, just multiple individual stores). Or like you said, a smart investment of those hundreds of thousands of dollars into the stock market or crypto could be enough to live off of
I really don’t see the problem with your son’s situation. Also, I think the value of homes and rent are going up because the real estate market is too hot, and that’s due to big investment firms and whales, not your son