In essence, we’re witnessing a luxury house boom. Well-compensated AI engineers are vying for those luxurious houses.
It would be good to get some local real estate pulse. Anyone out here shopping?
If you mean the San Francisco Bay Area, I don’t have the money.
I’ve transferred the ownership of Austin Single-Family Homes to my children. Now, I only buy S&P whenever I have new money to invest. No more RE investment.
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Looks like most long term forum users have primarily moved on to stocks…
Currently, we are only witnessing the initial impact (1st order) of AI. What are the subsequent (2nd order) and tertiary (3rd order) consequences of AI?
Desirable houses have shifted from agricultural areas to coastal regions involved in international trade to technological and financial hubs. Where will AI find its place?
While we’re figuring out where those places are, we’re certain that increased productivity from AI will lead to lower employment (those remained employed will get higher pay) and higher profitability for businesses that are involved in AI and know how to leverage it. I’m referring to rentals, however if you can afford to buy old luxury homes and flip them. That could be a good strategy. Otherwise, investing in stocks is a better strategy.
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I haven’t bought a rental in 2 years.
I sold one out of state last year and I’m glad I got out of that one for a profit.
I’m still able to raise rents by 3 to 5% for the rest.
Given where mortgage rates are and the fact that you can get 5%+ easily from the stock market, that’s what I’ve shifted to (ie a mix of VT and trading options).
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