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COVID-19 causes the global tourist industry to collapse and suddenly, owning an Airbnb "portfolio" doesn't seem like such a good idea. So how to pay the debts - mortgage, repairs, rates?

Easy! Stick the property on the market - either sales or rental.

Problem solved. Unless, of course, everyone else has exactly the same idea at exactly the same time...

https://www.wired.co.uk/article/airbnb-coronavirus-london

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22 minutes ago, CountingTheDays said:

COVID-19 causes the global tourist industry to collapse and suddenly, owning an Airbnb "portfolio" doesn't seem like such a good idea. So how to pay the debts - mortgage, repairs, rates?

Easy! Stick the property on the market - either sales or rental.

Problem solved. Unless, of course, everyone else has exactly the same idea at exactly the same time...

https://www.wired.co.uk/article/airbnb-coronavirus-london

So that's the squealing I've been hearing recently. Sounded like an abbatoir.

It's okay though, these property entrepreneurs can always fall back on a regular job.

Oh......

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Be still my beating heart!  Lovely news.

There is an opportunity for some light mischief during this lockdown. If you can find the ex-AirBnB rentals for sale, call up as a cash buyer with a -5% offer, then stall as long as you can blaming it on the lockdown, then reoffer -10%, then pull out.  I have no problem burning these spivs, the pain their game of arbitrage has caused has sealed their fate.

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1 hour ago, Huggy said:

So that's the squealing I've been hearing recently. Sounded like an abbatoir.

It's okay though, these property entrepreneurs can always fall back on a regular job.

Oh......

excess supply, no demand.

air bnb has just shafted(is shafting) buy to let!

 

nobody is moving for the moment, but with the price cuts forthcoming on the rental market the prospective tenants will be in charge of this market.

Even more so if the purcasing power of said tenants is limited.......so landlords putting up rents?....don't think so.

extra competition AND extra regulation to contend with now.

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rightmove et al to go to "subscriber service"????

are they going to look at getting an income stream by charging prosepctive sellers/landlords a monthly listing fee?????

in light of current events it would seem like a more sensible solution than paid commission for sales(or perhaps reduced commission)

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From the article (thx OP for post!)

"Many of these listings are concentrated in and around London’s tourist hotspots, "where a deluge of furnished apartments have been made available for rent in recent days, many for well below the market rate."

(My emph). Think someone else needs Economics 101: ("The Market Price is not simply the price a seller considers accurate. It is the price on which buyers and sellers agree)

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Reading about these Airbnb scumlords being (very) suddenly caught out because of global shutdown, and all the posts on here,  almost brings a joyful tear to my eye!

From that wired post:

"...For the short-term rental industry, the collapse of Airbnb is a disaster. These property empires are almost always built on extremely wobbly foundations. Many operators, enticed by get-rich-quick guides, take out substantial bank loans, negotiate deals with landlords to guarantee market rent for up to three years, and then try to make as much money as possible by renting out the properties short-term on Airbnb. It’s estimated that short-term rentals on Airbnb can return between three and five times the rental rate compared to a long-term tenant. But the scheme only works if you can rent out the apartments.

In response to the coronavirus pandemic, Airbnb updated its policy to allow guests to cancel, without penalty, any booking made on the platform from March 14 to April 14. As a result, so-called Airbnb ghost hotels – large-scale, professionalised Airbnb operations that have become commonplace in cities like London – suddenly have no guests. This has exposed individuals and companies using the get-rich-quick Airbnb business model to huge financial liabilities. In short: they remain liable for huge rental bills on scores of properties, all of which will likely sit empty for many weeks or months while the world is under lockdown".

Oh and @msi  your earlier post made me smile so much i may audition for the role of Joker in the next Batman film:

12 hours ago, msi said:

Be still my beating heart!  Lovely news.

There is an opportunity for some light mischief during this lockdown. If you can find the ex-AirBnB rentals for sale, call up as a cash buyer with a -5% offer, then stall as long as you can blaming it on the lockdown, then reoffer -10%, then pull out.  I have no problem burning these spivs, the pain their game of arbitrage has caused has sealed their fate.

 

Edited by highcontrast
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The Guardian has now picked up the AirBnB story. 

How the Covid-19 crisis locked Airbnb out of its own homes

The short-let platform’s business model has been exposed. Bookings have fallen off a cliff but Airbnb simply can’t change tack. 

https://www.theguardian.com/technology/2020/apr/04/how-the-covid-19-crisis-locked-airbnb-out-of-its-own-homes 

 

 

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Oh, that video of the ranting debt ridden scumbag maniac is just utterly hilarious. I don't think I can laugh lould enough to satiate my pleasure! This is the best news in well over a decade. Hell is now open to landlords for business, maybe they can finally go there and take it up the a55 with a large pinapple rather than giving it.

 

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How they ever thought that they, special people with special skills expect to continue collecting rents on property when thousands are losing their jobs and finding it hard to put food on the table......get a life.?

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8 minutes ago, winkie said:

How they ever thought that they, special people with special skills expect to continue collecting rents on property when thousands are losing their jobs and finding it hard to put food on the table......get a life.?

i said the exact same thing on another forum that had a topic on mortgage costs reducing due to BOE bank rate. 

strangely it was deleted by them LOL 

"The government will never let house prices reduce" was what i was told. 

 

 

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38 minutes ago, Belfast Boy said:

How much have the banks lent to Airbnb speculators? Is this the next subprime crisis requiring bank bailouts?

They have no idea. Airbnb speculators will have have just taken out regular BTL mortgages. (Especially if it's flats where they are also in breach of the lease)

Airbnb landlords will be rushing to find regular tenants. In some this will barely cover the mortgage interest (If they can find paying tenants & market rent doesn't fall). 

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15 hours ago, Freki said:

Oh boy, that twitter video is incredible: 

 

It's certainly an entertaining pantomime rant but underneath that all of the criticisms made of AbnB are valid. They charge a huge amount for their "service" of putting renters and hosts together and dumping on their hosts when things turn difficult will make many think that service is not worth paying for.

I suspect they will come out of this very badly and that IPO will either not happen or be at a vastly reduced price. They should have refunded the renters and paid the hosts whatever they were contracted to receive, that is the sort of service you should expect from a middleman taking 16% of the transaction cost. 

 

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  • 417 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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