It’s basically a way for crony capitalism to rear its ugly head in the “freest country on earth”. They claim that these homeowners and tenants are acting as hoteliers and should be regulated – and, of course, taxed – just like a hotel. You may have read that local governments in places like New York City and parts of California are trying to shut down Airbnb. But, like so many things, I believe it’s better when applied overseas, rather than in The Land of the Free. The idea is straightforward, and a good one. The concept of the article is that because real estate in some US cities is cheap, it’s easy to buy a small condo – the perfect size for a short-term guest who wants a hotel alternative – and rent it out daily, weekly, or monthly on sites like Airbnb. There are some nice places on there, and I actually used it myself once. In case you don’t know, Airbnb is a site that connects property owners and renters with travelers interested in renting a room or the whole house for one night or a month. Today, I read an article on Gizmodo about buying an apartment just to rent on Airbnb. One guy we discussed at this meeting even PREPAID a several-year lease for a HUGE discount (almost 40%, although I believe that was off the inflated “westerner price”). Vietnamese property owners, who buy real estate for the sense of security it brings them, feel good knowing they have a long-term tenant, even if they miss out on some upside. The reason was that rents on expat-friendly apartments in Vietnam has been going up. Among all of the business talk, they threw out one local investment idea: sign a long-term lease on a Western-friendly apartment. A few months ago, I met with several expat entrepreneurs in Ho Chi Minh City, Vietnam.
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