Airbnb operator says he's facing losses of hundreds of thousands of dollars because of new short-term rental laws
Airbnb operator says he's facing losses of hundreds of thousands of dollars because of new short-term rental laws
Steve Nguyen runs two Airbnb units in a downtown Victoria apartment building, including one decorated and paying homage to the television show, “Friends”. He says he’s still reeling from the news he soon won't be able to operate it as a short-term rental since he doesn’t live there.
The equity that I’ve worked so hard for in these units has vanished in a day.
The equity is still there, dumbass, you just still owe on the mortgage.
[He] plans to list it for $150,000 less than he bought it for a year ago
You bought it a year ago?! How could you not see this was a likely thing to happen a year ago?
worked so hard
Ah, landlords. They truly labour harder than anyone else.
No shit. The writing wasn't just on the wall, it was spray painted on the ceilings, too!
Airbnb operators can cry me the Fraser friggin' River. There are a lot of people needing long term rent, we don't need the operators sucking out the supply.
but plans to list it for $150,000 less than he bought it for a year ago – its value walloped because in a matter of months, it will no longer be useable in most cases as an Airbnb, “The revenue stream dictates the value,”
The system works!
Welllll let's not get carried away there.
oh no...
... anyway!
Remember this moment the next time someone says that business people deserve wealth beyond the wildest dreams of avarice because they "took a risk".
The whole "took a risk" stuff is so dumb because in most cases what they risk is ending up with less money.. which is still more than most people have throughout their lifetime.
I'd feel totally safe risking 900 million USD if I already had 1 billion USD. What's the worst that can happen, like, really?
The risk actually complete and utter bullshit anyway, especially if you're operating under a corporation.
Consider I take out $1m to start business. I buy a property and equipment for the business. I operate it for a year, make some money, then go bankrupt.
The bank takes back the business assets and ... That's it. They can't touch your personal assets unless you agreed to put them up as collateral. If it was a sole proprietorship your credit score goes to zero which sucks for a few years, but if it's a corporation the company goes bankrupt and you walk away scot free.
So I spent a year running a business, made some money, and wind up in the same place I started. What did I lose? Maybe a credit score and that's it.
If there is nothing to lose, then there is no risk.
Also remember these AirBnb owners are more often like you and I except absolute shitheads looking to exploit the market for their own personal gain.
The problem may be partly those in charge but we need to point the finger at ourselves. We all bought into the same system that encourages this shitty behaviour.
Nguyen says he makes enough by renting out his unit on Airbnb to cover its mortgage
Well it sounds like you shouldn't have done that.
It's not even the right calculation he should be considering - a mortgage payment pays down interest and principal. Rent should only be expected to cover the interest portion of a mortgage - anything that covers principal is basically free money for the landlord. This guy is basically upset because he can't find a tenant who'll give him a free house fast enough. I have no sympathy.
Made an investment.
Didn't work out.
Boo hoo.🎻🎶
🎻🎶
Hahahahahahahaha!
good
"I work so hard" "fired staff" c'mon
Ye yes the tears sustain me
Good, get fucked.
Hahahahhaha, oh wait you're serious, let me laugh even harder. HAHAHAHHAHAHAHA!
to shreds, you say.
and his wife?
Womp Womp
So sell them? Or become a leech and rent them as a landlord? Housing is a human right and has always been in demand. Especially downtown in a major city.
I'm okay with it.
Sucks to suck
the spin from the restaurant/tourism side is appalling, they are probably in bed or have stake in that short term rental industry as well but said they couldn't afford more employee or employee won't be able to stay local? what? how about other thousands not be able to find reasonably priced rental place to work in different industry?
If housing prices dropped regular residents could afford restaurant meals.
Oh no! Anyway
AirBnB should have never been allowed in an existing building. If you want to have a short term rental build a new building for it.
I think it was a good idea that went off the rails.
Let's say you were going to go on vacation for a week or two, then you could rent your house to someone for that time period and make a little money to cover your vacation while someone else gets a place to stay that was cheaper than a hotel while they're on vacation. Everybody wins.
But then people started turning it into a business and ruined it.
Poor fella.
Nguyen some, ya lose some.
Prepared to be unsurprised when this doesn’t fix the housing problem at all.
It's one part of it. Another is vacant places with foreign owners, another is and so on and so on
How many of these units are running in the GVRD?
