real estate market starting to pump? People buying rental property and putting them on homeaway?
I just did it on a high end vacation rental.
alot of property being bought as investment now, south florida is going nuts which is usually an indicatiion of the last bust ending and the next boom beginning. Has been happeining since the spanish found the place.
marcos island florida about 1500 homeaway listings....thats just one town folks.
They claim they got 720,000 homes on homeaway in 132 countries.
so lets say each homeaway has a 10% occupancy rate. Lets say that each occupant is different. That would translate to 3.7 million people that are using homeaway services.
now lets suppose that these people are also relatively affluent and tend to buy stocks/equities.
what happens to the available float if these individuals start buying stock?
strange analysis you may ask, but thats exacty what happens with the likes of amazon and ebay etc. People tend to buy what they know and voila we got a stock that becomes a high PE steamroller. Its the old Peter Lynch thing were people buy the stock of the stuff they use.
once the momentum builds it becomes a self fullfiling prophecy. Make money on the stock, go on more vacations, buy more stock, take more vacations. Buy a house, list it on homeaway, buy the stock, make money on the momentum, take more vacations, buy more houses...etc etc etc.
this is ripe for a multibagger......3x, 5x etc. Who knows with the Fed bubble were this could lead.