Ipo impact on housing
https://share.qz.com/news/2324230/body/
Quartz
It is going to be crazy again :(
Another idiot article from quartz
Fake news There’s articles like this all the time, like when Snap IPO’d, a bunch of Angeleno realtors gave interviews to the New York Times. Nothing materialized.
Nothing materialized? Why did that happen? Are you saying IPOs aren't any good?
Lol. 1- it’s mostly engineers that get a meaningful equity. Which is maybe half the company, at best. 2- most people will not have fully vested by lockup. It may take years 3- even if they do, they get taxed all at once. So you get wrecked hardcore by potentially 50+% tax here in California (you can thank state and Obamacare for extra taxes). Even with a “million dollar package”, it would be reduced like half. 4- IPO tends to sell on hype. Most companies drop by half by the time you can actually sell (after lockup) 5- equity packages aren’t as high as they think it is. Certainly not enough to outright bid houses with all cash 6- due to trump changes in tax incentives, it severely fucks Bay Area in a way that people aren’t incentivized to buy property over $750k because of less deductions 7- this article is prolly an ad by real estate people to spread FOMO to try to jack up their property holdings (I can’t verify this, just a hunch) Not saying IPOs are not good. Just that it only benefits a very very very small minority of directors and early employees. And honestly, it might be closer to like... 1-5% of the engineers that make multiple millions, with the rest of the company barely having a 500k equity package over 4 years.
Real estate shills
It’s simple economics. Lots of liquidity in a geography of 10 miles. Very little desirable housing stock. Chinese cash buyers getting replaced by ipo millionaires. Prices will rise. Demand far exceeds supply. This happened in the past IPO cycles. Nothing new to see here. Except a lot of non-tech and locals and seniors will cash out and migrate. This city will continue to become more hipster with 20 dollar avocado sandwiches and poor potholed infrastructure and even more homeless people. More techies, less non techies. Grab some popcorn and watch the show
Any comment that starts with “it’s simple economics” about Bay Area real estate is a troll
Google, phrase it better. Don't start by stating the obvious. I hate when anyone tells me, it's something 101. ☺️
Smart people already cashed out before IPO.... oh look, here’s an actual study! https://www.google.com/amp/s/www.sfchronicle.com/business/networth/amp/Finally-some-evidence-on-the-impact-of-IPOs-on-13589281.php
It's gonna be pretty cool. Soon we'll have condos worth 4-5 million. Everyone's gonna be rich: the cabbies, the gardeners, the plumbers, the electricians, the doorman, the waiters, the grocers, the tourists, the poor people in Bangladesh. It's gonna be great!