Brandon Donnelly — Daily insights for city builders. Published since 2013 by Toronto-based real estate developer Brandon Donnelly. — Page 554

I know that this is supposed to be a blog about building cities, but it's also a blog about real estate and I have heard that people sometimes do things like invest in real estate. So here is a terrific memo by Howard Marks (of Oaktree Capital Management) about when to sell assets (and when not to sell assets). His overarching argument is that, most of the time, staying invested is ultimately the most important thing. But that it can be difficult to do.

Here's an excerpt:

When you find an investment with the potential to compound over a long period, one of the hardest things is to be patient and maintain your position as long as doing so is warranted based on the prospective return and risk. Investors can easily be moved to sell by news, emotion, the fact that they’ve made a lot of money to date, or the excitement of a new, seemingly more promising idea.

Howard is talking about the stock market and his words of advice are particularly important in that context given how easy it is to be a "trader." I can, so maybe I should. But the same lessons hold true for real estate, even though it is a less liquid asset. A lot of wealth has been generated over the years by those who simply bought well and held for the long term. One good decision and patience can go a long way.

The UK has something called the National Model Design Code . The purpose of this national code is to provide guidance to local authorities and communities on the production of policies that promote successful design. More specifically, it is intended to help people determine what "good quality design looks like in their area."

So as part of this, the code wades into subjective things like beauty, attractiveness, and distinctiveness (see above chart). This is an interesting discussion -- and a topic in this recent Monocle radio episode -- because, at the end of the day, is there really such a thing as universal beauty? Can we all agree on what the most beautifully designed places in the world are?

At the same time, and architect Félicie Krikler points this out in the Monocle episode, there are countless examples of ugly places that are still wildly successful by all other urban measures. Is that okay or should they also be beautiful? And if budgets are tight (they always are), is it better to be a beautiful building or to be a more affordable one? Uh oh.

There is also a temporal consideration. Sometimes the things that were once thought to be ugly are now actually thought to be quite beautiful. Beauty can take time, and places sometimes take time to settle in and find their best uses. This is something that I have written about a few times before on the blog.

All of this being said, I believe wholeheartedly in the importance of beautiful places. And I don't think we talk enough about it. Too often we get hung up on esoteric planning stuff, even though so many of the places that we love would never meet these same tests. However subjective as it may be, more beauty is rarely a bad thing.

Image: National Model Design Code

At the beginning of this year, Brian Chesky, who is cofounder and CEO of Airbnb, took to Twitter to ask about what products, features, and/or services the company should launch this year. The thread is filled with all sorts of interesting ideas and suggestions, as well as many responses from Brian confirming the things that Airbnb is already working on, and so here it is :

https://twitter.com/bchesky/status/1477764672640073728?s=20

If you're not a Twitter person or don't feel like going through the entire thread, you can also check out this highlight summary from Skift . They went through and curated the ones that they liked. Some of the common suggestions included tools for co-living and remote working, tools for families and larger groups (like being able to cluster bookings in a particular area), and tools that help you meet locals and other guests.

There were also a number of suggestions around a full blown travel advisory business, as well as property management services that could help small landlords service and maintain their places. This one seems pretty compelling to me because if your goal is to get as many places/hosts as possible, you probably want to make it as easy and frictionless as possible.

It also helps to solve the operating scale problem that is inherent with most short-term rentals. If you've got one property, it can be costly to manage. But if you're Airbnb and you have lots of listings in a particular submarket, then you have some economies of scale. Then again, they're in about 100,000 cities. So maybe that's a lot to manage. And maybe it's too hotel-like for a company that is facing regulatory headwinds.

Do you have any thoughts on what Airbnb should launch this year?