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Tag Archives: Real Estate

So, You Want To Live Tiny? Here’s What To Consider When Choosing a House, Van or Caravan

Yves here. Only at the end of this article do we read that very few people live in tiny homes. I am at a bit of a loss to understand why they are more appealing than a small apartment, perhaps because I never had noisy neighbors despite having lived in thirteen apartments. See my general views on houses here. But having said that, one of my larger apartments would still smell for days after I had cooked scallops. Admittedly, one attraction of living small, if you are handy, is the...

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Wolf Richter: How Ratings Agencies Inflate Credit Ratings to Get Deals & Fees

Jerri-Lynn here. Plus ça change  -I  finally caught up with The Big Short on a recent transcontinental flight. Didn’t we learn anything from the Great Financial Crisis? By Wolf Richter, editor of Wolf Street. Originally published at Wolf Street There is a fairly new and popular creature in the hopping party-town of securitizations: “commercial-real-estate Collateralized Loan Obligations.” These CLOs are bonds backed by risky commercial real-estate “transitional loans,” such as loans to fix up...

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Australia Burning; Tourists in New South Wales and Victoria Flee to Beaches

Seeing what is happening to Australia, even from this remove, is sickening, for its people, for its wildlife, and for what it bodes for the future of significant swathes of the planet. As most readers know, I lived in Sydney from 2002 to 2004. Even though Australia had been moving in a neoliberal direction, it was still well behind the US and UK. It was strongly egalitarian. People mixed across lines. Even in a commercially-minded town like Sydney, the prevailing ethic was to work hard and...

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The 2019 Tailwinds of Housing Describe the 2020 Headwinds of Economy

It’s all somewhat confusing, once acclimated to this new paradigm. The highest in years can still be nearer the lowest in history. Given that apparent contradiction, it seems as if only one of those perspectives can apply. Which one you focus on often depends upon which way you already lean. Toward the end of last year, mortgage interest rates had climbed up near 5% (average 30-year). It was the highest since early 2011, a surefire calamity for the housing market. And that market was under...

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The Rich Under Stress as Asset Prices Wobble

Despite Wall Street rising yet again to record highs, more and more of the rich are taking unexpected reversals, thanks to this generation of the super wealth deviating in a major way from historical norms by regularly taking a walk on the borrowing wild side. As the cliche goes, leverage cuts both ways, amplifying gains and losses. Borrowing against illiquid assets is a classic way to end up in a cash crunch, selling assets at fire sale prices to hold off creditors. Two stories tonight...

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Phase One of Grenfell Tower Inquiry Released, Towers not Up to Code, Suggestions for Firefighters

By Lambert Strether of Corrente We’ve been following the Grenfell Tower story from the beginning (photo essay; one-month anniversary). From June of this year: Today, June 14, is the second anniversary of the GrenFell Tower fire in London, a public housing block where 72 people died in a conflagration where the proximate cause was inflammable cladding installed on the outside of the building during a remodelling, and the ultimate cause was Thatcherite deregulation and a neoliberal infestation...

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Downward Home Prices In The Downturn, Too

The Census Bureau reported today New Home Sales remained at a better than 700k SAAR in September following the big jump over the previous few months. Though the number was slightly lower last month than the month before, it wasn’t meaningfully less. As discussed yesterday, while that might seem the Fed’s rate cut psychology combined with the bond market’s pessimism (reducing the mortgage rate) is having a positive effect, I don’t see it that way. From yesterday: More than interest rates,...

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Macro Housing: Bargains and Discounts Appear

While things go wrong for Jay Powell in repo, they are going right in housing. Sort of. It’s more than cliché that the real estate sector is interest rate sensitive. It surely is, and much of the Fed’s monetary policy figuratively banks on it. When policymakers talk about interest rate stimulus, they largely mean the mortgage space. Homebuilders, at least, responded in August 2019 to the first rate cut in a decade exactly the way the FOMC had imagined when policymakers finally came around to...

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For Boomers Reframing Aging, Age-Proofing A Home Won’t Come Cheap

Yves here. On the one hand, this article sets forth a nascent housing trend: that of building or retro-fitting homes to be elderly-friendly. On the other, without getting the full details, this couple built a home that was wheelchair friendly. Another potential need is live-in help. And caring for the yard would eventually be entirely hired out if the couple is indeed able to age in place. The article also politely notes that not being able to drive becomes an issue, yet seems to have a...

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Watch This [WeWork] Space

15 Oct – 08:14:04 PM [RTRS] (9984.T) – WITHOUT ADDITIONAL FUNDING, WEWORK IS POISED TO RUN OUT OF CASH BY MID-NOVEMBER – CNBC — Alastair Williamson (@StockBoardAsset) October 16, 2019 A very smart friend of mine thinks WeWork could be the Lehman-like trigger that causes risk premiums, including equity,  to blow out.  Jamie to the rescue with a $5 billion line of credit? And to think investors almost got stuffed with what was originally valued close to a $50 billion IPO of this...

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