Bloomberg Opinion Profile picture
Sep 14, 2020 11 tweets 6 min read Read on X
📈🏡 Surging home prices suggest many who are working from home or desperate to escape the city are in the market for a new house.

But given all the uncertainty, buying real estate right now is actually a terrible idea trib.al/fHwXIzX
Record low mortgage rates have enticed new buyers, while urban virus hotspots drove people out of cities.

In July, there was a 📉56% drop in Manhattan property sales and a 📈44% increase in nearby suburbs trib.al/fHwXIzX
But regret is already in the air.

One survey of 1,000 mortgage holders found that most people who bought houses after March 2020 already regretted taking out a mortgage trib.al/fHwXIzX
Buying in a sellers’ market is not a good move.

Home sellers are taking their once-in-a-lifetime moment to sell their house substantially over asking prices trib.al/fHwXIzX
Owning a home might be beneficial over the long run if:

🏠The house price appreciates more than a financial portfolio
🚗You don’t have to move
💍Your marriage lasts
🛑If neighborhoods stay the same

These things aren’t guaranteed, especially not right now
trib.al/fHwXIzX
But many buyers forget to budget for home repair and maintenance, which typically costs 2-4% of a house’s value per year

Then there’s all the weekend time spent mowing the lawn and cleaning the gutters trib.al/fHwXIzX
Another advantage to renting is avoiding the down payment.

Putting $50,000 into a down payment forgoes earning higher returns on a low-fee index fund, which is more liquid and less expensive to manage trib.al/fHwXIzX
Renters have more flexibility than homeowners, and that’s good for employees, especially in a time of so many uncertainties.

Renters can more readily move for a pay raise or new job trib.al/fHwXIzX
While there can be certain tax advantages to owning a home, these may not last forever.

Government support for policies subsidizing homeownership may wane as future Congresses look for new revenue to forestall soaring deficits trib.al/fHwXIzX
A pay cut or job loss might even lead homeowners to sell assets in their retirement accounts to pay their mortgage.

That’s a terrible setback: Some of the worst-hit families lost their jobs in the Great Recession and were stuck in their homes trib.al/fHwXIzX
Wait to buy a home until the economy, the virus and Congressional politics stabilize.

Sharing a small space is tough. Paying for a bigger one is even tougher trib.al/fHwXIzX

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More from @opinion

Apr 2
Could Trump’s tariffs raise $700 billion a year?

We did the math 🧵 Image
$700 billion is about nine times current US customs revenue, and 2.4% of the most recent estimate of US GDP.

Tariff revenue hasn’t surpassed 2% of GDP since the early 1870s, and hasn’t surpassed it on a sustained basis since the 1820s and 1830s Image
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Look at the data 🧵
One of Community Notes’ main achievements is its speed in addressing misinformation. The chart below shows that it is getting faster 📈

But even with these improvements, notes typically appear after a post’s most viral stage of diffusion (after the damage is already done) Image
It’s unclear how much misinformation is on X — if it could be counted, it could be deleted.

But from X’s data, you can see that most misleading posts go unaddressed: Image
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Mar 17, 2023
📉 VCs causing the downfall of SVB
💰 Credit Suisse’s pricey lifeline
🚐 RVs predicting the future

🧵 Catch up on the week in news with @ALampietti’s round up of our must-see videos
If venture capitalists had stayed calm, would #SVB be OK today?

🎥 @kylascan has all the answers
What’s next for Credit Suisse? 🇨🇭

@PaulJDavies explains bloomberg.com/opinion/articl…
Read 6 tweets
Mar 15, 2023
Credit Suisse is in crisis.

What went wrong? So, so much.

🧵 Let’s take a look
We *just* learned that #SVB’s downfall was announcing it was raising equity without having buyers lined up, says @matt_levine.

So why would Credit Suisse’s biggest shareholder announce they would “absolutely not” put more money into the embattled bank? trib.al/aS9oy3I Image
After Saudi National Bank ruled out providing more assistance, #CreditSuisse closed down 24% at 1.697 Swiss francs per share, its lowest closing price on record trib.al/nnFD2F8 Image
Read 10 tweets
Mar 2, 2023
If health is wealth, America is dirt-poor.

The health-care crisis in the US isn’t just a tragedy for individuals. It makes it harder for the country to be productive and secure.

🧵 Let’s look at the data
The most vivid sign of the health crisis is falling life expectancy, says @adwooldridge bloomberg.com/opinion/articl…
There’s perhaps no greater metaphor for this crisis than the unhealthy discourse around Ozempic, writes @JKarl26.

A culture built on dieting is not a proper remedy for what ails us bloomberg.com/opinion/articl…
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Feb 28, 2023
📊 3 charts you need to see 📊

💰 Elon Musk is back on top
🇨🇳 Don’t panic over China’s “farm invasion”
⚡️ Putin’s invasion of Ukraine has dramatically redrawn the world’s energy map

Subscribe to Bloomberg Opinion Today for more trib.al/BNqIxPf
💰 Elon Musk is the world’s richest person again.

The billionaire has turned Tesla’s failing into winning bloomberg.com/opinion/articl…
🇨🇳 No need to panic over a “farm invasion”.

China doesn’t own nearly enough land to cause a food crisis bloomberg.com/opinion/articl…
Read 4 tweets

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