"For anti-imperialist solidarity, peace and friendship" π€
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Gm :)
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Trump and the rest of the Epstein class are going to have to choose: do they want a real estate economy or a world war economy? "Both" is their current answer and it's unsustainable: - up to ~$1.5 trillion in CRE and multi-family loans were made in 2020/2021 with very low rates which are set to expire in 2026/2027 - they're hoping the Fed rates come back down first so they can refinance. But ... Trump. Iran war. Energy crisis. Petrodollar crisis. So they are stuck and can't lower rates, and may have to raise them again, but even if not, the risk to the big institutional home buyers is the sustained duration of already high rates. They don't have 30 year mortgages, they have shorter term debt that gets refinanced regularly. - it's possible this causes a cascade of liquidations where institutional buyers become sellers and flood local markets with the missing supply that's been locked up by these funds. This could be caused by negative debt yields if they fall below debt-service coverage ratio limits. - there's potential legislation that could stop institutional buyers from purchasing SFRs going forward which would also help though they wouldn't be forced to sell existing inventory. - all this could possibly, if we're lucky, lead to a situation in several years where regular people can buy a first home again, if we can survive the crash financially ourselves. I would love to buy my family a home before I'm 50 π€ but it's impossible today. Something has to give with the cost of living crisis. How do you see it playing out?
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