🚀 Refi Boom and How to Invest in VC funds
Equity rich homeowners push up prices for the rest of the market.
Thanks to the Covid refi boom, half of homeowners with a mortgage in the U.S. have very little financial incentive to sell their homes.
So where is all the new inventory supposed to come from?
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This is a big reason behind the current market stalemate; where demand is much higher than the supply even though most houses are still overpriced.
In this edition of the AltReports:
💣 Refi Boom
🏢 Multifamily Growth
📰 Buy the Rumor, Sell the News
💡 14 Alternative Investments
💰 Invest with VCs
The refi boom has put a lot of homeowners in a "holding pattern."
In a market where affordability is at an all-time low, the supply of houses is expected to come from baby boomers, who are less sensitive to mortgage rates or don't have a mortgage.
But the fact that most home sellers also need to buy at the same time complicates matters and will likely suppress transaction volume until affordability improves.
A lot is happening in the mid-market scene. Apartments, in particular, are being bought and sold at a high rate.
Also, there are loads of properties in Hell’s Kitchen and Long Island City that are lined up to be built or redeveloped.
It looks like in the city that never sleeps, the builders don't get much rest either!
The debt ceiling has created a lot of speculation on itsits potential resolution, leading to increased market activity.
This "buy the rumor" phase has in turn driven up the prices of growth stocks, technology stocks, and speculative stocks1.
But, when the debt ceiling issue is resolved, the U.S. Treasury will start issuing new bonds, effectively sucking liquidity out of the market.
Creating a "sell the news" event, causing a drop in prices
The real estate game has changed a lot. It's not just about flipping houses or owning rental properties anymore.
From land flipping to online tax lien auctions, there are plenty of ways to diversify your real estate portfolio without the typical headaches.
Want to invest in well-known private funds? If you know the right people or make the right moves early on, you can squeeze your way into a couple of very lucrative funds.
This podcast takes us through a couple of strategies you can use to get into and invest with top venture funds.
Video of the week
Glut of New Homes For Sale in the US Has Builders Scared
Builder confidence is at its lowest levels since the year 2014. On top of that, YTD permits issued as of March 2023 fell 31% from March 2022 and each of the 4 major regions fell by more than 20%.
Chart of the week
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