Developing Affordable Housing Ecosystems World Wide
[Continued from yesterday's Part 1.]
Yesterday we saw that advances in computing technology have moved in parallel with advances in financial technology — complex financial structuring, securitization, and more.
My dear sir, if it were easy, everyone would be doing it
As it writes in Black Boxes, the Economist is a tad skeptical:
Advances in [...]
As the world continues sloshing around in excess liquidity, where will it go? I’ve previously posted that, whereas capital is fickle — the wind blows where it will — property is stodgy: you can’t move it (duh), you can’t change it, and the measure of its physical change is the half-decade or longer. [...]
[Continued from yesterday's Part 1.]
Yesterday we explored how parents are often willing to provide cash to their progeny, so as to facilitate a home purchase and family formation and expansion. But money, being digital, requires quantitative expression, and documentation.
Get the numbers into your head
What the borrower and the documents may think [...]
Even as housing incubates families, and housing incubates household formation (and growth), the converse is likewise true: families incubate housing consumption.
Families hatching soon
Nowhere is this more evident than when young people seeking to grow their family and housing consumption confront the double hurdles of down payment and mortgage payment. In a chain [...]
Just as we have a yield curve, finance recognizes a risk curve.
The yield curve is a two-dimensional representation of the market’s tolerance of long-term debt investments, with maturity as the horizontal axis, and interest rate as the vertical.
As maturity lengthens, interest rates should be higher
In a ‘normal’ world, the longer a loan’s maturity, the higher [...]
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