Dear smartest cats on fin-twit, here's a financial puzzler:
-
-
I'm a middle-class kitty looking for a modest place to raise my 10 kittens; no desire for real-estate speculation. Bay Area housing prices have me looking at a modest 1930s bungalow through a 10% down, 30 year mortgage (effectively 10x leverage).pic.twitter.com/a9iuqorpID
1 reply 0 retweets 2 likesShow this thread -
My retirement savings are decent (about $150K), but even a 15% drop in housing prices would leave me underwater and a 25% drop should "rationally," have me considering bankruptcy.pic.twitter.com/334jOMYIG6
1 reply 0 retweets 1 likeShow this thread -
Learning about portfolio theory this year has me thinking about the tails ("meow") so I fired up Robinhood to buy myself a 25% OTM 2030 expiration put option for my house but couldn't find one.pic.twitter.com/rG2ywINXju
2 replies 0 retweets 5 likesShow this thread -
My question: what's the best way to hedge against a drop in housing prices given a highly leveraged position in a single house with a notional value several multiples of my net worth?
@nope_its_lily@jam_croissant@goodalexander@macrocephalopod@bennpeifert@choffstein@Ksidiiipic.twitter.com/sJZUd0b2Yz9 replies 0 retweets 13 likesShow this thread
Having a stable job with a high income so you are never in a position where you need to sell.
Loading seems to be taking a while.
Twitter may be over capacity or experiencing a momentary hiccup. Try again or visit Twitter Status for more information.