We are all born with a short position on housing https://twitter.com/ctbeiser/status/1110810350109089792 …
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But the other intuitions are materially wrong, like e.g. “If you purchase a house with a mortgage you’re now neutral on housing and paying your bank interest to hedge your natural short.” That’s wrong, kinda trivially, because you are factually 5x+ leveraged long on your house.
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Explain the last part please. What is the 5x long leverage on the house in this scenario?
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interesting. In SG, the received wisdom is that housing prices always go up, and that that's a good thing. Wife and I married about 5-6 earlier than most of our friends, which meant we got to buy our HDB flat earlier, which means we saved tens of thousands of dollars, relativelypic.twitter.com/qLXnZYOMap
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If house prices (and rents) always go up faster than wages, then eventually nobody will be able to afford them, which would surely be a bad thing?
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A short position means you expect prices to drop, right? So we are born... expecting housing prices to drop...? Is this an American thing?