DID YOU KNOW?
Top Headlines: Delivered by Leonard Steinberg
August 02, 2023
01 Governments will pay roughly $2.2 trillion in overall debt interest this year....rising rates impact government borrowing! About 25% of U.K. debt is now tied to inflation - more than triple that of the US - trailing only a handful of emerging markets with a history of runaway prices such as Uruguay, Brazil and Chile. (WSJ)
02 Barbie's dream house in Malibu, California cost $77,737 when it debuted in 1962.....today it is estimated it would cost over $2.8 million....a 3,521% increase! (INSIDER)
03 In 2022, more people moved into Maricopa County Arizona than any other county in the US — for the second consecutive year. (Bloomberg)
04 Paris Home prices are down around 8.3% since their high's in 2020. Paris has seen a 52% increase in real estate taxes this year! French banks are not allowed to grant mortgage loans above a maximum rate which is set by the Bank of France limiting lenders’ capacity to pass on the impact of higher rates.... leading some to turn down loan applications. Paris remains the most expensive of all European cities. As of 1 January 2023, occupancy tax only applies to second homes and vacant properties, not main residences. There are three taxes in Paris: a wealth tax for properties worth over 1.3 million euros, and two taxes on its rental value: the taxe d’habitation and the taxe fonciere. (Bloomberg)
05 The FED is probably going to raise rates today again to a 22-year high....
06 As of May 2023, 1.04% of all U.S. active listings mentioned some type of private financing, down from 1.08% in February and March, which was the highest that figure has been in 3 years. Sellers may be wise to consider owner financing......5-6% interest on your cash is not bad! I sold a house several years ago this way in a tough market and received monthly interest income for several years before the buyer re-financed.....a win-win! (WSJ)