May 25th – Sending a Message

What I’m Reading

Sending a Message: Ireland is trying to keep institutional investor firms from buying up its housing stock by imposing a 10% tax on a the purchase of 10 or more homes.  The tax will apply to bulk purchases and cumulative acquisitions of 10 or more homes a year but not multifamily purchases.  This is the sort of populist backlash that we could see in the US if potential homeowners feel that they are being crowded out by institutional landlords.  Stay tuned.  The Real Deal

Begging for Forgiveness: The SBA has been slow to approve debt forgiveness requests on large PPP loans, often taking months, causing headaches for lenders that now find their status in limbo.  American Banker

Crowding Out: Investors are back in the housing market in a big way, with commercial and institutional investors accounting for 14.9%, or roughly one in seven, of all home sales.  Just in case you were wondering why it is so difficult to purchase a starter home right now.  Redfin

Short Term Thinking: Shrinking lease terms could spell trouble for office valuations as tenants increasingly favor flexibility over stability, leaving landlords with more rollover and vacancy risk. Globe Street

Reborn: The latest crypto boom is giving new life to old fossil-fuel driven power plants in order to generate electricity for mining.  The environmental implications here are not good.  The Wall Street Journal

Chart of the Day

Treasury yields are very low given current inflation data.  Either the bond market is correct and inflation proves to be transitory or rates are going to rise.

Image

Source: The Daily Shot

WTF

Playing Dirty: A woman allegedly battered her boyfriend with “soiled dog pads” during a late-night confrontation that also included the victim getting sprayed in the face with Windex because Florida.  The Smoking Gun

Two Worlds Collide: A former porn star was arrested for a DUI hit and run after hitting a pastor with her car because Florida.  Local 10

Basis Points – A candid look at the economy, real estate, and other things sometimes related.

Visit us at RanchHarbor.com