26 July 2019 FT — Articles to Read

26 July 2019


Question: According to MSN: Money, what are fourteen (14) first-time homebuyers mistakes to avoid?


Puerto Ricans welcome resignation of governor – Pg. 2

  • The scandal broke two weeks ago when the island’s Center for Investigative Journalism released thousands of messages between Mr Roseello and close aids that were sent on Telegram the instant message service
  • The texts included misogynistic and anti-gay language and joes about the devastation wrought by Hurricane Maria in 2017
  • (Prof Note: Several of my closest mates have told me their children have chosen “alternate lifestyles”. Each time I think they have had trepidation telling me not knowing my reaction.  When I think after the absence in my life of not having these friends in my life it saddens me.  While I pride myself on being very open minded, I encourage others to consider their opinions and the costs associated with those opinions.  Personally, a persons’ choices in life are their business and I hope it makes them, and those around them. happy.  Even if one has opinions regarding lifestyles, consider the effects of expressing them on others.  Just because an individual chooses a path that may not be one’s own chosen path does not make them “bad”, it makes them different.  There is a reason there are 31 flavours at Baskin Robbins.  Funny story, many individuals here may be unaware that that in college and graduate school I was a dancer.  I was actually collegiate champion (Go UMD Bam Jam!).  While my life is traditional, my life would have been less fulfilling without all the coaches that had chosen alternate paths that helped me along the way.  Another fun fact: My latin coach insisted I learn to follow as well as lead.  I spent as much time dancing the “femail role” in practice as I did the male.  His logic, and I agree, was that it would make me a better leader.  I can still remember one man coming into the studio with his two young daughers.  It appeared he wanted to find them a coach (mine was a former Olympic choreographer) an when he saw the two of us dancing, he stood, pondered and left.  I still chuckle.   Think before you express!  Is it really worth having an opinion that can cause pain to so many and can exclude high-quality people from one’s own life?!)


Turkey’s new central bank chief oversees biggest rate cut since 2002 – Pg. 3

  • Turkey’s central bank slashed its benchmark interest rate yesterday, marking a shift in direction after the sacking of its former governor by President Recep Tayyip Erdogan
  • The bank’s monetary policy committee reduced the one-week repo rate from 24% to 19.75%, slicing 4.25% off the cost of funding, the biggest rate cut since the bank shifted to a policy of inflation targeting in 2002
  • The lira fell soon after the announcement, then rallied as much as 0.8% against the dollar before reversing most of the gains


Junk bond issuers seize chance to stretch out debt – Pg. 19

  • Longer term debt and lower borrowing costs. That was the promise made to shareholders by Brazilian meat processing JBS on its first-quarter earnings call a few months ago
  • The latest move downwards in global bond yields – fanned by expectations of the first cut in interest rates from the US Federal Reserve for more than a decade – is raising concerns among some investors who fear that monetary policy easing will encourage companies to take on more debt than they can handle
  • The consensus among invertors is overwhelming: almost everyone expects the Fed to cut rates next week


Answer: (1) Looking for a home before applying for a mortgage (Prof Note: remember to shop for mortgages); (2) Talking to only one lender; (3) Buying more house than you can afford (Prof Note: Decide on paper what you can afford PRIOR to looking.  Yes, something that costs $50,000 more will always be more lovely); (4) Moving too fast (Prof Note: Slow down….you get this wrong and the results can be catastrophic); (5) Draining your savings (Prof Note: You will need cash for the unexpected and there WILL BE the unexpected; (6) Being careless; (7) Fixating on the house over the neighbourhood; (8) Making decisions based on emotion (Prof Note: Now this is just silly); (9) Assuming you need 20% down payment (Prof Note: While there can be lifestyle requirements, 20% is a recommended number to put down); (10) Waiting for the unicorn; (11) Overlooking FHA, VA and USDA loans (Prof Note: Know all your options); (12)  Miscalculating the hidden costs of homeownership (Prof Note: I just decided to redo a porch.  Total estimated price: $15,000.  Mold discovered throughout the house as a result.  Remediation: $5,000+.  Last week A/C central unit literally blew up.  Multizone system: $10,000.  Total estimated price of new porch: $30,000+); (13) Not lining up gift money; (14) Not negotiating a homebuyer rebate (Prof Note: “You miss 100.0% of the shots that are not taken.”)