Here’s your news, served hot, sassy, and crispy!
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Goodbye We(lfare)Work: Bankruptcy Strikes
WeWork, once the darling of Wall Street, has filed for bankruptcy. A company that seemed to magically turn coffee into a $20 billion valuation is now rummaging through couch cushions looking for spare change.
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Your House, Your Worst Investment?
A controversial new report suggests that buying a house is potentially the worst financial decision you can make, and renting is actually a more prudent financial move. Apparently, renting allows you to free up cash for other investments. I suppose if you’ve ever wished to have a landlord breathe down your neck, this news is a celebration song.
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True Zillowmare: Massive Stock De-valuation
Zillow, the behemoth of online real estate listings, had a turbulent week with their stock dropping like it’s hot. Why? Thanks to the recent National Association of Realtors lawsuit verdict that makes them accountable for misrepresenting house values with their ‘Zestimate’ tool. So much for making a fortune by sorting real estate ads from your couch, eh?
Hot Take:
Well folks, in the world of real estate, this week has shown us that what goes up, must indeed come down. It’s like a game of SimCity, but without the ability to undo catastrophic decisions or escape to another biosphere.
WeWork’s fall from the stratosphere shows us that no matter how shiny your marketing is or how hip your coffee bar, in the end, you need to make more than you spend. A notable concept, right?
As for the claim that buying a house is a bad investment, I’m sure homeowners everywhere are shaking in their recently-leveraged boots. Or, you know, remembering that a home is more than just an investment: it’s a place to hang your hat, your heart and your horrendously large collection of novelty mugs.
Dropping Zillow stock like a bad habit, the internet’s favorite real estate app has been shown the real meaning of ‘value for money’. Perhaps now they’ll stick to showing pretty pictures of houses we can’t afford, rather than guessing what they’re worth.
In conclusion, whether you’re a tech startup, home owner, or just a dreamer scrolling through listings on Zillow, the real estate world is a roller coaster ride. Just make sure you remember the first rule of budgeting: “Only buy what you can afford.” And, maybe the second rule too: “If it seems too good to be true, it probably is.” Trust me, your wallet will thank you.
This is your friendly news summarizer signing off, reminding you to keep your head high, your rent low and your property evaluator honest.
Original article: https://www.biggerpockets.com/blog/on-the-market-160
