Stressed by Smart Tech? Consider These ‘Dumb’ Devices

Illustration of couple communicating through tin-can phones against colored background

ONCE, a broken bathroom scale just displayed the wrong weight. In 2022, it won’t even do that.

“My scale stopped connecting to Wi-Fi, which for some reason means it won’t even show the weight,” said Chris Hoffman, editor in chief of How-to Geek, an online magazine devoted to helping people understand their tech. In short, he’s an expert at troubleshooting broken gadgets. But when Mr. Hoffman’s scale went on the fritz, it just sat stubbornly broken on his coffee table, even after he’d read the entire manual, researched whether others had experienced the same problem, hounded customer support and coaxed the device through a complete factory reset. “I was left thinking ‘Where did I go wrong with my life?’” he said.

“Smart” spins on common home appliances have been available for many years. These clever refrigerators, televisions and air conditioners perform their base functions, but also use their ability to connect to the internet to unlock additional conveniences—letting owners, for instance, remote-control them from miles away. Generally, that level of interactivity was something you would opt into, by buying a robot vacuum, smart speakers or an Alexa-enabled microwave. But it wasn’t the default.

That’s changing. While some brands are aggressively bucking the trend and producing intentionally untethered devices, it’s getting harder to purchase appliances and gadgets that don’t need an internet connection merely to function properly. “I’ve gotten so many emails from readers who are looking for a ‘dumb’ TV,” said Mr. Hoffman. “Unfortunately, that doesn’t exist.”

While a TV that can’t access Netflix in the age of cord-cutting isn’t very useful, the trend has taken hold outside the living room too. Increasingly, said Jerry Beilinson, technology editor at Consumer Reports, “you can’t buy a high-end washing machine or dishwasher or dryer without it having Wi-Fi connectivity.”

When it comes to smart appliances beyond TVs, the benefits are less obvious. While it is convenient to zap your popcorn without pressing any of a microwave’s buttons, either via a phone app or through a voice assistant, when every device is, on some level, a computer, there are downsides. We’ve all heard stories about some household object that, a la Mr. Hoffman’s confoundingly sophisticated scale, stops working because the “smart” technology inside it breaks. Mr. Hoffman says he’s encountered washing machines that won’t let you clean your clothes until you’ve downloaded and installed a firmware update. “It is just annoying,” he said.

The problems aren’t always due to glitches or necessary security updates. Sometimes companies disable features intentionally. Mr. Beilinson said data collection offers a simple way for companies to make devices more profitable: “Adding Wi-Fi connectivity to appliances is extremely cheap and the data companies get out of it is extremely valuable.” Requiring that people connect to Wi-Fi in order to use features means more will connect. The brands are nudging, or arguably forcing, you to accept the intrusion.

For example, GE has engineered some of its ovens so that you can’t use the convection roast feature unless you connect them to Wi-Fi and download an app to your phone. This despite the fact that many residential ovens have had convection features since 1945, when the Wi-Fi in most homes was, shall we say, spotty. (A GE Appliances spokesperson said the company makes plenty of appliances that do not require Wi-Fi connectivity, but also wants to give customers the option of increased technological capability.)

The story is the same in the living room. Roku, for example, might be best known for its streaming sticks and smart televisions, but the company actually earns most of its money from the streaming platform it designed. According to its 2021 earnings report, the company actually lost $52 million from sales of hardware. The model works because of how effectively the company has been able to monetize its platform through licensing and advertising. Roku identified “targeting using first-party data” as its fastest-growing ad product last year, by which it means leveraging the information it gets from tracking your viewing habits to serve you new shows to watch or products you can buy directly from your TV. (Roku declined to comment for this article.)

Sometimes, it is still possible to opt out of this kind of tracking. Mr. Beilinson owns a garage door opener that could be controlled with an app, but he hasn’t connected the device to Wi-Fi. “I don’t feel like I need to tell a company every time I open the garage door.”

But more often than not, avoiding the downsides of smart tech requires awkward, costly workarounds. Mr. Hoffman said some people avoid connecting their TVs to Wi-Fi to ensure their viewing habits cannot be tracked. But then they must purchase an extra device to watch their top shows. “People who are really into privacy prefer the Apple TV box,” he said, pointing out that Apple considers its customer’s privacy a high priority. Others might rightfully bristle at the idea of spending an extra $180 to ensure a new TV doesn’t track their behaviour.

Deciding which devices you want to connect to the internet is a balancing act. But some signs suggest that people are seeking actively unconnected “dumb” devices. For example, in an earnings report last year, Fujifilm, the Japanese camera company, said it has made more money in each of the last five years from its line of Instax instant film cameras and accessories than it has from selling digital cameras and their lenses.

The analog trend is also manifesting in gaming. Wizards of The Coast, which makes the dice-rolling, pen-and-paper-based Dungeons & Dragons series and the card game Magic: The Gathering, saw a revenue increase of 24%, up to US$816 million, from 2019 to 2020. Even when Pandemic-induced lockdowns made in-person gaming impossible, many chose to invest in games that they could play in person, once restrictions were lifted. “There is a subset of people who are looking for ways to reduce the role of technology in their lives, to not always be so connected,” said Mr. Beilinson, “people looking for physical experiences.”

Startups are emerging specifically to cater to such people. One is reMarkable, which makes tablets for writing that might look, at first glance, like an iPad. The difference: no extra apps and a black-and-white e-ink screen. It is as close as you can get to a digital piece of paper, which is exactly the point. “When you’re writing and thinking your best thoughts, it is really important that you don’t get an email or a notification that takes you out of that,” said Henrik Gustav Faller, vice president of communication at reMarkable. “That stream of thought is something that we really try to focus on and really cherish.”

The 300-person reMarkable team, based in Norway, spent years developing the tablet before launch—reducing the latency on the screen and contemplating how much the pen should weigh. The end product has a few smart features—one gives users access to files on Dropbox and Google Drive—but not many. It appears the approach is working: As of 2020, reMarkable has sold over half a million devices. A company representative said sales increased in 2021, but they declined to release specific numbers.

The Light Phone II is a tiny brick with a similar black-and-white e-ink screen—and a similar philosophy. Designed by a 13 person team in New York City, it supports calls and texts, but no social media. Kaiwei Tang, co-founder and CEO, said that is because he believes our phones currently do way too much. That’s why there is no Light Phone app store; you can, however, download a few “tools” that let you do simple things like get directions or listen to podcasts. The phone, which launched in 2019, saw a 150% increase in sales from release to 2021 according to Mr. Tang. Investors include Twitter co-founder Biz Stone and Adobe chief product officer Scott Belsky.

These kinds of devices are made by and for people who are contemplating their relationship with technology and intentionally opting for simpler, less distracting devices. They offer a reminder that we should be able to choose how we interact with our technology, and how it interacts with us.

Everyone has a different threshold for what is and isn’t useful—and some smart devices might do enough to make the odd annoyance worth bearing. But since no company will make this calculation for you, Mr. Hoffman said it’s important to consider what you actually want: “Even if you love smart technology, not everything needs to be smart.”

The Best Dumb Tech

Eight pieces of gear that make the case for a future of less-connected devices

Light Phone II

It lets you make calls and send texts, but not much else. It’s designed to be used as little as possible, though you can add optional “Tools” like GPS navigation and podcasts.

The Mohu Leaf Plus Amplified TV Antenna

Free broadcast TV still exists, and it has been in HD for over a decade now. Cheap, powerful indoor antennas like this one allow you to rediscover the experience.

Mighty

Like the iPod Shuffle for the streaming age, this device lets you sync songs over from Spotify or Amazon Music to listen offline. It’s great for working out, when picking the perfect playlist can easily become an excuse to dawdle near a squat rack.

Kindle Paperwhite

Thanks to a crisp, responsive screen and light body, the Kindle is a superior e-reader. Cheaper Kindles like the Paperwhite include some bloat like ads and a web browser. Both are easy to ignore, especially since the browser is harder to use than “Ulysses” is to read.

reMarkable 2

As close as you can get to a digital pad of paper. This thin tablet comes with a realistic-feeling pen, which you can use to mark up documents and sync notes to your phone or computer.

Freewrite

This digital typewriter—nothing more than a mechanical keyboard with an e-ink screen—lets you draft without distraction. To edit, you can send text to your computer.

The Fujifilm Instax 11

An instant camera like the Polaroids of old, it prints an actual physical photo that you can share with a friend by handing it to them. What a concept.

BN-LINK Mini 24-hour Mechanical Outlet Timer

Decades after the servers for smart plugs currently on the market shut down, this little mechanical timer will keep on ticking—and you can get two for 12 bucks.

Even a sceptic can appreciate some smart tech. Three winners…

Adaptive Central Air

The Google Nest Learning Thermostat can, by some estimates, reduce your heating and cooling bills by 10 to 15% by not using energy when it’s not needed. If you’re going to introduce smart tech to your house, it might as well be saving you money (and reducing your carbon footprint).

Secure Streaming

Apple TV is one of the few visual entertainment platforms that doesn’t track and monetize your viewing habits, according to privacy experts. Plus, these boxes will continue getting security updates much longer than your run-of-the-mill smart television.

Flexible Fixtures

The Wyze Bulb Color is an affordable LED smart bulb that can make any lamp or sconce colourful. Customize the colour or intensity with your phone at any moment or schedule the bulbs to turn off and on at specific times then forget about them completely.

April 20, 2022

5 Tips to Make the Most of a Small Home

Brad Swartz and his eponymous architecture studio have garnered a heady reputation for making the most out of small homes. The studio is focused on a sustainable future for city development and works towards reformatting small inner-city dwellings and, simultaneously, removing all notions of compromise attached to present liveable homes. So, here at Kanebridge News, we though who better to pen a guide to designing a small home.

Here, five things to consider maximising your small space stylishly.

Case The Place

When looking to purchase a smaller unit or dwelling pay close attention to the windows and the external aspect. Often what makes a small dwelling feel bigger is what surrounds it or what it looks out to. A small unit with multiple windows — especially on either side — will make it feel larger, bring in better ventilation and better light.

Get Your Priorities Right

Figuring out what matters to you before designing your home is an essential first step. Whether you want a place to entertain, or you need space for an office, or lounging — having a clear understanding of what you want from your home will help you more efficiently organise and design your home.

Find Balance Between Storage And Space

Creating ample storage in a small home is always an uphill battle. The key to creating a comfortable and liveable space with little room is to find the balance between having the necessary storage without comprimising the sense of space. In a nutshell, this means making sure that you can see the full width of the room by not taking cupboards to the ceiling or leaving a gap under cabinets that exposes the flooring for a sense of continuity. These small things trick the eye and when combined with good aspect and lighting can make the home feel much bigger than it really is.

Find Opportunities For Multi-Use Items

Small homes require a sense of creativity, so where possible, find opportunities for things to have multiple uses. Foldable desks that become clothes racks, murphy beds, or screens like the one I used in The Boneca [pictured above] building I used to delineate the two spaces help to add functionality to a room without sacrificing space or light.

Add a Touch Of Luxury

Just because you’re living in a smaller space doesn’t mean you have to forgo life’s luxuries. And, as the spaces are smaller – a little bit goes a long way. Opt for a splash of marble, or other luxurious stone finishes, or build in a drop-down projector — whatever it is is, that’s going to make the home more comfortable and liveable for you. Ultimately these are home and you want to feel comfortable in them and want them to be a space you want to live in.

bradswartz.com.au

April 13, 2022April 20, 2022

Wooden Skyscrapers Are on the Rise

Guests at a new 20-storey hotel and cultural centre in Skellefteå, a former gold-mining community in northeastern Sweden, don’t have to step outside to feel immersed in the natural world. The floors, ceilings and support beams of the building—which also houses a museum and other facilities—are made almost entirely of spruce and pine harvested from nearby woodlands.

“When you come inside, the smell of the timber is almost like you enter a forest,” Robert Schmitz, a partner at an architectural firm in Stockholm and the building’s lead architect, says of the Sara Cultural Centre and Wood Hotel. “This is a really small city, and timber is something that everyone in this community has a connection to. They understand the material.”

The 30,000-square-metre complex is part of an emerging trend as architects, developers and builders turn to so-called mass timber, wood that is glued and pressed in special ways to make it similar in strength to concrete and steel and thus capable of replacing those building materials even for skyscrapers and other massive edifices.

Advocates of mass-timber construction maintain that it can be more environmentally friendly than conventional construction. The carbon footprint of a building constructed with sustainably harvested mass timber, which is made from trees that are selectively cut rather than clear-cut, can be half that of a similar building made of concrete and steel, according to an assessment of mass timber construction published recently in the journal Sustainability.

“If you look at the carbon impact of harvesting trees and turning them into buildings, it gives you a much better number than you get from concrete or steel,” says Stephen Shaler, a professor of sustainable materials and technology at the University of Maine. “As long as you have sustainably managed forests—and we have that capacity—it is a clear winner on the carbon footprint.”

The number of multistorey mass-timber buildings being built in the U.S. rose 50% between July 2020 and December 2021 to more than 1,300 structures, according to the wood trade group WoodWorks. Among the projects are an eight-storey office building in Charlottesville, Va., a new Google five-stoery office building scheduled to open in August in Sunnyvale, Calif., and a 25-storey residential-retail complex rising in Milwaukee. The International Building Code permits wooden buildings of up to 18 stories, but the developers of the Milwaukee project say they obtained a variance after submitting data to city officials showing it was as safe as a conventional building.

Even more ambitious projects may appear: A Japanese timber company has proposed a 70-story wood building for Tokyo, while a U.K.-based architectural firm has plans for an 80-story skyscraper in London.

To meet the demand for mass timber, 18 manufacturing plants have been built in the U.S. and Canada since 2014, according to the U.S. Forest Service. The global market for mass timber was estimated at $956 million in 2020 and is expected to grow at an annual rate of 13.6% from 2021 to 2028, according to a December 2021 report by Grand View Research.

In addition to potential environmental benefits, construction experts say mass-timber buildings can cost less than concrete-and-steel structures—especially if they’re sited near a manufacturing plant where pieces of the building are cut to order. With mass timber, for example, builders don’t have to pour concrete and wait for it to set. Mr. Schmitz and the team behind the Sara Cultural Centre say they saved a year in construction and labor costs as the wood panels and beams were made at a nearby plant.

Using mass timber cut the timeline for the Milwaukee complex, called Ascent, by about four months, says Tim Gokhman, managing director of the Milwaukee-based New Land Enterprises and the project’s manager. Because wood is lighter, only 100 support piles had to be driven into the site’s soft soil rather than the 200 that would have been needed for a similar concrete-and-steel building. And whereas pouring concrete floors might require 30 to 40 workers, he said, only 10 workers were needed to install the cross-laminated timber, or CLT, panels for each floor.

CLT is made by laying down and gluing together multiple wooden pieces oriented at 90-degree angles to one another and is commonly used for floors and walls. Another key type of mass timber, called glulam for glue-laminated timber, is commonly used for support beams.

“Each piece of wood is measured and has a designated place,” Mr. Gokhman says. “So as the building is built, you’re literally updating its progress in a digital world. Without that technology, you don’t have the same efficiency and schedule gains.”

Some point to limitations of mass timber, saying that buildings made with both conventional and mass-timber construction can have advantages over those made solely of wood or solely of steel and concrete.

“In a tall building, you really do want the base of it to be concrete, and as you go up in the building it gets lighter, and makes more use of wood,” says University of Oregon architecture professor Judith Sheine, who has designed buildings using both mass timber and concrete and steel. And conventional construction might be better in coastal areas, she says, adding, “If you’re in a flood zone, the base should still be concrete because getting wood wet is not that great.”

Some fear the mass-timber trend could spur timber companies to cut down old-growth forests that contain large amounts of carbon rather than selectively harvesting younger forests. They argue that calculations of the carbon footprints of mass timber buildings must include roots, branches and other parts of trees that are often burned as well as the fossil fuels consumed to cut down the trees, fabricate the wood products and transport them to construction sites.

“We’re not going to log our way out of the climate crisis,” says Jason Grant, manager of corporate engagement, forests, for the World Wildlife Foundation in San Francisco. “There are objective limits to how much timber we can produce and consume. We need to bear in mind the constraints that we need to operate in if we want to avoid climate disaster and stem nature loss.”

Seismic testing of a 10-storey tall wooden building scheduled to take place in California this fall could give a boost to the mass-timber trend. “We need to find a way to make these buildings earthquake-resistant, since it’s a new building type, and nobody’s ever done this before,” says Shiling Pei, associate professor of civil and environmental engineering at the Colorado School of Mines and the project leader for the shake test.

To minimize the risk of fire, builders and architects are incorporating precautions into mass timber buildings, says David Barber, a Washington, D.C.-based fire safety engineer with the multinational design, engineering and architectural firm Arup. He points to covering CLT wall and floor panels in taller mass timber buildings with fire-rated drywall rather than leaving them exposed, for example, and checking the fire rating for connection points between the timber panels as well as the glue connecting the panels and laminated timber.

“We want to make sure that the buildings are done in very conservative ways, so they are being designed to a very high level of safety,” says Mr. Barber, who has worked on both the Ascent building in Milwaukee and the eight-storey Apex building in Charlottesville.

Tests of a two-storey mass timber apartment conducted in 2017 at a Bureau of Alcohol, Tobacco and Firearms facility in Beltsville, Md., showed that it took longer to catch fire and retained its structural integrity longer than a similar wood-frame structure.

April 13, 2022April 20, 2022

A Science of Buildings That Can Grow—and Melt Away

While the pandemic heightened speculation about what the city of the future will look like, architect Neri Oxman says she is sticking with a blueprint based on a core principle of her work: In years to come, buildings will be grown, not built.

At Massachusetts Institute of Technology’s Media Lab from 2010 to 2021, Ms. Oxman founded and directed the Mediated Matter group, a team researching in areas including computational design, digital fabrication, materials science and synthetic biology. There, she created a field she calls material ecology.

The result? A body of work that includes a pavilion spun by 6,500 silkworms (with the help of a robotic arm), a series of 3D-printed sculptures filled with liquid channels of the pigment melanin (which she envisions could be used in the façades of buildings to protect against ultraviolet rays), and a collection of artifacts constructed using materials derived from shrimp shells and insect exoskeletons.

Since leaving academia, Ms. Oxman, 46 years old, has focused on Oxman, the New York-based design and technology company that she founded in 2020 with the aim of applying her design philosophy to real-world projects. A retrospective of her work is on display at the San Francisco Museum of Modern Art. The Wall Street Journal spoke to Ms. Oxman about the future of urban architecture and how she thinks design can be used as a tool to fight climate change.

You created a new term to describe your approach to design: material ecology. What does it entail?

The idea behind material ecology is to enable total synergy between grown and built environments by deploying new digital technologies that allow us to augment bio-based materials for large-scale construction.

How do you decide which natural materials to use in your designs?

It comes down to ethics and availability. We work with the most abundant biopolymers on the planet which include cellulose, found in plant cell walls; pectin, found in apple and lemon skins; and chitin, found in the shells of crustaceans.

You’ve talked about wanting to create buildings that naturally decay when they are no longer needed. How would that work?

Using technology, we can program biomaterials to degrade in response to changing environmental conditions. At MIT, we built three biopolymer pavilions [the Aguahoja pavilions] which, instead of concrete, were built using shrimp shells, fallen leaves and apple skins. We programmed the pavilions to decay at a certain point when exposed to rainwater. This, in turn, nurtures soil microorganisms to fuel new growth.

It’s a circular economy of material that could be used to create biodegradable refugee camps, for example. Once the refugees find a safe haven, the camps would be programmed to melt away in the rain.

What does “programmed” mean in this context?

It’s complex. When we combine biopolymers including chitosan, pectin and cellulose, the material’s ability to absorb water varies based on its composition. Chitosan, for example, is naturally water-resistant and doesn’t readily dissociate when submerged, while pectin is hydrophilic and dissolves rapidly. By choosing how we blend these components, we can access a spectrum of hydrophilicity—otherwise known as a material’s affinity to water—and this lets us tune or program the speed at which a material breaks down. In essence, we are designing the architectural equivalent of metabolic rate.

How many years are we from grown buildings becoming a reality in cities across the world?

For grown buildings to appear in towns and cities, we need to rethink mass production, and this will take five to 10 years to happen in a meaningful way. However, the development of products made from biological materials—cars, for example—could begin within the next year.

What role will existing buildings made from concrete and plastics, for example, play in your vision for the city of the future?

The architect and professor Carl Elefante says that “the greenest building is one that is already built.” That’s because the carbon emitted during construction is vast compared to the operating emissions of a given building. We therefore need to find new ways to augment the pre-existing built environment rather than trying to completely rebuild our cities from the ground up.

How does one do this?

We need to look at a range of interventions. One is the creation of bioengineered façades for existing buildings. An example: in the U.S. alone, hundreds of billions of square feet of glass façade components are produced every year. As part of our research at MIT, we 3D-printed glass augmented with synthetically engineered microorganisms to produce energy [from the sun]. This allows us to develop solar-harnessing glass façades that can act as a skin for pre-existing buildings.

We must also think about whole-building recycling. A current example is Apple’s headquarters in Cupertino, Calif. The campus was built by Norman Foster using materials from old buildings that used to be on the same site. Rather than simply destroying structures when we no longer have use for them, we must look for ways to augment them using new technology and intelligence.

Which skills would you encourage future generations of architects to develop?

The architect of the future is interested in formation, as much as she is interested in form. She is a systems thinker, interested in building relationships between objects rather than seeing them as standalone. She invents new technologies with which to design, manufacture and build. She is a gardener, not a master planner

April 13, 2022April 13, 2022

Crypto Mortgages Test Home Buyers’ Appetite in Digital-Currency World

Some Miami developers have enabled buyers to purchase homes in cryptocurrency since at least 2021. Now a pair of Miami lenders is going one step further by offering home mortgages in digital currencies.

Milo, a fintech company in the lending business, made the first crypto home loan in March, when it provided a 30-year mortgage in bitcoin for a Miami duplex.

The firm says the early response among other crypto-oriented home buyers has been so enthusiastic that it is already looking to double the size of its Miami office to 100 employees to handle the anticipated demand.

XBTO, another cryptofinance company with offices in Miami, said it is also gearing up to offer crypto mortgages this year, in partnership with a traditional Miami-based mortgage lender.

“Between crypto millionaires who don’t want to sell their cryptocurrency and foreign buyers who have trouble entering the market, we see a huge demand,” says Joe Haggenmiller, head of markets for XBTO.

Kieran Gibbs is one of the newcomers to the city who has expressed interest. The professional soccer player from the U.K. moved to South Florida last year to play for the local Inter Miami CF. He said that he has been receiving half of his salary in bitcoin since January and that he is in talks with XBTO to secure a crypto mortgage.

“I’m renting my property at the moment and I’d like to buy,” Mr. Gibbs said. “The trouble is I haven’t been here for long enough to get enough credit, so it’s difficult for me at the moment to get a mortgage.”

Crypto mortgages are structured much like traditional mortgages and are lent out to home buyers in dollars but are meant to appeal to people who have large crypto holdings they don’t want to convert to dollars.

These mortgages require additional collateral in the form of a cryptocurrency, and the agreements allow the lender to take ownership of the home and the additional collateral in the event of default. If the value of crypto falls, the borrower may have to put up more crypto or other collateral.

Many traditional lenders are sceptical that loans in digital currency will ever gain scale, and analysts list numerous risks and complications when lending in crypto.

For one, they point to the legal pitfalls of engaging in a space that is still largely unregulated. Volatile fluctuations in the price of digital currencies could mean that lenders may require a borrower to put up additional collateral if the crypto price drops significantly.

“Anyone in the digital asset space should proceed with a great degree of caution,” says Richard Levin, an attorney and chair of the fintech and regulation practice at the law firm Nelson Mullins Riley & Scarborough LLP.

Even proponents of these loans say that the new companies are already encountering logistical issues.

“Integrating the legacy mortgage system with the new crypto environment is an operational nightmare,” says Lorenzo Delzoppo, an attorney who specializes in disruptive technology and who is consulting XBTO as they finalize their mortgage product.

Still, he adds, “It’s all incredibly exciting.”

Crypto mortgages are only the latest way that Miami businesses have experimented with the nexus of real estate and digital currencies, a trend that is on display this week during Miami’s bitcoin conference and other crypto-related gatherings.

Propy, a property-tech company whose chief executive resides in Miami, made headlines in February for being the first to process a U.S. real-estate transaction as a nonfungible token, or NFT.

Real-estate developer PMG, in a partnership with the crypto-derivatives exchange FTX, said it has accepted more than $20 million in cryptocurrency payments toward preconstruction purchases of about 60 condo units at its E11even Hotel & Residences.

Lofty, a condo project in Miami’s Brickell district, is providing a digital NFT art piece as an amenity along with the purchase of a unit.

Milo, meanwhile, is offering interest rates for crypto mortgages between about 4% and 6%, which skew a bit higher than what banks tend to charge for dollar-based loans. The 30-year fixed-rate mortgage averaged 4.67% last week, according to mortgage-finance company Freddie Mac.

The crypto lender allows borrowers to take out loans of up to 100% of the purchase price by pledging their bitcoin as collateral. XBTO will require purchasers to put down 10%.

April 6, 2022

The Case for Building Wealth With Stocks, Not Homes

Once upon a time, a young family bought a modest three-bedroom Cape, the worst house in the best location in a prosperous suburb. Many years later, during the housing frenzy of 15 years ago and after the kids had grown and moved away, they received an unsolicited cash bid—for 20 times what they paid. That became their nest egg, which provided a comfortable retirement.

It’s all true, but it might as well be a fairy tale. Such an escalation of home prices is unlikely to repeat, especially from here after their frantic climb. Over the long term, history shows the stock market has returned about twice as much as residential real estate. And it’s done so with far fewer headaches than the attendant expenses of upkeep, which have come as a shock to many recent home buyers.

Looking at the data assembled by NYU Stern School of Business professor Aswath Damodaran, stocks (as measured by the S&P 500) returned 12.47% annually from 1972 to 2021, versus 5.41% for residential housing (based on the Case-Shiller Index, through last October), a span that encompasses inflation’s liftoff after the dollar’s link to gold was severed. Looking at 2012-2021, which takes in the recovery from the housing bust that precipitated the 2007-09 financial crisis, stocks returned an average 16.98%, versus 7.38% for housing.

In a new paper prepared for the Brookings Institution, Robert Shiller, a creator of the housing index, and Anne K. Thompson found 72.4% of respondents in a survey said recent bidding wars had resulted in “panic buying that caused prices to become irrelevant.” That was attributed to the now-familiar story of buyers wanting more room, especially for a home office, in the suburbs. White-collar workers who could work from home were mostly unscathed or benefited from lower spending outlays during the worst of the pandemic.

Historically low mortgage interest rates further leveraged bidders’ buying power. With Freddie Mac’s average 30-year loan down to 3.05% in December, the monthly payment on the median-priced house of $408,100 in the fourth quarter, bought with a 20% down payment, would be US$1,385. With the jump in mortgage rates, to 4.67% as of March 31, that same loan would cost US$1,687 a month. The reduction in affordability is sure to slow home-price appreciation.

Shiller and Thompson found that recent buyers are realistic about near-term home-price trends, expecting some moderation, but may be “given to flights of fancy for the longer run.” Damodaran’s parsing of their data showed buyers at the peak of the previous bubble in 2006 didn’t recover fully from the ensuing bust for 10 years. That wasn’t the first time home buyers were stuck with losses. After the dip from the peak in 1989, prices didn’t recover fully until 1992. And those losing spans didn’t take into account transaction costs, which are huge for residential real estate.

It’s axiomatic that buying high lowers future returns. In human terms, stuff happens, from better job opportunities elsewhere—especially given the ability to work from anywhere for knowledge workers—to unfortunate circumstances such as death and divorce. The ability to pick up stakes with totally portable and liquid financial assets may provide more freedom in the near term, along with greater wealth over the longer span.

March 30, 2022

Global Luxury Spending Could Decline Due To The Ukraine War

Nearly one month after Russia’s military invasion of Ukraine, the conflict’s impact on global businesses has spread to luxury industries.

Most high-fashion brands, including LVMH Group, Burberry, and Kering, closed their stores in Russia earlier this month, while announcing their donations to international humanitarian efforts in Ukraine.

How the Russia-Ukraine conflict will eventually affect the global luxury industry will depend on how long it lasts, experts say.

“We see a more likely, immediate, and relevant impact on Russians personal luxury spending locally, strongly driven by local currency devaluation and restrictions in place,” says Claudia D’Arpizio, senior partner and global head of fashion and luxury at Bain & Co., a Boston-headquartered management consulting firm.

Russian luxury customers account for approximately 2%-3%, or about €7 billion (AU$10.28 million) of the total global luxury goods market, she says.

The war will also likely damp consumer confidence in European countries and North America because of increases in energy prices, stock market volatility, the interruption to tourism, and other economic uncertainties, says Federica Levato, a partner at Bain and leader of its luxury practice in Europe, the Middle East and Africa.

“Upon persistence of the crisis, financial stability could be also affected, particularly generating higher stock market volatility. American consumer confidence could potentially decline and eventually also their luxury spending,” she says.

Since Russia’s invasion, more than 19,000 have been killed, 10 million people have been displaced, and more than AU$119 billion in property has been damaged.

Near-term, the luxury brands have taken an economic hit from their decision to close stores in Russia.

In early March, LVMH temporarily closed its 124 stores in Russia. Other fashion houses—including France’s Kering, Chanel, Hermes International, Swiss group Richemont,, and Italy’s Prada—all announced that they had suspended their operations in Russia through their social media accounts.

However, it is unlikely that the luxury brands will stop doing business in Russia, says Kate Newlin, a principal of New York-based Kate Newlin Consulting.

“When you think about luxury, you think of Russian oligarchs as a major segment of customer,” Newlin says. “It will be a larger bet for LVMH to walk away than, for example, McDonald’s.”

LVMH did not respond to a request for comment. The conglomerate, which owns brands such as Dior, Fendi, and Louis Vuitton, donated €5 million to the International Committee of the Red Cross to help those affected by the war in Ukraine in early March.

British fashion house Burberry declined to comment on the war’s impact on its business. On March 11, it donated to two more organizations, Save the Children, and UNICEF, in support of their Ukraine humanitarian appeals, following an earlier donation to the British Red Cross Ukraine Crisis Appeal.

March 30, 2022

Have Bitcoin, Will Travel? 4 Strategies for Crypto-Holidays

MAYBE YOU’RE still flush with crypto cash. Or perhaps your Bitcoin portfolio is hemorrhaging value amid the recent turbulence. Either way, if turning digital assets into rest and relaxation sounds appealing, you have options. Marko Jovic, a 41-year-old telecom engineer from Belgrade, Serbia, began using crypto to pay for vacations in 2021. He said despite a recent fall in value he can pay for a lot of things with his crypto. “You can basically do anything you want with crypto,” said Mr. Jovic.

Now that you can get debit cards linked to cryptocurrency portfolios, it’s never been easier to use digital cash while on the move. But for travelers who want to avoid the extra fees associated with using a crypto card, the alternative is to seek out merchants willing to accept cryptocurrency like Bitcoin directly. Luckily, a growing list of companies, hotels and destinations are eager to do business with crypto consumers. Here, a few up-to-the-minute moves:

1. Book a trip via an online travel agency

Travala.com has emerged as the leader among the handful of online booking sites that accept crypto. It may offer fewer routes and destinations than traditional air-travel sites do and sometimes list slightly higher prices, said Mr. Jovic, who recently used it to book a flight to Budapest, but he finds the ability to pay with crypto outweighs those factors. While Travala co-founder and CEO Juan Otero, who worked at Booking.com in the late 2000s, agrees his company needs to be more competitive on airfare, he argues that its luxury hotel offerings compare well to rivals’. Of Travala’s monthly active users, Mr. Otero said, an-above average number opt for “four- and five-star hotels.” Omar Hamwi, a 37-year-old crypto professional from Washington, D.C., and self-described loyal customer of Travala, booked a stay most recently at the five-star Fairmont Orchid in Hawaii. “I have idle crypto so I generally do like to use it when I can,” he said.

2. Buy a flight ticket directly with the airline

You can book flights directly with at least one crypto-friendly airline—AirBaltic, Latvia’s premier carrier which services more than 70 destinations, primarily in the Baltics and Europe—but if you’re not flying out of Riga, it may be hard to take advantage. Still, according to the airline, since it began accepting crypto back in 2014, more than 1,000 customers have purchased tickets that way.

3. Reserve a swanky hotel

The Chedi, a chic luxury resort in the Swiss Alps lets guests pay with Bitcoin or Ethereum, as long as they’re spending more than $200 when paying for rooms or services like ski rentals and spa days—easily done since room rates generally start at $650 a night. The Pavilions Hotels & Resorts, a boutique hotel group with locations in Europe and Asia including Rome, Amsterdam, Bali and Phuket, also accepts cryptocurrency bookings. For travelers who prefer to spend their crypto gains stateside, there’s the Kessler Collection, whose portfolio include several hotels in the southern U.S., as well as a ski lodge in Beaver Creek, Colo.

4. Visit a ‘cryptopia’

If anything close to a crypto Utopia exists, it’s the surf town of El Zonte, El Salvador, otherwise known as “Bitcoin Beach.” There, travelers can grub on pupusas after a day of surf lessons at El Zonte’s point break, and pay for it all with Bitcoin. “Most of the merchants accept Bitcoin,” said Carol Souza, a Brazilian influencer focused on educating people about crypto. Other cities are expected to follow suit. Earlier this month, the small picturesque city of Lugano, Switzerland, announced it is also adopting cryptocurrency as legal tender.

March 30, 2022April 20, 2022

Global Art Market Soars By 29%

The global art market rebounded strongly in 2021 despite the challenges of the pandemic, according to a global art market report released Tuesday.

Aggregate sales, including sales by dealers and auction houses, jumped 29% from 2020 to an estimated US$65.1 billion last year, surpassing pre-pandemic levels in 2019, according to the annual report jointly published by Art Basel and UBS and authored by Clare McAndrew, founder of Dublin-based Arts Economics.

“The art market has demonstrated incredible resilience in 2021, with a strong uplift in aggregate sales, despite still operating under some very challenging conditions,” McAndrew said in the report. “Dealers and auction houses successfully adjusted to a new two-tier system of online and offline sales and events, and the rising wealth of the high-net-worth collectors helped to support demand at the higher end of the market.”

The median expenditure by high-net-worth individuals (HNWIs), those who have a net worth of more than US$1 million, excluding real estate and private business assets, reached US$274,000 in 2021, more than double the level in 2020, according to the report.

Further, 74% of HNWIs surveyed bought art-based non-fungible tokens, or NFTs in 2021, with a median price of US$9,000 each, the report said.

The findings are based on a survey of 2,339 wealthy individuals across 10 major markets, and represent one element of the wide-ranging report on the state of the global art market.

Sales by dealers amounted to approximately US$34.7 billion in 2021, increasing 18% year-on-year. Public sales by auction houses, excluding private sales, reached an estimated US$26.3 billion in 2021, an increase of 47% from a year ago, according to the report.

Geographically, the U.S. still dominates, accounting for US$28 billion, or 43% of the total global sales of art and antiques in 2021. Greater China was the second largest with a market share of 20%, or US$13.4 billion in sales.

August 26, 2021August 26, 2021

Singapore Buys More Australian Real Estate Than China

Although a small city-state, Singapore is weighing in on Australia’s real estate market.

In the two years to July 2020, Singaporean investors spent $19.3 billion on Australian property, according to the latest Foreign Investment Review Board (FIRB) data.

That’s $6.1 billion more over the same period than China.

Another view is that Singapore makes up 17 cents of every foreign dollar spent on local property, versus China’s 13 cents – despite Singapore’s economy being approximately 44 times smaller.

Singapore is now the second-largest investor in Australian real estate, behind only the United States.

These figures come as foreign investment into Australian real estate has doubled in the last here years – largely at the hands of institutional investors and large scale projects.

Geographically – and in times of unrestricted borders – the tie between Australia and Singapore makes sense, with Perth, amongst other Australian capitals, a short flying distance away for Singaporeans.

This enormous figure also boosts Singapore’s standing across all industries, now representing the third-biggest source of foreign investment for Australia – behind only the U.S. and Japan.