Wednesday, November 29, 2023

What's the Secret to Success? Turns Out, It's Neither Emotional Intelligence or IQ | Is it cheaper to rent or buy property? | GPT-4's potential in shaping the future of radiology | Preparing to Fly in "Puffling"

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Is it cheaper to rent or buy property? - The Economist   

FOR YEARS new home-buyers in America have enjoyed lower housing payments than renters. Between 2011 and 2020 the monthly mortgage payment on a typical home was 12% lower than the rental cost of a similar property (assuming a deposit of 13%, the current national average). A steady rise in home values, worth roughly 7% per year over the past decade, also ensured buyers built equity in their homes. But, as our maps below show, today the choice between buying and renting looks very different.

Blame high house prices and soaring mortgage rates. Since 2020 nominal house prices have climbed by roughly 40%. In the same period the average 30-year fixed-rate mortgage rose from 3.1% to 7.3%, lifting the mortgage repayments on a typical house by more than 50%. All this means nominal mortgage payments have more than doubled since 2020; rents, by contrast, have risen by roughly 20%. By our calculations, for 89% of Americans renting a two-bedroom dwelling is now cheaper than buying a comparable property. Three years ago the figure was 16%.

Our calculations do not cover long-term potential costs and benefits, such as outlays on maintenance, the asset value of a home once a mortgage has been paid off, or the opportunity cost of investing in a deposit for a house rather than, say, the stock market. But they do show how the relative costs of buying and renting have been upended throughout much of America. To restore the ownership advantage that prevailed in the 2010s would require dramatic shifts in market conditions. By our reckoning, house prices would have to tumble by one-third, average mortgage rates would have to fall to 3.2%, or rental costs would have to rise by at least 50%.

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Preparing to Fly in "Puffling" - The New Yorker   

A girl is peering out of her foggy car window, surveying the dark, quiet roads that signal a town that has gone to sleep. Outside, the only colors that appear are from hazy yellow and orange street lamps. She is searching for baby puffins, or "pufflings," in the night sky, as they drop from cliffs into the town. The teen-ager looks around for any flurries of white—as the birds' bright stomachs can be spotted against the dark. During their peak migration time, the bird species outnumbers the human population on the craggy Icelandic archipelago of Vestmannaeyjar. She is one of the young people on Vestmannaeyjar who, during a couple of weeks in the summer, carry baby puffins that are still getting used to flying, from land to sea, where they belong.

The tradition has a long history. When electricity was introduced to Vestmannaeyjar, puffins, who navigate using moonlight, became confused and followed the artificial lights inland rather than out to sea. Jessica Bishopp's meditative short documentary, "Puffling," which was produced by Alice Hughes and Gannesh Rajah, shows the increasingly vital rescues against a backdrop of local environmental concerns, such as losses in biodiversity.

And the fledglings aren't the only ones who benefit from the rescue. The short film immerses us in the lives of two teen-age girls, Selma and Birta, and follows their journey as they find pufflings and reflect on their connection to the island they call home. Vestmannaeyjar's young people search for lost pufflings that have fallen into streets, yards, and neighborhoods and transport them to the water. The relationship between the girls and the pufflings is "intrinsic and innate, which is why it interested me," Bishopp told me. "They're so passionate about saving the birds because they fear for the future, and they want to preserve and conserve what is currently there."

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