If you feel like you’re caught up in the hustle and bustle of everyday life, it’s natural to crave a quick escape to recharge your batteries. Whether you’re looking for a luxurious getaway or an adventurous retreat, the Middle East offers some of the world’s most captivating and awe-inspiring resorts. Here are ten of the best resorts that will make you feel like you’ve stepped into paradise.
1. Emirates Palace, Abu Dhabi
Emirates Palace is a magnificent resort in Abu Dhabi that is perfect for both business and leisure. The resort has hosted numerous international events, conferences, and exhibitions, attracting the world’s most influential figures. With its opulent decor, lavish suites, and world-class spas, Emirates Palace offers a luxurious and indulgent experience.
A Spa Getaway
If you’re looking for a getaway that combines luxury, comfort, and relaxation, this spectacular resort is the perfect destination to unwind, recharge and indulge in sheer indulgence.
2. Burj Al Arab, Dubai
Experience the awe-inspiring Burj Al Arab, a symbol of power, modernity, and beauty. Voted as one of the world’s most luxurious hotels, this palatial resort offers an opulent design and impeccable service that exudes extravagance and grandeur.
Relax Like Royalty
Indulge in the extraordinary and book your stay at the Burj Al Arab for the ultimate resort experience in the Middle East. Don’t settle for the ordinary when you can bask in the lap of luxury like never before!
3. Qasr Al Sharq Waldorf Astoria, Jeddah
Indulge in a luxurious destination in Jeddah that promises nothing but the best. Relax and rejuvenate at the stunning ladies-only spa by Clarins, and savor every bite of the exquisite menus at Aromi and Mataam Al Sharq.
Stay with Sophistication
Retreat into your own private bliss at the opulent Qasr Al Sharq, designed to create an ambiance of luxury and sophistication. Whether you’re a traveler seeking a lavish getaway or a local looking for a decadent escape, this destination in Jeddah is the perfect place to indulge in a world of luxury and extravagance.
4. Shangri-la Barr Al Jissah Resort & Spa, Muscat
Escape to a resort just 15 minutes away from Oman’s capital, Muscat, and prepare to be captivated by the beautiful Sea of Oman. With three hotels to choose from, each offering exceptional services, you can relax and unwind while taking in the marvelous view.
Vacation With a View
Whether you’re seeking a luxurious escape or a romantic getaway, this resort offers a serene ambiance, breathtaking views, and exceptional services that guarantee an unforgettable experience. Pack your bags and indulge in a world of luxury and relaxation like never before!
5. Al Areen Palace and Spa, Bahrain
Experience a luxurious getaway at Al Areen Palace and Spa, the only all-villa private pool resort in the Arabian Gulf. Just 35 minutes from Bahrain International Airport and five minutes from the world-famous Bahrain International Circuit, this resort offers unparalleled service, exceptional amenities, and a prime location.
Bask in the Romance
Whether you’re looking for a romantic escape or a family vacation, you can lounge by your private pool or indulge in a rejuvenating spa treatment. With opulent details and exquisite attention to every aspect of your stay, it’s no surprise that Al Areen Palace and Spa is considered one of the best resorts in the Middle East. Book your stay now and treat yourself to a world of luxury and relaxation!
6. Bab Al Shams Resort and Spa, Dubai
Nestled in the heart of the Arabian Desert, Bab Al Shams Desert Resort & Spa in Dubai is a luxurious retreat that offers a blend of traditional Arabic architecture and modern amenities. With a range of accommodations to choose from, including private villas and suites, guests can indulge in their own private pool or relax in the spacious spa.
Dine Under the Stars
The resort also offers a variety of dining options, from casual poolside meals to romantic rooftop dinners under the stars. For those seeking adventure, Bab Al Shams Desert Resort & Spa offers exciting activities such as dune bashing, camel riding, and falconry displays. Whether you’re seeking relaxation or adventure, this luxurious desert resort is the perfect destination for an unforgettable vacation.
7. The Chedi Muscat, Oman
The Chedi is a 5-star resort in Oman that offers an unforgettable experience. Guests can immerse themselves in the local culture and explore the souqs, forts, and desert dunes. The resort is also located near the newly opened Royal Opera House in Muscat, adding a touch of sophistication to your trip.
Be a Guest on the Gulf
With 158 elegant rooms and suites, each with private balconies or terraces overlooking the gardens or Gulf of Oman, you can indulge in luxury and relaxation. The resort’s restaurants offer a range of culinary delights and the spa is the perfect place to unwind. Come and experience the unique beauty of Oman at The Chedi—a destination that truly stands out as one of the best resorts in the Middle East.
8. Six Senses Zighy Bay, Oman
Six Senses Zighy Bay is an award-winning luxury resort nestled in the secluded Zighy Bay in Oman, surrounded by majestic mountains and a pristine beach. This stunning destination offers a range of activities, from adventure sports to relaxation on the beach. With 82 villas, each with its own private pool and modern amenities, you can enjoy the ultimate luxury experience.
Enjoy a Sensual Stay
The resort also offers a variety of dining options, including international and local cuisine, and a spa that offers treatments to rejuvenate your mind, body, and soul. Whether you’re seeking a romantic getaway or a family vacation, Six Senses Zighy Bay is the perfect destination for a serene and unforgettable experience.
9. Kempinksi Hotel Ishtar Dead Sea, Jordan
This hotel is an ideal destination for those who seek adventure and wish to explore the rich history of Jordan. Located less than three hours away from Petra, one of Jordan’s most prized possessions and top tourist attractions, this hotel is perfectly situated to give visitors a chance to discover the country’s treasures.
Explore with Opulence
Other must-see attractions within close proximity include the Ancient City of Jerash, Wadi Mujib Gorge, Mount Nebo, and Wadi Rum. With so much history and knowledge waiting to be uncovered, this hotel is the perfect starting point for a journey through Jordan’s fascinating past.
10. Movenpick Hotel and Resort Al Bida’a, Kuwait
Nestled near Kuwait Airport and the largest shopping malls in the city, Movenpick Resort offers a prime location for both business and leisure travelers. The resort boasts a stunning 200-meter white sandy beachfront and a plethora of activities to make your stay unforgettable.
Unwind in Unforgettable Ways
From exploring the exciting Aqua Park to immersing yourself in Kuwait’s rich culture at the National Museum, Museum of Islamic Art, and Scientific Centre, there’s something for everyone. For the adventurous, the Liberation Tower offers breathtaking views of the city skyline. With so much to explore and experience, it’s no wonder that Movenpick Resort is considered one of the best resorts in the Middle East.
Whether you’re seeking relaxation, adventure, or both, the Middle East has something for everyone. From the opulent Emirates Palace in Abu Dhabi to the secluded Six Senses Zighy Bay in Oman, these resorts offer a perfect blend of luxury, comfort, and unparalleled service. Pack your bags, get ready to indulge in sheer luxury, and start exploring the magnificent beauty of the Middle East!
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A covered call ETF is an exchange-traded fund that provides investors with additional income by writing options on the securities the ETF holds. These actively-managed ETFs offer investors the benefits of writing call options on stocks, without them having to participate in the options market directly.
The upside is that investors take on less risk and potentially earn income in the form of options contract premiums on top of dividends. The downside is that potential upside profits will be capped because the call options will have to be exercised once the underlying security reaches a certain strike price (one of many options trading terms to know), at which point the shares will be called away from the shareholder.
Basics of the Covered Call Strategy
Covered calls involve buying shares of a stock and then writing call options contracts on some of those shares. A covered call could also be referred to as “call writing” or “writing a call option” on a security.
Other investors can then purchase the call option contract. They pay a small fee to the call writer, known as a premium, for doing so. The contract gives a buyer of the option the right, but not the obligation, to buy shares at a specific price on or before a specified date.
In the case of call options, when the share price of the underlying security rises above the strike price, an option holder can choose to exercise the option, at which point the stock will be called away from the person who wrote the call option.
The option holder then receives shares at a cost lower than current market value. Their profits will equal the difference between the option strike price and where the stock is currently trading minus the premium paid. The higher the stock price rises before the expiry date, the greater the profit for the person holding the call option.
Because the call option writer receives income on the deal in the form of a premium, they want the stock price to either stay flat, fall, or rise only slightly. If the stock rises beyond the strike price of the option, then they’ll receive the premium, but their shares will be called away. The option writer will have a gain or loss depending on the difference of the exercise price and the purchase price of the stock and the premium received.
On the other hand, if the stock doesn’t reach the strike price of the option, then the writer keeps both the premium and the shares. They’re then free to repeat the process as many times as they wish.
What Is a Covered Call ETF?
A covered call ETF is an actively-managed exchange-traded fund (ETF) that buys a set of stocks and writes call options on them — engaging in the call-writing process as much as possible in order to maximize returns for investors.
By investing in a covered call ETF, investors have the opportunity to benefit from covered calls without directly participating in the options market on their own. The fund takes care of the covered calls for them.
The ETF covered call strategy usually involves writing short-term (under two-month expiry) calls that are out-of-the-money (OTM), meaning the security’s price is below a call option’s strike price. Using shorter-term options allows investors to take advantage of rapid time decay.
Options like these also serve to create a balance between earning high amounts of premium payments while increasing the odds that the contracts will expire OTM (which, for covered call writers, is a positive outcome).
Writing options OTM serves to make sure that investors can benefit from some amount of the upward price potential of the underlying securities.
When to Buy a Covered Call ETF
It may be a good time to buy a covered call ETF when most of the securities held by the ETF are expected to trade sideways or go down slightly for some time. Beyond that, any time is a good time for investors who find the strategy appealing, want to take the chance of gaining extra income for their portfolios, and don’t mind missing out on outsized gains if the market rips higher.
Covered call ETFs might also be attractive to people nearing retirement, people who are generally more risk-averse, or anyone looking to add some additional income to their portfolio without having to learn how to write and trade options.
If an investor were considering ETFs vs. index funds, they might choose an ETF for the reason that the fund might employ creative strategies like covered calls, whereas index funds merely try to track an index.
When Not to Buy a Covered Call ETF
The one time when it may be advisable not to buy a covered call ETF might be when stocks are generally rising and making new record highs on a regular basis. This is a scenario where covered call ETFs would underperform the rest of the market.
If the underlying securities rise only slightly, and do not exceed the strike prices set for the covered calls, then these ETFs should also perform well. It’s only when stocks rise to the point that the shares get called away from the fund that the fund will almost certainly underperform compared to holding shares directly.
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Pros and Cons of a Covered Call ETF
The main benefits that come from taking advantage of an ETF covered call strategy are reduced risk and increased income.
Pros of a Covered Call ETF
Overall, a covered call ETF has largely the same risk profile as holding the underlying securities would. But some investors see these ETFs as less risky than holding individual stocks because the ETF should, in theory, do as well or slightly better than the market in most situations. (The one exception would be during extended, strong bull markets.)
But while covered call ETFs reduce the risk associated with owning a lot of shares while also providing additional income, hedging against downside risk would best be accomplished by using put options.
Cons of a Covered Call ETF
Covered call ETFs are actively managed, which means they tend to have higher expense ratios than passively managed ETFs that track an index. But the extra income may potentially offset that cost.
The Takeaway
A covered call ETF is an actively managed exchange-traded fund that offers investors the benefits of writing call options on stocks, without them having to participate directly in the options market. For investors looking for a simpler approach, this may be beneficial. Covered call ETFs also have two primary benefits in reduced risk and increased income.
That’s not to say that they don’t have downsides, too. Notably, they tend to be actively-managed, which generally means they have higher associated fees. Again, all of this should be taken into consideration before folding any type of security into an investment strategy.
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Options involve risks, including substantial risk of loss and the possibility an investor may lose the entire amount invested in a short period of time. Before an investor begins trading options they should familiarize themselves with the Characteristics and Risks of Standardized Options . Tax considerations with options transactions are unique, investors should consult with their tax advisor to understand the impact to their taxes. Claw Promotion: Customer must fund their Active Invest account with at least $10 within 30 days of opening the account. Probability of customer receiving $1,000 is 0.028%. See full terms and conditions.
When we first moved out when we were 18, we moved into a very tiny house. Technically, it was not a “tiny home,” but to us it was.
It was extremely small home at around 400 square feet (less than that if you don’t count the basement), but it was cheap, had a backyard and was located very close to the college I was about to start attending.
Also, as a reminder, last year Jordann also posted about how she used to live in a 400 square foot house. I also recently published the interview I Live in a 175 Square Foot Tiny Home – Sailboat Living. I highly recommend you read these two posts!
I recently became interested in tiny homes again when I was watching a documentary on Netflix (we’re starting to find cable less and less worthwhile) called Tiny: A Story About Living Small. This documentary followed a man building his very own tiny home, and the documentary also showed others who lived in their own tiny homes.
I find tiny homes very interesting. They make great use of their space, they are usually very cute, and they are very affordable. Even with the positives below though, I don’t think it’s something I could do.
For me, the negatives greatly outweigh the positives. I think we could do something smaller than what we currently have, but a 200 square feet tiny home is just too extreme for me.
Below are the positives and negatives of living in a tiny house:
Pro: Your housing expenses will be cheaper with a tiny home.
The average tiny home costs less than $30,000 to build. You can also buy a tiny home for very cheap. That price before includes the exterior and interior of the home. That is very cheap! That is much cheaper than the average home.
However, I do think you have to remember about where you are going to place this tiny home. Yes, you can buy land for cheap, but land can also be very expensive in other areas.
Your home will also be cheaper in that your utility bills will be cheaper. It’s much cheaper to heat or cool down a 200 square foot house than a 2,000 square foot house.
Repairs, maintenance and replacements will also most likely be much cheaper in a tiny home.
Con: I think it would be difficult with children and pets.
We don’t have children yet, but we would like to have them in the future. With all of the people I’ve seen and read about who live in tiny homes, I don’t think there’s been a single one who had children or pets.
I think it would just be very difficult with a family. People need their space… Or, maybe that’s just me?
However, I think if it were just one or two people living in a tiny home, then it would probably be much more doable. When we lived in our 400 square foot house (let’s keep in mind that we haven’t lived there in a very long time), it wasn’t completely bad. The size didn’t really bother us at all at the time. I think it really helped that there were multiple small rooms to escape too, and there was also a front and backyard and porch.
Pro: You’ll spend less money on material items.
I am a bit of a hoarder. Just ask Wes and he will probably want to cry just thinking about how much stuff I have.
My closet is jam packed to the ceiling with stuff, and then I also have things in the guest bedroom and in our basement.
Moving into a tiny home would probably be a lifesaver in that I would be forced to think about each purchase I make. Since there’s only so much room in a tiny home, you will buy fewer items.
Con: Having guests over won’t be comfortable.
I remember watching in the documentary when the main person being filmed had guests over.
He invited his family over to see the home he just built and it was extremely cramped. It was almost like everyone had to bend over in order for their to be room for everyone.
Now, I’ll be honest, I don’t throw raging parties or anything, but I would like the option of having people over when I can. This is especially true since we plan on moving to a new state and we would like people to visit us occasionally.
Pro: You may be able to bring the tiny house when traveling.
Okay, this doesn’t apply to every single tiny house, but there are some that are small enough where you can actually travel with it.
You can bring your tiny home to where you want it to be, and you may even be able to do some road trips in it as well.
This makes the list of possible places to live pretty much endless.
Con: Not a lot of personal space.
This is no surprise. They are called tiny homes for a reason. According to the documentary, tiny homes are homes that are 200 square feet or less. That is extremely small.
That’s smaller than my bedroom, and my bedroom is not huge by any means.
Since I work from home 24/7 now, I would like to have more space since I’m at home more. I think I would get a little crazy if I was in the same exact room hour after hour, day after day.
Would you ever live in a tiny home? Why or why not? How small could you go? How big is your home currently?
Also, if you live in a tiny home (less than 250 square feet preferably), I’d love to hear from you and possibly conduct an interview for this blog. Please send me an email if you are interested.
Family travel is a whole other ballgame. The strategy, gear, planning, expectations and number of times you may answer “Are we there yet?” make it an entirely different sport than solo or adults-only trips.
While traveling with kids is arguably quite different than taking a trip without a child (notice we didn’t call it a “vacation” with kids), it doesn’t have to be intimidating. In fact, there are countless ways to experience memorable moments and make lifelong memories with your kids, whether you hike the mountains of Machu Picchu or ride the newest coaster at Disney World.
Related: TPG’s 10 top family vacation destinations
To make the journey a little easier, we’ve compiled our 43 favorite family travel tips. Whether you’re traveling with infants, teens or some of both, these tried-and-true tips are bound to ease travel headaches and ensure your family travels are as fun and carefree as possible.
Travel tips for infants and toddlers
Having a baby does not mean the end of your time as a traveler. It may cause you to temporarily pause your adventures, and it will certainly change how you travel. But traveling with a baby is still worth the effort.
While it’s true that your baby may not remember the details of your trips during the first few years, quality time together is invaluable. You will always remember their first big vacations.
Some travel is often easier with a small, snuggly baby than with a growing, active toddler, so don’t be afraid to plan something while your little one is still young.
Use the right travel stroller
If you plan on traveling with a stroller, you want one that is lightweight and easy to maneuver through the airport or rough terrain, if necessary, once you reach your destination.
Related: These are the 13 best travel strollers for your next trip
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If you choose to gate-check your stroller, foldability isn’t as important. Instead, prioritize protecting your stroller from dirt and damage by investing in a stroller with a bag. For long layovers, you can request to have your gate-checked stroller delivered to you between flights so that your baby has a safe and comfortable place to rest while you navigate the airport. Just ask the gate agent when you check your stroller.
Baby-wear
To keep your hands free and your baby snuggled, you may choose to baby-wear through the airport or on a flight (though most airlines don’t allow it during takeoff and landing).
The Transportation Security Administration rules state that infants may be carried in a sling or carrier while going through the walk-through metal detector, so you shouldn’t have to remove them for security — at least, according to the rules.
If it’s not too hot, baby carriers and slings also come in handy at theme parks, which allow baby-wearing on many family-friendly attractions. Just be sure you ask about safety restrictions before you ride.
Breastfeeding mamas should consider carriers that allow easy access for on-the-go nursing, such as those in sling or wrap styles.
Consider a Doona
If you don’t want to lug both a car seat and a stroller and your baby weighs between 4 and 35 pounds, you’re in luck: The Doona can serve the function of both. It transforms very easily from a stroller to a car seat and back again, all while your baby is strapped in.
Because of their convenience, Doonas are great for flights, cab rides, Uber rides and, frankly, any part of your busy life with a baby.
Think twice about flying with a lap infant
Most airlines allow children younger than 2 to fly as lap infants instead of purchasing separate seats for them.
The cost savings can be hard to pass up, and during those early months when the little one is nursing or sleeping a lot, it can be the easiest way to go. However, if your baby is fussy or you are flying solo, you may feel more comfortable keeping them in their car seat. If they can sleep through anything or you have someone you can split baby-care duties with, you may have more success flying with a lap infant.
If you do purchase a seat for your baby, there are dozens of portable car seats out there that are much easier to travel with than the bulky car seat you may have at home.
Get a car seat just for travel
The Cosco Scenera is a perennial favorite when it comes to travel car seats. At around 10 pounds and only $50 to $60, this car seat is a winner for travel when you need something easy and affordable. It’s rated for rear-facing little ones weighing between 5 and 40 pounds or forward-facing kiddos weighing 22 to 40 pounds.
Another model to consider is the WAYB Pico portable car seat, which was recommended by several TPG readers.
Use a car seat on the plane
Every kid is different, but if your little one sleeps well in a car seat in the car, they may do the same on a plane. If your kids are generally comfortable in car seats and have their own seat assignments on the plane, consider bringing the car seat on board for a secure flight experience.
Related: Car seats that are airline approved
Bring a Boppy pillow if you’re holding an infant
TPG’s senior director of engineering Mitchell Stoutin recommended using a Boppy nursing pillow for long flights with an infant. In addition to being handy for nursing, it gives your baby a comfortable place to rest. He also advised stashing your Boppy in a vacuum Ziploc bag to save space when not in use.
Sign your kids up for frequent flyer programs
Once you make the transition to buying your child a seat — either because they turn 2 or because you think having a separate seat will work best for your family — sign them up for a frequent flyer account and let the miles start rolling in.
No minimum age requirements exist for kids, so enroll them while they’re young to maximize their earnings.
Related: Earning frequent flyer miles for your kids just got a little easier
Board last
Most airlines let families with young children board early in the process, but as long as your family has assigned seats, you don’t need to worry about rushing to board before others.
Instead, have one parent get all the gear ready and board first while the other waits as long as possible before bringing the baby on board. This will help minimize the amount of time you have your little one in tight quarters, reducing the likelihood of a meltdown or further disrupting their schedule.
Pack your carry-on strategically
Think about everything you may need to easily access for yourself and your baby before organizing your carry-on. That way, you don’t forget any of your must-have items or struggle to find them while on board.
Consider packing food, diapers and extra outfits for at least twice as long as you think you’ll need them for your little one while in transit. Don’t forget to also bring clothes, snacks and drinks for yourself so you have everything you need.
As a general rule of thumb, it’s a good idea to have enough essentials to survive at least 24 hours off of what you bring on board, as you never know what is going to happen.
Bring large Ziploc bags and black trash sacks
Avoid packing a suitcase without tossing in a few Ziploc bags, grocery bags or trash bags. They can be used to stash snacks and store wet or dirty clothing.
As TPG executive editor Scott Mayerowitz shared, large black garbage bags can also work as blackout shades in a pinch.
Related: The best family beach vacation destinations to kick off summer
Find a space in your hotel for the baby to sleep
In the best-case scenario, you’ll have accommodations with at least two bedrooms so your baby has a dark, quiet place to sleep while you relax without disturbing them. However, there are times when having multiple rooms isn’t possible.
If you only have one bedroom, try putting a crib in a hotel closet or bathroom to achieve the same result.
Travel with gear that will help your baby sleep in the hotel
When it’s time for the baby to sleep, there are numerous sleep tents, shades and white noise machines to choose from. Here are a few of our most trusted options:
You don’t always need to buy new gear for a successful trip, though. One reader suggested using painter’s tape to cover outlets as a quick, cost-effective way to baby-proof your hotel room.
Related: These are the best New York City hotels for families to check out
Have diapers and essentials shipped to your final destination
While you need plenty on hand for that first day or two, you can purchase what you need from Amazon and have it shipped directly to your destination instead of traveling with an entire week’s worth of needed items like diapers and wipes.
Alternatively, you can use a service like Shipt or Instacart to have essentials delivered to your hotel or home rental after you arrive.
Pack the snacks
This is true for all ages but especially applies when traveling with infants.
Don’t ever assume anything baby-appropriate will be available while you are in transit. The last thing you want is the stress of scrambling to find what you need at the last minute.
To avoid this potential headache, pack enough formula, snacks and more so you have whatever your little one may need to stay happy and content.
Related: How to pack — and prepare — for travel with a baby
Travel tips for preschoolers
The good news is that when kids are old enough for preschool, they don’t need quite as much sleeping and transportation gear.
With preschoolers, you’ll want to pay particular attention to toys and activities that will keep them entertained, night lights that will help keep the “scaries” away and a few other important travel essentials.
Bring mess-free toys
When choosing toys to pack for a flight or road trip, keep in mind that you don’t want anything that will create a mess or get lost easily, such as Legos or slime.
For mess-free coloring, we love Crayola Color Wonder Markers and coloring pages. If you’re taking a long flight or road trip, consider suction toys that can stick to a car or airplane window.
Related: 14 mistakes parents make when traveling with kids
Pack hidden toys to reveal during your trip
A surefire way to keep your child content for extended periods of time is to hide some toys until your travel day arrives so they feel new and exciting. You can even wrap them up or dole them out periodically throughout your trip — we recommend packing one toy for each hour of a flight — to add an element of surprise.
Try visiting a dollar store or dollar aisle in a store to dial up the surprise factor. Trust us, the $5 investment will pay off in spades.
Related: Your guide to flying with kids of every age
Consider an inflatable booster seat
If your child has graduated to a booster seat (congrats!), there are inflatable and fold-flat booster seats available that are easier to haul when traveling by car.
While there are several options currently on the market, the BubbleBum inflatable booster seat is a TPG reader favorite.
Use a stroller
Should you find yourself covering lots of miles on your trip, having a stroller can come in handy, even if you don’t normally use one at home.
For example, at a large theme park like Disney World, you may find yourself needing a stroller until your kid is 6, 7 or even 8 years old if you are moving quickly and want them to easily keep up (or if you know they will fall asleep before you are ready to call it a night). This may mean renting one when you get there, though you may prefer to have your own if you’re doing more than spending time at Disney.
Get stroller straps
Because it isn’t socially acceptable to AirTag children (though they do come in handy for finding lost luggage), we instead suggest getting stroller straps that bigger kids can hold on to while you push younger children in the stroller. We’re particularly fond of the Tagalong Stroller Accessory.
Preschedule car service from the airport
If you need car seats or want to be sure you have a ride waiting for you when you land, Uber and Lyft now both have options for prescheduling a ride if you need one.
While the best service depends on where you are going, one option to try is Blacklane. Consider having your driver meet you inside at baggage claim if you’re traveling with a lot of gear.
Pack a night light
For kids who are afraid of the dark, night lights may come in handy. This affordable nightlight is small, sleek and easy to pack.
If you are going on a cruise and don’t have access to traditional power outlets, TPG senior travel editor Erica Silverstein suggests bringing along battery-operated tea lights instead.
Travel somewhere with a kids club
A magical milestone in travel is when your child turns 3 and is potty trained, as this unlocks access to a variety of kids clubs.
Whether you’re on a Disney cruise (like the new Disney Wish cruise ship, pictured below) or at a resort with a kids club (some of which are free to use), children’s clubs are great for preschoolers.
By going somewhere that caters to younger children, you’ll be able to get a well-deserved break while the kiddos are taken care of.
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Plan down days and afternoon rest
Even if your preschooler has dropped daily naps at home, it’s still smart to build some downtime into your vacation schedule. This is especially important because it’s likely that their sleep schedule will be a little off while you’re traveling and that your vacation will be more action-packed than what they’re used to at home.
To help your overtired kid adjust, plan a relaxing pool day or take an afternoon break in your hotel room to keep crankiness at bay.
Travel tips for elementary-age kids
As kids get older, they can do more while on vacation with less help, but the tried-and-true tricks for keeping them entertained may no longer work.
Because their brains are developing and becoming more complex, elementary-age kids will need to have access to more activities while they’re away from home. As a result, you’ll need to adjust your strategy for vacations so they continue to have a good time.
Use packing cubes for the family
This tip applies to all age groups but can be especially helpful when your child starts taking more of an interest in choosing their own clothes. By relying on packing cubes, you can keep clothing for every member of your family organized while saving space.
If you decide to use packing cubes, there are a couple of good methods to choose from.
You can have a packing cube for each day of your trip and put your family’s clothing for each day in one cube. This works well if you will be making multiple stops and don’t want to pack and unpack everything.
You could also pack each family member’s clothing in a separate packing cube, which is helpful when you are encouraging kids to get dressed on their own and choose their own outfits.
Leave 1 day free in the schedule
We’ve already covered the importance of leaving some flex time in the afternoons, but if you are traveling for more than a long weekend, we highly recommend leaving an entire day unscheduled. That way, the kids can either rest and chill or you have the ability to say yes to something they spot along the way.
Depending on your child’s interests, you may want to use your free day for activities like splashing around at a water park, checking out some animals at a zoo, enjoying an epic ice cream-tasting adventure or spending more time at the kids club.
The key is to leave this day flexible so you can cater some activities to what your kid is enjoying the most.
Take advantage of your hotel’s club lounge
Club access can be invaluable when traveling with kids.
If you stay in a club-level room at a hotel, you’ll often have daily access to breakfast, snacks and drinks. An added bonus is that the club can serve as a gathering spot for enjoying more time (and often gorgeous views) with them.
Related: Can you use a World of Hyatt club lounge access award for someone else?
Plan trips with another family
This is the age where having other kids around really starts to matter.
If at all possible, try planning the trip to at least overlap with time spent with cousins or friends. Doing so will virtually guarantee the kids will have a better time, which means you will, too.
For these types of trips, you may want to look into finding a good vacation home rental.
Related: Why the best big family vacation may be skiing
Travel tips for tweens and teens
Traveling with tweens and teens is completely different than traveling with younger kids — something you probably know all too well if you are currently living with them.
At this age, kids are well on their way toward becoming full-fledged adults. As a result, they deserve a taste of the space, privacy and independence that comes along with adulthood.
Build an activity bag
It’s easy to assume the phone will do the trick, but TPG editor Kristy Tolley is a proponent of custom activity bags to keep kids (including older ones) occupied on long trips.
For your activity bag, consider anything from snacks to quiet toys to new games for their Nintendo Switch to art supplies — whatever will keep them entertained while you get to your final destination.
Double-check downloaded content
Wi-Fi on airplanes can be quite finicky. Even if you pay for it, there’s never a guarantee it’ll work for the entirety of your flight. Because of this, download movies, music, games and more to your device (or your child’s) before your trip.
When downloading movies or TV shows, turn to multiple sources like Netflix, Disney+ and Apple. That way, if you run into issues with one provider, you still have content from the others.
Also, remember that messaging others is free on many flights, so be sure your teen has the airline app downloaded if you want them to be able to keep using services such as iMessage while in the air.
Enroll your child in TSA PreCheck
Until they turn 13, kids traveling with a parent or guardian with TSA PreCheck will be allowed to go through the expedited security line even if they themselves don’t have TSA PreCheck.
Even after they turn 13, kids 17 and younger can typically use the TSA PreCheck lines with their parent or guardian as long as the teen has the indicator on their boarding pass.
If you have a credit card that reimburses fees for TSA PreCheck, you can recoup the cost of your child’s application. Note that Clear continues to work to bring kids through until they turn 18.
Related: Why you should get TSA PreCheck and Clear — and how you can save on both
Consider connecting rooms
The days of squeezing two or three kids into one queen-size bed are probably long gone once they reach their teenage years. Not to mention, trying to have the whole family use one bathroom is an ordeal you likely won’t want to go through.
To keep the peace, consider reserving connecting hotel rooms.
With connecting rooms, you’ll have double the beds, bathrooms and storage space. Plus, teens and tweens will have the space and privacy they need without you being too far away to keep an eye on them.
Related: Big news for families: Hilton to guarantee adjoining rooms with ‘Confirmed Connecting Rooms’
Let kids choose a few activities (or plan the whole day)
At this age, kids are not just along for the ride. Give them some input (and independence) by allowing them to help plan your trip. Odds are they’ll be more engaged by being involved in the planning.
Bring a friend
While planning trips with other families is a good strategy with elementary-age kids, by the time kids are teens, just bringing along one of their friends could be sufficient.
To keep the costs down, consider using an airline companion certificate to bring along that friend without spending extra.
Go somewhere with a teens club
If you are visiting a resort or destination where you may be going light on activities, lean into places that have a space just for teens.
Cruise ships are fantastic when it comes to this, as they often have kid-focused spaces divided into pretty distinct age ranges. For example, Disney Cruise Line has a club for kids ages 3 to 12, another for those between 11 and 14 and then one for teens ages 14 to 17.
By taking advantage of clubs that are broken up into designated age groups, your teen can have plenty of fun without the annoyance of hanging out with younger kids.
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Related: Child turning 18? Here’s everything you need to know before the next time they travel
General family travel tips
Some family travel tips transcend age groups.
Regardless of how old your kids are, where you’re traveling or how you’re getting to your vacation destination, there are a few tips you’ll always want to keep top of mind.
Utilize airport lounges
Airport lounges are becoming more and more kid-friendly, as they offer dedicated family rooms with toys and kids shows on TV, plus food that will please picky eaters. Additionally, if you have a long layover or are dealing with flight delays or cancellations, you’ll be much more comfortable waiting in a lounge instead of at your gate.
You can purchase a day pass to many lounges but may be able to get yourself and your family in for free with certain credit cards or airline status. For example, The Platinum Card® from American Express grants the cardmember and one guest complimentary access to Priority Pass lounges and access to Centurion and Escape lounges, though complimentary guest access depends on how much you spend annually.
Related: Best credit cards for airport lounge access
Upgrade to a suite
Similar to springing for connecting rooms, upgrading to a suite will buy you additional space and, sometimes, a pullout sofa that adds another sleeping option.
You’ll also have more room for your family’s belongings and areas for relaxing and dining so your kids don’t spend all their time jumping, eating and lounging on the beds.
Check for reciprocal zoo and museum memberships
If you have a membership to your local zoo or museum, you may be able to use reciprocal benefits for free or discounted entry to other zoos and museums that you can visit on vacation.
This information is usually available on your zoo or museum’s website, but you can also check lists on the Association of Zoos & Aquariums’ page about reciprocal admissions or on the North American Reciprocal Museum Association website.
Get a travel tracker that doubles as a memento
There are so many unique travel souvenirs you can get that also serve as keepsakes for remembering your child’s travel “firsts.”
These Junior Frequent Flyer flight logbooks allow you to record your child’s flights while teaching them about aviation.
If a national park visit is in your future, order a standard or junior National Parks Passport and collect stamps every time you visit a new park.
Don’t forget important medicines
When you are away from home, you have to be prepared for anything. That includes unexpected sicknesses and accidents.
Pack kid-safe and grown-up medicines, as well as Band-Aids, antibiotic ointment and other first-aid necessities in your carry-on bag so you won’t be without them if your checked luggage is delayed or lost.
Bring an extra bag
If you are traveling between a cold climate and a hot one, pack a lightweight tote bag that can fold into your carry-on so you can easily gather up everyone’s coats once on the plane. By keeping this tote tucked away until you’re on board the aircraft, you’ll enjoy an extra allowed bag, saving you the headache of trying to determine where to put bulky coats.
Get Global Entry for each family member
Unlike TSA PreCheck, which allows kids to travel with an eligible adult until they turn 18 (in most cases), anyone wishing to use Global Entry to expedite reentry into the U.S. needs to apply for the program.
Global Entry can save valuable time spent waiting in line. However, you’ll need to apply well in advance of your trip so you have time to submit your application, complete an in-person interview and await approval.
Similar to TSA PreCheck, you can use a credit card that will reimburse your child’s Global Entry application fee.
Try out the games built into many spaces
It’s easy to miss, but many resorts, theme parks and cruise ships have a hidden layer of fun that ranges from traditional scavenger hunts to interactive activities you can unlock with an iPhone or similar device.
While the youngest travelers won’t benefit from these types of experiences, they can be fun for a variety of age ranges, especially elementary-age kids and tweens.
Related: Disney World rolls out all-new MagicBand+: Here’s what this wristband can do for your trip
Bottom line
Family travel has its own built-in challenges, but it also comes with immense rewards.
By knowing all the tips and tricks to traveling with kids, having the right gear with you, mapping out a game plan and having the right attitude and realistic expectations, you can have a memorable vacation every member of the family enjoys.
You may not get to do everything you want or sometimes feel like it’s more of a hassle than a vacation. However, if you’re willing to be flexible and appreciate when things go according to plan — even if the end result isn’t quite what you had hoped for — you’ll find yourself eager to book your next family trip before you have the bags unpacked and put away.
I’ve lived in a small town for most of my life. The drive home includes steep hills with panoramic views and winding country roads that ramble past ranches and wide-open fields.
But I didn’t always have positive feelings about the country life. In high school, I hated it. All of the action was in the city, where coffee shops, museums, restaurants, and concerts happened. When I moved to the city my freshman year of college, I thought that would be the end of country living — I was finally a city mouse.
As it turned out, after seven years in the city, I did move back. It began as a purely financial decision, and one that, at the time, made me feel a twinge of anxiety. I remember that as my husband and I were packing up our apartment in town to get ready for the move, I had a mini meltdown, asking him, “Are you sure you want to do this? Are you really sure you want to do this?” (He probably thought I was nuts since the whole thing was my idea, but he’s a wise man and kept that to himself, simply saying that yes, he was sure.)
The Move Becomes Permanent
We planned to save money for a down payment on a home, but none of the houses that we viewed were just right. Then one day we happened upon a beautiful lot that was for sale, and we started thinking about the possibilities of building a home. More excited about the prospect of building than we were about any of the homes we had toured, we bought the 4.5-acre lot and have now started the slow process of paying-with-cash home construction.
This bit of background is just to let you know that I don’t view country life as better than city life, or vice versa. Having lived in both places, I see advantages and disadvantages to each, especially when it comes to finances. (There are exceptions to every rule, but for the purposes of this article I’ll make a general comparison between living in a rural town of large ranches and 2-plus acre lots with living in a mid-sized city.)
Advantages of Being a Country Mouse
One of the biggest financial advantages of living in a small town is a lower cost of living. Housing is cheaper, and where I live, the closest parking meter is 40 minutes away. Using CNNMoney’s Cost of Living Calculator, I compared the cost of living in Austin, Texas, population 790,390, with Seguin, Texas, population 25,175. The results were as follows:
Groceries will cost 2% more in Seguin
Housing will cost 8% less
Utilities will cost 6% less
Healthcare will cost 3% less
Another benefit I’ve noticed with living in the country is that one is less prone to lifestyle inflation. No one who lives down a gravel road wants to own a BMW. As long as I’ve lived here, I’ve never met “the Joneses,” so there’s zero compulsion to try to keep up with them.
I’ve also found that entertainment and recreation costs are lower — I can’t go to a shopping center, coffeehouse, restaurant, or the movies without a some significant drive time. If I lived around the block from a coffeehouse, I’d probably never make coffee at home. I also really get my money’s worth from my Netflix Watch Instant account.
Country life gives kids plenty of free entertainment, too. As a child, I didn’t have cable TV. I thought it was a drag — my friends would talk about shows on Nickelodeon and I was left out. When I’d launch a campaign to get cable, my dad would tell me to play outside or read a book. I spent hours playing with my best friend next door, hanging out in trees, and shaking hands/paws with the sweetest golden retriever that ever did live — shaking hands was her favorite trick. When I wasn’t doing those things, I was reading a book. (Dad might have refused to pay for 100 TV channels, but he never refused me a book.)
There’s also a certain independence that comes with country living. Homesteading is more likely to be an option, and you’re less likely to run into restrictions. I’ve heard of homeowner’s associations that don’t allow energy-saving tactics like hanging clothes on a clothesline to dry. In the country, you’re free to hang your shorts wherever you please.
Advantages of Being a City Mouse
Living in the country is great for tree-climbing and composting, however, there are some drawbacks. Cities come with more employment opportunities, for example. Many professionals would have to commute to a city to find work. A neurosurgeon won’t find work in a town of 2,400, and it’s just not a possibility for someone who has to commute to the city and be on call.
City life also gives you more options to lower your transportation expenses. Most cities have decent public transportation, and some have excellent public transportation that’s a much better option than driving your own vehicle. Car sharing, biking, and walking are all possibilities, which reduces costs like fuel and wear-and-tear on your vehicle (if you own one).
Finally, if you’re a city mouse, you’ll find it more convenient to network because you live where the action is, meaning you’ll probably do more networking and socializing. Done correctly, networking is a powerful tool that will improve your job prospects. With a wider network of people who live nearby, you’ll also find that it’s easier to have someone pet-sit while you’re in Europe (something very difficult for me to arrange where I live — I pay extra to compensate for the long drive) or give you a ride to work when your car is in the shop. Another example: Even though I know a couple of neighbors very well, it would be a big hassle to ask them for a lift to the airport because that would mean almost a 2-hour round-trip.
For my husband and me, the best living situation is having a home in the country that’s 30 minutes from city life. Sure, the drive can be a pain sometimes, but I feel like we get the small town life with many of the city benefits. Despite the drawbacks, the benefits to being a country mouse sway me more — plus, I really love that I can stand on my porch at night and look up at the Milky Way.
Readers, what have I left out? What are other ways that country life saves money? What about city life?
On this Memorial Day Weekend, we honor the men and women of
the United States who put everything on the line to protect our country and the
freedom we hold. In 1944, President Franklin D. Roosevelt signed the VA loan
into law helping Veterans achieve the American dream. In 1970, under President
Nixon, the VA loan landscape changed with the Veterans Housing Act of 1970. There
was no longer a time limit on loan eligibility, and veterans now had the option
to refinance into another VA loan. Today, the VA loan has guaranteed more than
24 million homes across the United States.
VA Home Loan Military and Service Requirements:
With a VA loan, there are service requirements that need to be
met in order to qualify. These are based on the time period during which you
served, and the number of days active duty. For example, if you are currently
active duty, you would have had to of served 90 continuous days to meet the
requirements. For a further breakdown, those who served during:
WWII – a total of 90 days, or less than 90 days if you were discharged for a service-connected disability
Post-WWII – 181 continuous days or less than 181 days if you were discharged for a service-connected disability
Korean War – a total of 90 days, or less than 90 days if you were discharged for a service-connected disability
Post-Korean War – 181 continuous days or less than 181 days if you were discharged for a service-connected disability
Vietnam War – a total of 90 days, or less than 90 days if you were discharged for a service-connected disability
Post-Vietnam War – 181 continuous days or less than 181 days if you were discharged for a service-connected disability
1980-1990 – 24 continuous month or 181 days that you were called into active duty
Gulf War – 24 continuous months or 90 days in active duty, at least 90 days if you were discharged for a hardship, a reduction in force, or convenience of the government or less than 90 days if you were discharged for service-connected disability
If you separated from service after September 7, 1980 – 24 continuous months, 181 days of active duty or less if discharged for hardship, a reduction in force, convenience of the government or a service-connected disability
On Memorial Day, we honor those who have given their lives for
our freedom. For those who have a spouse serving or who has served, you may be
able to qualify for a VA loan through a Certificate of Eligibility. However,
there are requirements that you will need to meet as well. Most, COE’s are
given to those surviving spouses of a Veteran or the spouse of a Veteran who is
missing in action (MIA) or being held as a prisoner of war (POW).
However, you meet these requirements, be sure to talk to your Total Mortgage Loan Officer about
your options to be able to receive a Certificate of Eligibility (COE).
Credit Score Requirements for VA Home Loans:
VA loan credit score requirements are similar to USDA
credit score requirements. The Veterans Administration or the VA
doesn’t set a minimum credit score requirement, however, the lender is able to
set a benchmark. Typically, the benchmark for a VA loan is set at a 620 FICO
score. This does not mean that you will not be approved with a lower score.
Your credit score eligibility will be determined once a credit report and
analysis are complete. No matter your credit score, there is always room for
improvement.
VA Home Loan Down Payment Requirements:
Another advantage of a VA loan is the down payment, or lack
thereof. Once again, similar to USDA loans, VA loans don’t require a down
payment from borrowers. In fact, about 90% of VA loan holders borrow the loan
without a down payment placed on the loan, although when a down payment is
made, the VA Funding Fee decreases.
A VA Funding Fee on a first-time VA borrower is typically 2.3%
of the loan when no down payment is made. When a down payment of 5% is made by
the borrower, the fee drops to 1.65% of the loan. As the down payment amount
increases, the VA Funding Fee decreases.
The down payment on a VA loan does not have to come from your
accounts. It is acceptable for a down payment gift to be given on a VA loan. If
the down payment is a gift, a letter is required and needs to have the donor’s
information, relationship to the borrower, details about the gift, and legal
phrasing that states that the payment does not need to be repaid.
What are my options:
Depending on your credit score and where you would like to
live, you have more options available to you. Here are some of the most
noteworthy loan options:
VA Loans – Are serving and meet the requirements? Is your spouse a Veteran or MIA or POW?
Benefits:
No down payment requirement
No credit score requirement, lender may set one
USDA Loan – Are looking to live in a rural or suburban area?
Benefits:
No down payment requirement
No credit score requirement, lender may set one
FHA Loan – Are a first-time home buyer with a credit score that is in repair?
Benefits:
3.5% down payment minimum, PMI for the life of the
loan
Lower credit score requirements set by lenders
Conventional 97 Loan – Are you a first-time home buyer who has a good to excellent credit score?
Benefits:
3% down payment minimum, 20% down payment without
PMI on the loan
Summary:
Mortgages are
not a “one size fits all” financial decision. VA loans offer Veterans a great
option to achieve the American Dream with no down payment required and no
credit score requirement set by the VA. However, to find the best loan for you
and your financial situation, contact a Total Mortgage Loan Officer or visit
our
mortgage builder today!
Carter Wessman is originally from the charming town of Norfolk, Massachusetts. When he isn’t busy writing about mortgage related topics, you can find him playing table tennis, or jamming on his bass guitar.
Now before you go running for the hills, let me just preface that I too was VERY skeptical of this color at first. I mean, the name itself sure isn’t doing the color any favors…Burnt…Orange? Sounds downright repulsive.
BUT with that being said, I challenge you to set aside your judgement for just a moment and allow me to make a case for this under-appreciated color. Sure, in fairness, perhaps burnt orange will never be “the new black” but it’s certainly worthy of some serious attention.
See? Not bad, huh? It gives off a 60’s Mod-vibe without feeling too dated or retro. Plus, when it’s in flowy lightweight fabric form it looks ultra-elegant and contemporary. Even when incorporated as a statement color into decor, it offers a healthy dose of character and an inviting sense of warmth.
Are you convinced? What are your thoughts on the color?
Image 1 via Nanushka // 2 via JCrew // 3 via Dust Jacket Attic // 4 via The D Pages // 5 via Blueberry Modern // 6 via Nordic Design
Individuals across the country chasing the American dream of homeownership helped to push mortgage application volume up by 2.5% for the week ending April 29, compared with the prior week.
The uptick, as measured by the Mortgage Bankers Association‘s (MBA’s) Market Composite Index, was propelled primarily by purchase-application activity, as rates remain elevated, hovering in the low 5% range and a drag on refinance volume.
The seasonally adjusted purchase index rose 4.1% from the prior week, fueled by increased conventional, Federal Housing Administration (FHA) and Veterans Affairs (VA) loan-application volume. That’s a good sign for the spring homebuying season, which has seen a slow start, according to the MBA. Meanwhile, refinance applications increased by only 0.17% from the prior week.
Compared to a year ago, overall applications declined 49.7%. Interest in purchases fell 10.9%, while refinances dropped 70.7% from the prior period.
“Treasury yields eased slightly last week but remained close to 2018 highs, as financial markets await the news from the Federal Reserve on its latest plans for rate hikes and reducing its balance sheet holdings,” Joel Kan, MBA’s associate vice president of economic and industry forecasting, said in a statement.
According to the MBA, the average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($647,200 or less) decreased to 5.36% this week, down from 5.37% the previous week, but still 2 percentage points higher than a year earlier. The average contract interest rate for 30-year fixed-rate mortgages with jumbo-loan balances (greater than $647,200) jumped to 4.92 percent, up from 4.89 percent the prior week.
How lenders can accelerate access to credit for marginalized communities
For those in marginalized communities, it can be much more challenging to achieve the American dream of homeownership. Here’s a look at a lending technology that can help forge a pathway for underserved populations to build generational wealth through homeownership.
Presented by: Equifax
“The purchase market remains challenged by low levels of housing inventory and rapid home-price gains, as well as the affordability hit from higher mortgage rates that are forcing prospective buyers to factor in higher monthly payments,” Kan said.
The refinance share of all applications dipped to 33.9%, down from 35% the previous week. The MBA report also noted that the adjustable-rate mortgage share remained unchanged at 9.3% of total applications.
The FHA share of total applications increased to 11.1% from 10.6% a week earlier, and the share of VA applications rose slightly to 10.3% from 10.2%. The USDA share dropped from 0.5% to 0.4%.
The survey, conducted since 1990, covers over 75% of the retail residential mortgage applications.
European Central Bank has voted to lift borrowing costs across the eurozone.
The ECB’s governing council has voted to raise the three key ECB interest rates by 25 basis points, or a quarter of one percent.
Announcing the move, it says:
Inflation has been coming down but is projected to remain too high for too long. The Governing Council is determined to ensure that inflation returns to its 2% medium-term target in a timely manner.
Eurozone inflation was recorded at 6.1% in the year to May, down from 7.0% in April, so three times higher than its target.
Today’s changes mean that the interest rate on ECB’s main refinancing operations will rise to 4%.
The marginal lending facility (used by commercial banks for short-term borrowing from the ECB) rises to 4.25%, while the deposit facility rate (paid on commercial bank deposits left at the ECB) rises to 3.5%.
Former Bank of England governor Mark Carney has warned that governments will be paying higher rates of interest for their debt for the foreseeable future, and that mortgage holders should adjust to this new situation.
Carney told ITV’s Robert Peston:
If you have still a few years of low interest rates on your mortgage, if you fixed just at the right time as it turned out, recognise that there will be ann adjustment over the medium term.
It’s a question of degree but the direction is very clear.
The turbulence in the mortgage market has continued, with Nationwide lifting its fixed-term mortgage rates from tomorrow….
…and average rates across the market increasing again.
In the eurozone, the European Central Bank has lifted its key interest rates by a quarter of one percent.
The ECB warned that inflation is projected to remain too high for too long, as it lifted its forecasts for price rises over the next few years.
ECB president Christine Lagarde indicated that eurozone interest rates will be lifted in July too, saying:
“Are we done? Have we finished the journey? No. We’re not at our destination.
Do we still have ground to cover? Yes, we still have ground to cover.
And in other news:
pic.twitter.com/9kOKGY7FpN
— James Picerno (@jpicerno) June 15, 2023
The euro has hit a 15-year peak against the yen and a fresh four-week high against the dollar, after the European Central Bank raised interest rates and signalled that a July hike is on the cards too.
@Lagarde introduces the inflation outlook for the euro area pic.twitter.com/ToaMC5cpwh
— European Central Bank (@ecb) June 15, 2023
….and growth (down a bit this year, and next)
@Lagarde “Very likely” interest rates can be raised further at Governing council July meeting. “We’re not thinking about pausing”. @eunewsit pic.twitter.com/kftOVkVj21
— emanuele bonini (@emanuelebonini) June 15, 2023
as Mark Carney warned last night).
The quoted rate offered by Nationwide on a 2-year fix for new borrowers, available for a £999 fee, will rise on Friday to 5.69% across most loan-to-value ratios, from 5.24% currently.
Your new forecasts show you don’t expect to reach your 2% inflation target in the next three years – so is 3% the new 2%?
Lagarde says the ECB is in the middle of its fight against inflation, and insists it will get inflation down to the 2% target, (rather than shuffling the target up to make it more achievable).
June 15, 2023
US Federal Reserve holding interest rates last night?
Christine Lagarde says today’s decision, to raise interest rates, followed analysis of the latest economic data and new staff forecasts.
Lagarde says the ECB’s decisions are ‘data-dependent’, and insists that further increases in borrowing costs will be needed.
She says:
Are we done? Have we finished the journey? No, we’re not at the destination.
Do we still have ground to cover? Yes.
Unless there is a material change to the ECB’s forecasts, Lagarde adds, the central bank is very likely to raise interest rates again in July.
And on the Fed, Lagarde says she doesn’t know the difference between a ‘pause’ and a ‘skip’ (two terms banded around to describe last night’s no-change). But the ECB is not thinking about pausing.
Today’s homebuyers are learning that finding a move-in ready home in a good location that they can comfortably afford is about as rare as a winning Powerball ticket.
A dire housing shortage has kept prices strong and competition fierce among buyers despite high mortgage interest rates. That’s left less than a quarter of the roughly 1.1 million home listings within financial reach of the typical American household, according to a recent joint report from the National Association of Realtors® and Realtor.com®.
The housing market is short about 320,000 listings within the price range of buyers earning the median household income of $75,000 a year. These buyers can generally afford homes up to $256,000. (Listings for single-family homes, condos, townhomes, row homes, and co-ops included only existing homes and did not encompass new construction.)
“The country has the largest shortage of homes in the price range that middle-income buyers can afford,” says NAR Senior Economist Nadia Evangelou. “That can explain why the competition is strongest for these homes.
“We hear again and again that in order to address the housing affordability issue we need to add more housing to the market,” she adds. “We need to add more homes that middle-income buyers can afford.”
Even those making $100,000 can afford only about 38.6% of the homes on the market. And those needing mortgages are faced with rates nearing 7% for 30-year fixed loans, pushing monthly mortgage payments up into the stratosphere.
The problem has worsened significantly over the past five years. In 2018, there were about 810,000 homes on the market that middle-income buyers could afford. That’s compared with nearly 263,000 in April of this year.
The affordability crunch is even worse for people of color. About two-thirds of Black Americans and 59% of Hispanic Americans have household incomes below $75,000. That’s compared with 48% of white Americans and 37% of Asian Americans.
“Our country needs to add at least two affordable homes for middle-income buyers for every home listed for upper-income buyers,” Evangelou says.
Where middle-income buyers can find the fewest affordable homes for sale
Not surprisingly, the nation’s most expensive metropolitan areas had the fewest homes priced for middle-income buyers. In the whole state of California, just 3.7% of all home listings in April were affordable for buyers earning $75,000 or less.
The issue was the most acute in Silicon Valley’s San Jose, where there was just one home listing priced for buyers earning $75,000 in the entire metropolitan area. (NAR and Realtor.com looked at the 100 largest metros for their analysis. Metros include the main city and surrounding towns, suburbs, and smaller urban areas.)
The lack of affordable homes isn’t surprising as the median price in the metro was $1.53 million in May, according to Realtor.com data, which includes new construction.
In Oxnard, CA, 0.2% of homes were affordable for middle-income buyers. It was 0.6% in San Diego, 1% in San Francisco, and 1.2% in Los Angeles.
However, residents in these more expensive areas generally make more money to keep up with the higher cost of living. The median household income in these areas is typically more than $100,000, says Evangelou.
Even in less expensive, yet still pricey areas, there was a dearth of real estate priced for middle-income buyers: just 1.2% of homes in Seattle; 1.3% of homes in Austin, TX; 2% of homes in Boise, ID, and Salt Lake City; and 2.6% of homes in Sacramento, CA.
“In these very expensive areas, especially middle-income buyers can afford to buy very few listings,” says Evangelou. “It’s very difficult.”
Where middle-income buyers can find the most homes for sale
Buyers on a budget will find the greatest selection of affordable homes in the cheaper parts of the country, such as the Rust Belt and Deep South.
In West Virginia and Ohio, more than half of the homes for sale in April were affordable for middle-income buyers. About 59.3% and 55.6% of listings were priced right respectively in those states.
“Some of these areas have an oversupply of housing,” says Evangelou.
In the Youngstown, OH, metro, nearly three-quarters of the homes for sale, about 72%, were within reach of middle-income buyers. In May, the median home price in the metro was $162,450—about a third of the national median price tag of $441,445 in May, according to Realtor.com data.
The metro was followed by Akron, OH, at 61.4%; Toledo, OH, at 60.7%; Cleveland, at 58.6%; and Syracuse, NY, at 54.4%. Rounding out the top 10 were Scranton, PA, at 53.5%; Dayton, OH, at 53%; Pittsburgh, at 52.2%; Rochester, NY, at 51%; and Detroit, at 49.3%.
“Ongoing high housing costs and the scarcity of available homes continues to present budget challenges for many prospective buyers, and it’s likely keeping some buyers in the rental market or on the sidelines,” Realtor.com Chief Economist Danielle Hale said in a statement.
“Those who are able to overcome affordability constraints may be increasingly drawn to newly constructed homes or to the suburbs and beyond, both of which may offer buyers more realistic opportunities for homeownership.”