Check AmEx referral links to see if you can get this offer to show:
American Express is offering 200,000 points after $15,000 in spend on the American Express Business Gold card.
The card also has a 0% intro APR for 6 months.
Card Details
$375 annual fee, not waived first year.
$240 flexible business credit. Up to $20 in statement credits each month after you use the Business Gold Card for eligible U.S. purchases at FedEx, Grubhub, and Office Supply Stores
$12.95 monthly Walmart+ credit.
Card earns 4x points on the two categories your business spends the most each billing cycle, from the following list (up to $150,000 in combined purchases each calendar year):
Transit purchases including trains, taxicabs, rideshare services, ferries, tolls, parking, buses, and subways
Monthly wireless telephone service charges made directly from a wireless telephone service provider in the U.S
U.S. purchases at restaurants
U.S. purchases for advertising in select media
U.S. purchases at gas stations
U.S. computer hardware, software, and cloud computing purchases made directly from select providers
3x points on AmEx Travel
Our Verdict
This is an amazing offer if you can get it to show. People are talking about certain referral links being 200k, but in reality I think it might depend more on the user who use opens the link (depending on location, etc).
No referral links or sharing in the comments below.
An essential aspect of being a successful landlord is being strict with your tenants. Letting tenants walk all over you can lead to a multitude of problems, and it’s crucial to enforce your rules and leases diligently. Here’s why you need to be strict and how it can actually benefit your business and your tenants in the long run.
Table of Contents
Video: Why Landlords Must Be Strict
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The Importance of Enforcing Lease Agreements
One of the key reasons to be strict with tenants is to maintain order and respect for the lease agreements. For example, I allowed tenants to temporarily park in a car wash area while it was out of order.
However, they took advantage of this leniency, started performing car repairs, and left paint all over. This incident highlights the old adage: if you give an inch, they’ll take a mile. It’s vital to adhere strictly to lease terms regarding parking, property use, rent payments, and late fees to prevent such issues.
Top 5 Mistakes Landlords Make
Addressing Issues Promptly and Firmly
When tenants violate lease agreements, addressing the issue promptly is crucial. In the case of the car wash situation, we posted notices and warned the tenants about towing their cars.
Despite initial verbal and written warnings, it wasn’t until we took the more severe step of posting tow stickers that the cars were finally moved. This approach applies to other issues such as late rent and property misuse.
The Role of Property Managers
If you find it challenging to be strict, hiring a property manager can be an effective solution. A property manager can enforce the rules impartially, citing you as the authority behind the decisions.
This arrangement helps avoid personal conflicts and ensures that tenants understand the seriousness of their violations. It’s okay to recognize if you’re not naturally strict and find someone who can handle this aspect of the business for you.
How to Find a Great Property Manager
Protecting Your Investment and Other Tenants
Being strict is not just about maintaining order; it’s about protecting your investment and ensuring a peaceful living environment for all tenants. In another instance, cars parked illegally blocked trash collection, causing significant issues. We left notices and sent letters, and we posted no parking signs. The tenants did not get the message until their cars were towed. That also sent a message to other tenants that we were serious and we have not had that problem since.
How I Made 2 Million Dollars From a Single Rental Property
Dealing with Late Rent and Evictions
Late rent payments are a common issue, especially post-COVID, with some tenants expecting continuous assistance. It’s imperative to address late payments immediately by issuing notices and charging late fees. Allowing tenants to pay late without consequences can lead to a cycle of non-payment, ultimately hurting your business.
In Colorado, for example, you cannot evict tenants for not paying late fees, only for not paying rent. This underscores the need to act quickly and enforce payment rules strictly.
Screening Tenants Thoroughly
Properly screening tenants before they move in can prevent many issues. Conducting background checks, credit checks, and verifying references are crucial steps. Even with these precautions, about 10% of tenants might still cause problems, but without screening, this number could be significantly higher. Relying on gut feelings instead of data can lead to poor decisions and long-term headaches.
What is the Best Way to Screen Tenants for Rentals?
Understanding and Adhering to State Laws
Finally, always ensure that your actions comply with state laws and regulations, which are constantly evolving. Consulting with attorneys and accountants can help you navigate these complexities and avoid legal pitfalls.
Tools like DoorLoop, which is the property management software I use, can help.
Conclusion
Being a landlord is not just about owning property; it’s about managing it effectively and maintaining good relationships with your tenants. Being strict with your tenants is essential for the smooth operation of your business and the well-being of all your tenants. It might not always be fun, but it is necessary. By setting clear boundaries and enforcing them, you can run a more efficient and successful property management business.
Have you had a bad situation with a tenant? Let me know in the comments below!
Raleigh, the capital of North Carolina, is known for its thriving tech industry, vibrant cultural scene, and beautiful green spaces. With a mix of Southern charm and modern amenities, Raleigh attracts people from all over the country. However, living in this bustling city comes with its own set of advantages and challenges.
Whether you’re looking at a cozy apartment in Five Points or a sleek apartment in Downtown Raleigh, this article will help you weigh the pros and cons of living in Raleigh.
Fast facts about living in Raleigh
Population: Approximately 470,000 residents
Average rent: $1,368 per month for a one-bedroom apartment
Median home sale price: $441,000
Public transit: GoRaleigh provides bus services throughout the city
Public parks: Over 200 parks and green spaces for recreation and relaxation
Annual tourists: Approximately 16 million visitors each year
Restaurants: Over 1,300, offering a variety of cuisines from around the world
1. Pro: Thriving tech industry
Raleigh is part of the Research Triangle, one of the largest research parks in the world, which includes nearby Durham and Chapel Hill. This area is a hub for technology, research, and innovation, attracting major companies like IBM, Cisco, and SAS. The presence of these tech giants, along with numerous startups, provides ample job opportunities and drives economic growth in the region.
2. Con: Mixed cost of living
Overall, the cost of living in Raleigh is about 2% less than the national average, making it relatively affordable. However, there are variations within different expense categories. Housing costs are about 4% less than the national average, with the average rent for a one-bedroom apartment in Raleigh around $1,368 per month and a median home sale price of $441,000. Utilities are approximately 3% less than the national average, providing some relief in monthly expenses. Groceries are about 1% less than the national average, which can help reduce the overall cost of living. However, health care costs are significantly higher, about 12% more than the national average, which can be a notable expense for residents.
3. Pro: Excellent education
Raleigh is home to several esteemed educational institutions, including North Carolina State University (NCSU), Meredith College, and Shaw University. These institutions offer a wide range of programs and contribute to the city’s vibrant academic atmosphere. Additionally, there are various public and charter schools providing diverse educational options, including top-rated schools like Raleigh Charter High School and Wake Early College of Health and Sciences.
Raleigh also boasts a number of research centers and specialized training programs, fostering innovation and continuous learning within the community. This strong emphasis on education not only benefits students but also supports the city’s growing economy and attracts a highly skilled workforce.
4. Con: Limited nightlife options
While Raleigh offers a variety of dining and entertainment options, its nightlife scene is not as vibrant as larger cities like New York or Los Angeles. The city has a more laid-back atmosphere, with fewer late-night venues and entertainment options. Residents seeking a bustling nightlife might find the options limited, though there are still plenty of local bars, breweries, and restaurants to enjoy. For those who crave more excitement, cities like Durham and Chapel Hill offer additional nightlife options but still require a short drive.
5. Pro: Green spaces and parks
Raleigh boasts numerous parks and green spaces where residents can enjoy outdoor activities. The city is home to expansive areas like Umstead State Park and Pullen Park, providing a wide range of recreational opportunities, including hiking, biking, picnicking, and more. The city’s commitment to maintaining and expanding its green spaces contributes to a high quality of life for its residents.
Parks and trails in Raleigh
William B. Umstead State Park
Pullen Park
Dorothea Dix Park
Lake Johnson Park
Neuse River Trail
Shelley Lake Park
6. Con: Limited public transportation
While Raleigh has made improvements to its public transportation system, it still lags behind other major cities. The GoRaleigh bus system provides essential services, but the routes and schedules may not be convenient for all residents. The city has a transit score of 29, a walk score of 31, and a bike score of 39. This means that public transportation options are limited, and most daily errands require a car. This limitation can be inconvenient for those who prefer not to drive or do not own a vehicle.
7. Pro: Vibrant arts and culture scene
Raleigh offers a thriving arts and culture scene, making it an appealing destination for those who appreciate creativity and the arts. The city is home to numerous galleries, theaters, and cultural institutions, such as the North Carolina Museum of Art and the Duke Energy Center for the Performing Arts. Residents can enjoy a wide range of cultural events, including art exhibitions, live performances, and music festivals throughout the year. This vibrant cultural environment not only enriches the community but also provides ample opportunities for personal enrichment and entertainment.
8. Con: Weather extremes
Raleigh experiences all four seasons, which can mean hot, humid summers and cold, occasionally snowy winters. While some residents appreciate the variety, others may find the weather extremes challenging to manage. Summer heat waves can be uncomfortable, and winter storms can disrupt daily life, affecting transportation and causing school and work closures. The transition seasons, spring and fall, can also be unpredictable, with sudden changes in temperature and weather conditions.
9. Pro: Strong sense of community
Raleigh is known for its strong sense of community, with numerous events and festivals that bring residents together. The city hosts a variety of cultural and social events, such as the Raleigh Arts Festival and the International Festival of Raleigh, which celebrate the city’s diversity and promote community engagement. Neighborhoods in Raleigh often have active community associations and local initiatives that foster a sense of belonging and camaraderie among residents.
Neighborhoods in Raleigh
Downtown Raleigh
North Hills
Glenwood South
Cameron Village
Brier Creek
10. Con: High humidity
Raleigh’s climate, while providing beautiful weather, also means high humidity levels. The humidity can be uncomfortable, especially during the summer months when temperatures can soar. High humidity can make outdoor activities less enjoyable and lead to increased reliance on air conditioning, which can raise energy costs. Even with air conditioning as a standard feature in most homes and buildings, the persistent humidity can still be a challenge, making it harder to stay comfortable and maintain certain household items like electronics and wooden furniture.
11. Pro: Diverse food scene
Raleigh’s food scene is diverse and innovative, with a wide range of restaurants offering various cuisines. From Southern comfort food to international delights, the city has something to offer every palate. The downtown area and surrounding neighborhoods are known for their trendy eateries, food trucks, and craft breweries. Additionally, Raleigh hosts several food festivals, such as the Downtown Raleigh Food Truck Rodeo and the International Food Festival, showcasing the city’s culinary talent and diversity.
12. Con: High taxes
While North Carolina has a relatively moderate tax rate, Raleigh’s local taxes and cost of living can still be a financial consideration for residents. Property taxes in Wake County are higher than in some other parts of the state, impacting homeowners significantly. The combined state and local sales tax rate is 7.25%, which can add to the overall cost of living. Residents need to consider these factors when planning their budgets, as they can affect everything from housing affordability to daily expenses.
13. Pro: Iconic landmarks
Living in Raleigh means having iconic landmarks and cultural institutions at your doorstep. From the historic North Carolina State Capitol to the contemporary North Carolina Museum of Art, these sites contribute to the city’s unique character and charm. These landmarks offer a wealth of educational opportunities, recreational activities, and aesthetic enjoyment, making the city a delightful place to live and explore.
The Capital One Savor Cash Rewards Credit Card will no longer be on the issuer’s menu of available credit cards for new applicants. Beginning July 16, 2024, the card will stop accepting applications, according to Capital One.
“We’re always listening to customers and evaluating our products for the right offerings,” said a Capital One spokesperson in an email. “Based on this, we have made the decision to remove Savor as a card offering.”
Existing cardholders will not be affected by the change, the issuer confirms. The card will continue to maintain its $95 annual fee and offer the following rewards:
4% cash back on dining, eligible streaming services, and entertainment.
3% cash back at grocery stores.
5% cash back on hotels and rental cards booked through Capital One Travel (terms apply).
1% cash back on all other purchases
Prospective applicants will miss out on the card’s tasty rewards in a variety of top everyday categories, but it’s still possible to find value among similar cards. Capital One confirms it will keep applications open for the $0-annual-fee Capital One SavorOne Cash Rewards Credit Card and the Capital One SavorOne Student Cash Rewards Credit Card, which provide slightly lower rewards rates across some of those everyday purchases. They earn 8% back on Capital One Entertainment purchases; 5% back on hotels and rental cars booked through Capital One Travel; 3% back on dining, eligible streaming services, grocery stores and entertainment; and 1% cash back on all other purchases. Those ongoing rates are still heartier than you’ll find on some other credit cards.
Frequent diners who prefer an elevated rewards rate at restaurants can consider the $0-annual-fee U.S. Bank Altitude® Go Visa Signature® Card. It earns 4 points per $1 spent on dining (including takeout and delivery); 2 points per $1 spent at grocery stores, gas stations, EV charging stations and on eligible streaming services; and 1 point per $1 on all other eligible purchases. It also provides an annual credit of $15 for eligible streaming service purchases like Netflix and Spotify.
Information related to the Capital One Savor Cash Rewards Credit Card has been collected by NerdWallet and has not been reviewed or provided by the issuer of this card.
When comparing RMI data on industry performance between June 2023 and June 2024, it’s easy to discern a decline in industry activity. One year ago, American Advisors Group (AAG) was the top lender with 8,085 HECM loans in the 12 months ending June 30, 2023. One year later, Finance of America (FOA) — which acquired AAG — held that position but with roughly 500 fewer endorsements recorded in the prior 12 months.
John Lunde, president of Reverse Market Insight, a reverse mortgage analytics company.
” data-image-caption=”
John Lunde
” data-medium-file=”https://www.housingwire.com/wp-content/uploads/2024/01/johnlunde_rmi.jpg?w=200″ data-large-file=”https://www.housingwire.com/wp-content/uploads/2024/01/johnlunde_rmi.jpg?w=682″ src=”https://www.housingwire.com/wp-content/uploads/2024/01/johnlunde_rmi.jpg?w=682″ alt=”John Lunde, president of Reverse Market Insight, a reverse mortgage analytics company.” class=”wp-image-434915″ srcset=”https://www.housingwire.com/wp-content/uploads/2024/01/johnlunde_rmi.jpg 682w, https://www.housingwire.com/wp-content/uploads/2024/01/johnlunde_rmi.jpg?resize=100,150 100w, https://www.housingwire.com/wp-content/uploads/2024/01/johnlunde_rmi.jpg?resize=200,300 200w” sizes=”(max-width: 682px) 100vw, 682px”>John Lunde
The leading geographic region in the industry, the Pacific/Hawaii region, posted 700 closed loans in June 2023, a figure that dropped to 594 loans one year later. Additionally, June 2023 had an increase of 18 in the number of active lenders. One year later, there was no increase in active lenders. Competition and endorsements grew in 2023, while both metrics fell in 2024.
These numbers represent “the truth of where we’re at,” Lunde said, but assessing context for these movements is both necessary and interesting, he explained.
“I think there’s always interesting context around how the numbers get there,” he said. “Regarding some of those data points you brought up, such as the AAG-FOA combination, it would have been a no-brainer at the time of the acquisition to say that they’re combining the largest wholesale lender with a strong retail presence with, for the last many years, the strongest retail lender by volume. Putting those two together would seem to create an industry colossus, but that really hasn’t played out.”
Positive performers are present
The industry likely would have hoped for more from such a combination, Lunde said, but on the other hand, there are also success stories to be found. Mutual of Omaha Mortgage, for instance, has emerged as the No. 2 lender in the reverse mortgage space. Between June 2023 and 2024, it grew its overall number of HECM endorsements.
“They entered the industry quite a few years ago, with some obvious advantages like a great brand name, long history, and a large customer base outside of reverse,” Lunde said. “We’re seeing what those advantages can do even in a challenging interest rate environment.”
Assessing the companies that have managed to perform well in the current environment boils down to some common elements, Lunde said. A company entering or acquiring an existing reverse mortgage team can leverage its advantages outside of the industry and apply them to their reverse operations, for instance.
“We’ve seen similar things in other places, like Guild Mortgage acquiring Cherry Creek Mortgage, Lunde said, “or Harlan Accola and his team did a lot of good work at several companies, and now he’s over at Movement Mortgage, where we’re starting to see some activity and growth.”
This has been an “important part” of the industry’s dynamics over the past year and has served as an avenue to growth. “Frankly, I think that’s one of the main future sources of growth for the industry,” Lunde said.
Every player has a story
There are also players in the space that emerged with a focus on reverse and have also managed to maintain positive momentum, he added.
“You see others like Longbridge Financial, which started many years ago and took a reverse-centric approach,” Lunde said. “They brought together a good team of veterans in the industry with great experience. Even without leveraging a huge team of forward loan officers, or an existing brand name or client base outside of reverse, they’ve been able to do impressive things.”
Lunde and RMI recognize that there are wildly different stories that have unfolded across the industry. This is particularly true when it comes to the way they have approached various challenges since the late 2000s’ financial crisis — including the COVID-19 pandemic — and other realities such as the HECM program changes handed down by FHA.
“There are multiple paths for growth for the industry, and each name on our lenders’ report has a specific story,” Lunde said. “From my perspective, they fit into certain categories or segments of the approach they’re taking. From an outside perspective, I admire what some of these companies have done.”
The makeover includes a heftier sign-up offer for new cardholders, more points earned on some everyday purchases, changes to how you earn status, and an interest-free financing option.
The card will retain its $0 annual fee.
Here’s a breakdown of the card’s latest features.
What’s changing
Bigger sign-up bonus
The Marriott Bonvoy Bold® Credit Card now features the following welcome offer: Earn 60,000 bonus points and one Free Night Award (valued up to 50,000 points) after spending $2,000 on purchases in the first three months of opening the account.
That’s a significant improvement over the card’s previous offer: 30,000 bonus points after spending $1,000 on purchases in the first three months of opening the account.
More points for some everyday purchases — but less back on ‘other’ travel
The Marriott Bonvoy Bold® Credit Card will offer the following ongoing rewards:
3 points per $1 spent at participating Marriott Bonvoy hotels. (No change.)
2 points per $1 spent at grocery stores and on services that include rideshares, food deliveries, select streaming, internet, cable and phone. (Previously, these categories earned 1 point per $1 spent.)
1 point per $1 on everything else, including “other” travel purchases such as airfare, taxis and trains. (Previously, those forms of travel earned 2 points per $1 spent.)
Different approach to status
Previously, the Marriott Bonvoy Bold® Credit Card offered 15 Elite Night credits per calendar year, which would qualify you for Silver Elite status (and put you 10 elite nights away from Gold Elite status).
Now, you’ll receive automatic Silver Elite status, but only get five elite qualifying nights toward your next status tier (leaving you 20 elite nights away from Gold Elite status).
Silver Elite status comes with perks like priority late checkout (if available), 10% bonus points on qualifying hotel purchases and complimentary Wi-Fi. Terms apply.
An interest-free financing option
If you can qualify for it, the Travel Now, Pay Later option allows you to break up eligible travel purchases ranging between $100 and $5,000 into equal monthly payments without interest charges or fees. Purchases must be made directly with an airline or hotel participating in Marriott Bonvoy to qualify.
Amazon Prime Day isn’t the only major sale happening this July. The retail giant Target have also joined in on the summer-ready festivities by kicking off their famous Target Circle Week sale, running from now through Saturday, July 13.
Promising huge savings for this week only, the only catch is that you need to be a Target Circle member to shop the deals. But don’t fret, it is totally free and all you need to do is sign up with an email to get access to the very best savings. And in addition to all the weeklong savings, Target are spotlighting the hottest deal of the day items that you can find further knockdowns on. It really isn’t one to miss.
So as a seasoned shopper (both personally and professionally) I’ve sat down and scoured the Target home sale for hours, so you don’t have to. Here is my edit of the very best home deals to be found.
Shop the Target Sale by Category
Target Circle Week Best Sale Finds
Target Circle Week sale: home decor
22″ Pleated Shade Metal Arch Table Lamp Brass/Cream – Hearth & Hand™ with Magnolia
Nuloom Christana Traditional Checkered Jute Area Rug
Woven Block Print Square Throw Pillow – Threshold™ designed with Studio McGee
Nancy Meyers aesthetic to your table. Complete with a padded seat and an angled backrest, it keeps you sitting comfortably and can be machine washed for easy care.
Ogden Nightstand Brown – Threshold™ designed with Studio McGee
Vivian Park Slipcover Ottoman – Threshold™ designed with Studio McGee
Modern Turned Bed – Threshold™ designed with Studio McGee
transitional, vintage-inspired bedroom. Built with a rubberwood frame, this bed features a sleek design with turned legs and comes with a stylish, modern headboard.
Shiffer Console Table Brown – Threshold™ designed with Studio McGee
Tangkula 3PCS Patio Rattan Furniture Set
Portable Outdoor Patio LED Tabletop Lantern – Hearth & Hand™ with Magnolia
portable lamps are a must for summer hosting. This LED lantern from Hearth & Hand™ with Magnolia comes with a top handle for convenient carrying, and a base dimmer switch that helps create the perfect outdoor ambiance.
Nuloom Candace Traditional Vintage Indoor/Outdoor Area Rug
best outdoor rugs are the ones that look like they belong indoors. This timeless rug however ensures durability and long-lasting beauty thanks to its UV-resistant, durable blend of polypropylene and polyester.
Kylie Rattan Bistro Table – Safavieh
66″ Bold Stripe Inflatable Pool Cream/Light Blue/Green – Hearth & Hand™ with Magnolia
Best Choice Products Wicker Egg Chair
An egg chair feels like the ultimate garden luxury. The bohemian style, water- and UV-resistant wicker with weather-resistant cushions make this seat a long-lasting addition to your lounging spot.
What is the Target Circle Week sale?
Target ‘Circle Week’ is a regular sale held for Target’s Circle members – both free and paid. You can find deals across all categories both in-store and online so you’ll be able to shop clothing, homeware, appliances, and more for less.
Circle 360 members (Target’s paid membership subscription) is also reduced during Circle Week, making it just $49 for the first year. Plus, members can get same-day no-fee delivery on orders over $35.
When do Target have sales?
Just like most retailers, Target tend to hold sales throughout the year to help you celebrate big landmark dates like the Fourth of July, Memorial Day, Black Friday and Christmas holiday sales.
Keep an eye on this page for updates and the very best edit of all Target sales held throughout the year.
Design expertise in your inbox – from inspiring decorating ideas and beautiful celebrity homes to practical gardening advice and shopping round-ups.
Update 7/13/24: Showing up in app with no lifetime language.
Update 6/20/24: This is working for more people again.
Update 5/24/24: There is a direct link you can try, YMMV as always when using these links as there is always a risk of shut down.
The Offer
No direct link to offer, sent out via e-mail. Subject line is ‘<name>, maximize your value on everyday business spending’
American Express is offering 150,000 points after $10,000 in spend on the American Express Business Gold card
Card Details
$375 annual fee, not waived first year.
$240 flexible business credit. Up to $20 in statement credits each month after you use the Business Gold Card for eligible U.S. purchases at FedEx, Grubhub, and Office Supply Stores
$12.95 monthly Walmart+ credit.
Card earns 4x points on the two categories your business spends the most each billing cycle, from the following list (up to $150,000 in combined purchases each calendar year):
Transit purchases including trains, taxicabs, rideshare services, ferries, tolls, parking, buses, and subways
Monthly wireless telephone service charges made directly from a wireless telephone service provider in the U.S
U.S. purchases at restaurants
U.S. purchases for advertising in select media
U.S. purchases at gas stations
U.S. computer hardware, software, and cloud computing purchases made directly from select providers
3x points on AmEx Travel
Our Verdict
This looks to bypass pop up jail so should be able to get the bonus even if you’ve had the card before, but that might be YMMV. Good deal if targeted, especially if you’ve already had the card before.
The Producer Price Index (PPI) is certainly not in the same league as CPI when it comes to bond market impact, but there have been several notable reactions in the past year. It was a concern, then, to see core PPI come in 0.2 higher than expected and for last month to be revised 0.3 higher. But while there was an initially negative reaction in the bond market, it wasn’t big and it didn’t last long. The “why” has to do with the components of PPI that directly impact the more important consumer inflation metrics like the PCE price index coming out later this month. Simply put, the big beat in PPI was driven by categories that don’t translate to PCE.
While there is no widespread preferential mortgage, and family mortgages are not available to everyone, developers and banks are launching their own programmes
Photo: Динар Фатыхов
Widespread preferential mortgages have not been available in Russia since Jiuly, and even extending te family mortgage will not radically solve the problem due to its limitations. “In June, developers fulfilled the plan by almost 200%, but within a week and a half in July, many have experienced a negative situation — almost no clients in their offices.” This is how developers are describing the decline in sales of new buildings. According to them, they are forced to create joint programmes with banks — to subsidise rates, instalment plans and so on. The Central Bank is dissatisfied, but “without this, we will get a market decline or stop,” people from the industry are saying.
Family mortgage extended in Russia
Real estate market played discussed how the mortgage market was doing without government support at a business breakfast in Kazan on 10 July. Shortly before it began, it became known about the extension of family mortgages in Russia. The news was greeted with enthusiasm, but it was noted there was no as massive support for families as before. Parents of children under six years of age inclusive, as well as disabled children, will be able to take out a loan at a rate of no more than 6%. And only for the construction of a private house. You can buy an apartment only in small towns with a population of up to 50,000 people and regions with little construction or those with their own development programmes.
“If you look at the number of children under 18 years of age in the republic and compare it with the number of children under 6, this is the main difference from the previous programme, then there are approximately 3-4 times fewer such families today. This also needs to be taken into account,” said Aygul Latypova, executive director of Ak Bars Dom.
“If you look at the number of children under 18 years of age in the republic and compare it with the number of children under 6, there are approximately 3-4 times fewer such families today,” said Aygul Latypova. Dinar Fatykhov / realnoevremya.ru. Динар Фатыхов / realnoevremya.ru
The loan limit in the programme will be 12 million rubles for Moscow, Saint Petersburg and their regions and 6 million for the other regions. You can combine a preferential loan with market programmes (for loans above 6-12 million, interest will be charged at the market rate), in this case, loans are limited to 30 million and 15 million rubles in big and remote regions, respectively.
“With a 21% rate, mortgages and home purchases have become unaffordable”
Only a limited category of citizens will be able to take advantage of a family mortgage. Therefore, in order to keep the market of new buildings from falling, an alternative to the cancelled mass preferential programmes are needed, people in the industry are saying.
“We have come to the point that mortgages began to live according to market conditions. Now the rates are equal to 21%, and there is no need to say that the market is doing well. If we compare monthly payments under preferential programmes and the current rate of 21%, the amounts have tripled. Borrowers who are now taking out a mortgage pay about 95% of their payment only as interest to the bank. Therefore, I consider such rates to be an obstacle; due to them, mortgages and home buying have become unaffordable,” said Rustam Azizov, director of mortgage sales and implementation of financial instruments at A101 Group of Companies.
The developer gave an example from Moscow where average loan size for an apartment for 12 million rubles is 10 million. At the current level of market mortgage rates of 21-23%, the monthly payment exceeds 180,000 rubles. “At the same time, only 2,500-3,000 rubles from this amount go to repay the loan itself, and the rest goes to interest repayment. Thus, the amount of overpayment for an apartment worth 12 million rubles for the entire loan repayment period is more than 33 million rubles,” the speaker explained.
To replace the public preferential programmes, developers and banks are offer their own programmes: subsidised rates, instalment plans, combo mortgages and so on. In particular, once can take out a mortgage at 8% a year now. The rate for the first few years will be subsidised by the developer. Of course, the apartment in this case will cost more.
“I consider such rates to be an obstacle; due to this, mortgages and home purchases have become unaffordable,” said Rustam Azizov. Dinar Fatykhov / realnoevremya.ru . Динар Фатыхов / realnoevremya.ru
“In general, we probably need to somehow restructure our thinking and try to work without government programmes. It is clear that if we completely remove state programmes now, everything may stop altogether, so they are making some restrictions — now for a family mortgage, they demand the child to be under 6 and so on. But somehow we all worked before the pandemic, and it still worked out. We need it to make it work out now,” urged Anatoly Norshtein, founder of Metr.Club mortgage aggregator.
“The regulator encourages us to make discounts, but this is not always reciprical”
As Realnoe Vremya already reported, a month ago experts predicted a serious decline in sales in the new real estate market — up to 40%. The first days of July and the cancellation of preferential programmes partially confirmed these fears.
“In June, developers fulfilled the plan by almost 200%, and in for one and a half weeks in July, many people had a negative situation, there were almost no clients in the offices,” noted Rustam Azizov. “That’s why banks and developers are now offering some alternative options to reduce the market rate at least in the short term. Let’s hope that the key rate will decrease in 2025-2026 and mortgages with high rates can be refinanced,” he noted.
The Central Bank is closely monitoring the development of the mortgage market and the work of banks with developers to create their own home buying programmes. “The regulator calls them schemes, we still call them a method of purchase: for the developer, it is a method of implementation, for the client, it is a more or less accessible method of purchase,” the developers object. The Central Bank expressed its dissatisfaction calling on credit institutions and developers to better offer discounts to clients. But the industry has noticed that this is not always possible.
“If the Central Bank begins to somehow limit the programmes from developers, this will be quite problematic. The regulator is encouraging us to make discounts, but, unfortunately, this is not always reciprocal. If my discount is 20%, this will not lead to a monthly payment where we will subsidise this 20% according to the programmes. In other words, the payment will still be significantly higher,” explained Aygul Latypova.
“The regulator is encouraging us to make discounts, but, unfortunately, this is not always reciprocal,” the speaker explained. Dinar Fatykhov / realnoevremya.ru. Динар Фатыхов / realnoevremya.ru
The Central Bank is working to create and implement a mortgage standard in Russia. However, while it is not there, all attempts to maintain the development pace of the mortgage market cannot be cancelled, the industry is convinced: “This is wrong, simply because then there will be no alternatives or opportunities for market development. Imagine if the same subsidised rates from the developer did not exist now. Let’s be honest, our monthly payments have tripled according to the market rate, but the real incomes of the population have not increased since q July. What are we talking about then?”
“Mortgage was born in Ancient Greece in the 6th century BC, lived for 2,600 years and will definitely not die after 1 July,” Arkady Bocharnikov, head of the mortgage lending department of Ak Bars Bank, was positive.
The speaker provided general data on the issue of mortgages in Russia. Recent months have shown that about 2 million families annually improve their living conditions through mortgages. The ratio of mortgage debt has, of course, increased, the speaker admitted, but at the same time, our indicators are still lower than in the USA and Germany. Russians have taken out a mortgage for 18 trillion rubles, which is 11% of GDP.
“We have the potential here, we can increase the mortgage debt of the population 4 times, and the economy will do great.” Therefore, I would not say that after 1 July there will be no mortgages. In terms of big numbers, we still have to grow and grow,” the expert believes.
In terms of housing provision, the figure reached 25 square meters per resident of Russia ,and an annual increase is approximately a square metre. We haven’t yet reached the level of other countries; we can double the amount of housing owned by the population, the speaker added. “It should also be taken into account that it is the size of all the Khrushchyov blocks of flats built in the 1960s and 1950s , which, of course, need to be updated.”
We can increase the population’s mortgage debt four times, and the economy will do great, noted Arkady Bocharnikov. Dinar Fatykhov / realnoevremya.ru. Динар Фатыхов / realnoevremya.ru
“Developers are now in such conditions that we do not determine how much we can sell”
Arkady Bocharnikov believes that with the cancellationf of preferential programs, alternative ones will be actively developed — from banks and developers. In his opinion, they will be especially in demand in the next years.
“We launched a mortgage at 8% for a year or two, and at the moment this is salvation. But it also requires costs from the developer. With such market rates, despite all the standards and prohibitions, the market still forced us to create joint programmes with banks. Without this, unfortunately, we will either have a market decline or a stop. Developers are now in such conditions that we do not determine how much we can sell. We have estimated financing, our sales are strictly regulated. Therefore, banks are interested, and we are interested in creating mechanisms to make housing affordable,” Aygul Latypova emphasised.
In the next month, all major players in the mortgage market will present their programmes to support demand for primary housing, says Rustam Azizov: “Banks like developer are also interested in maintaining the pace of house sales and, as a result, the issue of mortgages. Such loans have an extremely low level of overdue debt — 0.02%. In addition, mortgage borrowers have a fairly high LTV rate, that is, readiness to use other banking services.”
According to Anatoly Norshtein, market mortgage rates will not decrease to the numbers that are acceptable for most apartment buyers until mid-2025. “The mortgage market will survive but through special joint programmes with developersas well as programs that were not previously in high demand,” the expert believes.
According to Anatoly Norshtein, market mortgage rates will not decrease to the numbers that are acceptable for most apartment buyers until mid-2025. Dinar Fatykhov / realnoevremya.ru. Динар Фатыхов / realnoevremya.ru
The future demand for housing in the next two months was largely met in June, so the sales figures of July and even August will be irrelevant; the real situation will not be clear until September, experts say.
“Until this moment, the market may see a transition to targeted support for certain categories of citizens (doctors, teachers, employees of core enterprises), which can more effectively resolve important government issues. In addition, it seems appropriate to extend government support for mortgages for young families in order to encourage young people to start families and have children at a younger age, says Rustam Azizov.
One of the options, in his opinion, could be the Youth Mortgage that can be extended to young professionals under 30. It can be implemented within a new Youth of Russia national project. The maximum loan term in the programme can be increased, up to 50 years, this will help reduce the monthly payment. The interest rate in the programme taking into account subsidies from the state can be no more than 3%. At the same time, it is recommended to set the maximum loan amount at 15 million rubles for Moscow, Saint Petersburg and their regions and at 12 million rubles for the other regions.