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Alternative investments can offer the upside of providing portfolio diversification for some investors because they’re not typically correlated with more traditional asset classes. These investments also have the potential to generate higher returns when compared to stocks and bonds, and some alternatives are structured to provide passive income to investors.
However, it’s also important to know that these investments tend to be illiquid (meaning it can be difficult to convert them into cash) and are higher risk in most cases — and may include the risk of total loss of the individual’s investment.
While alternative investments typically have been available to high net worth and accredited investors, these days retail investors can also gain access to alternative investments via certain types of funds focused on these strategies.
Key Points
• Alternative investments are assets other than stocks, bonds, and cash, such as collectibles, commodities, derivatives, and more.
• Alternative investments may provide portfolio diversification, as they often have a low correlation with traditional asset classes.
• Alternative investments have the potential to generate higher risk-adjusted returns compared with traditional assets, though this also comes with higher risk.
• Alternative investments tend to be illiquid, not as transparent as other assets, and may include the risk of total loss.
• Common types of alternative investments include art and antiques, collectibles, commodities, currencies, derivatives, real estate, private equity, venture capital, hedge funds, and more.
• You can invest in alternative investments through mutual funds, ETFs, interval funds, REITs, MLPs, or by working with an experienced asset manager.
Alternative investments — commonly known as alts — are assets that fall outside conventional stock, bond, and cash categories. Alts used to be accessible mainly to high net-worth and accredited investors, but now they’re available to a range of investors, thanks to the emergence of vehicles such as mutual funds and ETFs that include various alternative assets.
Alternative investments may provide investors with portfolio diversification due to their lower correlation to traditional asset classes. Alts typically move independently of conventional stock or bond markets.
Alts include a wide variety of securities as well as tangible assets such as commodities, foreign currencies, derivative contracts, real estate, venture capital, art and antiques, memorabilia, and more (see below for a detailed list).
The name “alternative” does not imply these investments are new or live on the fringes of the financial world as compared with more traditional investments. They can be considered literally as alternatives to, or supplemental to, conventional strategies like stocks and bonds.
Many investors seek alternative investments because they are not typically correlated with conventional markets. Thus, investing in alternative assets may provide portfolio diversification, potentially reducing the risk of loss during a market downturn, and possibly adding to long-term gains.
Alternative investments also have the potential to generate higher returns compared to traditional assets, although this also comes with greater exposure to risk. Alts, and funds that focus on alternative investments, may also be structured to pay out regular dividends so that investors can earn passive income.
Some alts can be compelling for investors if they believe that the assets may grow in value over time. But the lack of liquidity for most alts means that determining the fair market value of these assets can be quite challenging. Often there is little by way of public data available regarding price changes or asset appreciation or depreciation, making it difficult to assess historical performance.
In addition, the market for certain types of alternative investments can be highly changeable, with one type of asset gaining favor (and value) at one point, only to lose value when it falls out of favor.
For example, an original baseball card signed by a prominent sports figure might be more valuable, in theory, compared with 100 shares of a prominent U.S. company. But it is generally easier to sell shares of stock for a known price than to sell a collectible for an expected price.
Similarly, even if an alternative asset like a collectible or real estate is worth more at point A, an investor must bear in mind that its value could depreciate swiftly if market, climate, or political conditions change.
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Alternative investments can be quite different from each other, but they share a few key characteristics in common.
• Alternative assets may provide portfolio diversification because they have a low correlation to most other traditional asset classes.
• Alts may provide a hedge against inflation or interest rate fluctuations.
• Alts may provide the potential for higher returns compared to conventional assets.
• Most alts are illiquid, especially when compared with conventional securities, and may come with redemption restrictions.
• Owing to the lack of transparency and public data regarding performance, determining the real-world value of alternative investments may be difficult.
• High net-worth and accredited investors may find some alternative investments more accessible than retail investors.
Retail investors may be able to access some types of alternatives through mutual funds or ETFs that focus on these assets.
💡 Quick Tip: Did you know that opening a brokerage account typically doesn’t come with any setup costs? Often, the only requirement to open a brokerage account — aside from providing personal details — is making an initial deposit.
To recap: Traditional publicly traded investments generally include stocks, bonds, cash, and cash equivalents (i.e., money market funds). Traditional assets are typically liquid, highly regulated, and accessible for retail investors via taxable brokerage accounts or retirement accounts.
Alternative investments are non-conventional assets that may provide diversification because they don’t move in tandem with conventional markets, which can help mitigate certain risk factors. As a result, alts may offer the potential for higher risk-adjusted returns, and in addition, some alternatives may provide passive income. However, alternative investments also tend to be illiquid and higher risk than traditional assets.
While historically only accessible to high-net-worth and accredited investors, alts are becoming increasingly available to average investors through investment structures, such as mutual funds and ETFs.
The following list encompasses some common types of alternative investments available today.
• Summary: Individuals can invest in natural resources, including agriculture, metals (e.g. precious metals such as gold, silver, and platinum), energy (including renewables), and other raw materials. Generally, investors participate in commodity trading using futures contracts, index funds, or ETFs.
• Pros and cons: Some investors consider commodities a good hedge against inflation, and under the right conditions there is the potential to see a profit. However, commodities can suffer from any number of unexpected risk factors, from weather conditions to supply chain dysfunction and more.
• Summary: Currencies are an example of an alternative investment that can be highly liquid, and thus easier to trade.
• Pros and cons: Currency trading is known for its volatility, and currency traders often make leveraged trades, assuming a high degree of risk. Retail investors may find it potentially less risky to invest via mutual funds, ETFs, foreign bond funds, and even certain types of CDs (certificates of deposit), although the underlying volatility of most currencies will influence the performance of these vehicles as well.
• Summary: Like any real estate, farmland and timberland tends to increase in value over time. Also, this type of land can be similar to commodities in that there is potential profit in the products that come from the land (e.g. produce and timber).
• Pros and cons: Owners of farmland can lease out the land to earn income, which can also be profitable for investors. The downside of investing in farmland and timberland are the environmental and weather-related risks that can impact both the value of the land and the productivity.
• Summary: Infrastructure refers to the physical structures that economies depend on: roads and highways, bridges and tunnels, sewage treatment, energy pipelines, and more. Municipal bonds are one way to invest in infrastructure, as are some types of REITs (real-estate investment trusts).
• Pros and cons: As a non-cyclical type of asset, infrastructure investments may offer the benefit of less exposure to market risk factors, steady cash flows, and low variable costs. The risks of infrastructure investments include political and environmental factors that can impact or delay the execution of a project.
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• Summary: Private equity investing has its roots in stock investing, in that individuals can invest money in certain companies and startups directly. But private equity shares are not traded on public exchanges.
• Pros and cons: Private equity is considered a high-risk investment, but if a private company goes public or gets acquired, these investments may perform well. The risk with private equity investments is that these are often focused on distressed companies, with a complex track record, and sometimes startups (see Venture Capital below).
• Summary: VC investing is a way of putting money into startups, though there is no guarantee of a return. Investors can buy a slice of startup companies through equity crowdfunding platforms. This differs from traditional crowdfunding in that investors actually own equity in the company.
• Pros and cons: Venture capital investing is considered a subset of Private Equity, as noted above. It can be risky because if the startup fails, investors may lose all of their money. On the other hand, if a startup does well, investors may see significant gains.
• Summary: Private credit refers to direct loans to companies that offer a higher yield than traditional fixed income. It used to be the purview of institutional investors. Now it’s possible to invest in private credit funds, assuming an investor meets the higher minimum investment requirements.
• Pros and cons: Private credit funds tend to see greater inflows when the stock market is underperforming, and they pay higher rates than conventional fixed income instruments. The risk here is that most PC funds offer only quarterly redemptions — so they’re quite illiquid — and they can be vulnerable to defaults.
• Summary: Real estate is one of the oldest asset classes. You can invest in real estate by owning a rental property, investing in commercial real estate, industrial real estate, or other options. Investors can also buy into Real Estate Investment Trusts, or REITs.
• Pros and cons: Investing in real estate requires some knowledge, skill, and luck. And though real estate tends to hold its value over time, different properties can be vulnerable to a host of factors including ownership and business trends, land values, interest rate risk, and more.
• Summary: Any investor with a passion for art may acquire pieces they believe will grow in value over time. It’s also possible to invest in fractional shares of art, or in shares of an art-focused fund.
• Pros and cons: Investing in art or antiques may provide a hedge against inflation or other market factors, especially when investing over time. That said, investing in art via direct acquisition is typically more accessible for high net-worth individuals. The cost of upkeep over time is another factor. And while some pieces may gain value over time, art and antiques can also be subject to fraud, as well as changing trends and tastes.
• Summary: Collectible investments can double as hobbies, and may include coins, rare books, baseball cards, comic books, toys, or other items that are available in limited quantities.
• Pros and cons: It’s almost impossible to predict which collectibles will retain their value and which will lose value over time. Paying a certain amount for a vintage car, book, toy, or celebrity autograph has no bearing on what the item may be worth when you try to sell it.
💡 Quick Tip: Distributing your money across a range of assets — also known as diversification — can be beneficial for long-term investors. When you put your eggs in many baskets, it may be beneficial if a single asset class goes down.
While often available in less conventional investment vehicles, alternative investments are also available through traditional financial structures that may be accessible to any investor. Here are some of the different ways alternative investments may be structured.
An exchange-traded fund or ETF is an investment vehicle that enables investors to buy a group of stocks, bonds, commodities, or other securities in one bundle, thus promoting investment diversification and efficiency. They’re widely available, usually through major investment fund companies.
These closed-end funds are not traded on the secondary market and have limitations on redemptions (among other risks and restrictions). But because the funds are highly illiquid and have infrequent redemptions, fund managers may use alternative investments to pursue higher yields.
A master limited partnership, or MLP, is a business partnership that’s publicly traded on an exchange. While an MLP may sound like a company, these partnerships have a different type of structure and are restricted to natural resources and energy-related products and sometimes real estate.
MLPs can provide the liquidity of stocks, but the tax treatment can be complex — and they are higher risk than regular equities.
A mutual fund is an investment vehicle that pools money from many investors in order to invest in different securities. Mutual funds may hold any combination of stocks, bonds, money market instruments, or cash and cash equivalents.
They may also include alternative investments, such as real estate, commodities, or investments in precious metals.
A real estate investment trust, or REIT, is a way of investing in shares of different types of real estate within a single fund. REITs invest in companies that own, operate, or finance a wide variety of real estate types.
If you’re thinking about adding alternative investments to your portfolio, it’s important to know that investing in alts isn’t the same as choosing, for example, a target date fund within your company’s 401(k) plan.
As mentioned above, alternative investments used to be limited to accredited and high net-worth investors, but they’re now available to average investors through mutual funds, ETFs, and sometimes even through companies’ IRAs.
Because it’s still relatively new for retail investors to have access to alternative assets, finding the right brokerage and/or asset manager can help you incorporate alts into your portfolio in the way that makes the most sense for your circumstances and your long-term plan. SoFi, for example, is working with knowledgeable asset managers in the alts space to provide access to mutual funds across a variety of categories.
Once you’ve identified the types of alternative assets that would suit your goals, your risk tolerance, and your plan (e.g., you might prefer commodities to owning art), you can look for the funds that would help you buy into these asset classes.
In sum, alternative investments may be worth considering, thanks to some of the advantages they offer. But it’s important to keep in mind the disadvantages, in order to make the best choices in light of your own goals and risk tolerance.
In short, the potential upside of alternatives includes:
• Alternative strategies offer the potential for higher risk-adjusted returns.
• Alternative investments are not typically correlated with traditional stock and bond markets, so they may help diversify a portfolio and mitigate risk.
• Some alts have the potential to deliver passive income.
• Some alternatives may provide tax advantages, such as special capital gains rates or the ability to defer taxes.
• Some alts may hedge against inflation or interest rate fluctuations.
• May appeal to an individual’s personal interests: e.g., art, wine, memorabilia.
Like any investment, alternative investments come with their share of downsides. It’s important for investors to do their due diligence when researching and considering alternative investments. Potential downsides of alts:
• Often limited to high net-worth and accredited investors.
• Often higher risk or can be subject to greater volatility.
• Can be less liquid than traditional investments due to limited availability of buyers and lack of a convenient market.
• May have high minimum investment requirements.
• May have high upfront investment fees.
• May have less available public data and transparency about performance, making it difficult to determine an asset’s value.
Alternative investments are complex, and while the risk may be worth the potential reward in the eyes of some investors, there are some additional caveats to bear in mind about these assets.
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Unlike conventional asset classes, which are typically subject to capital gains or ordinary income tax, different alts can receive very different tax treatments, even when investing in these assets via a mutual fund or ETF. When investing in alts, it’s wise to involve a professional to help address the tax-planning side of the equation.
When thinking about including alternative assets in your portfolio, you might consider a couple of key factors. Bearing in mind your current asset allocation, adding alternative strategies can enhance diversification as well as your portfolio’s overall growth potential.
Remember, because alts don’t generally move in sync with traditional asset classes, they may offset certain risk factors. And while alts come with risks of their own, including volatility and lack of transparency, within the context of your portfolio as a whole alts, and funds that invest in alts, may enhance returns. Some alternative assets can provide passive income as well as gains.
It’s important to know, however, that alternative investments are higher risk, tend to be more illiquid, and less transparent. Alternative investments should only be one part of your portfolio to complement other assets. Some advisors, for example, recommend up to a 10% allocation for alternative investments, though this number will vary depending on your circumstances, tolerance for risk, and long-term goals.
If you are risk-seeking and have ample liquidity with other investments, you can perhaps allocate more toward high-risk, high-return alternatives.
Alternative investments have the potential for high returns and may offer some portfolio diversification. The sheer scope and variety of these investments means investors can look for one (or more) that suits their investing style and financial goals. Unlike more conventional investments, alts tend to be higher risk, more expensive, and subject to complex tax treatment.
It’s important to research and do due diligence on any alternative investment option in order to make the best purchasing decisions and reduce risk. While some alternative investments are less accessible, others can be purchased through vehicles such as mutual funds and ETFs.
Ready to invest in your goals? It’s easy to get started when you open an investment account with SoFi Invest. You can invest in stocks, exchange-traded funds (ETFs), mutual funds, alternative funds, and more. SoFi doesn’t charge commissions, but other fees apply (full fee disclosure here).
Invest in alts to take your portfolio beyond stocks and bonds.
Generally no. For the most part, exchange-traded funds (ETFs) are passive investments — meaning they track an index — and typically that index is for a conventional asset class like stocks or bonds. That said, some ETFs track niche parts of the market, including certain types of alternative strategies, including options, long-short strategies, managed futures, real estate investment trusts (REITs), and more.
For some investors, choosing to add alts to their portfolio might be worth it because alternative assets can add diversification (which can help manage risk), and alts may enhance returns over time. But alts also come with their own set of risk factors, including the fact that some alternative assets are illiquid, and are not regulated like other financial products.
Alternative investment funds work in a range of ways. A mutual fund focused on alternative strategies, like derivatives, is likely to be actively managed and employ techniques like leverage or short selling. Before investing in an alternative fund, it’s wise to make sure you understand the underlying strategy, assets, and fees.
An investor should consider the investment objectives, risks, charges, and expenses of the Fund carefully before investing. This and other important information are contained in the Fund’s prospectus. For a current prospectus, please click the Prospectus link on the Fund’s respective page. The prospectus should be read carefully prior to investing.
Alternative investments, including funds that invest in alternative investments, are risky and may not be suitable for all investors. Alternative investments often employ leveraging and other speculative practices that increase an investor’s risk of loss to include complete loss of investment, often charge high fees, and can be highly illiquid and volatile. Alternative investments may lack diversification, involve complex tax structures and have delays in reporting important tax information. Registered and unregistered alternative investments are not subject to the same regulatory requirements as mutual funds.
Please note that Interval Funds are illiquid instruments, hence the ability to trade on your timeline may be restricted. Investors should review the fee schedule for Interval Funds via the prospectus.
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Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.
Investment Risk: Diversification can help reduce some investment risk. It cannot guarantee profit, or fully protect in a down market.
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A strong U.S. economy will be a boon for the housing market, Mortgage Bankers Association’s (MBA) chief economist said on Thursday, as it will buoy demand and as inflation continues to fall, mortgage rates will decline as well making home loans more affordable for buyers.
The U.S. economy accelerated at a faster-than-expected clip in the fourth quarter of 2023 at 3.3 percent, the Commerce Department’s Bureau of Economic Analysis revealed on Thursday.
Meanwhile, the personal consumption expenditures (PCE) price index—the Federal Reserve’s preferred measurement of inflation’s progress—jumped by 1.7 percent during the quarter. Core PCE, which excludes the often volatile food and energy prices, increased by 2 percent.
These dynamics bode well for the housing market that has been struggling under the weight of record-high mortgage rates, sparked in part by the Fed’s hiking of rate at the most aggressive clip since the 1980s to fight soaring inflation.
The Fed’s funds rate currently sits at 5.25 to 5.5 percent—the highest they have been in two decades—and policymakers have signaled that they will slash rates should inflation come down to their 2 percent target.
But an economy that may avoid a recession as inflation moderates without the Fed’s tight monetary policy doing too much damage to the jobs market would help the housing sector.
“Stronger economic growth will benefit the housing market, keeping demand robust,” Mike Fratantoni, MBA’s chief economist, said in a statement shared with Newsweek. “Moreover, today’s report also showed further reductions in inflation, which will enable the Federal Reserve to cut rates later this year—as they have been hinting.”
Mortgage rates ticked up slightly for the week ending January 25, Freddie Mac said on Thursday, with the 30-year fixed rate averaging 6.69 percent.
“The 30-year fixed-rate has remained within a very narrow range over the last month, settling in at 6.69% this week,” Sam Khater, Freddie Mac’s chief economist, said in a statement.
Rates look to have stabilized, Khater suggested, encouraging buyers to jump off the fence.
“Despite persistent inventory challenges, we anticipate a busier spring homebuying season than 2023, with home prices continuing to increase at a steady pace,” he said.
A slowdown in rates could have a negative impact on home buyers, some analysts say.
A decline in the cost of home loans would encourage more purchases, and this increase in demand will spark competition at a time when there is a limited supply of homes for sale.
More buyers who can afford mortgages entering the market will push up prices, analysts from Goldman Sachs said this week.
The investment bank’s experts project prices to soar by 5 percent in 2024, a marked revision from their earlier expectation of a 2 percent jump. That trend will continue through next year when prices are forecast to increase by nearly 4 percent, which is also a change from a previously estimated increase of close to 3 percent.
Amid the price increases, Goldman Sachs analysts anticipate that rates will fall to 6.63 percent for the year. This drop in rates from the near 8 percent highs of November 2023, will make house loans more affordable, sparking more demand for properties.
“We have very low inventory of houses for sale, which is generally supportive of prices, along with generally stable demand that is coming from things like household formation,” Roger Ashworth, senior strategist on the structured credit team at Goldman Sachs, said this week.
On Thursday, new home sales climbed up by 8 percent in December, according to government data, while prices declined to two-year lows. The fall in prices and a rise in sales was partly due to builders offering inducements to buyers, according to Yelena Maleyev, a senior economist at KPMG.
“Builders have pivoted to building smaller homes and offering more discounts and concessions, such as mortgage rate buydowns, to bring in buyers sidelined by rising mortgage rates,” she said in a note shared with Newsweek.
But the data from the U.S. Census Bureau also showed that inventory of newly built homes fell last month after going up the previous months. There were 453,000 houses available for sale at the end of December, which accounts for 8.2 months’ worth of supply.
This constituted a 3.5 percent decline from the same time a year ago, Maleyev pointed out.
The lack of inventory also comes at a time when the used homes market has struggled. Sales are down in that segment amid a lack of supply of homes as sellers are reluctant to give up their low rates for new home loans hovering in the mid-6 percent.
This lack of supply will be key to how prices shake out and the outlook for the year is not encouraging.
“If mortgage rates fall below 6 [percent] in 2024, more owners will feel comfortable listing their homes for sale, alleviating some of the shortages, but not enough to close the supply gap,” Maleyev said.
Newsweek is committed to challenging conventional wisdom and finding connections in the search for common ground.
Newsweek is committed to challenging conventional wisdom and finding connections in the search for common ground.
Source: newsweek.com
What makes a city a great food city? Well, just like with any dish, it takes the right ingredients, which can vary. Perhaps the city is located in an agriculturally-rich area. Or the city is a diverse melting pot, creating a place for expression and creativity where chefs can share recipes from around the world or experiment with fusion cuisines. It also needs to have well-stocked grocers that carry specialty items.
No matter what, a great food city should be a place where chefs are supported by a population that loves dining out and supporting local restaurants. Whether you’re a chef looking for where to launch your next venture, or a food lover looking for the next big thing, here are the best cities for chefs to practice their craft.
So then, where do chefs thrive? There are different factors to consider, like grocery cost, population size and specialty stores where chefs can source high-quality ingredients. Taking all those into account, here are the ten best cities for chefs.
While Grand Rapids may not immediately jump off the page as a great dining destination, you’d be surprised. There’s a robust craft brewing scene, top-notch cafes and a range of beloved, non-chain dining options.
Sourcing fish and seafood from the nearby Great Lakes and using area farms for fresh produce, seasonality is key. Chefs can even dine where they shop. They can tuck into fish and chips at fishmonger and restaurant Fish Lads, or grab a bite at the Grand Rapids Downtown Market while also shopping for produce, olive oil or spices.
Groceries are also the most affordable of all the cities in the top ten. Not only do chefs get to experiment with fresh, regional ingredients in Grand Rapids, but it’s extremely affordable to do so.
With its blend of cultural influences, the food scene in Santa Fe is unparalleled in the Southwest. With Native and Hispanic cuisines leading the playbill, an excellent supporting cast of other global offerings like Indian and Italian rounds it out. And lovers of spicy food find themselves falling under the spell of New Mexico’s famed Hatch green chiles, which feature heavily in local cuisine.
Against such a gastronomically diverse background, chefs also have a wide range of markets and grocers to choose from. There are 0.23 specialty grocers and 0.5 markets per 10,000 residents. So with a population of over 85,000, there are options aplenty. And that population, plus robust summer tourism crowds in Santa Fe, are only too happy to support local chefs.
Ah, Napa.
As the seat of California wine country, this town of just over 78,000 would naturally be a great place for chefs to create exceptional meals. With a strong focus on high-end fares like Italian, French and New American, there’s an incredible variety of tastes to try. And experimenting with pairing with local wines is another plus.
The area’s agricultural history and current reputation for viticulture give Napa chefs easy access to locally-grown, fresh foodstuffs at local markets and grocers. With 0.89 markets per 10,000 residents, chefs can find everything from fresh produce to meats at spots like the Oxbow Public Market. There are also 23 non-chain establishments per capita, making it incredibly easy to support the local restaurant community.
Sitting on edge of Lake Conroe, the 91,000-population town of Conroe is a lakeside slice of country living within driving distance of Houston. As with many smaller towns, community and hospitality are important. So the local dining is heavily focused on family-run, feel-good food and service. Obviously, barbecue is huge here, as well as Mexican.
Chefs have their pick of the litter when it comes to specialty markets and grocers, with 0.54 grocers and 0.21 markets per 10,000 residents. And the cost of groceries is one of the lowest on the top ten list, so chefs in Conroe can prepare excellent food on a reasonable budget.
Cincinnati chili. Reuben sandwiches. Ice cream. Gooey pizza. Tender ribs. If you love big food with big, bombastic flavor, Cincinnati is the place. From regional treasures like Cincinnati-style chili, which is piled on top of spaghetti or hot dogs, to creative riffs on classics like burgers, chefs here love going big.
As a larger city, grocery costs are elevated, but there’s an abundance of markets and grocers. With 0.42 markets per capita and 0.16 grocers, in a city of over 300,000, there’s always something fresh and delicious close by for chefs to work with. From getting meats and produce at Country Farm Fresh Market to finding global flavors and fun at the famed Jungle Jim’s International Market, accessing the best ingredients is never an issue.
Cincinnati also ranks among the top cities with the most non-chain dining establishments in the top 10. So if you’re a chef looking for a place that welcomes bold flavor and never-say-die energy, head to the Queen City.
Over the past decade, the Blue Ridge Mountains-based Asheville has emerged as North Carolina’s preeminent food city. This scenic mountain hideaway has it all, from excellent craft brews and comforting Southern fare to elevated fine dining. This dedication to authentic food in all its forms has created a restaurant scene with 35 non-chain restaurants per 10,000 residents.
As a food scene that revels in experimentation and pushing the envelope, chefs in Asheville have an environment in which they can creatively grow and thrive. And the local supply options support that as well, with 0.21 grocers and markets per capita. And don’t forget to try that famous North Carolina barbecue!
For seafood chefs seeking new stomping grounds, Pensacola, on the far western end of Florida’s panhandle, has enough attributes to crack the top five best cities for chefs. Sitting right on the edge of Pensacola Bay, fresh seafood is always within reach. The local food scene is rich with delicious seafood spots, as well as Southern and global fare.
With 0.94 markets per capita, chefs can head to specialty stores like Joe Patti’s Seafood and Four Winds International Market for both local and far-flung ingredients. And at 54 non-chain restaurants per 10,000 people, there are plenty of options for the nearly 53,000 residents of Pensacola.
Betcha didn’t know just how vital Iowa is to U.S. agriculture. The Hawkeye State is the nation’s biggest producer of eggs, corn and pork. It also produces 14 percent of cattle in the United States, giving us tender flavorful steaks and beef. With such high-quality produce and meat, it’s no wonder chefs and meat lovers can have a field day here.
In West Des Moines, which forms the western edge of greater Des Moines, chefs will find a particularly hospitable environment for their craft. There’s an abundance of specialty grocers to choose from, like Fresh Thyme Market, providing quality meats, produce and other ingredients. Dining-wise, chefs can express themselves at classic steakhouses and casual brewpubs or branch out into other meat-heavy cuisines like Brazilian. There’s also great Mexican and Asian dining to be found in West Des Moines.
Snagging second-place for best cities for chefs is the 60,867-strong city of Marietta. Sitting northwest of Atlanta, Marietta is home to a hidden gem food scene. There’s something for everyone, from home-style Southern and farm-to-table to traditional Latin American cuisines.
This gives chefs a large playing field, allowing them to carry on the treasured culinary traditions to American diners, craft dishes from around the world or create exciting combos. Shopping is done at established specialty grocers like Cajun Meat Company, and with 1.15 markets per 10,000 residents, there’s plenty to go around.
One caveat: The cost of groceries is the highest of all the cities on the top 10 list.
The surrounding states must look on South Carolina with envy, as it’s home to two of the South’s best food cities. First, there’s Charleston (one of our best cities for brunch), and then, No. 1 on the list of the best cities for chefs, is Greenville.
This up-and-coming foodie haven has everything from top-tier Southern comfort food to sophisticated fine dining. Chefs can have fun with flavor at casual neighborhood spots, or get creative with elegant plating at high-end restaurants. And while grocery cost is second only to Marietta on this list, the local population is extremely supportive of their dining scene. There are 59 non-chain restaurants per 10,000 residents, so it’s plain to see that the inhabitants of Greenville love dining out and eating well. Here, chefs are sure to find a supportive and loving audience for whatever they want to cook.
Want to expand your cooking and culinary horizons beyond the top ten? There are many other options for chefs to choose from, as you’ll see from the top 50.
To determine the best cities for chefs, we looked at all cities with at least 50,000 residents according to the U.S. Census Bureau’s 2019 estimates that had at least one specialty grocer, market and non-chain (local) restaurant. That final list included 386 cities spread all across the country. We then ranked each city by the following factors:
Each of these factors was weighted equally, and the cities with the best overall score were determined to be the best cities for chefs.
Source: rent.com
Columbus’s housing market is a dynamic landscape with various trends and factors influencing residents’ choices. From affordable neighborhoods to luxury living options, this article delves into the overall market trends, neighborhood insights, market dynamics and renting scenarios in the Arch City.
The Columbus, Ohio, housing market exhibits a diverse range of trends, catering to individuals with varying preferences and budget constraints. Let’s take a deeper dive into Columbus real estate.
Columbus’s real estate market is categorized as “somewhat competitive”. On average, homes typically sell close to the listed price and enter pending status within approximately 39 days. Alternatively, certain homes may sell for approximately 2% above the list price and enter pending status in around 26 days.
In December 2023, Columbus witnessed a 6.0% increase in home prices compared to the previous year, with a median selling price of $265K. The average time homes spent on the market in Columbus was 43 days, slightly less than the 46 days recorded last year. The number of homes sold in December this year was 731, a decrease from the 820 sold in the same period last year.
The dynamics of the Columbus housing market are influenced by many factors, including economic conditions, job opportunities and urban development initiatives. These factors fluctuate between the varying Columbus neighborhoods. Home prices, buyer demand and overall Columbus housing market trends are dependent on the individual neighborhoods.
The rental market in Columbus offers a diverse array of options, featuring varying prices and living experiences depending on the specific neighborhood. Let’s delve into the current status of the rental market in Columbus.
Columbus has experienced fluctuating rent prices, just as other large US cities have as well. Fifth by Northwest stands out with an average 1-bedroom apartment rent of $1,772, which is a 79% rise in rent YoY.
Areas like Northwest Columbus and Northern Lights saw a small change of 4-5%, raising their one-bedroom options to $1,427 and $965, respectively. Conversely, affordable options are available in Easton and Northeast Columbus, where average 1-bedroom rents are down 3%, bringing rent to $1,511.
In Columbus, the most affordable neighborhoods for renting a one-bedroom apartment include Forest Park East, with an average rent of $720, and Hyde Park, where the average rent is $749. Old North Columbus also offers competitive rental prices at around $750 on average.
For those searching for similarly priced options, North Linden and Indianola Terrace are worth considering, with one-bedroom apartments typically renting for $750 and $800 respectively. These neighborhoods provide more economical living options compared to the Columbus city average of $1,410 for a one-bedroom apartment, catering to budget-conscious renters seeking value and convenience.
Whether individuals are arriving in search of new opportunities or departing for different horizons, tracking these migration patterns contributes to a comprehensive understanding of the Columbus housing dynamics. According to Redfin market data gathered Oct 2023 – Dec 2023, 23% of Columbus homebuyers searched to move out of Columbus, while 77% looked to stay within the metropolitan area.
In Columbus, some of the more luxurious neighborhoods include Weinland Park, where the average rent for a one-bedroom apartment is approximately $1,802, and Dennison Place, with an average rent of $1,790.
For those looking for slightly less expensive options, Tuttle West and the Brewery District are attractive, with average rents for one-bedroom apartments at $1,740 and $1,695, respectively. These neighborhoods offer rental prices that are above the city average of $1,410 for a one-bedroom apartment in Columbus, yet they are known for their unique amenities and desirable locations.
Taxes play a significant role in the overall cost of living in any city. Columbus, Ohio’s minimum combined sales tax rate is 7.5%. This is the total of state and county sales tax rates.
Columbus’ housing market is full of diverse options, catering to a wide range of preferences and budgets. Whether you’re drawn to the affordability of specific neighborhoods or the luxury living options in the city’s busy and popular districts, this guide will assist you in making informed decisions in the pursuit of a home in the Arch City.
With a focused and persistent approach in your hunt for your perfect place, you’ll undoubtedly discover the right one in a remarkably short time.
Source: rent.com
Vacations to popular destinations can sometimes feel like you’ve been sucked into a tourist trap rather than immersed in a new culture.
Given that, you might seek a vacation spot that has a track record of tourist appeal, but remains off the mainstream’s radar — for now.
American Express Travel’s 2024 Trending Destinations list offers a lineup of 10 destinations that fit that bill. Using global AmEx Card Member bookings through the American Express Travel portal, the report highlighted locations with major increases in bookings from 2019 to 2023.
Here are 10 places from the report that are on the rise, in alphabetical order:
While Australia is usually best known for its beaches, crocodiles and the Outback, don’t overlook its vibrant wine country. Adelaide Hills, a region in South Australia, is all about rolling vineyards, charming villages and world-class wineries.
Adelaide Hills is already booming, marking a record $272 million in visitor spending for its fiscal year ending in June 2023, according to the region’s tourism bureau. That’s more than 1.3 million day trips made, and 737,000 nights spent by tourists.
To get the energy of Santorini without the crowds, consider Bodrum, Turkey. Tour the Bodrum Castle for a taste of history, swim in Bodrum’s pristine waters or go diving among the beautiful coral reefs.
Cervo offers what you might expect from an Italian vacation, including boutiques from Italian fashion designers and Michelin-star meals. But it also offers a lovely mix of luxury and laid-back charm — all without the high tourism numbers of other Mediterranean regions like the Amalfi Coast.
Travel to Japan as a whole is rising in popularity. The country is the fastest-growing travel destination globally among Generation Z and millennials, according to AmEx Travel, witnessing a 1,300% increase in travel bookings from 2019 to 2023.
But where in Japan should you go? Nestled on Japan’s northern island of Hokkaido, the resort area of Niseko is especially delightful in winter, particularly for skiers and snowboarders. But it’s not just about action — there’s room for relaxation, too.
Stay warm by soaking in Niseko’s onsen hot springs or sample ramen from one of the many cozy noodle shops.
San Miguel de Allende, Mexico, stands out for its cobblestone streets adorned with candy-colored houses and its ornate church in the town square. While there, don’t miss sipping on a Mezcal cocktail.
According to AmEx Travel, from 2019 to 2023 the city has seen a 57% increase in bookings among Generation X and baby boomer travelers — and a 400% increase in bookings among Gen Zers and millennials.
Santa Fe is the only U.S. destination on the list, and it’s certainly one worth visiting. Largely known for its art scene, it’s also excellent for dining and outdoor activity.
Lately, big things are happening that could make Santa Fe more appealing than ever. For example, construction is set to begin on the Georgia O’Keeffe Museum downtown this year, with a plan to reopen in 2026. For modern art, there’s Meow Wolf, which has 70 rooms of immersive art from local and community artists.
The Maldives tend to get all the love among travelers seeking crystal clear waters and sandy beaches. But there’s a similar archipelago in the Indian Ocean that you shouldn’t overlook. Many well-traveled folk actually consider the Seychelles to be the better of the two, citing reasons like more outdoor activities and secluded beaches.
It’s also generally cheaper. At the time of writing, average hotel room rates in the Maldives span about $800 to $1,300 a night depending on the season and day of the week, according to travel fare aggregator Momondo. Average nightly rates in Seychelles range from $600 to $1,100.
If you’re visiting the Caribbean in 2024, consider Saint Kitts and Nevis. On the two islands (which are considered one country), you’ll find lush rainforests, soft sand and turquoise waters. Activities include exploring the island’s colonial past at Brimstone Hill Fortress, (which is a UNESCO World Heritage Site) or wandering the colorful streets of its capital, Basseterre.
You might also bathe in the hot springs or climb Mount Liamuiga, the island’s highest peak.
With its majestic palaces reflected in shimmering Lake Pichola, Udaipur, India, is sometimes referred to as the “Venice of the East.” The city has bazaars selling handcrafted textiles, jewelry and other wares. For a little exercise, climb to Mehrangarh Fort, which was built on sandstone hills 400 feet above Jodhpur.
With chalets, car-free streets and views of the Matterhorn, Zermatt is your quintessential Swiss village. It’s best known for its skiing, which you can do year-round. In fact, some national ski teams train here in the summer.
You want a travel credit card that prioritizes what’s important to you. Here are our picks for the best travel credit cards of 2024, including those best for:
Source: nerdwallet.com
Welcome to scenic Minnesota, a place associated with friendly faces (Minnesota nice is a thing, after all), icy winters and, of course, its famous moniker, the “Land of 10,000 Lakes.”But look beyond the serene lakes and snow-piled streets, and you’ll uncover a state teeming with stories, natural splendors, a thriving food scene and an entertainment ecosystem as varied as the state’s clearly defined four seasons.
But what is Minnesota known for, beyond the stereotypes? We’re inviting you on a journey through Minnesota, exploring what makes this northern state such a unique and enticing place to visit or call home. From the bustling streets of the Twin Cities to the tranquil trails of its many state parks, Minnesota is an exciting collection of experiences waiting to be discovered.
Minnesota’s story began long before it became known for its stocked lakes and scores of friendly folks. Originally inhabited by indigenous tribes like the Dakota and Ojibwe, Minnesota was a place known for its natural resources and cultural heritage. European exploration and fur trading marked the initial European influence in the 17th century, with French explorers being the first Europeans to land here. Initially part of the Louisiana Purchase in 1803, this area slowly evolved with the establishment of trading posts and small settlements.
Minnesota’s path to statehood was marked by significant events like the construction of Fort Snelling in the early 19th century and the pivotal role it played in regional trade and military affairs. The mid-19th century saw a surge in population growth following treaties with Native American tribes and the official establishment of Minnesota as the 32nd state in 1858.
As the 20th century unfolded, Minnesota witnessed remarkable transformations, shaping it into the state we all know and admire today. The discovery of iron ore in the Mesabi Range turned the state into a national leader in iron production, fueling a noteworthy industrial boom. Agriculture flourished in the fertile plains, making Minnesota a key player in America’s breadbasket. The Twin Cities, Minneapolis and St. Paul, emerged as desirable hubs, driven by industries like milling, timber and later, technology and healthcare.
The progressive spirit of the state, seen in its early adoption of innovative social and economic policies, has continued to define Minnesota. Today, the state is celebrated not only for its economic contributions but also for its commitment to education, environmental stewardship and prioritization of overall quality of life.
Minnesota stands as an economic powerhouse in the Midwest. The state’s employment scene is as diverse as its weather patterns, ranging from the bustling Twin Cities to the majestic Iron Range. Anchoring the state’s economics are industries like healthcare, retail and technology, with major players like Mayo Clinic and Best Buy calling Minnesota home. Minnesota is also a leader in food production, with giants like Cargill and General Mills rooted here. Beyond that, Minnesota’s commitment to innovation is evident in its emergence in tech and engineering, buoyed by a highly educated workforce emerging from its esteemed universities and colleges.
For job seekers, the “Land of 10,000 Lakes” provides more than just picturesque landscapes; it’s a land brimming with professional possibilities. Minneapolis and St. Paul, serve as the economic engine, with a ton of opportunities in finance, education and creative fields. Beyond the metro area, regions like Duluth and Rochester are not just scenic escapes but also epicenters for healthcare and education, thanks to institutions like the University of Minnesota and Mayo Clinic. The state’s dedication to environmental sustainability spurs jobs in green energy and conservation, making it an attractive destination for those passionate about the planet.
Minnesota is full of entertainment options that cater to darn near every taste and interest. For those seeking a blend of shopping and leisure, the Mall of America in Bloomington is more than just a shopper’s paradise; it’s a world in itself with an indoor amusement park, aquarium and countless restaurants and storefronts. The state’s musical prowess, epitomized by the legendary Prince, continues to thrive here.
Theatergoers are in for a treat with the renowned Guthrie Theater in Minneapolis, presenting everything from Shakespeare to contemporary plays. When it comes to professional sports, Minnesota has it all with teams like the Vikings (NFL), Twins (MLB), Timberwolves (NBA) and Wild (NHL), offering thrilling live action throughout the year.
Annual events like the Saint Paul Winter Carnival and the Minnesota State Fair in Falcon Heights add a festive flavor, drawing visitors from all over with a singular mixture of food, music and Minnesota activities. Whether it’s the adrenaline of city life or the tranquility of escape, Minnesota’s entertainment scene is an enchanting mix of experiences, making it a great place to live for folks on the go and those who lean more toward leisure.
Minnesota truly is a paradise for those who love the outdoors. The state’s most iconic natural attraction, its many, many lakes, offers endless opportunities for water-based activities. In summer, locals and visitors alike flock to the larger lakes like Lake Superior and Lake Minnetonka for boating, fishing and swimming. Kayaking and canoeing are particularly popular in the Boundary Waters Canoe Area Wilderness, an extensive network of waterways offering serene views and a tranquil escape from the daily grind.
For those who prefer land-based adventures, there are a ton of state parks within Minnesota’s borders. Parks like Itasca State Park – where the mighty Mississippi River begins – provide miles of hiking and biking trails through lush forests and scenic terrain. Birdwatchers and nature photographers will find everything they’re looking for and more in the state’s diverse wildlife and bird species, especially at spots like the National Eagle Center in Wabasha.
When winter blankets Minnesota in snow, the state transforms into a wonderland for cold-weather sports. Skiers and snowboarders head to spots like the Lutsen Mountains on the North Shore of Lake Superior, offering some of the best downhill runs in the Midwest. Cross-country skiing and snowshoeing are also popular, with extensive trail networks like those in Theodore Wirth Park in Minneapolis. For a truly unique Minnesotan experience, ice fishing is a beloved activity, with experts setting up cozy shelters on frozen lakes.
Minnesota’s food scene is, simply put, stellar. The state, famous for its comfort foods, gifts the world the iconic Juicy Lucy, a cheese-stuffed burger that’s a must-try in Minneapolis burger joints. Minnesota’s natural bounty shines in its farm-to-table scene, with local produce and meats featured prominently in many restaurants. But there’s more to Minnesota’s palette than just hearty Midwestern cuisine. The Twin Cities are hotspots for diverse international flavors, ranging from authentic Vietnamese pho to Somali sambusa, reflecting the growing multicultural population that the state is starting to be known for.
Beyond the usual go-to spots, Minnesota’s unique food experiences continue to intrigue food lovers. The state’s abundant waterways and passion for fishing translate into excellent seafood, particularly freshwater fish like walleye, a local favorite often served pan-fried or in sandwiches. Craft beer enthusiasts often find their happy place in Minnesota, with a thriving small-batch beer scene that’s seen exponential growth over the past couple of decades.
For those with a sweet tooth, the Scandinavian influence is evident in treats like lefse and lutefisk, providing a taste of Minnesota’s immigrant heritage. From upscale dining in cosmopolitan centers to cozy cafés in quaint towns, Minnesota’s food scene is truly something else.
As our exploration of Minnesota comes to a close, it’s clear that this state is more than just a backdrop of lakes and cold winters. It’s a place where history and modernity intertwine, where the great outdoors offers year-round adventures and where the food scene satisfies the comfort food lover and the adventurous eater. Minnesota’s charm lies in its ability to blend the warmth of its community spirit with the excitement of urban and natural adventures.
Whether you’re drawn by the call of the wild in its vast landscapes or the bustling energy of city life, Minnesota offers a ton of experiences that resonate with people from all walks of life. So, pack your bags, jackets, snow boots and blankets, and get ready to immerse yourself in Minnesota life.
Source: apartmentguide.com
Republic Day, observed on January 26, is commemorated with parades and celebrations honouring India’s diverse cultural heritage. It is well worth seeing the magnificent Republic Day parade, which is customarily staged on the main Rajpath avenue and includes the Army, Navy, and Armed Forces in their full splendour. The parade’s major attractions include traditional dance troupes and floats from every state, along with a sky display by helicopters. As we approach the joyous occasion of Republic Day, let’s channel our love for the nation into the very fabric of our homes. Elevate your living space with a fusion of cultural aesthetics, vibrant furniture, and cosy textiles. (Also read: Republic Day 2024: 10 creative and easy-to-make drawing ideas for kids to celebrate the nation’s pride )
On Republic Day, everything takes on the colours of the Indian national flag. So why leave your house? While it’s rare to redecorate the whole room every year, you can show your love for the national colours by bringing out cushions in white, green and saffron. Use white cushions, green plants and saffron bed linen in your master bedroom to create a festive and patriotic atmosphere.
Who doesn’t love flowers? With their enchanting scent and vibrant colours, they can instantly create a festive mood. For a tricolour look, use marigolds, jasmine and green foliage and finish the arrangement with a flag. Whether you make a floral rangoli or create a tricolour flag with flowers, your home is sure to be ready for R-Day.
If you enjoy crafts, try making paper roses with coloured crepe paper, glue and wire. Use these paper flowers to decorate your home. You can make a string of flowers to hang in your window, or use them as a bouquet in a vase. Cut out flower shapes from coloured cards using a template. Use your imagination and let your inner child experiment. You can also make cut-outs in the shape of hearts, stars or tiny dolls. Use these beautiful shapes to make garlands, posters and banners.
Having a Republic Day party at your house or place of business? Make orange, white, and green helium balloons the focal point of your arrangement! Create a cheerful environment by arranging saffron, white and green balloons to turn your room into a visual symphony. Decorate corners, walls and ceilings with balloon clusters and garlands that symbolise the Indian tricolour. Use patriotic embellishments and accents reminiscent of flags to reinforce the theme.
Decorate your space with tricolour LED string lights to capture the essence of the Indian flag and create a vibrant aura of saffron, white and green. Use these energy-efficient lights to accent windows, doors and other focal points to create a sense of patriotism. Add a touch of style with LED light patterns inspired by national emblems or the Ashoka Chakra. Let the LED lights flash brightly at sunset to represent India’s unity, diversity and vibrant spirit on this memorable day.
Source: hindustantimes.com
In recent years, the real estate landscape has undergone a profound transformation, marked by the popularity of build-to-rent homes. This innovative housing model, conceived for rental purposes, has emerged as a trend that not only caught the eye of industry stakeholders but has also redefined the expectations of both landlords and tenants.
In this deep dive, we will unravel the foundation of build-to-rent homes, comb through its growth path from its inception, evaluate its current status and think about the potentially far-reaching impact it may exert on the rental market.
Build-to-rent homes represent a departure from conventional real estate development, as they are residential properties designed and constructed with the sole purpose of being rented out rather than sold. These purpose-built developments often manifest as part of larger rental communities, strategically incorporating an array of amenities and services to elevate the overall living experience for tenants.
The terms “build to rent,” “built to rent,” “BFR” and “B2R” are interchangeable, all denoting properties constructed explicitly for long-term rentals. Rather than being purchased from other owners, these homes are constructed by owners with the specific intent of catering to tenants.
These properties can be owned by individuals or managed by companies, particularly within build-to-rent communities. The variety of build-to-rent homes includes single-family dwellings on standard-sized lots, small lot homes with closer proximity, duplexes featuring two attached units, triplexes with three attached units and row homes and a series of side-by-side houses sharing a common wall.
The roots of the build-to-rent trend delve into the need to adapt to the changing dynamics of the housing market. Factors such as urbanization, a shifting preference for flexibility among millennials and young professionals and a heightened desire for a convenient and hassle-free lifestyle contributed to the initial emergence of this trend. Its early development stages can be traced back to the early 2010s, witnessing a significant surge in build-to-rent developments that were crafted in response to the needs of the housing market.
The evolution of build-to-rent homes is intertwined with the broader socioeconomic shifts shaping our cities and communities. As urbanization accelerated, there was a demand for housing solutions that catered to the dynamic lifestyles of individuals seeking convenience, flexibility and a sense of community. The traditional model of homeownership faced challenges in meeting these evolving needs, paving the way for the rise of build-to-rent homes.
These purpose-built developments were conceived as more than just housing units; they aimed to create entire communities tailored to the modern renter’s lifestyle. Developers, typically a property management company, envisioned amenities like those of apartment buildings like fitness centers, swimming pools, communal spaces, co-working areas and on-site services to foster a sense of belonging and convenience within these rental communities. The objective was not merely to provide shelter but to curate an enhanced living experience that rivaled traditional single-family rentals.
As we cross the threshold from 2023 into 2024, the build-to-rent trend continues to gain momentum, asserting itself as a prominent player in the real estate domain. Investors and developers, discerning the potential for stable returns in the rental sector, have propelled a surge in construction projects exclusively dedicated to build-to-rent properties. The demand for such homes spans a diverse demographic spectrum, encompassing young professionals, families and retirees, all of whom are drawn to the benefits that build-to-rent communities offer.
The surge in popularity is not only a result of demographic shifts but also indicative of changing attitudes towards homeownership. The younger generations, in particular, are increasingly valuing flexibility and experience over the long-term commitment of owning a home. The advantages of build-to-rent properties, such as communal living, shared amenities and hassle-free maintenance, align seamlessly with these changing preferences.
Build-to-rent homes have ushered a shift for landlords, presenting a host of advantages that extend beyond the traditional rental model. One of the most significant benefits is the higher renewal rate. Tenants, appreciating the convenience and plethora of amenities provided in these purpose-built communities, are more inclined to renew their leases. This not only ensures a stable income stream for landlords but also fosters a sense of community and stability within these rental developments.
The streamlined management of build-to-rent properties is another boon for landlords. Centralized management, often facilitated by professional property management companies, allows for more efficient operations. From maintenance and security to community events and amenities, the integrated approach reduces the burden on individual landlords, contributing to a smoother and more sustainable rental model.
Furthermore, the scalability of build-to-rent developments provides investors with the opportunity to diversify their portfolios. The ability to own and manage multiple units within a single community or across various locations enhances the potential for economies of scale and mitigates risks associated with individual property management.
Tenants, the primary beneficiaries of the build-to-rent paradigm, stand to gain numerous advantages from choosing these purpose-built homes. These properties are meticulously designed with tenant needs in mind, offering an array of amenities such as fitness centers, communal space and on-site maintenance services. The emphasis on privacy is a notable characteristic, often achieved through detached or well-insulated units, setting build-to-rent homes apart from traditional rental options and providing tenants with a more comfortable and private living experience.
The communal aspect of build-to-rent living is a significant draw for tenants: This living experience aligns with the social preferences of modern renters, particularly the younger demographic, who prioritize connections and experiences over isolated living. The flexible lease terms offered by build-to-rent developments also cater to the transient nature of contemporary lifestyles. With the option for shorter leases and the absence of the burdensome responsibilities associated with homeownership, tenants can embrace a lifestyle characterized by mobility and adaptability.
As we cast our gaze into the future, the build-to-rent trend is poised to continue shaping the housing landscape in profound ways. The flexibility, convenience and community-oriented features of these developments are likely to attract an even broader spectrum of renters.
Moreover, advancements in sustainable and smart building technologies hold the promise of further enhancing the appeal of build-to-rent homes, making them a sustainable and forward-thinking choice for both landlords and tenants.
The integration of green building practices, energy-efficient technologies, and smart home solutions align with the growing emphasis on sustainability in the real estate sector. These innovations not only contribute to environmental conservation but also offer cost-saving benefits for both landlords and tenants. As society becomes more conscious of its ecological footprint, the incorporation of sustainable practices in build-to-rent developments positions it as a responsible and future-ready housing solution.
The confluence of these trends is not merely a fad; rather, it signifies a redefinition of how we conceptualize and experience rental housing. The integration of these elements is set to leave an major mark on the housing market, influencing its trajectory for years to come.
Looking for a place to rent, whether build-to-rent or something different. Check out our available apartments and houses for rent here.
Pennymac proudly supports our nation’s heroes by offering Department of Veterans Affairs (VA) loans. We service over 445,000 VA loans on behalf of service members, veterans and their families – over 43,000 of which originated in the first 9 months of 2023.*
If you’re connected with the United States military, you may be eligible for VA loans, such as no down payment purchase loans and low-interest refinance loans. In this guide, we’ll look at what a VA loan is, the qualification criteria, the benefits and how to find the one that could be right for you.
*As of 9/30/2023
A VA loan is a mortgage loan guaranteed by the United States Department of Veterans Affairs. It’s available to eligible veterans, service members and surviving spouses and offers numerous benefits, including:
VA loans are specifically designed to meet the needs of veterans and their families, opening up increased opportunities for homeownership and building equity.
VA loans are government-backed loans that offer veterans and service members more flexible borrower criteria than conventional loans. The VA guarantees the loans, reducing the risk for lenders and enabling lower credit scores and down payment requirements.
While you can use a VA loan for your first home, you can take advantage of the VA loan benefit again if you sell or refinance.
VA loans and the process to obtain them are similar to other types of Pennymac mortgage loans, with some key differences. Here’s a breakdown of the steps involved in applying for and securing a VA home purchase loan.
1. Start your application online or talk to a Pennymac Loan Expert. One of the unique aspects of a VA loan is that we’ll use your Certificate of Eligibility (COE) to confirm that you meet the basic VA loan requirements, but you don’t need it to begin your application.
You can visit the eBenefits section of the U.S. Department of Veterans Affairs website to request your COE online or obtain VA Form 26-1880 to make your request through the mail. If you prefer, your Loan Expert will be happy to guide you through the steps involved to verify your eligibility and obtain your COE.
2. Receive a Pennymac BuyerReady Certification. The BuyerReady Certification is Pennymac’s unique loan certification process that confirms how much of a mortgage you will likely qualify for based on submitted financial documents. While it doesn’t guarantee a loan, BuyerReady Certification can help you house-shop with confidence so you’ll know which homes will fit your budget.
BuyerReady Certified homebuyers also qualify for Pennymac’s Lock & Shop program,* which allows you to lock in a rate before locating a property. Protect yourself from future rate increases and potentially save thousands of dollars in the lifetime cost of your mortgage.
3. Look for homes. Meet with a real estate agent and begin looking for homes. Once you’ve found a home you’d like to purchase, you can continue with the VA loan process. Pennymac Home Connect can assist in finding a reputable real estate agent in your area.
4. Complete underwriting and loan process. Since you’ve already submitted most of the documentation and information you’ll need for the mortgage through the BuyerReady Certification process, loan processing is typically smoother and faster.
5. Close and get the keys! Once your loan is approved, you’ll have your closing, where all necessary paperwork will be signed.
At this time, you’ll get the final details of your loan terms and required closing costs, which are the extra fees buyers and sellers pay to close on a real estate transaction beyond the home’s purchase price. One of the fees unique to the VA loan is the funding fee, which can be paid in full at closing or rolled into the total loan amount.
The funding fee is a one-time charge, typically between 1.25% and 3.3% of the loan amount. The fee goes to the U.S. Department of Veterans Affairs to support the VA loan guaranty program, which helps keep VA mortgages low-cost and available for future veterans to achieve homeownership.
The following individuals are exempt from paying the VA funding fee:
If the borrower’s exemption status is unclear, the VA will make the final decision on funding fee exceptions.
VA loans are available to active-duty service members, veterans and their surviving spouses. If you meet one or more of the following criteria, you may be eligible for a VA home loan:
VA home loans are valuable financing solutions to help qualified service members and veterans achieve their homeownership aspirations. The primary benefits of VA home loans include:
Veterans and service members have access to several types of VA loans, whether you’re buying a home or refinancing.
Buy a home with zero down payment and a competitive interest rate.
Who is it for? Qualified first-time or repeat homebuyers who are purchasing a primary residence.
Benefits:
*As long as the sales price does not exceed the appraised home value.
An IRRRL, also known as a Streamline Refinance Loan, allows you to refinance your existing VA loan to a lower interest rate, which may potentially lower your monthly payments. You may also be able to refinance an ARM into a fixed-rate mortgage.
Who is it for? Individuals who already have a VA loan.
Benefits:
Your rate and monthly payment after refinancing must be lower than your current payment, except when refinancing an ARM to a fixed-rate mortgage.
VA cash-out refinance loans allow you to refinance your existing loan — which doesn’t have to be a VA loan — for a higher balance and receive the difference as cash. Use the funds for any purpose, such as paying off debt, funding education or making home improvements.
Who is it for? Qualified veteran homeowners who want to use their equity in their homes.
Benefits:
*Loan limits are established by the VA and can vary by county.
By refinancing your existing loan, your total finance charges may be higher over the life of the loan.
A VA loan is a versatile, flexible financing option designed to empower veterans, service members and their families.
VA purchase loans can be used to finance a primary residence, including:
VA IRRRL loans are used to replace an existing VA loan at a lower interest rate. This can potentially reduce your monthly payments, freeing up money you can use for other expenses, such as home renovations, college tuition or credit card debt. You can refinance:
The home must be your primary residence, and you must already have a VA loan. You can also refinance an ARM into a fixed-rate mortgage.
With a VA cash-out refinance, you may be able to obtain funds for:
You can also use a VA cash-out refinance to replace a non-VA loan with a VA loan. The home you are refinancing must be your primary residence.
As part of our nation’s military, you’ve dedicated your life to serving our country. Pennymac is proud to serve you. We provide VA purchase loans and refinancing options that can make homeownership more attainable and affordable for America’s heroes. Contact a Pennymac Loan Expert today to learn more.
*Lock & Shop Program allows consumers who have a Pennymac BuyerReady Certification for a purchase loan with Pennymac to lock a rate prior to locating a property. The program requires a non-refundable fee of $595 due at the time of the rate lock. Consumers with a Pennymac BuyerReady Certification for a purchase loan with Pennymac must meet appropriate underwriting conditions to obtain a mortgage loan. Consumers may choose between a 60-day, 75-day or 90-day lock period. Consumers must initiate a mortgage loan application for a specific property and be under purchase contract for the property at least 30 days prior to lock expiration in order to extend the locked rate. All rate lock extensions are subject to Pennymac’s standard rate lock extension fees. After the rate lock and subject to favorable market conditions, consumers may be eligible for a one-time reduction in rate once the loan application for a specific property has been initiated (0.50 % maximum reduction in interest rate allowed). Eligible loan products are Conventional Fixed, Conventional ARM, FHA Fixed and VA Fixed. Program excludes Jumbo, refinance, third-party and in-process loans. Program subject to termination in Pennymac’s sole discretion and without notice.
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Source: pennymac.com
It looks like nearly half the fiscal year could be over before Congress gets around to funding for it.
With under 36 hours left before the government was expected to shut down, Congress passed a continuing resolution to extend funding until March 1 and March 8, depending on the department that needs funding approval.
The move effectively kicks the can down the road for a deeply divided Congress to agree on spending levels for the fiscal year that began on Oct. 1. It’s the third stopgap in the government shutdown saga that began back in September.
The short-term bipartisan funding bill was introduced on Sunday and approved by the Senate and the House on Thursday. President Joe Biden is expected to sign it.
The stopgap is only a delay, and the government could still shut down come March. A government shutdown probably won’t greatly impact your day-to-day life unless you work for the federal government. But it could result in a slew of bothersome disruptions.
Congress must approve 12 key appropriations to fund federal agencies for each fiscal year. The 2023-24 fiscal year began on Oct. 1.
Two continuing resolutions made last year extended funding for the 2023-24 fiscal year. That means funding remained at 2022-23 levels and allowed federal agencies to continue operations.
The previous extension was set to expire on Jan. 19 for military and veterans programs, as well as the departments of Transportation, Housing and Urban Development, and Agriculture. Spending for energy and water development and related agencies also would have been affected. A second expiration date was set for Feb. 2 that included the State, Justice, Defense, Commerce and Labor departments, as well as Health and Human Services.
For a moment, it looked like Congress had come to a consensus on a spending bill with a $1.7 trillion bipartisan deal reached by Senate Majority Leader Chuck Schumer and House Speaker Mike Johnson last week. But its chances of passing soon crumbled when hardline House Republicans declared it dead on arrival.
Both deadlines have been extended to March 1 and March 8, respectively.
Congress has until March to finally agree on spending levels for the 2023-24 fiscal year.
Any funding agreement would likely include all 12 appropriations, as Schumer and Johnson’s proposed spending bill did last week.
The worst effects would be felt by government workers. Some would be furloughed without pay. Others would continue to work but would also go without pay for the duration of the shutdown. Everyone would receive back pay when funding is restored.
Certain nonessential services would be suspended. National park operations, the IRS’s customer service and Federal Student Aid assistance would close up shop.
Anything that receives mandatory funding would continue, such as law enforcement and power grid maintenance.
Air traffic control would continue, but you could experience some travel disruptions anyway.
Programs like Medicaid and Medicare, Social Security and Supplemental Nutrition Assistance Program benefits would continue. But if a shutdown went on long enough, there could be delays in approvals and the delivery of certain benefits.
Homebuying could prove more difficult if you plan to get a reverse mortgage, Title I loan or a loan from the U.S. Department of Agriculture.
Congress has until March 1 to get its act together.
Without a deal or another continuing resolution, you can expect a partial shutdown as soon as March 1 and, if no action is taken by March 8, there would be a full shutdown.
With the way this divided Congress is acting, it’s likely any future decisions — to fund or extend again — will be made under the gun.
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Source: nerdwallet.com