Investors evaluating precious metals often ask: gold vs silver, which is better for investors? In this comparison, discover the investment merits of gold’s stability and silver’s industrial relevance, geared towards helping you decide which metal suits your financial strategy. Without leaning towards one or the other, this article presents a balanced view to inform your choice.
Key Takeaways
Gold and silver serve as a store of value and a hedge against inflation, with gold mainly being an investment asset while silver has significant industrial applications, impacting their price volatility and investment suitability.
Gold is revered as a safe haven asset, attracting investment during economic turmoil and serving as an inflation hedge, while silver’s dual role in industry and investment sectors offers growth potential and affordability.
Investors should consider precious metals within a diversified portfolio and can choose between physical metals, ETFs, or mining stocks, each with its own benefits and risks, and should evaluate after-inflation returns and personal financial goals to decide between gold and silver.
Gold and silver, the titans of precious metals, have long served as a reliable store of value and an effective inflation hedge. While gold primarily functions as an investment asset, offering potential for significant returns to those with larger capital, silver boasts an additional industrial role, broadening its appeal. However, investing in these precious metals isn’t as simple as stashing bars or coins in a safe. It involves dealing with price volatility and aligning your investment with long-term goals.
Adopting a buy-and-hold approach may serve investors best over the long term when investing in gold and silver. But why? It’s because the prices of these metals are shaped by a vast array of factors. Geopolitical issues, economic turmoil, and demands in the industrial sector all play a part in the daily dance of gold and silver prices. Understanding these factors can help you make informed decisions about when and how much to invest.
So why consider precious metals as part of your investment portfolio? They offer a unique combination of benefits:
Gold, with its reputation as a safe haven, attracts those looking for stability amidst market chaos
Silver, with its dual role in the industrial and investment sectors, offers an affordable entry point for investors with smaller capital
Both metals provide a robust way to diversify your portfolio and protect against inflation.
Understanding Gold’s Position as a Safe Haven Asset
Gold has long been a symbol of stability and security in the financial world. Its glittering history spans centuries, maintaining its value even in times of economic turmoil. It’s no wonder that in periods of global uncertainty or financial crises, investors often flock to gold, buoying its value and cementing its reputation as a safe haven.
One of gold’s most notable features is its role as an inflation hedge. As the cost of living increases, inflation hedge gold has shown a remarkable ability to preserve the real value of assets. This unique characteristic comes from how gold’s supply growth aligns with long-term global economic growth, helping to maintain its value during inflationary periods. This resilience, coupled with the tendency of investors to shift towards gold as a safe haven during inflation, can drive up its demand and price.
Given these factors, it’s clear why gold holds a revered place in the financial market. Whether you’re looking for a buffer against economic instability or an asset that can protect your buying power in the face of rising prices, gold stands firm as a reliable safe haven asset.
Silver’s Dual Role: Industrial Demand and Investment Segment
While gold may steal the spotlight for its luster and stability, silver plays a shining role of its own. Apart from being an investment asset, silver’s widespread industrial applications can drive up its price and enhance its investment appeal. In 2023, industrial applications reached a new record high, with photovoltaics usage increasing by a staggering 64%. China’s industrial demand for silver surged by 44% in the same year, predominantly driven by growth in green applications such as:
photovoltaics
solar panels
batteries
electronics
medical devices
These industrial applications highlight the versatility and value of both silver and silver bullion coins as an investment.
Due to its significant industrial use and affordable price point, silver is an accessible option for investors with smaller amounts of capital. However, the silver lining has a cloud. During economic downturns, silver’s industrial use can result in a drop in demand and a corresponding price drop. This volatility underscores the need for investors to consider their risk tolerance when investing in silver.
Despite its volatility, the forecast for silver demand in 2024 predicts a growth of 2%, with industrial production expected to achieve new records. This projected growth, along with silver’s role in portfolio diversification and potential for future price appreciation, suggests that silver’s investment appeal may shine brighter in the future.
Including gold and silver in a diversified portfolio can enhance performance during market volatility and inflation. Financial advisors often suggest allocating 5-10% of an investment portfolio to commodities like gold and silver for diversification purposes. The logic is simple: gold offers diversification due to its historically low correlation with other financial assets such as stocks and bonds.
The inclusion of gold and silver, primarily an investment asset class, which unlike an asset produces cash flow, can act as an uncorrelated asset relative to equities, serving to diminish the total volatility of the portfolio.
Some benefits of including silver in your portfolio are:
Silver has significant industrial applications
It is positively correlated with periods of economic growth
Anticipated growth in areas such as renewable energy and artificial intelligence suggests an expanding demand for silver.
However, it’s crucial for investors to consider the following factors when determining the fit of precious metals within their investment strategies:
Potential costs for secure storage of precious metals
The speculative nature of precious metals
Due diligence and careful consideration of your financial circumstances
As with any investment decision, due diligence and careful consideration of your financial circumstances are key, including addressing portfolio risk management requirements.
While investing in physical precious metals has its appeal, precious metal mining stocks offer an intriguing alternative. Gold stocks provide a leveraged play that can outperform physical gold when prices rise, offering substantial potential for capital gains. The reason? Mining stocks do not just reflect the value of the precious metal. They also include the prospects of mining companies themselves.
Compared to physical gold, gold stocks offer several advantages:
They are more liquid and can be easily bought and sold.
They can provide additional income through dividends paid by established, profitable mining companies.
Investors can benefit from the expansion of mining operations and reap profits from significant new gold discoveries.
These advantages make gold stocks an enticing option for those looking to diversify their portfolio.
Moreover, by choosing gold mining stocks, investors can avoid the extra costs associated with the storage and security of physical gold. This can make gold stocks a more convenient and cost-effective alternative for investors who want exposure to gold without the logistical challenges of owning physical metal.
Physical Bullion vs. ETFs: Choosing Your Investment Vehicle
When considering precious metals as part of your investment strategy, it’s essential to explore all available options. Physical bullion and exchange-traded funds (ETFs) present two distinct investment vehicles, each with its own set of advantages and challenges. Gold ETFs, for instance, offer enhanced liquidity compared to physical gold, allowing investors to quickly buy and sell shares without facing the logistical challenges tied to physical transactions of gold.
Investing in gold ETFs can also be more cost-effective over time. Investors do not have to deal with the costs of purchasing and maintaining physical gold, and the responsibilities of securing and insuring the physical gold are professionally managed by the fund. However, it’s crucial to remember that the value of shares in gold ETFs may not track the price of gold precisely, as the fund’s expenses could slightly erode the value of these shares over time.
On the other hand, investing in physical gold comes with its own set of considerations. Apart from the allure of owning a tangible asset, investors must account for costs such as storage fees, insurance, and potentially higher dealer premiums over the market price. Additionally, purchasing physical gold requires vigilance due to the risks of scams, necessitating transactions with reputable dealers and possible appraisal costs, which add to the overall investment expense.
Evaluating After-Inflation Returns: Gold vs. Silver
When it comes to returns, it’s crucial to look beyond the nominal figures and consider the real value – the after-inflation returns. And in this regard, the performance of gold and silver may not be as glittering as one might expect. However, these precious metals have historically provided a hedge against inflation, offering returns that outpace inflation over certain periods. Here are some key points to consider:
Gold and silver can serve as a portfolio diversifier, helping to reduce risk.
Silver, due to its abundance, may have less upside potential compared to gold.
Both gold and silver have historically provided a hedge against inflation.
While the after-inflation returns of gold and silver may not always be stellar, considering past investment product performance, they can still play a valuable role in a well-diversified investment portfolio, remaining steady amid inflation uncertainties.
Gold tends to perform well during economic downturns and protections against inflation; studies confirm a positive correlation between the rising cost of living and the value of both precious metals. This ability to preserve wealth becomes particularly valuable during periods of high inflation, increasing their attractiveness as part of an investment strategy.
While the after-inflation returns for gold and silver may not be highly impressive when compared to other investments, rising inflation typically enhances their attractiveness as part of an investment strategy. This context underscores the importance of considering multiple factors – including inflation, market conditions, and personal financial goals – when evaluating the potential returns on your investment in gold and silver.
Making the Decision: Should You Buy Gold or Silver?
So, armed with all this knowledge, how do you decide between gold and silver? The answer isn’t one-size-fits-all. Investors should assess their individual financial circumstances and objectives when considering gold or silver investments, as the suitability can greatly vary depending on personal financial situations and goals.
The choice between gold or silver as a better investment option hinges largely on the individual’s risk tolerance and comfort with each investment strategy. It’s crucial to remember that while both precious metals can serve as hedges against inflation and economic downturns, they also present unique risks and opportunities. For instance, gold’s role as a safe haven asset may appeal to those seeking stability, while silver’s industrial applications and lower price point could attract investors looking for growth and affordability.
Before making the final call, it’s advisable to seek the guidance of a financial advisor to evaluate the appropriateness of gold or silver investments for your portfolio. Additionally, conducting independent research into gold and silver investment strategies can help you make a well-informed decision. Armed with knowledge and guided by your financial goals, you are well-equipped to make the golden (or silver) choice that’s right for you.
Summary
When it comes to precious metals, gold and silver stand as powerful contenders. Their unique characteristics offer distinct advantages for investors, making them an appealing inclusion in a diversified portfolio. Gold, with its safe-haven status, serves as a buffer against economic instability, while silver, with its industrial applications and affordable price, presents growth opportunities and accessibility to investors.
Ultimately, the decision to invest in gold, silver, precious metal mining stocks, or any other asset class should be guided by a thorough understanding of your financial goals, risk tolerance, and market conditions. It’s not about choosing the shiniest option, but the one that aligns best with your investment strategy and financial aspirations. So, whether you’re drawn to the allure of gold or the versatility of silver, remember – knowledge is the most precious asset of all.
Frequently Asked Questions
What factors influence the price of gold and silver?
The prices of gold and silver are influenced by various factors, including global economic stability, inflation rates, currency values, interest rates, and mining supply. Geopolitical events and investor sentiment can also cause significant price fluctuations.
Can I invest in gold and silver without owning physical metals?
Yes, investors can gain exposure to gold and silver without owning physical metals by investing in exchange-traded funds (ETFs), mining stocks, or mutual funds that focus on precious metals.
How does the industrial demand for silver affect its investment value?
The industrial demand for silver, particularly in technology and renewable energy sectors, can significantly affect its investment value. As demand for industrial applications rises, the price of silver may increase, potentially offering capital gains to investors.
What risks are associated with investing in precious metals?
Investing in precious metals carries risks such as market volatility, liquidity issues, and potential losses if prices decline. Additionally, physical metal investments may incur costs for storage and insurance.
Are there any tax considerations when investing in gold and silver?
Yes, there are tax considerations when investing in gold and silver. Capital gains on precious metals may be subject to taxation, and the tax treatment may differ depending on the investment vehicle (e.g., physical metals, ETFs, stocks). A tax professional can help you with this.
How do geopolitical events impact gold and silver prices?
Geopolitical events can have a significant impact on gold and silver prices. Uncertainty and instability often lead investors to seek safe-haven assets like gold, which can drive up prices. Conversely, positive geopolitical developments can reduce demand for safe havens, potentially lowering prices.
What is the best way to track the prices of gold and silver?
Investors can track the prices of gold and silver through financial news websites, commodity exchanges, and market data services. Many investment platforms also provide real-time pricing information for precious metals.
How do central bank policies affect gold and silver investments?
Central bank policies, such as interest rate adjustments and quantitative easing, can affect the value of currencies and influence investor sentiment towards precious metals. Policies that lead to currency devaluation can increase the attractiveness of gold and silver as a store of value.
Colorado Springs is renowned for its natural beauty, laid back lifestyle, and friendly community. Living in Colorado Springs means experiencing the beauty of all four seasons, from snowy winters perfect for skiing and snowboarding, to warm summers ideal for camping and fishing. So, if you’ve been asking yourself, “Should I move to Colorado Springs, CO?” you’re in the right place. In this article, we’ll dive into the pros and cons of making Colorado Springs your home to help you decide if it’s the right fit for you. Let’s get started.
Colorado Springs at a Glance
Walk Score: 36 | Bike Score: 45| Transit Score: 19
Median Sale Price: $440,000 | Average Rent for 1-Bedroom Apartment: $1,520
Colorado Springs neighborhoods | Houses for rent in Colorado Springs | apartments for rent in Colorado Springs | Homes for sale in Colorado Springs
Pro: Thriving arts and cultural scene
Colorado Springs is home to a vibrant arts and cultural scene. The city has numerous galleries, theaters, and museums that celebrate both local and international talent. The Colorado Springs Fine Arts Center and the Pikes Peak Center for the Performing Arts are just two examples of venues that offer a diverse array of performances and exhibitions.
Con: Variable weather conditions
The weather in Colorado Springs can be unpredictable, with sudden changes that can catch residents off guard. While the city enjoys over 300 days of sunshine a year, it also experiences its share of snow, hail, and rapid temperature fluctuations. This variability can make planning outdoor activities challenging and requires residents to be prepared for anything. The winter months, in particular, can see heavy snowfall, impacting travel and daily life.
Pro: Stunning natural beauty
Colorado Springs is located at the foot of the majestic Pikes Peak, offering breathtaking views that are hard to find elsewhere. The city is surrounded by natural wonders, including the Garden of the Gods with its iconic red rock formations. Residents enjoy easy access to hiking, biking, and outdoor adventures right in their backyard. This connection to nature enhances the quality of life for those who live here, making it a coveted location for nature lovers.
Con: High altitude
Located at an elevation of over 6,000 feet, Colorado Springs’ high altitude can be a challenge for new residents and visitors. The thin air can sometimes lead to altitude sickness, affecting one’s energy levels and overall health. It often takes time to acclimate to the elevation, which can be particularly tough for those moving from lower altitudes. This aspect can impact athletic performance and daily activities until one’s body adjusts.
Pro: Growing economy
Colorado Springs has a growing economy, with a focus on the aerospace and defense industries, technology, and tourism. This economic growth has led to an increase in job opportunities, attracting individuals from various career fields. The city’s economic development is supported by a proactive local government and a community that values innovation and entrepreneurship.
Con: Rising cost of living
The cost of living in Colorado Springs is on the rise since becoming more popular. In fact, the cost of living in Colorado Springs is 8% higher than the national average. Real estate prices have increased, making it more challenging for some first-time homebuyers and renters. While still more affordable than some major cities, the trend towards higher living costs could pose a problem for those on a tight budget or looking to move to the area.
Pro: Pet-friendly city
Colorado Springs is an incredibly pet-friendly city, with numerous parks, trails, and open spaces where pets are welcome. Many restaurants and businesses also cater to pet owners, allowing dogs in outdoor areas. This pet-friendly attitude is evident in the city’s numerous dog parks and pet events, including the Colorado Springs Pet Expo. The city’s devotion to pets makes it a great place for anyone who loves animals to call home.
Con: Limited nightlife
Compared to larger cities, Colorado Springs has a more subdued nightlife. While there are certainly bars, restaurants, and events to enjoy, those seeking a vibrant club scene might find the options limited. This quieter nightlife aligns with the city’s overall laid-back atmosphere but may be a drawback for those who prefer a bustling night out on the town.
The sense of community in Colorado Springs is strong, with friendly neighborhoods and an array of community events throughout the year. From local farmers’ markets to festivals celebrating the city’s culture and history, there’s a genuine camaraderie among locals. This community spirit makes it easy for newcomers to feel welcome and quickly become part of the city’s social fabric.
Jenna is a Midwest native who enjoys writing about home improvement projects and local insights. When she’s not working, you can find her cooking, crocheting, or backpacking with her fiancé.
Mortgage rates continued to rise for the week ending April 25. The 30-year fixed-rate mortgage averaged 7.23% APR, up seven basis points from the previous week’s average, according to rates provided to NerdWallet by Zillow. (A basis point is one one-hundredth of a percentage point.)
Rates for 30-year fixed-rate loans have been hovering in the general neighborhood of 7% for the past year-plus, causing considerable pain for home buyers. The rise of mortgage rates in recent years has drawn lots of attention — and ire. As buyers attempt to wrestle their way into affordable homes, it feels like interest rates are definitely the storyline villain. But are rates the actual villain?
Let’s take a little journey back to the last time the U.S. was in a comparable rate environment, roughly winter 2000 to spring 2002. In April 2002, J. Lo is atop the charts. Tiger Woods is becoming the third golfer to win back-to-back Masters tournaments. “The Scorpion King,” starring Dwayne “The Rock” Johnson, is a hit at the box office. And interest rates on 30-year fixed-rate mortgages are at 7%.
Now, here we are, 22 years later. Jennifer Lopez’s latest album came out in February. Tiger’s playing in his 26th Masters. Dwayne Johnson hasn’t been in any movies yet this year, but The Rock did main event WrestleMania. And 30-year fixed rates? Yeah, they’re back at 7%.
With so much that’s oddly the same, let’s talk about why today’s 7% rates hit different. It’s not just because that slang would have been total nonsense to someone in 2002.
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Since April’s not over yet, we can’t look at median home prices for the month. But we can look at data for March 2024, which just came out. Last month, the median existing home price was $393,500, according to the National Association of Realtors.
You might want to cover your eyes for this one. In March 2002, the median existing home sale price was $158,200, per the NAR.
OK, you might say, but what about inflation? Well, if we take that March 2002 median price and put it in 2024 dollars, we get $276,347. So it’s not just inflation, or that a dollar doesn’t buy as much as it used to. It’s that housing prices, particularly in the 2020s, have risen much faster than inflation overall.
Let’s look at how those prices would translate to costs at these two different points in time. We’ll assume a 7% mortgage rate, a 10% down payment, and to keep things a bit neater, we’ll set aside additional housing costs like property taxes and insurance and just look at principal and interest. At 2002 prices, monthly principal and interest would be $947. At today’s prices? That’ll be $2,356.
It’s not that the U.S. has never seen 7% mortgage interest rates before. It absolutely has, and it’s seen way worse than that — the all-time high was over 18% in 1981. What’s new is the combination of these interest rates and super-high home prices. With the median home price up 18.9% over the last three years, rates may not be great, but it feels like prices are the actual villain.
What’s a home buyer to do? Possibly look to new construction. While NAR data shows sales of existing homes were down in March, U.S. Census Bureau numbers find that sales of new homes were up. New builds may offer a friendlier environment for buyers. Home builders can offer buyer incentives like rate buydowns — and unlike many home sellers, they aren’t faced with also trying to buy a home in this market.
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LOS ANGELES (AP) — Prospective homebuyers are facing higher costs to finance a home with the average long-term U.S. mortgage rate moving above 7% this week to its highest level in nearly five months.
The average rate on a 30-year mortgage rose to 7.1% from 6.88% last week, mortgage buyer Freddie Mac said Thursday. A year ago, the rate averaged 6.39%.
When mortgage rates rise, they can add hundreds of dollars a month in costs for borrowers, limiting how much they can afford at a time when the U.S. housing market remains constrained by relatively few homes for sale and rising home prices.
“As rates trend higher, potential homebuyers are deciding whether to buy before rates rise even more or hold off in hopes of decreases later in the year,” said Sam Khater, Freddie Mac’s chief economist. “Last week, purchase applications rose modestly, but it remains unclear how many homebuyers can withstand increasing rates in the future.”
AP business correspondent Alex Veiga reports mortgage rates reaching their highest level in months.
After climbing to a 23-year high of 7.79% in October, the average rate on a 30-year mortgage had remained below 7% since early December amid expectations that inflation would ease enough this year for the Federal Reserve to begin cutting its short-term interest rate.
Mortgage rates are influenced by several factors, including how the bond market reacts to the Fed’s interest rate policy and the moves in the 10-year Treasury yield, which lenders use as a guide to pricing home loans.
But home loan rates have been mostly drifting higher in recent weeks as stronger-than-expected reports on employment and inflation have stoked doubts over how soon the Fed might decide to start lowering its benchmark interest rate. The uncertainty has pushed up bond yields.
The yield on the 10-year Treasury jumped to around 4.66% on Tuesday — its highest level since early November — after top officials at the Federal Reserve suggested the central bank may hold its main interest steady for a while. The Fed wants to get more confidence that inflation is sustainably heading toward its target of 2%.
The yield was at 4.64% at midday Thursday after new data on applications for unemployment benefits and a report showing manufacturing growth in the mid-Atlantic region pointed to a stronger-than-expected U.S. economy.
“With no cuts to the federal funds rate imminent and with the economy still strong, there is no reason to see downward pressure on mortgage rates right now,” said Lisa Sturtevant, chief economist at Bright MLS. “It seems increasingly likely that mortgage rates are not going to come down any time soon.”
Sturtevant said it’s likely the average rate on a 30-year mortgage will hold close to 7% throughout the spring before easing to the mid-to-high 6% range into the summer.
Other economists also expect that mortgage rates will ease moderately later this year, with forecasts generally calling for the average rate to remain above 6%.
Mortgage rates have now risen three weeks in a row, a setback for home shoppers this spring homebuying season, traditionally the housing market’s busiest time of the year.
Sales of previously occupied U.S. homes fell last month as home shoppers contended with elevated mortgage rates and rising prices.
While easing mortgage rates helped push home sales higher in January and February, the average rate on a 30-year mortgage remains well above 5.1%, where was just two years ago.
That large gap between rates now and then has helped limit the number of previously occupied homes on the market because many homeowners who bought or refinanced more than two years ago are reluctant to sell and give up their fixed-rate mortgages below 3% or 4%.
Meanwhile, the cost of refinancing a home loan also got pricier this week. Borrowing costs on 15-year fixed-rate mortgages, often used to refinance longer-term mortgages, rose this week, pushing the average rate to 6.39% from 6.16% last week. A year ago it averaged 5.76%, Freddie Mac said.
The “Emerald City,” Seattle, WA, has picturesque mountain views, sparkling lakes, and iconic landmarks like the Space Needle and Pike Place Market. This Pacific Northwest city has so many hidden gems, vibrant neighborhoods, and stunning seasons that it’s no wonder about 734,000 residents live here.
In Seattle, you’ll find that the average rent for a one-bedroom apartment is $2,185. If you’re looking to rent an apartment in Seattle and are curious about the most expensive neighborhoods, then you’re in the right place. ApartmentGuide is here to help you explore the 11 most expensive Seattle neighborhoods to rent an apartment this year.
10 Expensive Neighborhoods in Seattle, WA
From picturesque waterfront neighborhoods to areas near the city center, there are plenty of amazing Seattle neighborhoods to rent in this year. Whether you’re looking for a luxury high-rise apartment or a place with views of Lake Union, you’ll find the right neighborhood on this list.
1. Lake Union 2. Westlake 3. First Hill 4. Downtown 5. Columbia City 6. Belltown 7. Northeast Seattle 8. Rainier Valley 9. North Seattle 10. West Seattle
Read on to find out what these neighborhoods have to offer.
1. Lake Union
Average 1-bedroom rent: $2,789 Apartments for rent in Lake Union
Lake Union is the most expensive neighborhood in Seattle, as the average rent for a one-bedroom unit is $2,789. There are plenty of reasons why this neighborhood draws residents. Lake Union is near attractions like the Museum of History & Industry and Gas Works Park, making it a prime location to explore the city. The area also has views of the cityscape and water, making apartment views gorgeous. If you’re looking for a taste of the neighborhood, there are a variety of local restaurants to explore, like Duke’s Seafood and Taco’s Chukis, showcasing Seattle’s food scene. For renters living in Seattle without a car, there are plenty of bus stops close to Lake Union.
2. Westlake
Average 1-bedroom rent: $2,673 Apartments for rent in Westlake
Westlake is a bustling area that’s northwest of Downtown Seattle. This beautiful neighborhood is near many attractions like Lake Union and Seattle Center, home to the Space Needle. Westlake is well-known for its green spaces, like Lake Union Park and the cafes along Westlake Avenue. The average rent for one-bedroom apartments is $2,673, about $500 above the city’s average, making it a pricier neighborhood. However, Westlake’s central location and amenities may be worth it. Westlake is also near some of the most expensive neighborhoods in Seattle to buy a home.
3. First Hill
Average 1-bedroom rent: $2,596 Apartments for rent in First Hill
With an average one-bedroom rent of $2,596, First Hill is the third most expensive neighborhood in Seattle. This neighborhood has plenty of historic homes in styles like Victorian and Craftsman, as well as properties with picturesque views of the cityscape. First Hill is also near I-5, making it a convenient location for commuters. And if you’re looking for a relaxing afternoon, you can find Freeway Park and the Frye Art Museum in the area. You can also explore Broadway, home to popular bars and restaurants like Stoup Brewing and Garage Billiards & Bowling. First Hill is also near some of the affordable neighborhoods to rent in Seattle.
Learn more about the First Hill neighborhood in Seattle.
4. Downtown
Average 1-bedroom rent: $2,552 Apartments for rent in Downtown
Downtown is the next most expensive neighborhood in Seattle with its central location near Pike Place Market and the Seattle Art Museum. Home to iconic attractions, like the Seattle Aquarium, Benaroya Hall, the Showbox, and the Seattle Great Wheel, it’s no wonder this area is popular. Downtown has a lot of shops and restaurants, reflecting Seattle’s vibe. You find spots like Pike Place Chowder, Beecher’s Handmade Cheese, and Ivar’s, alongside hidden gems and plenty of breweries.
Learn more about the Downtown neighborhood in Seattle.
5. Columbia City
Average 1-bedroom rent: $2,293 Apartments for rent in Columbia City
Just about 5 miles from Downtown, Columbia City is a stellar neighborhood if you want a more residential area. While more expensive, the perks of living in Columbia City may help offset the costs. For example, you can live in Seattle without a car as the Link Light Rail stops in Columbia City. You can also walk to attractions like the Beacon Cinema, Columbia Park, as well as the local restaurants along Rainier Avenue, like The Flour Box, Geraldine’s Counter, and Sam Choy’s Poke to the Max. Columbia City also has gorgeous historic homes and tree-lined streets.
Learn more about the Columbia City neighborhood in Seattle.
6. Belltown
Average 1-bedroom rent: $2,263 Apartments for rent in Belltown
Next up is Belltown, the sixth most expensive neighborhood in Seattle. Belltown is full of history and charm, with historic buildings and waterfront views. This area also has plenty of parks, restaurants, and attractions, so you’ll have lots to explore. Make sure to enjoy the outdoors at Olympic Sculpture Park, see a show at The Crocodile, or grab a meal at one of the neighborhood restaurants. It’s also the second most walkable neighborhood in Seattle, as you can easily get to Pike Place and the Seattle Center. It’s no wonder the rents are above Seattle’s average.
Learn more about the Belltown neighborhood in Seattle.
7. Northeast Seattle
Average 1-bedroom rent: $2,252 Apartments for rent in Northeast Seattle
Located north of Downtown, Northeast Seattle is the next neighborhood on our list. Northeast Seattle has a friendly atmosphere and community feeling, as it’s near the University of Washington campus. There are plenty of local cafes and restaurants along Roosevelt Way NE, University Avenue, and NE 65th Street, such as Araya’s Place and Portage Bay Cafe. You can also check out some of Northeast Seattle’s green spaces, like Ravenna Park and Magnuson Park. With its bustling atmosphere, location near Lake Washington, and public transit options, there are so many reasons people live here.
8. Rainier Valley
Average 1-bedroom rent: $2,251 Apartments for rent in Rainier Valley
Rainier Valley takes the eighth spot on our list of most expensive neighborhoods in Seattle. The average rent for a one-bedroom unit is roughly $100 more than the city’s average. Rainier Valley is a great option to consider if you’re looking to be near Lake Washington and have picturesque views. It’s about 5 miles from Downtown, which means you’ll have easy access to the city center, without living in the bustling atmosphere. Make sure to explore Rainier Avenue, which has plenty of restaurants and shops, or check out Pritchard Island Beach.
9. North Seattle
Average 1-bedroom rent: $2,224 Apartments for rent in North Seattle
A well-loved Seattle neighborhood, North Seattle is the next area. North Seattle is home to Thornton Creek Natural Area Park and Meadowbrook Playfield Park, meaning there’s plenty to do throughout the week. There are plenty of neighborhoods in the North Seattle area, so it’s a great area to explore the city. If you need to commute to work, there are lots of options, as the I-5 freeway and the Northgate Light Rail stop are nearby.
10. West Seattle
Average 1-bedroom rent: $2,194 Apartments for rent in West Seattle
The tenth most expensive neighborhood in Seattle is West Seattle. This area has a vibrant feeling with its popular restaurants and quirky shops along California Avenue, like Easy Street Records, Bakery Nouveau, and Raccolto. You can find parks like Lincoln Park and Alki Beach Park, which are perfect for enjoying a sunny day in Seattle. West Seattle also hosts the West Seattle Summer Fest each year, providing residents with lots of opportunities to enjoy their neighborhood.
Learn more about the West Seattle neighborhood in Seattle.
Methodology: Whether a neighborhood has an average 1-bedroom rent price over the city’s average. Average rental data from Rent.com in March 2024.
“Compared to years in the past, new home sales still aren’t performing as well as necessary to help reduce the high demand for new homes in the near term,” Hepp said. At the end of March, there were an estimated 477,000 new homes remaining for sale, representing an 8.3-month supply at the current sales rate. … [Read more…]
Lloyds profits fall as competition for mortgages heats up
Pre-tax profits drop to £1.6bn between January and March, down from £2.3bn last year
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Lloyds Banking Group has suffered a 28% drop in first-quarter profits amid tough competition for mortgages and savings, but bosses said they expected those pressures to soon ease, helped by an improving UK economy.
The country’s largest mortgage lender, which also owns the Halifax brand, said pre-tax profits dropped to £1.6bn between January and March, having fallen from £2.3bn last year when rising interest rates boosted the lender’s profits by almost 50%.
The bank’s chief financial officer, William Chalmers, said this reflected “keen pricing in the mortgage markets, and savings moving into higher rate accounts”. Competition and jitters in the mortgage market led to a drop in its total outstanding loan book.
It resulted in a 10% drop in net interest income, which accounts for the difference in loan charges versus what is paid out to savers, to £3.2bn in the three months to March.
Pressure from politicians and regulators to pass on interest rates to savers at the same rate they had been raising mortgage and loan charges has squeezed income for major mortgage providers such as Lloyds in recent months.
In response, banks have had to compete harder for customer deposits by offering more substantial returns, particularly on fixed savings products where consumers lock away cash for longer. It attracted £1.3bn in regular customer deposits but that failed to make up for the £3.5bn pulled by business clients.
However, Chalmers said these savings and mortgage pressures were likely to “ease through 2024”, as economic conditions continued to improve.
House prices, which Lloyds previously expected to fall by 2.2% in 2024, are forecast to rise by 1.5% by the end of the year.
The banking group, often seen as a bellwether for the UK economy, is also forecasting a steady improvement in economic growth, at a rate of 0.3% in most quarters and a drop in inflation to 2.4% – from 3.2% in March – resulting in a fall in interest rates to 4.5% by December. It expects the Bank of England to cut rates three times in 2024, starting in the middle of the year.
Chalmers said mortgage applications had already soared by 20% in the first quarter, which could translate into new home loans, and reverse some of its loan book losses. That partly reflected the group’s willingness to offer better interest rates in order to boost lending.
“We’re really pleased to see the pickup in applications, and development of our market share, in that respect. And I think that represents what is a series of competitive offers out there in the market, suiting our customer needs. We’d hope to maintain that ambition over the course of the year,” Chalmers said.
Overall, the banking boss said he expected the UK mortgage market to pick up by 5% by the end of 2024. “We’d hope to play a major part in it,” Chalmers added.
The improved economic outlook meant the bank was more confident that customers could repay their loans. Despite the cost of living crisis and higher mortgage repayments, which have weighed on borrowers, Lloyds set aside £57m for potential defaults, compared with £243m last year.
The Lloyds chief executive, Charlie Nunn, said: “The group is continuing to deliver in line with expectations in the first quarter of 2024, with solid net income, cost discipline and strong asset quality. Our performance provides us with further confidence around our strategic ambitions and 2024 and 2026 guidance.”
Investors had also been hoping for updates on the Financial Conduct Authority investigation into whether consumers have been charged inflated prices for car loans. Lloyds, which has the largest car loan division of the four biggest UK banks, has already put aside £450m – far short of the £2bn that analysts believe it could be on the hook for.
However, Lloyds did not give any more details about whether it might put aside more cash to cover potential fines or compensation for customers. The FCA has indicated that it will give more details on its findings by the autumn.
Whether you’re in the market for a new student loan or looking to lower your current student loan payments, there may be a federal loan program available to help.
Student loan programs sponsored by the federal government are available to any eligible borrower (not just federal employees) and don’t always require a credit check. They also come with some advantages over private student lending options, such as income-based repayment plans, forgiveness programs, and (in some cases) lower interest rates.
Whatever stage you’re at in your education or borrowing journey, here’s what you need to know about federal student loan programs.
Why Consider Federal Loan Programs?
The federal government offers student loan programs for undergraduate students, graduate students, as well as those who are in the repayment phase of their student loan journey. These programs include:
• Direct Subsidized Loans With Direct Subsidized Loans, which are available to students who demonstrate financial need, the government pays all the interest that accrues on the loan during school and for six months after graduation.
• Direct Unsubsidized Loans Direct Unsubsidized Loans are available to eligible undergraduate, graduate, and professional students and are not based on financial need. With these loans, students are responsible for repaying all interest that accrues on the loan.
• Direct PLUS Loans Graduate or professional students (and parents of undergraduate students) can tap into Direct PLUS Loans. Eligibility isn’t based on financial need, but you must undergo a credit check. These loans have higher interest rates and fees than Direct Unsubsidized Loans, but you can borrow more money — up to your total cost of attendance, minus other aid received.
• Direct Consolidation Loans Direct Consolidation Loans allow you to combine your eligible federal student loans into a single loan with one loan servicer. This can simplify repayment. However, it won’t lower your interest rate. 💡 Quick Tip: Ready to refinance your student loan? You could save thousands.
Take control of your student loans. Ditch student loan debt for good.
Benefits of Federal Loan Programs for Students
Federal loan programs offer a number of benefits for college students. Here are some to keep in mind.
• Payments not due until six months after graduation: Students don’t need to make any payments on their student loans while they are in school at least half-time or during the post-graduation grace period, which is six months.
• Fixed interest rates: Federal student loans have fixed interest rates that are often lower than student loans from private lenders. For federal loans first disbursed on or after July 1, 2023, and before July 1, 2024, the rate is 5.50% for undergraduate Direct Subsidized and Unsubsidized Loans; 7.05% for Direct Unsubsidized Loans for graduate students; and 8.05% for Direct PLUS Loans.
• Subsidized options: If you have financial need, the government may offer you a subsidized loan, which means the government pays the interest while you’re in school at least half-time and for six months after you graduate.
• No credit checks for certain loans: You don’t need a credit check to qualify for Direct Subsidized or Unsubsidized Loans.
Federal Loan Programs to Consider After You Graduate
Once you graduate and need to begin paying back your federal student loans, the government offers a number of programs that can make repayment more manageable. Here’s a look at some of your options.
Federal Student Loan Repayment Plans
The Education Department offers a number of different repayment plans, including long-term plans that can last up to 30 years. You may be able to lower your monthly payment if you opt for a longer repayment term. Extending your repayment term generally means paying more in interest overall, though.
Fixed repayment plans include the Standard, Graduated, and Extended plans. Here’s a look at how they compare.
Fixed Repayment Plan
Eligible Loans
Monthly Payment Amount
Standard Plan
Direct Subsidized and Unsubsidized Loans; Subsidized and Unsubsidized Federal Stafford Loans; PLUS loans, Consolidation loans
Payments are a fixed amount that ensures your loans are paid off within 10 years (within 10 to 30 years for Consolidation Loans)
Graduated Plan
Direct Subsidized and Unsubsidized Loans; PLUS loans; Consolidation Loans
Payments start out lower and then increase, usually every two years. Payment amounts ensure you’ll pay off loans within 10 years (within 10 to 30 years for Consolidation Loans)
Extended Plan
To qualify, you must have more than $30,000 in outstanding Direct Loans (or FFEL Program loans)
Payments can be fixed or graduated and will ensure that your loans are paid off within 25 years
Income-Driven Repayment Plans
Income-driven repayment (IDR) plans aim to make student loan payments more manageable by tying them to the borrower’s income. They allow you to pay a percentage of your discretionary income toward federal loans for 20 to 25 years, at which point the remaining loan balances are forgiven.
The Saving on a Valuable Education (SAVE) Plan is the newest and one of the most affordable repayment plans for federal student loans. For some borrowers, payments can be as low as $0 per month.
Here’s a look at how the four IDR federal loan payment programs stack up.
Income-Driven Repayment Plan
Eligible Loan Types
Monthly Payment Amount
SAVE
Direct Subsidized and Unsubsidized Loans; Direct PLUS Loans (made to students); Direct Consolidation Loans (that do not include parent PLUS loans)
10% of discretionary income
PAYE
Direct Subsidized and Unsubsidized Loans; Direct PLUS Loans (made to students); Direct Consolidation Loans (that do not include parent PLUS loans)
10% of discretionary income but never more than what you would pay under the 10-year Standard Repayment Plan
IBR
Direct Subsidized and Unsubsidized Loans; Subsidized and Unsubsidized Federal Stafford Loans; Direct and FFEL PLUS Loans (made to students); Direct or FFEL Consolidation Loans (that do not include parent PLUS loans)
Either 10% or 15% of discretionary income but never more than what you would pay under the 10-year Standard Repayment Plan
ICR
Direct Subsidized and Unsubsidized Loans; Direct PLUS Loans (made to students); Direct Consolidation Loans
Either 20% of your discretionary income or the amount you would pay on a repayment plan with a fixed payment over 12 years, adjusted according to your income (whichever is lower)
Student Loan Forgiveness Programs
In addition to the loan forgiveness associated with IDR plans, the federal government offers other federal loan forgiveness programs, including Public Service Loan Forgiveness (PSLF), which is for public-sector workers. The PSLF program allows you not to repay the remaining balance on your Direct Loans as long as you’ve made the 120 qualifying monthly payments under an accepted repayment plan and worked for an eligible employer full-time.
There is also a separate forgiveness program just for teachers, as well as one borrowers with permanent disabilities.
Federal Student Loan Consolidation Program
If you have multiple federal student loans, you can consolidate them into a single new loan (called a Direct Consolidation Loan) with new repayment terms. This can simplify the repayment process, since you’ll only have one payment and one loan servicer to keep track of.
Federal loan consolidation also allows some borrowers (such as those with Federal Family Education or Perkins Loans) to access repayment and forgiveness programs that they otherwise are ineligible for.
The federal student loan consolidation program does not lower your interest rate, however. Your new fixed interest rate will be the weighted average of your previous rates, rounded up to the next one-eighth of 1%.
Your new loan term could range from 10 to 30 years, depending on your total student loan balance. If you extend your loan term, it can lower your monthly payments but the total amount of interest you’ll pay will increase.
It’s also important to note that when loans are consolidated, any unpaid interest is added to your principal balance. The combined amount will be your new loan’s principal balance. You’ll then pay interest on the new, higher balance. Depending on how much unpaid interest you have, consolidation can cost you more over the life of your loan.
Recommended: Student Loan Consolidation vs Refinancing
Factors to Evaluate Before Refinancing
Refinancing is the process of taking out a new student loan from a private lender (ideally with better rates and terms) and using it to pay off your existing federal and/or private student loans. Generally, refinancing only makes sense if you can qualify for a lower rate. Here are some things to consider before you explore refinancing your student loans.
Current Interest Rates and Loan Terms
Refinancing can potentially allow you to lower your monthly payment by getting a lower interest rate than what you currently have, extending your loan term, or both. Keep in mind, though, that lengthening your loan term may mean paying more in interest over the life of the loan.
Credit Score Requirements
Not every borrower is eligible for refinancing. To get approved, you typically need a credit score of at least 650. A score in the 700s, however, gives you a much better chance of qualifying.
Your credit score also helps determine your new interest rate. Generally, the better your credit score is, the more competitive your interest rate will be. If you can’t qualify for an attractive refinance on your own, you might want to recruit a cosigner who has excellent credit.
Potential Savings Through Refinancing
One of the main reasons people refinance their existing student loans is because they can find a lower interest rate through a new lender. This can help you save money, potentially thousands over the life of your loan. A lower rate can also help you pay off your loan faster, or lower the amount you pay each month.
While student loan interest rates have been on the rise in the last couple of years, you may still be able to do better if your financial situation has considerably improved since you originally took out your student loans or you have higher-interest federal student loans.
Impact on Loan Forgiveness Options
Refinancing federal loans makes them ineligible for federal forgiveness and protections. If you think you may benefit (or are currently working towards) public service, teacher, IDR, or other federal forgiveness program, it may not be a good idea to refinance your federal student loans. Doing so will bar you from getting your federal loans forgiven.
Refinancing also makes your loans ineligible for government deferment and forbearance programs, which allow you to temporarily postpone or reduce your federal student loan payments. However, many private lenders offer their own deferment and forbearance programs.
💡 Quick Tip: It might be beneficial to look for a refinancing lender that offers extras. SoFi members, for instance, can qualify for rate discounts and have access to career services, financial advisors, networking events, and more — at no extra cost.
The Takeaway
Federal loan programs, including loan consolidation, graduated repayment plans, income-driven repayment plans, and forgiveness programs can make repaying your federal student loans more manageable after you graduate.
If you have higher-interest graduate PLUS loans, Direct Unsubsidized Loans, and/or private loans, however, it can also be worth looking into private student loan refinancing.
Looking to lower your monthly student loan payment? Refinancing may be one way to do it — by extending your loan term, getting a lower interest rate than what you currently have, or both. (Please note that refinancing federal loans makes them ineligible for federal forgiveness and protections. Also, lengthening your loan term may mean paying more in interest over the life of the loan.) SoFi student loan refinancing offers flexible terms that fit your budget.
With SoFi, refinancing is fast, easy, and all online. We offer competitive fixed and variable rates.
FAQ
Does it make sense to refinance student loans?
Refinancing student loans can make sense if you are able to qualify for a lower interest rate through a new lender. This can help you save money, potentially thousands over the life of your loan. A lower rate can also help you pay off your loan faster, or lower the amount you pay each month.
Keep in mind that refinancing federal student loans with a private lender means giving up federal protections and relief programs.
Under what circumstances would you want to consider refinancing a debt?
You might consider refinancing a debt if your financial situation has improved since you originally got the loan and can now qualify for a lower rate. Refinancing also allows you to extend your loan term, which can lower your payments. Keep in mind, however, that a longer term generally means paying more in overall interest.
Which is a downside of refinancing out of federal student loans?
The biggest downside of refinancing your federal student loans is forfeiting federal protections, such as income-driven repayment plans and loan forgiveness options.
Photo credit: iStock/Drazen Zigic
SoFi Student Loan Refinance If you are a federal student loan borrower, you should consider all of your repayment opportunities including the opportunity to refinance your student loan debt at a lower APR or to extend your term to achieve a lower monthly payment. Please note that once you refinance federal student loans you will no longer be eligible for current or future flexible payment options available to federal loan borrowers, including but not limited to income-based repayment plans or extended repayment plans.
SoFi Loan Products SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.
Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
Have you been asking yourself, “Should I move to Tampa, FL?” From the thrilling rides at Busch Gardens to the serene walks along the Tampa Riverwalk, this city offers an exciting mix of excitement and relaxation. Whether you’re a fan of the arts, sports, or just looking for a sunny place to call home, Tampa’s diverse attractions and welcoming atmosphere make it a standout city. In this article, we’ll dive into the pros and cons of living in Tampa to help you figure out if it’s the right fit for you. Let’s get started.
Tampa at a Glance
Walk Score: 86 | Bike Score: 69 | Transit Score: 62
Median Sale Price: $424,000 | Average Rent for 1-Bedroom Apartment: $1,740
Tampa neighborhoods | Houses for rent in Tampa | apartments for rent in Tampa | Homes for sale in Tampa
Pro: Access to beautiful beaches
Tampa’s proximity to some of Florida’s most beautiful beaches is a major draw. Clearwater Beach and St. Pete Beach are both just a short drive away. They offer stunning white sand and crystal-clear waters ideal for swimming, sunbathing, and water sports. These beaches are not only perfect for leisurely days but also provide picturesque sunsets that are truly unforgettable.
Con: Humidity and heat
Living in Tampa means dealing with high humidity and heat, especially during the summer months. It’s not uncommon for temperatures to soar into the 90s. The climate can be challenging for those not accustomed to the Gulf Coast weather. This intense heat can limit outdoor activities during peak times and may lead to higher electricity bills due to the constant need for air conditioning. For some, this weather is a significant drawback of residing in Tampa.
Pro: Outdoor recreation and activities
Tampa offers an abundance of outdoor activities and recreation options, thanks to its warm climate and natural surroundings. From kayaking on the Hillsborough River to biking along the Bayshore Boulevard, the longest continuous sidewalk in the U.S., there’s no shortage of ways to enjoy the outdoors. The city also boasts numerous parks and green spaces, such as Lettuce Lake Park. These spaces provide locals with ample opportunities for leisure and exercise.
Con: Risk of hurricanes
Located on the Gulf Coast, Tampa is susceptible to hurricanes and tropical storms, particularly during hurricane season from June to November. In fact, Tampa ranks second in the top 10 U.S. metros with the highest risk of hurricane winds. These natural disasters can cause significant damage and disrupt life for weeks or even months. Residents must be prepared for evacuation orders and have plans in place for securing their homes. The threat of hurricanes is a serious consideration for anyone thinking of moving to Tampa.
Pro: Thriving job market
The job market in Tampa is robust, with opportunities in the finance, healthcare, technology, and tourism industries. Companies like Raymond James and WellCare provide significant employment opportunities, contributing to the city’s economic growth. Tampa’s focus on innovation and business development makes it an attractive place for people looking to advance their careers or individuals looking to start new business ventures.
Con: Somewhat limited public transportation options
While Tampa has made strides in improving its public transportation system, options remain limited compared to other major cities. With a Transit Score of 62, the reliance on cars is high. There are bus services and a streetcar system in certain areas, however, the coverage is not extensive. This limitation can be a hurdle for those without personal vehicles or those who prefer to use public transit for environmental or financial reasons.
Pro: Sports and entertainment hub
Tampa is a haven for sports enthusiasts, home to professional teams like the Tampa Bay Buccaneers (NFL), Tampa Bay Lightning (NHL), and Tampa Bay Rays (MLB). The city rallies around its teams, creating a vibrant sports culture with year-round events and games. Beyond sports, Tampa hosts concerts, Broadway shows, and festivals at venues like the Amalie Arena and the Straz Center, ensuring there’s always something exciting happening.
Con: Rising cost of living
While the cost of living in Tampa is still 4% lower than the national average, living expenses has been on the rise. Tampa has been growing in popularity causing real estate prices and rents to increase year-over-year. This can make it challenging for some residents to find affordable housing. While expenses are still lower than some major US cities, the trend towards higher living costs is a concern for those moving to the area or looking to buy property.
Pro: Excellent cultural scene
From the historic Ybor City, known for its Cuban and Spanish roots, to the Tampa Museum of Art, Tampa is a hub for cultural exploration. The Gasparilla Pirate Festival, an annual event that captivates the city with parades and festivities, is a testament to Tampa’s unique local culture. This vibrant cultural scene provides an engaging lifestyle for those who appreciate art, history, and community events.
Con: Summer crowds
With its beautiful beaches and tourist attractions, Tampa becomes a hotspot for visitors during the summer months. While tourism boosts the local economy, it can also lead to overcrowded beaches, parks, and attractions, impacting residents’ enjoyment of these spaces. Planning ahead and seeking out less crowded times or places is often necessary to avoid the influx of summer crowds.
Pro: Diverse culinary scene
Tampa’s culinary scene is as diverse as its population, offering a wide range of dining options that reflect the city’s cultural mix. From authentic Cuban sandwiches in Ybor City to fresh seafood along the Gulf Coast, the food landscape in Tampa is a foodie’s delight. The city also hosts numerous food festivals throughout the year, celebrating everything from craft beer to gourmet cuisine, making it an exciting place for culinary exploration.
Jenna is a Midwest native who enjoys writing about home improvement projects and local insights. When she’s not working, you can find her cooking, crocheting, or backpacking with her fiancé.
“Mortgage rates continued to move higher last week, reaching their highest levels since late 2023 and putting a damper on applications activity,” MBA chief economist Joel Kan said in a news release emailed to MPA. “The 30-year fixed rate increased for the third consecutive week to 7.24%, the highest since November 2023.” The refinance index … [Read more…]