Month: May 2024

Apache is functioning normally

Welcome to the enchanting city of Santa Fe, NM, where adobe buildings and rich cultural heritage create a unique and vibrant atmosphere. Known for its stunning desert landscapes, thriving art scene, and delicious Southwestern cuisine, Santa Fe offers a one-of-a-kind living experience. So whether you’re searching for a cozy apartment in Santa Fe or an airy rental house in the surrounding desert, you’ve come to the right place.

In this Apartment Guide article, we’ll break down the pros and cons of moving to Santa Fe. Let’s get started and see what awaits in this culturally rich and visually stunning city.

Pro: Stunning natural landscapes

One of the major pros of living in Santa Fe is its breathtaking natural landscapes. From the majestic Sangre de Cristo Mountains to the picturesque desert terrain, the city is surrounded by stunning beauty. Residents can enjoy outdoor activities such as hiking, skiing, and mountain biking, all within close proximity to the city. The abundance of natural beauty provides a peaceful and serene environment for those seeking a connection to nature.

Con: High cost of living

One of the major drawbacks of living in Santa Fe is its high cost of living, particularly in terms of housing and utilities. The city’s popularity as a tourist destination and its desirability as a place to live have driven up property prices and rental rates, making it challenging for some residents to afford comfortable housing. Additionally, the cost of utilities and everyday expenses can be higher than in other cities, impacting the overall affordability of living in Santa Fe.

Pro: Abundance of art galleries and museums

Art enthusiasts will find Santa Fe to be a haven, as the city is home to a multitude of art galleries and museums. From contemporary art spaces to galleries showcasing traditional Native American and Hispanic art, there is a diverse range of artistic expressions to explore. The city’s museums also offer a wealth of cultural and historical exhibits, providing residents with ample opportunities for artistic and intellectual enrichment. The town is home to the Georgia O’Keefe Museum, a popular spot for both residents and visitors to the city.

Con: Limited job opportunities

Despite its cultural richness, Santa Fe has a relatively limited job market, particularly in comparison to larger metropolitan areas. The city’s economy is heavily reliant on tourism and the arts, which can make it difficult for residents to find diverse employment opportunities. Those seeking career advancement or a wide range of job options may find the job market in Santa Fe to be somewhat restrictive.

Pro: Unique adobe architecture

The distinctive adobe architecture of Santa Fe adds to the city’s charm and character. The traditional earthy tones and curved lines of adobe buildings create a visually striking and cohesive aesthetic throughout the city. Residents can appreciate the unique architectural style while strolling through the historic downtown area, which is filled with adobe structures that reflect the city’s cultural identity and heritage.

Con: Isolation from major cities

While Santa Fe’s natural beauty and cultural richness are major draws for residents, the city’s location can also be a drawback in terms of its isolation from major metropolitan areas. The nearest major city, Albuquerque, is over an hour’s drive away, which can make it less convenient for residents to access a wider range of amenities, entertainment, and transportation hubs. The sense of isolation from larger urban centers may not appeal to those who prefer easy access to city amenities.

Pro: Rich cultural heritage

Santa Fe boasts a rich cultural heritage, with a vibrant arts scene and a deep connection to Native American and Hispanic traditions. Residents can immerse themselves in the city’s history by exploring the traditional adobe architecture, and experiencing the annual Santa Fe Indian Market each August, the largest and most prestigious Native American arts market in the world. The city’s unique blend of art, history, and culture offers a truly enriching experience for those who call Santa Fe home.

Con: Seasonal tourism impact

Santa Fe’s reliance on tourism as a major economic driver can have a seasonal impact on the city’s infrastructure and resources. During peak tourist seasons in the last summer/early fall the city experiences increased traffic, crowded public spaces, and higher demand for services, which can affect the quality of life for residents. The influx of tourists may also lead to higher prices and limited availability of local amenities, impacting the everyday experiences of those living in Santa Fe.

Pro: Thriving art and culinary scene

Santa Fe is renowned for its thriving art and culinary scene, offering residents a diverse range of galleries, museums, and world-class restaurants. The city’s art galleries showcase a wide array of contemporary and traditional art, while the culinary scene features a fusion of Native American, Spanish, and modern influences. Arroyo Vino is features innovative dishes served with fantastic wine. The establishment also has a wine store and offers tastings regularly. From fine dining establishments to local food markets, Santa Fe provides a rich tapestry of flavors and artistic expression for residents to explore and enjoy.

Con: Limited public transportation

Public transportation options in Santa Fe are limited, which can be a drawback for residents who rely on public transit for their daily commutes. Santa Fe’s walk score is 39 so most residents are car-dependent. The city’s bus system, Santa Fe Trails, has a relatively small coverage area, and there are few alternative transportation options available. This can make it challenging for some residents to get around the city without a personal vehicle, particularly in areas that are not well-served by public transit.

Pro: Unique Southwestern lifestyle and traditions

Living in Santa Fe offers a unique Southwestern lifestyle, with a strong emphasis on traditions and customs that have been passed down through generations. Residents can partake in traditional events such as the annual Santa Fe Fiesta, which celebrates the city’s Spanish and Native American heritage, as well as the vibrant local markets that showcase the region’s artisanal crafts and culinary delights. The city’s distinct cultural identity adds depth and authenticity to the everyday lives of its residents.

Con: Harsh climate extremes

Santa Fe experiences harsh climate extremes, with hot summers and cold winters that can be challenging for some residents. Average highs in the summer months are over 80 degrees and Santa Fe gets about 40 inches of snow each winter. The high altitude of the city also contributes to lower oxygen levels, which may pose health concerns for individuals with respiratory issues. The climate conditions in Santa Fe require residents to adapt to temperature fluctuations and be prepared for the effects of high altitude living.

Pro: Active and engaged community

Santa Fe is known for its active and engaged community, with residents who are passionate about preserving the city’s cultural traditions and natural environment. The city hosts numerous community events, art festivals, and cultural celebrations that bring people together and foster a strong sense of belonging. The tight-knit community creates a supportive and welcoming environment for those who choose to make Santa Fe their home.

Apache is functioning normally

Kitreel – stock.adobe.com

Initiatives that aimed to reduce costs involved with purchasing a home were a key portion of the White House’s activities both before and after President Biden’s State of the Union speech earlier this spring.

But creating affordable housing access has long been a focus of the mortgage lending community, albeit mandated for depositories as part of the Community Reinvestment Act.

For example, prior to gaining notoriety for contributing to the excesses that created the Great Financial Crisis, Countrywide Financial and its CEO Angelo Mozilo were known as being the largest boosters of affordable housing programs.

In 1999, he announced a $30 billion increase in the company’s five-year commitment to serve low-income and minority borrowers, to a total of $80 billion. The first year of the commitment, Countrywide originated $20 billion of these loans.

Here are some of the latest items, both government announcements as well as from within the industry, aimed to aid people who need assistance buying a home:

Source: nationalmortgagenews.com

Apache is functioning normally

With REIT investing, you gain access to income-producing properties without having to own those properties outright. REITs may own several different kinds of properties (e.g. commercial, residential, storage) or focus on just one or two market segments.

Real estate investment trusts or REITs can be a great addition to a portfolio if you’re hoping to diversify. REIT investing might appeal to experienced investors as well as beginners who are looking to move beyond stocks and bonds.

Key Points

•   REITs provide a way to invest in income-producing real estate without owning the properties directly.

•   REITs must distribute at least 90% of taxable income to shareholders as dividends.

•   Types of REITs include equity, mortgage, and hybrid, each with different investment focuses.

•   Investing in REITs can be done through shares, mutual funds, or ETFs, available via brokerages.

•   Benefits of REITs include potential for high dividends and portfolio diversification, while risks involve liquidity and sensitivity to interest rates.

What Is a REIT?

A REIT is a trust that owns different types of properties that generate income. REITs are considered a type of alternative investment, because they don’t move in sync with traditional stock and bond investments.

Some of the options you might find in a REIT can include:

•   Apartment buildings

•   Shopping malls or retail centers

•   Warehouses

•   Self-storage units

•   Office buildings

•   Hotels

•   Healthcare facilities

REITS may focus on a particular geographic area or property market, or only invest in properties that meet a minimum value threshold.

A REIT may be publicly traded, meaning you can buy or sell shares on an exchange the same as you would a stock. They can also be non-traded, or private. Publicly traded and non-traded REITs are required to register with the Securities and Exchange Commission (SEC), but non-traded REITs aren’t available on public stock exchanges.

Private REITs aren’t required to register with the SEC. Most anyone can invest in public REITs while private REITs are typically the domain of high-net-worth or wealthy investors.

Alternative investments,
now for the rest of us.

Start trading funds that include commodities, private credit, real estate, venture capital, and more.

How Do REITs Work?

With REIT investing individuals gain access to various types of real estate indirectly. The REIT owns and maintains the property, collecting rental income (or mortgage interest).

Investors can buy shares in the REIT, which then pays out a portion of the collected income to them as dividends.

To sum it up: REITs let investors reap the benefits of real estate investing without having to buy property themselves.

REIT Qualifications

Certain guidelines must be met for an entity to qualify as a REIT. The majority of assets must be connected to real estate investment. At least 90% of taxable income must be distributed to shareholders annually as dividend payouts.

Additionally, the REIT must:

•   Be organized in a way that would make it taxable as a corporation if not for its REIT status

•   Have a board of trustees or directors who oversee its management

•   Have shares that are fully transferable

•   Have at least 100 shareholders after its first 100 as a REIT

•   Allow no more than 50% of its shares to be held by five or fewer individuals during the last half of the taxable year

•   Invest at least 75% of assets in real estate and cash

•   Generate at least 75% of its gross income from real estate, including rents and mortgage interest

Following these rules allows REITs to avoid having to pay corporate tax. That benefits the REIT but it also creates a secondary boon for investors, since the REIT may be better positioned to grow and pay out larger dividends over time.

Types of REITs

The SEC classifies three categories of REITs: equity, mortgage, and hybrid. Each type of REIT may be publicly traded, non-traded, or private. Here’s a quick comparison of each one.

•   Equity REITs own properties that produce income. For example, an equity REIT might own several office buildings with units leased to multiple tenants. Those buildings generate income through the rent the tenants pay to the REIT.

•   Mortgage REITs don’t own property. Instead, they generate income from the interest on mortgages and mortgage-backed securities. The main thing to know about mortgage REITs is that they can potentially produce higher yields for investors, but they can also be riskier investments.

•   Hybrid REITs own income-producing properties as well as commercial mortgages. So you get the best (and potentially, the worst) of both worlds in a single investment vehicle.

Aside from these classifications, REITs can also be viewed in terms of the types of property they invest in. For example, there are storage-unit REITs, office building REITs, retail REITs, healthcare REITS, and more.

Some REITs specialize in owning land instead of property. For example, you might be able to own a stake in timberland or farmland through a real estate investment trust.

How Do REITs Make Money?

REITs make money from the income of the underlying properties they own. Again, those income sources can include:

•   Rental income

•   Interest from mortgages

•   Sale of properties

As far as how much money a REIT can generate, it depends on a mix of factors, including the size of the REIT’s portfolio, its investment strategy, and overall economic conditions.

Reviewing the prospectus of any REIT you’re considering investing in can give you a better idea of how it operates. One thing to keep in mind with REITs or any other type of investment is that past performance is not an indicator of future returns.

How to Invest in REITs

There are a few ways to invest in REITs if you’re interested in adding them to your portfolio. You can find them offered through brokerages and it’s easy to open a trading account if you don’t have one yet.

REIT Shares

The first option for investing in REITs is to buy shares on an exchange. You can browse the list of REITs available through your brokerage, decide how many shares you want to buy, and execute the trade. When comparing REITs, consider what it owns, the potential risks, and how much you’ll need to invest initially.

You might buy shares of just one REIT or several. If you’re buying multiple REITs that each hold a variety of property types, it’s a good idea to review them carefully. Otherwise, you could end up increasing your risk if you’re overexposed to a particular property sector.

REIT Funds

REIT mutual funds allow you to own a collection or basket of investments in a single vehicle. Buying a mutual fund focused on REITs may be preferable if you’d like to diversify with multiple property types.

When researching REIT funds, consider the underlying property investments and also check the expense ratio. The expense ratio represents the annual cost of owning the fund. The lower this fee is, the more of your investment returns you get to keep.

Again, you can find REIT mutual funds offered through a brokerage. It’s also possible to buy them through a 401(k) or similar workplace retirement plan if they’re on your plan’s list of approved investments.

REIT ETFs

A REIT exchange-traded fund (or ETF) combines features of stocks and mutual funds. An ETF can hold multiple real estate investments while trading on an exchange like a stock.

REIT ETFs may be attractive if you’re looking for an easy way to diversify, or more flexibility when it comes to trading.

In general, ETFs can be more tax-efficient than traditional mutual funds since they have lower turnover. They may also have lower expense ratios.

Benefits and Risks of REITs

Are REITs right for every investor? Not necessarily, and it’s important to consider where they might fit into your portfolio before investing. Weighing the pros and cons can help you decide if REITs make sense for you.

Benefits of REITs

•   Dividends. REITs are required to pay out dividends to shareholders, which can mean a steady stream of income for you should you decide to invest. Some REITs have earned a reputation for paying out dividends well above what even the best dividend stocks have to offer.

•   Diversification. Diversifying your portfolio is helpful for managing risk, and REITs can make that easier to do if you’re specifically interested in property investments. You can get access to dozens of properties or perhaps even more, inside a single investment vehicle.

•   Hands-off investing. Managing actual rental properties yourself can be a headache. Investing in REITs lets you reap some of the benefits of property ownership without all the stress or added responsibility.

•   Market insulation. Real estate generally has a low correlation with stocks. If the market gets bumpy and volatility picks up, REITs can help to smooth the ride a bit until things calm down again.

💡 Quick Tip: It’s smart to invest in a range of assets so that you’re not overly reliant on any one company or market to do well. For example, by investing in different sectors you can add diversification to your portfolio, which may help mitigate some risk factors over time.

Risks of REITs

•   Liquidity challenges. Buying REIT shares may be easy enough, but selling them can be a different matter. You may need to plan to hold on to your shares for a longer period than you’re used to or run into difficulties when trying to trade shares on an exchange.

•   Taxation. REIT investors must pay taxes on the dividends they receive, which are treated as nonqualified for IRS purposes. For that reason, it might make sense to keep REIT investments inside a tax-advantaged IRA to minimize your liability.

•   Interest rate sensitivity. When interest rates rise, that can cause REIT prices to drop. That can make them easier to buy if the entry point is lower, but it can make financing new properties more expensive or lower the value of the investments the REIT owns.

•   Debt. REITs tend to carry a lot of debt, which isn’t unusual. It can become a problem, however, if the REIT can no longer afford to service the debt. That can lead to dividend cuts, making them less attractive to investors.

The Takeaway

REITs can open the door to real estate investment for people who aren’t inclined to go all-in on property ownership. REITs can focus on a single sector, like storage units or retail properties, or a mix. If you’re new to REITs, it’s helpful to research the basics of how they work before diving into the specifics of a particular investment.

Ready to expand your portfolio’s growth potential? Alternative investments, traditionally available to high-net-worth individuals, are accessible to everyday investors on SoFi’s easy-to-use platform. Investments in commodities, real estate, venture capital, and more are now within reach. Alternative investments can be high risk, so it’s important to consider your portfolio goals and risk tolerance to determine if they’re right for you.

Invest in alts to take your portfolio beyond stocks and bonds.

FAQ

How do I buy a REIT?

You can buy shares of a REIT through a broker if it’s publicly traded on an exchange. If you’re trying to buy shares of a private REIT, you can still go through a broker, but you’ll need to find one that’s participating in the offering. Keep in mind that regardless of how you buy a REIT, you’ll need to meet minimum investment requirements to purchase shares.

Can I invest $1,000 in a REIT?

It’s possible to find REITs that allow you to invest with as little as $1,000 and some may have a minimum investment that’s even lower. Keep in mind, however, that private or non-traded REITs may require much larger minimum investments of $10,000 or even $50,000 to buy in.

Can I sell my REIT any time?

If you own shares in a public REIT you can trade them at any time, the same way you could a stock. If you own a private REIT, however, you’ll typically need to wait for a redemption period to sell your shares. Redemption events may occur quarterly or annually and you may pay a redemption fee to sell your shares.

What is the average return on REITs?

The 10-year annualized return for the S&P 500 United States REIT index, which tracks the performance of U.S. REITs, was 2.34%. Like any sector, however, REITs have performed better and worse over time. Also, the performance of different types of REITs (self-storage, strip malls, healthcare, apartments, etc.) can vary widely.

Photo credit: iStock/ozgurcoskun

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.


SoFi Invest®
INVESTMENTS ARE NOT FDIC INSURED • ARE NOT BANK GUARANTEED • MAY LOSE VALUE
SoFi Invest encompasses two distinct companies, with various products and services offered to investors as described below:
Individual customer accounts may be subject to the terms applicable to one or more of these platforms.

1) Automated Investing and advisory services are provided by SoFi Wealth LLC, an SEC-registered investment adviser (“SoFi Wealth“). Brokerage services are provided to SoFi Wealth LLC by SoFi Securities LLC.

2) Active Investing and brokerage services are provided by SoFi Securities LLC, Member FINRA (www.finra.org)/SIPC(www.sipc.org). Clearing and custody of all securities are provided by APEX Clearing Corporation.

For additional disclosures related to the SoFi Invest platforms described above please visit SoFi.com/legal.

Neither the Investment Advisor Representatives of SoFi Wealth, nor the Registered Representatives of SoFi Securities are compensated for the sale of any product or service sold through any SoFi Invest platform.

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.

Fund Fees
If you invest in Exchange Traded Funds (ETFs) through SoFi Invest (either by buying them yourself or via investing in SoFi Invest’s automated investments, formerly SoFi Wealth), these funds will have their own management fees. These fees are not paid directly by you, but rather by the fund itself. these fees do reduce the fund’s returns. Check out each fund’s prospectus for details. SoFi Invest does not receive sales commissions, 12b-1 fees, or other fees from ETFs for investing such funds on behalf of advisory clients, though if SoFi Invest creates its own funds, it could earn management fees there.

SoFi Invest may waive all, or part of any of these fees, permanently or for a period of time, at its sole discretion for any reason. Fees are subject to change at any time. The current fee schedule will always be available in your Account Documents section of SoFi Invest.

Investment Risk: Diversification can help reduce some investment risk. It cannot guarantee profit, or fully protect in a down market.

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.

Exchange Traded Funds (ETFs): Investors should carefully consider the information contained in the prospectus, which contains the Fund’s investment objectives, risks, charges, expenses, and other relevant information. You may obtain a prospectus from the Fund company’s website or by email customer service at [email protected]. Please read the prospectus carefully prior to investing.

Shares of ETFs must be bought and sold at market price, which can vary significantly from the Fund’s net asset value (NAV). Investment returns are subject to market volatility and shares may be worth more or less their original value when redeemed. The diversification of an ETF will not protect against loss. An ETF may not achieve its stated investment objective. Rebalancing and other activities within the fund may be subject to tax consequences.

SOIN0124113

Source: sofi.com

Apache is functioning normally

Mortgage rates have had a great month of May so far with almost every day being a winner up until yesterday and today.  Even then, the 2 day losing streak began from the lowest levels in just over 5 weeks.  Perhaps more importantly, apart from the past 2 days, today’s rates would still be the lowest in more than a month.

In other words, rates have pulled back only slightly after a solid winning streak.  Granted, you could take an even longer term view and say rates only managed the winning streak because they were at their highest levels in more than 5 months by the end of April, but nobody likes a party pooper.

The fact is that everything is almost always relative when it comes to assessing whether rates are doing well or not.  In the biggest picture, little has changed.  Rates are close enough to the highest levels in decades, but they still have a chance to look back at October 2023 as being the long-term high.  

Our ability to avoid revisiting last year’s highs relies on incoming economic data.  This week’s Consumer Price Index (CPI) was palatable enough to keep hope alive, but it will take a better showing in June (and probably July and August) if we hope to see true confirmation of a shift.  

Source: mortgagenewsdaily.com

Apache is functioning normally

Advertisement

SKIP ADVERTISEMENT

You have a preview view of this article while we are checking your access. When we have confirmed access, the full article content will load.

A Little-Known Way Home Buyers Can Beat High Mortgage Rates

Assumable mortgages — or low-rate mortgages that home buyers can take over from home sellers — are making a comeback. The process can be challenging.

Ellen Harper was able to obtain a mortgage at less than half the current rate of 7.09 percent on 30-year-fixed loans, the most popular type of mortgage.Credit…Kendrick Brinson for The New York Times

Published May 9, 2024Updated May 10, 2024

Home prices were already high when Ellen Harper, a software architect living in Atlanta, started searching for a house in 2021. But she couldn’t have anticipated the quick surge in interest rates the next year, and, even with a large down payment, the new math made her uneasy.

This year, however, she stumbled upon what felt like a portal to the not-so-distant past: listings of thousands of homes that come with a low-rate mortgage, which can be transferred from the existing homeowner to a new home buyer, known as an assumable mortgage.

Ms. Harper, who is in her 50s, managed to snag one of these homes, closing two weeks ago on a four-bedroom brick colonial in Fairburn, Ga., with a $1,400 monthly payment. It’s an amount she’ll be able to comfortably afford into retirement thanks, in large part, to a 2.49 percent mortgage rate. That’s less than half the current rate of 7.09 percent on 30-year-fixed loans, the most popular type of mortgage.

“I didn’t want to get a bad mortgage and be in a ball-and-chain situation where all I would be able to do is pay the mortgage,” Ms. Harper said. She found her home through Roam, a start-up that went live in September and that lists homes with assumable low-rate loans and assists buyers through the process.

gimmick; it’s a built-in benefit on certain government-backed mortgages, as long as the new owners qualify. The process won’t work for all would-be buyers because there are several hurdles they may need to clear before they can claim the keys, often including a hefty down payment. For home sellers, it can be advertised alongside marble countertops, to attract more potential buyers.

We are having trouble retrieving the article content.

Please enable JavaScript in your browser settings.

Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.

Thank you for your patience while we verify access.

Already a subscriber? Log in.

Want all of The Times? Subscribe.

SKIP ADVERTISEMENT

Source: nytimes.com