- Summary
- Companies
- Law Firms
- Retailer has closed all stores after failing to hit revenue targets
- Christmas Tree Shops reached a deal to pay more than $1 million to employees who worked during store closures
Dan Och said the deal for Rithm Capital Corp. to buy Sculptor Capital Management “substantially undervalues” the hedge fund firm and “penalizes” all shareholders.
Senior management may have sought to influence potential buyers into an “outcome in their favor and to the potential detriment of the company’s shareholders,” Och and four founding partners wrote in a letter Wednesday to the firm’s special committee.
The committee didn’t seriously entertain potential suitors whose offers focused more on shareholder value than management interests, they wrote in the letter, which was attached to a regulatory filing. Some bidders may have been excluded from the process, while others want to make a higher-value offer now but are barred from doing so by nondisclosure agreements, it said.
Och, who founded the firm formerly known as Och-Ziff, asked the committee to release all bidders from any restrictions.
Rithm agreed last month to buy Sculptor in a deal valued at about $639 million, which is expected to be completed in the fourth quarter. The company had been embroiled in litigation with Och over pay packages given to Sculptor Chief Executive Officer Jimmy Levin. The two resolved the legal dispute last year, and Sculptor formed a special committee to explore potential transactions.
The Och group previously expressed its concerns with the bidding process, according to the letter, which was also signed by Harold Kelly, Richard Lyon, James O’Connor and Zoltan Varga.
Under the terms of the deal, Sculptor’s Class A shareholders will receive $11.15 per share in cash, or they can choose to roll over their Sculptor stakes into partnership units in one or more Rithm subsidiaries.
Shares of Sculptor rose 0.9% to close at $11.03, extending their gain this year to 27%. The stock is still down about 60% over the past two years.
Rithm shares fell 1% to close at $9.74.
Sculptor and Rithm didn’t immediately reply to requests for comment.
“We have long sought a partner with the stable capital structure, culture and vision to help unlock the potential for our platform to deliver more and greater value to our fund investors,” Levin had said in a statement after the deal was announced.
The group of former Sculptor executives said they have been pushing Rithm for better terms, both before and after the transaction was announced, and that if there are no material changes “we will vigorously oppose this transaction.”
Source: nationalmortgagenews.com
The Housing Policy Council (HPC) is urging the Federal Housing Finance Agency (FHFA) to modify its proposed government-sponsored enterprises (GSEs) single-family pricing framework, including coordination with banking regulators to streamline capital requirements and retention of upfront guarantee fees.
The original request for input published in May was designed to gather public feedback on goals and policy priorities the agency should pursue in its oversight of the pricing framework. FHFA also sought input on the GSEs’ single-family upfront guarantee fees and whether to continue linking those fees to the Enterprise Regulatory Capital Framework (ERCF).
HPC, in its comment letter, expressed support for the ERCF, suggesting the agency also require pricing levels that will let enterprises earn target rates of return over a reasonable period of time.
The Council also noted that the RFI did not address the financial benefits and operating advantages that Fannie Mae and Freddie Mac derive from their government-sponsored status.
The enterprises, said HPC, “are advantaged by a lower cost of debt financing and a lower cost of capital.” A borrower subsidy, HPC argues, is directly descended from such charter privileges enjoyed by the GSEs.
HPC also suggested that FHFA retain upfront guarantee fees, since it sees those fees as a critical post-financial crisis safety and soundness reform measure. FHFA, it noted, should continue to calibrate risk-based pricing to the ERCF. Meanwhile, the cross-subsidization model is not working as intended and actually contributed to GSEs’ failure in the run-up to the 2007-08 financial crisis, the Council said.
The ERCF, which was established in 2020, has a “significant impact on the risk-based pricing component of the enterprises’ guarantee fees,” the FHFA said in its May RFI. The FHFA began using the ERCF to measure the profitability of new mortgage acquisitions in 2022.
FHFA Director Sandra Thompson said the RFI was issued to increase transparency.
“FHFA seeks input on how to ensure the pricing framework adequately protects the enterprises and taxpayers against potential future losses, supports affordable, sustainable housing and first-time homebuyers, and fosters liquidity in the secondary mortgage market,” she said.
Source: housingwire.com
Aug 16 (Reuters) – A U.S. judge on Wednesday converted Christmas Tree Shops’ bankruptcy to a Chapter 7 liquidation, saying a court-appointed trustee should take over the bargain retail chain’s wind-down and address doubts about unpaid employee wages.
Christmas Tree Shops filed for bankruptcy in May, hoping to keep most of its stores open while addressing its debt. But the company pivoted to a full liquidation in July after its store closing sales failed to meet revenue targets and Christmas Tree Shops defaulted on a $45 million bankruptcy loan.
During a hearing before U.S. Bankruptcy Judge Thomas Horan in Wilmington, Delaware, a lawyer for Christmas Tree Shops, Harold Murphy of Murphy & King, traded barbs with an attorney for bankruptcy lender and store liquidator, Hilco Global.
Murphy said that Hilco’s store-closing sales missed revenue targets by $14 million. Hilco counsel Gregg Galardi of Ropes & Gray countered that the retailer’s management exceeded its loan budget and told employees they would receive bonuses that Hilco never agreed to fund.
“Its clear to me that there’s been a complete breakdown,” Horan said when converting the case.
Horan convinced the two sides to reach a partial deal on employee wages, with Hilco affiliate ReStore Capital agreeing to pay $1.17 million to store-level employees who worked during the company’s going-out-of-business sales.
Hilco had initially argued it should not pay any more than it had budgeted in the bankruptcy loan, saying it did not trust Christmas Tree Shops’ calculation of employee wages. But Horan threatened to withhold fees from bankruptcy lawyers and professionals if any low-level employees went unpaid.
“This case is not going to be run on the backs of employees, that’s just unacceptable,” Horan said.
The agreement does not address wages for employees who worked at Christmas Tree Shops’ headquarters or wage claims filed by 250 workers who were laid off when the company went bankrupt.
A Chapter 7 trustee will address those claims, Horan said, adding “we’re not going to forget about the home-office employees.”
The Middleborough, Massachusetts-based company had 82 stores when it filed for bankruptcy, focused on selling home decor and seasonal decoration products.
The case is Christmas Tree Shops LLC, U.S. Bankruptcy Court for the District of Delaware, No. 23-10576
For Christmas Tree Shops: Harold Murphy of Murphy & King
For Hilco: Gregg Galardi of Ropes & Gray
For the unsecured creditors committee: Matthew Ward of Womble Bond Dickinson
Read more:
Retailer Christmas Tree Shops files for Chapter 11 bankruptcy
Bed Bath & Beyond files for bankruptcy protection, begins liquidation sale
Reporting by Dietrich Knauth
Our Standards: The Thomson Reuters Trust Principles.
Source: reuters.com
Living in Oklahoma is more than just OK. This warm, welcoming South Central state has everything from booming industries like agriculture and aviation to vibrant cities full of country music, sports and delicious barbecue. Outside the cities, prairies, forests and lakes offer spots for outdoor recreation and learning about the state’s deep and rich history. So, yes, Oklahoma is more than just an OK place to call home.
On top of all that, the cost of living in Oklahoma remains low and affordable. Nearly all cost of living categories, from housing to groceries, falls below the national average. But some cities and towns are more affordable than others. This cost of living guide breaks down what it costs to live in different places around Oklahoma so you can find the best place for your lifestyle and budget.
Housing is one of Oklahoma’s most affordable cost of living areas. Housing prices in all major cities and towns are well below the national average. In some areas like Muskogee, it’s as low as 47 percent below the national average. But rental rates and the cost of buying a house can vary widely throughout the state. Luckily, Oklahoma has plenty of cheap places to live. Let’s look at the average rents and housing costs in cities and towns around Oklahoma.
Located in the northeastern part of the state, Broken Arrow is a popular suburb of Tulsa. The area is full of family-friendly things to do like exploring the Ray Harral Nature Park and spending time shopping and dining in the historic Rose District.
Another reason Broken Arrow is such a popular place to live in the Tulsa area is because of its affordable housing. The cost of housing here is 21.1 percent below the national average. Its attractively low housing costs appeal to everyone from families to young professionals working in Tulsa.
The average rent for a one-bedroom apartment is $1,096 per month, up 10 percent from last year. The cost for a two-bedroom apartment is up 13 percent to $1,284. However, three-bedroom units are down 57 percent to $900. At those prices, it’s better to rent the larger space and use the spare bedrooms as a home office or get roommates.
Compared to the national median home price of $430,982, buying a house in Broken Arrow is also very affordable. The housing market here is up 20.4 percent from the previous year. If you’re looking to become a homeowner in Broken Arrow, the median sale price here is $277,000.
Edmond forms part of the larger Oklahoma City metro area. Located along the northern part of the metro area, an abundance of parks, low crime and safe neighborhoods endear this city to families. While all the big-city attractions of O.K.C. are close at hand, Edmond has its own active social scene, with dining, art and nightlife.
Overall, Edmond’s housing costs are 20.1 percent below the national average. If you’re looking for affordable housing within the O.K.C. metro area, Edmond is a great option. One-bedroom apartments are available for $852 a month and two-bedroom units for $1,037. There hasn’t been a lot of growth in the local rental market. These rates have only climbed 7 percent and 1 percent, respectively, since last year.
The housing market in Edmond has seen a bit more growth, climbing 16.1 percent from the previous year. With the median sales price of $358,750, Edmond is the most expensive city to buy a house in our highlighted Oklahoma cities.
With just over 50,000 residents, Enid is Oklahoma’s ninth-largest city. Located in the north-central part of the state, the city is well-known for its long-running symphony. Full of parks and family-oriented activities like children’s museums, it’s heralded as a great place to raise kids in a safe, friendly community.
Housing prices here are also 25.1 percent below the national average. Your friends in major coastal cities won’t believe what you pay for an apartment. One-bedroom apartments go for an average of $525 per month. Two-bedroom apartments are around $625. Both these numbers have held steady since last year, with no growth or decrease.
Enid is also an extremely affordable place to purchase a house. The housing market here has dropped significantly over the past year, decreasing an astonishing 82.7 percent. The median sale price for a house in Enid is only $39,900. If you have dreams of owning a home in Oklahoma, Enid is the place to set down roots.
Oklahoma’s capital city is a hub for eclectic art ranging from galleries to street art murals, culture, dining, history and entertainment. It’s also the largest city in the state. Locals living here have access to everything from world-class museums to cheering on their hometown sports teams. The city is affectionately referred to as O.K.C. and its overall cost of living is one of the most affordable in the state.
Housing costs here are 30.4 percent below the national average. You can find a one-bedroom apartment for $997 and a two-bedroom unit for $1,327. These numbers are up 7 and 24 percent, respectively, from the previous year.
O.K.C.’s housing market is also experiencing growth, rising 15.2 percent from last year. If you want to buy a house in the state capital, $265,000 is the median sale price.
Known for its dazzling Art Deco architecture, sports and arts and culture scene, Tulsa is Oklahoma’s second-biggest city. When not learning about the city’s history at venerated institutions like Greenwood Rising, which documents the 1921 Tulsa Race Massacre, or partaking in the multicultural food scene, locals spend time hiking, fishing and boating outside the city in the lush “Green Country” region.
The cost of housing here is 36.5 percent below the national average. But rates here have been climbing over the past year for both rent and home ownership. The cost of a one-bedroom apartment has risen 34 percent to $929. A two-bedroom apartment comes with a price tag of $1,109 per month, which is 24 percent higher than last year.
Compared to other major OK cities like Oklahoma City, buying a house in Tulsa is the most affordable in a big Oklahoma metro area. Rates have risen 18.4 percent from last year, making the median sales price $225,000.
From fried okra to barbecue to Indian tacos, Oklahoma is famous for its homegrown cuisine and dishes. Oklahoma also has a booming agriculture and farming industry. Overall, food costs in Oklahoma fall 5.4 percent below the national average. With Okies spending between $200 and $233 per month per person on food, that puts Oklahoma among the lowest states for food costs.
This is how food costs in these different Oklahoma cities compare to the national average:
Food costs here are closer to the national average than in other areas like housing. Edmond is the least expensive city for groceries in the state. Broken Arrow is the most expensive. Buying a dozen eggs in Edmond costs $1.38 compared to $1.85 in Broken Arrow. But lower or higher averages may not always be reflected in prices for specific items. A half-gallon of milk actually costs less in Broken Arrow at $2.18. In Edmond, it costs $2.28. A half-gallon of milk is most expensive in Enid, costing $2.48.
With so many different and delicious kinds of food available around the state, Oklahomans have plenty of opportunities to dine out. Going out for a three-course meal for two will cost more in a big city compared to a small one. You’ll pay the most for a nice date night meal out in Tulsa at $46.50, followed by Oklahoma City at $45. But in Edmond, it will only set you back $25.
When paying for the cost of living in Oklahoma for utilities like water and electricity, Okies pay less than the national average throughout the state. Oklahoma gets the majority of its electricity and energy from natural gas and coal. But renewable energy like wind power and hydroelectricity are starting to account for more of its energy production. As the song goes, “when the wind goes sweeping down the plain” also makes for a significant renewable energy resource.
Here’s what you can expect to pay for utilities compared to the national average in these Oklahoma cities:
Residents of metro areas like Tulsa and Oklahoma City pay less for utilities than more remote, isolated cities like Enid. In Broken Arrow, the monthly total energy bill comes out to around $150.78. As one of the priciest cities for utilities, total energy bills in Enid are around $163.59. The average water bill around Oklahoma is $33.
Internet is also another important modern utility. Internet is less expensive in big cities like Tulsa, where a 60 megabits-per-second package costs $66.22. But in Edmond, the same level of spend and access costs $77.
Using public transportation is a great way to reduce commuting time and save money on gas and other vehicle costs. It’s also more environmentally friendly. Most Oklahoma cities and towns offer some form of mass transit to their citizens. For the most part, the cost of using public transit in Oklahoma cities is below the national average. Here’s how these different cities stack up to the national average:
Public transportation costs are lowest in Enid, where the city operates an on-demand rideshare service costing $2 per ride. Edmond’s Citylink bus service is free to the public, with five different bus routes through the city and connecting to Oklahoma City. Let’s dive further into the more extensive mass transit systems in Tulsa, Oklahoma City and Broken Arrow.
Tulsa Transit offers bus-based public transit to Tulsa and nearby Broken Arrow. It has 21 different routes throughout the area. Service is limited within Broken Arrow, but residents have access to a Park & Ride express that connects Broken Arrow to downtown Tulsa. Starting fares are $1.75 for a two-hour pass. A full-day pass costs $3.75 and a monthly pass is $45.
If you prefer to use your car to get around Tulsa and Broken Arrow, you may have to pay tolls on the Creek Turnpike. This 33-mile toll road forms a beltway around the eastern and southern parts of the city. Traveling the full length of the turnpike in a standard 2-axle passenger vehicle costs $3.00 with a PikePass and $3.75 without.
However, having a car may still be a necessity in Tulsa and Broken Arrow. Tulsa’s transit score is only 25. This means that most locals don’t live close to public transit or say that it’s necessary to have a car here. Broken Arrow scores even lower at 17. Tulsa fares slightly better for walk and bike scores. Although not the most walk- and bike-friendly cities overall with scores of 44 and 49, respectively, there are still pockets of town you can navigate by foot or bike. Broken Arrow’s walk and bike scores are even lower at 20 and 33. So, while you can definitely get around the Tulsa metro area by bike, you should have a car, as well.
Consisting of buses and streetcars, EMBARK provides public transit throughout Oklahoma City and its metro area. Riders have a choice of 22 different fixed bus routes and two different streetcar routes around the city center. A single trip costs $1.75 for a bus ride and $1 for the street car. You can use both buses and street cars with an unlimited pass, which cost $4 for a day, $14 for a week and $50 for a month.
Ferries and water taxis also travel along the Oklahoma River in the heart of town. The public transit ferry travels between five different landings along the river. Using this service costs $12 a day. The Bricktown Water Taxis travel along the river through the popular Bricktown District, costing $13. However, both these services are primarily aimed at tourists and are not the most economical or efficient means of commuting or getting around town.
While there are no toll roads within Oklahoma City, there is one outside of town. The Turner Turnpike connects Oklahoma City to Tulsa. Using the full toll road costs $4.50 with PikePass and $5 without.
Most likely, it’s necessary to have a car in Oklahoma City, as well. The transit score is a low 22. Some districts and neighborhoods, especially in the city center, are good for walking and cycling. But Oklahoma City’s walk and bike scores are still low, with the walk score is 43 and its bike score is 48.
Healthcare is one of the few cost of living areas where some Oklahoma cities exceed the national average. Overall, Oklahoma ranks among the bottom states for quality of healthcare, access and public health in general. It’s important to note that determining an accurate healthcare average is difficult due to how variable healthcare costs are per person. Due to factors like pre-existing conditions or insurance plans, some people within a certain city may pay far more for healthcare than other locals.
Although personal circumstances vary, it’s recommended to see your doctor, dentist and optometrist on an annual basis. This allows you to stay on top of your health. Here’s what it costs to go to the doctor’s office in these different Oklahoma cities:
Enid soars above the other cities with the priciest doctor visits while Edmond takes the lowest spot. You’ll also be paying a lot to visit the doctor in different metro areas. Considering Enid’s high healthcare prices, it’s no surprise that its healthcare average tops the national average. Here’s how the other cities fare compared to the national average:
Healthcare costs in Broken Arrow are the lowest below the national average. Right in its own metro area, though, Oklahoma City’s healthcare costs peek over the national average. But the cost of specific types of care does vary by city, as well. For example, Enid has the lowest price for a dental check-up. Going for a cleaning and check-up in Enid costs $85. But in Oklahoma City, it’s $118.
The final cost of living category to consider is miscellaneous goods and services. This category covers important but non-essential activities and goods. Some relate to leisure and lifestyle, like going out to the movies. Others are for buying goods like toothpaste.
Since Oklahoma is overall an inexpensive state, for the most part, these goods and services fall below the national average in terms of cost:
But it’s not completely black and white. Individual costs do vary by city, though. The most expensive place to get a haircut is Broken Arrow at $21.75. Edmond offers the cheapest price at $16.17. Going to the movies costs $6.09 in Enid compared to $9.84 in Tulsa.
With its wide-open landscapes, friendly cities and low cost of living, Oklahoma is a popular place to raise kids and have a family. If that’s the case for you, you also need to consider childcare costs as part of a monthly budget. You’ll find the most affordable childcare in bigger cities. A month of private preschool or kindergarten for one child costs $795.86 in Tulsa and $500 in Oklahoma City. But in a smaller city like Edmond, you’re looking at a big price jump to $1,000.
Oklahoma’s state sales tax is 4.5 percent. To put that into real-life figures, for every $1,000 you spend on delicious Oklahoma barbecue, you’re paying an extra $45 in tax.
Some cities and counties add their own local taxes to the statewide rate. In some areas, the number jumps significantly.
As you can see, you’ll be paying the most sales tax living in Enid. Instead of $45 in tax for every $1,000 spent, you’d be spending $91. That’s a big jump.
Oklahoma’s cost of living is low and likely within the budget of a lot of people. But there’s one way to determine if living in Oklahoma fits your budget. Experts recommend that you only spend 30 percent of your gross monthly income on housing. This is because housing is usually your biggest monthly expenditure. By only paying 30 percent, you leave plenty left over for other necessities like groceries, taxes and fun activities.
Since the average rent in Oklahoma is $797, you’d need to make $2,656 monthly or $31,872 annually to fit the 30 percent rule. Oklahoma’s median household income is $53,840, so most residents should comfortably afford housing and all other cost-of-living essentials here.
To figure out what city in Oklahoma best fits your budget, use our rent calculator.
With low prices for everything from housing to groceries, the cost of living in Oklahoma is just one of the benefits of living here. In addition to saving more on essentials, you also get to live in a state that offers equal-parts exciting cities full of history and culture and vast landscapes. As the song goes, the land we belong to in Oklahoma is grand and affordable to boot. You’re doing fine, Oklahoma!
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Source: rent.com
Equifirst announced today that effective immediately, it will be ceasing lending operations.
Going forward, the Charlotte, North Carolina-based mortgage lender will no longer accept applications for “any type of Mortgage Loan product.”
“EquiFirst will continue to process any completed Mortgage Loan application and will notify the submitting Broker of the status of such Mortgage Loan application upon completion of underwriting and processing,” the company said on its website.
“All previously submitted Mortgage Loan applications must continue to comply with the terms of the Wholesale Mortgage Broker Agreement (“Agreement”) currently in effect between the Broker and EquiFirst. This action will not affect current Mortgage Loan applications that are already scheduled to close.”
Prior to the announcement, the company was offering run of the mill wholesale FHA loan products, meaning its departure wasn’t all that unexpected.
Over the second half of 2008, Equifirst transitioned its product line to be a “fully functional FHA lender,” closing more than 1,700 loans during the period.
As of February 17, underwriting turn times took a whopping 11 days, while conditions took an average of three days to be reviewed.
Equifirst was founded in 1990, and operated as both a retail and wholesale mortgage lender through the years; the company was subsequently acquired by Barclays Capital Real Estate Holdings Inc. in 2007 (yes, bad timing).
In mid-2007, the company was offering an assortment of subprime, Alt-A, and jumbo loan products, while sporting the slogan, “Non-Conforming Results.”
Shortly after, Equifirst cut more than 400 jobs as the mortgage crisis began to gather steam.
Note: The Equifirst website previously displayed a message regarding operations being shut down, but has since been replaced with the company’s standard layout. It’s unclear if this is a technical issue…or something else.
Source: thetruthaboutmortgage.com
If you’re looking for the archetypal New England lifestyle, Vermont is a dream come true. This idyllic New England state has lush forests, rolling mountains and scenic lakes. Covered bridges and charming towns dot the landscapes, giving locals near-instant access to hiking, boating and skiing in the winter. Every fall, Vermont cities are also treated to the spectacular display of the changing foliage. All those tree-filled forests also help produce Vermont’s famous maple syrup.
Unfortunately, living in the Green Mountain State will also cost you a fair amount of green. The overall cost of living in Vermont is 16.9 percent higher than the national average. But don’t despair. Understanding how the cost of living breaks down around the state will help you find the right place in Vermont to call home. Let’s dive into the cost of living in different cities around Vermont and what you can expect to pay for various necessities like housing or groceries.
Housing costs in Vermont are the most expensive cost of living category in the state. Considering that Vermont exclusively has small cities and towns, the cost of housing is discouraging. Everyone wants a taste of that charming small-town life, but such towns also have limited housing and space to grow. However, there are still ways you can find affordable housing even in the biggest city. Let’s take a look at what rents are like in Vermont’s largest city.
Located on the shores of Lake Champlain, Burlington is Vermont’s most populous city with 44,781 residents. Together with nearby South Burlington, it makes up the greater Burlington-South Burlington metro area. This vibrant college town is home to the University of Vermont and Champlain College. As such, the town has a lively urban center and is a regional hub for art, culture, dining and shopping. It’s considered one of the best places to live in the state.
The cost of housing in this college town is 37.1 percent higher than the national average. Usually, housing in college towns is more on the affordable side. But if you want a unit larger than a one-bedroom for a reasonable price, you may need to find roommates. One-bedroom apartments in Burlington go for an average of $1,100 per month. This amount is down 29 percent from last year.
But two-bedroom units are truly expensive at $1,975 a month. That number is also down 18 percent from the previous year. Three-bedrooms are slightly cheaper at $1,725 with no change from last year. Although pricey, both one-bedroom and two-bedroom units in Burlington go for less than the national average.
Burlington’s housing market isn’t much better, either. Prices have jumped 27.2 percent from last year, making the median sales price for a home in Burlington around $605,000. That’s quite a jump from the national median sale price of $430,695.
Going to the grocery store or dining out is also going to cost you big in Vermont. Many locals complain that they pay a lot more for food here. The data backs it up. Grocery costs in Burlington are 3.7 percent above the national average. Vermonters are also among the top states for annual food spending. In a year, the average Vermonter will spend over $4,001 annually on food per person. That’s over $333 per month.
To illustrate how these high averages look in real-time when browsing the aisles of a Burlington grocery store, let’s look at the costs for some basic food items. A dozen eggs cost $2.23. For comparison, these dozen eggs would cost $2.07 in the neighboring state of New Hampshire. Picking up a half-gallon of milk in Burlington will set you back $3.25. Grabbing some steak? It comes out to $13.20. Add rising inflation to these costs and grocery bills around Vermont are skyrocketing.
It’s not just grocery costs that are high. Higher food costs overall also impact prices at local restaurants. If you want to go out on a fancy date night for a three-course meal, it will cost around $60. In the state capital of Montpelier, the cost jumps 27.27 percent to $82.50.
One thing about the cost of living in Vermont is that you can feel good about paying for utilities like electricity. The vast majority of its electricity comes from renewable resources like hydropower. In fact, Vermont has been one of the forerunners in leading the renewable energy charge. If knowing your power is coming from a more sustainable source is important to know, Vermont is one of the best states to live in.
Living in Burlington, your utility costs are about 22.2 percent above the national average. That means your total energy bill for the month will come out to around $249.93. But it’s for a good cause. In 2015, Burlington became the first city to run completely on renewable energy in the U.S. On both the state and local levels, Vermont is a pioneering force for renewable energy in modern cities.
Another important utility to consider is the internet. Lots of smaller towns and rural areas around the state still lack high-speed internet. Luckily, Burlington boasts high-speed connections for about $81.43 a month for a 60 megabits-per-second package. In a college town, having good internet is a necessity. If you plan to live in Burlington or in major towns like Montpelier or Stowe, having access to the internet isn’t a problem. But other places throughout the state aren’t as well-connected. Luckily, plans are in the works to bring high-speed internet to other parts of the state. The average internet bill in Vermont is $30, compared to the national average of $56. So, internet cost and access vary widely throughout Vermont. If internet access is a necessity for you, that’s something to consider when deciding where to live.
Similar to other costs of living categories in Vermont, the price of transportation in Vermont is higher than the national average. In Burlington, transportation is 19.3 percent above the national average. Not every town in Vermont has public transportation. But, most of the bigger cities and towns like Rutland and Montpelier do operate bus routes. Inter-city and regional bus routes exist, as well.
Consisting of a fleet of buses, Green Mountain Transit Authority provides mass transit services to Burlington, Chittenden County and neighboring cities like Montpelier. Fares vary by local routes in different counties. In Chittenden County where Burlington is, a single adult fare costs $1.50. A monthly pass is $40. However, Green Mountain Transit Authority buses are all currently fare-free through June 30, 2023. So, if you use the bus to get around Burlington, you’ll already be saving money on things like gas and parking.
As a close-knit college town, it’s also easy to get around Burlington on foot or by bike. The town boasts a high walk score of 69 and an even higher bike score of 81.
Vermont is often heralded as being one of the healthiest states in America. Healthcare costs here are higher than the national average. But Vermonters are clearly receiving top-notch care for such high prices toward the cost of living in Vermont. However, it’s important to note that healthcare costs vary widely by person. Based on factors like pre-existing conditions or higher-priced prescription drugs, two people living in the same town may pay wildly different rates for healthcare. That’s why it’s so difficult to determine accurate healthcare averages. But to give you a rough baseline, Burlington is 11.7 percent above the national average. A doctor’s visit will cost about $126 on average.
Going to the dentist in Burlington is even more expensive at $137. For those prices, though, you’re being seen at some of the state’s premier medical facilities.
Since most of Vermont’s other cost of living categories exceed the national average, naturally, the cost of miscellaneous goods and services is also higher than the national average. This category covers all assorted spending for non-essential but still important items and services like getting a haircut or going to the dry cleaners. In Burlington, these costs are 1.8 higher than the national average.
If you spill some sticky Vermont maple syrup on your shirt, taking it to the dry cleaners will run you a bill of around $22.95. Going to get a haircut will cost about $24. If you want to see a movie, tickets are around $11.75.
There’s another important subcategory of miscellaneous goods and services you need to consider. That is the cost of childcare. Sadly for parents in the Burlington area, you’ll be paying the most to have someone keep an eye on your kids. A month of private preschool or kindergarten comes with a hefty price tag of $1,138.67. But in the state capital of Montpelier, it’s only $300. That’s a price difference of 279.56 percent.
Vermont’s statewide sales tax is 6 percent. If you go out and buy $1,000 worth of premium Vermont maple syrup, you’ll be paying $60 on top of that for tax.
Burlington adds a 1 percent city tax onto the state sales tax, making the combined tax rate 7 percent in the city.
A $10 difference is rarely a big deal. But with prices being what they are in Vermont, $10 is the difference between picking up some extra grocery items and not.
The cost of living in Vermont is clearly up there. So, does it fit with your budget? When considering if you can afford to live somewhere, the most important category to consider is housing. This is because housing costs usually take the biggest chunk out of your monthly budget. The general rule of thumb is that you should only spend around 30 percent of your gross monthly income on housing.
Considering that the average monthly rent in Burlington is $1,100, you’d need to make $3,666 a month to adhere to the 30 percent rule. Annually, that comes out to an income of $43,992. Vermont’s median household income is $63,477. So, even though housing costs are higher here, higher household incomes offset it.
To figure out what part of Vermont fits your budget, use our rent calculator.
Vermont is definitely not the cheapest state to live in. Everything from food prices to housing costs is higher than the national average. But you get a lot of bang for your buck here, too. From friendly communities to beautiful landscapes, it’s a wonderful place to call home if you want to connect with nature and live a more relaxed lifestyle. That is if your budget can accommodate the cost of living in Vermont.
Source: rent.com
One of the venture capital firms represented in the Geek Estate Mastermind, HousingTech Ventures, has partnered with the San Francisco Bay Area corporate law firm, Montgomery Pacific LLP and employment law firm, Daijogo & Pedersen, LLP to provide a brief presentation on critical issues that startups should be considering as the country and the economy face many unknowns due to COVID-19. Topics covered will include:
Webinar will take place on April 9th, at 2 PM EST // 11 AM PST.
Montgomery Pacific’s founding partners Kathy Woeber Gardner and Karen Masterson Dienst and Daijogo & Pedersen’s founding partner Maki Daijogo will apply their decades of experience of working with startups to frame issues and questions that the COVID-19 situation presents to early-stage companies.
Please reply here to register and you will be sent a link.
Request an Invite
Source: geekestateblog.com
It didn’t always feel like it, but 2016 was a pretty good year for the housing market. From Brexit to Trump, there were several surprises, but ultimately, we’re heading into 2017 with a solid footing underneath us.
No one knows exactly what will happen in the new year, and with a new administration taking office in January, it’s not easy to make detailed predictions. However, there are several data points that we can use to point us in the right direction.
So what’s in store for the housing in market in 2017? Here are 5 things to watch out for.
The 2016 housing market was fueled by extremely low mortgage rates. We saw rates bottom out last year at near record levels (around 3.5%) after the Brexit vote. Post-election, they’ve skyrocketed over seventy basis points (one basis point = 0.1%), mostly due to expectations that the Donald Trump administration will boost the economy with its infrastructure spending plan. While the quickness with which rates rise might soften somewhat, it’s widely expected for mortgage rates to continue on their ascent next year.
The Federal Reserve’s Federal Open Market Committee (FOMC) just recently raised the benchmark interest rate by a quarter-point for the second time in a decade.
The FOMC will meet at least eight times in 2017, and fed officials have stated that they believe it will be appropriate to raise the federal funds rate around three times throughout the year. It’s true that the FOMC does not directly control the direction of mortgage rates, but it can play a large role in influencing which way rates are headed.
So how high will mortgage rates rise?
It’s not unfathomable to suggest that mortgage rates could be somewhere between 4.75%-5.0% in the fourth quarter of 2017. Long-term interest rate speculation should always be taken with a grain of salt though. Many, many things could happen between now and then.
Click here to get today’s latest mortgage rates.
In 2016, Millenials (ages currently 18-34) surpassed Baby Boomers as the largest living generation in the United States. While rising mortgage rates might price some of them out of the market, they are still poised to be one of biggest demographics of home buyers (some estimates are saying they will account for up to 33% of home buyers).
Marriage and children are no doubt on the way for many of them, and those are two key life events that often precede the motivation to purchase a home.
One other interesting trend for millennials in 2017 is the decision to settle in the Midwest. Apparently, the affordability and the proximity to big universities is enough of a draw in to keep millennials from heading to the coast.
In 2016, home prices rose around an estimated 5%, putting them back to where they were before the housing bubble burst in 2008. While that may be great news for home owners, it’s not something every prospective home buyer is crazy about.
Nevertheless, home prices are expected to continue to rise over the course of the new year, albeit by a slightly lower margin. Zillow’s Chief Economist Svenja Goodell is predicting home prices will increase by 3.6% next year. That’s right about where other economists are predicting, give or take a few basis points.
Of course, in a nation as large and varied as the United States, not every housing market is created equal. Some markets will continue to march forward with strong growth while others will slow down and falter. For instance, cities in the western United States are predicted to outperform their eastern counterparts (just as they did in 2016) next year. As you can see below, five of the top ten cities in the graphic below are located out west.
Taken as a whole, though, home price growth will moderate somewhat compared to 2016.
The construction industry struggled to find workers in 2016, and that trend is expected to continue. According to the National Association of Homebuilders, there are an estimated 200,000 vacant positions in the construction industry right now.
It’s not just confined to one position either. Employers are finding it extremely difficult to find both entry level and experienced workers alike. With less laborers competing for jobs, companies are forced to raise wages in order to attract talent.
Those extra costs will inevitably get passed on to customers, resulting in an increased cost for new construction. Not only that, this shortage of labor means that fewer houses are being produced.
Not everyone is so optimistic about the housing market and the economy in general. A recent report from the Financial Times shows that many economists are extremely doubtful that the Federal Reserve will wind up proceeding with multiple rate hikes in 2017. Instead, they believe that the Fed will raise rates once at their June meeting.
It’s definitely reasonable to be fairly skeptical of fed rate hike predictions, seeing how some fed officials were touting up to four rate hikes this year and in the end they barely pulled one off.
While the stock markets surged after Donald Trump came out and stated that he has plans for substantial fiscal stimulus, some experts believe the path ahead won’t be so smooth. Euro Pacific Capital CEO Peter Schiff has come out recently as one of the few economists to question the efficacy of Trump’s plan. Here it is in his own words:
“The Federal Reserve is going to have to step up to the plate big league if Donald Trump is going to want to move forward with the tax cuts and spending increases that he has promised the electorate. That’s where the markets have it wrong. They somehow think that fiscal stimulus is a substitute for monetary stimulus. It’s not. If we’re going to have larger deficits, it’s impossible to finance them unless the Federal Reserve does it. That means they’re going to have to be launching another round of quantitative easing that is much larger than the ones we’ve had in the past. Rather than being dollar positive, this is a negative for the dollar … If currency traders actually understood what was happening, higher inflation is very bad for the dollar because the Fed cannot fight it.”
Trying to predict the future is often more a mental exercise than it is an actionable guideline. There are just too many unknowns to hang your hat on anything more than several months out. It’s still important to go through the data and try to gain a better understanding of things to come. While there’s no guarantee that any of these predictions will come true, borrowers, investors, and onlookers that are aware of the expectations are better suited to adapt to whatever unfolds in the 2017 housing market.
Source: totalmortgage.com
Capital One has added some new restrictive language to cards with sign up bonuses. The language states:
Existing or previous cardmembers are not eligible for this product if they have received a new cardmember bonus for this product in the past 48 months.
Previously cards stated
existing or previous cardmembers may not be eligible
It’s often difficult to get approved for Capital One cards anyway and there is a limit of one new card per six months as well.
Hat tip to DDG
Source: doctorofcredit.com
The devastation wrought by wildfires is exacerbating a long-running housing crisis on the island of Maui, pitting locals and Native Hawaiians — many of whom rent — against billionaires and real estate developers, the Washington Post reported Monday.
The future of Lahaina, an island community that is a spiritual and cultural capital, is of concern for many locals who are uncomfortable with the encroachment of wealthy outsiders. Tamara Paltin, who represents the area on the Maui County Council, said the crisis may accelerate a process where wealthy outsiders squeeze out locals by snapping up properties.
“If all those people from outside with a lot of resources come in and rebuild Lahaina the way they want it to be, it won’t be Lahaina anymore,” Paltin told the Post. “We don’t want to make it like Anywhere Else, USA.”
Last Tuesday and Wednesday, the fires destroyed approximately 3,000 structures, with Lahaina most acutely devastated by the disaster. As of late Monday night local time, the death toll stands at 99, but officials expect the figure to rise as searches continue.
Some locals are reluctant to talk to opportunistic real estate agents offering to buy fire-affected properties, the report said. Even before the crisis, rising property prices risked displacing locals and Native Hawiaiians, with Hawaii having the highest cost of living across U.S. states. A family of four earning less than $93,000, for example, would be considered low income.
“We want to make sure that we’re able to keep Lahaina Lahaina, and Lahaina strong,” Archie Kalepa, a Native Hawaiian community leader, told the Post. “We don’t want it to be Lahaina was.”
The Federal Emergency Management Agency (FEMA) has activated its disaster relief housing programs, which include providing funds for displaced residents to temporarily stay in hotels. A local real estate agent organization is also seeking out vacant vacation homes to lodge survivors.
FEMA Administrator Deanne Criswell, pledged to be “very creative” in the way the agency will exert its authority, acknowledging that disaster relief approaches on the U.S. mainland may not work in Hawaii. Bringing tiny homes or other transitional housing units to the island are on the table, but such relief isn’t likely to resolve longstanding housing problems.
As mega-fires continue to threaten communities amid climate change, the gap between rich and poor is expected to get wider, the report said. Native Hawaiian families whose houses were passed down through generations could experience significant financial strain: Many of these properties don’t have mortgages and thus aren’t required to have insurance.
The community is pulling together to combat changes that may affect their future on the island.
“When it’s time, we will all rebuild one day at a time,” said Doreen Buenconsejo, a Maui local whose parents lost their home, to the Post. “I know our community is so strong that we will pull together and help each other to clean up our lands.”
Source: housingwire.com