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A historic Manhattan townhouse that was among the very first to showcase the works of some of the most notable artists of the 20th century (including Andy Warhol, Roy Lichtenstein, and Cy Twombly) is now up for grabs in New York City.  

Recently listed for $25 million, the massive property at 4 East 77th Street — whose first two floors currently host the Michael Werner gallery — was also home to prolific inventor, entrepreneur, and philanthropist Maurice Kanbar, who famously invented Skyy Vodka while living here.

Now, the century-old residence is ready to add a new chapter to its storied history.

Image credit: The Renovated Home courtesy of Compass

Compass agents Stacey Kanbar, Julie Kopel, and Leonard Steinberg have been enlisted to find the right buyer for this unique property, which is currently configured for mixed use (with commercial zoning on the first two floors) and has the potential to become one of the most significant single-family residences in all of New York City.

With a highly desirable address (it’s the first house off of Fifth Avenue), plenty of space (11,695 square feet, including the full-height cellar), and countless architectural details, the historic townhouse offers endless possibilities for reconfiguration.

Image credit: The Renovated Home courtesy of Compass
Image credit: The Renovated Home courtesy of Compass

The first two floors, currently housing the Michael Werner gallery, feature exquisite bowed windows that capture light from both the east and west sides, while the upper levels host four vacant residential units on floors 3 through 5.

The third floor hosts a luxurious full-floor apartment with north-facing Juliette balconies and a charming terrace on the east side. Two one-bedroom apartments adorn the fourth floor, while the fifth floor boasts a single floor-through apartment with a stunning 15′ x 19′ south-facing setback terrace, offering magnificent downtown views.

Future owners can choose to either keep the lower-level tenants and earn passive income, or turn the entire townhome into a massive single-family home again, as it was when originally built over a century ago. Renderings that accompany the listing show the many possibilities to transform this grand residence.

Image credit: The Renovated Home courtesy of Compass
Image credit: The Renovated Home courtesy of Compass
Image credit: The Renovated Home courtesy of Compass
Image credit: The Renovated Home courtesy of Compass

The storied history of 4 East 77th Street

4 East 77th Street was built near the end of America’s “Gilded Age,” an era of explosive economic growth and migration. It started at the end of Southern Reconstruction (1877) and lasted two decades. New York experienced an almost exponential population boom during this time, with numerous construction projects popping up all over the city.

SEE ALSO: Here’s the Estate that Served as Inspiration for “The Great Gatsby’s” Opulent House

In 1895, acclaimed developers Robert McCafferty and Richard W. Buckley added another project to the boom with this magnificent, five-story residence.

The 11,695-square-foot property still boasts its original marble façade and includes a full-height cellar.

Just west of the building, where East 77th opens onto Fifth Avenue, lies Manhattan’s Gold Coast district. This seven-block stretch of Fifth Avenue lies between 14th Street and Washington Square Park and is made up of several opulent historical buildings, including many hotels and mansions once belonging to some of New York’s wealthiest, most influential residents.

The buildings here have been impeccably maintained, and the owner of 4 East 77th will be just a walk or bike ride away from this elegantly preserved piece of New York history.

4 East 77th Street’s first owner, Benjamin J. Knower, bought it in 1897. Knower and his wife Mary Constance Allen were active members of New York’s “high society” and had close ties to Caroline Astor, the foremost New York socialite of the era.

It later housed the Leo Castelli gallery

By 1942, 4 East 77th Street had been converted into a multi-family townhouse.

This is when Leo Castelli, a prominent art dealer and a refugee from Nazi-occupied France, bought an apartment on the fourth floor.

Photo credit: DDReps courtesy of Compass

You might not know Castelli’s name, but you’ve likely heard of the major 20th-century artists whose careers he helped launch or develop.

Those names include Roy Lichtenstein, Frank Stella, Claes Oldenberg, Cy Twombly, Donald Judd, Dan Flavin, Robert Morris, James Rosenquist, Bruce Nauman, Richard Serra, Joseph Kosuth, Lawrence Weiner, Salvatore Scarpitta, Robert Rauschenberg, Jasper Johns and Andy Warhol.

In 1957, in the living room of his fourth-floor apartment at 4 East 77th Street, Castelli opened the Leo Castelli Gallery. Castelli paid his artists using a stipend system that was groundbreaking for its time. It guaranteed the artists an income whether he used their work or not. This system allowed him to attract, discover and retain a vast stable of young, visionary talents.

Many of the gallery’s artists would get their first one-person shows right there on the fourth-floor living room at 4 East 77th Street.

SEE ALSO: Neil Patrick Harris’ impeccably restored house in Harlem sells for $6.99M, sets new record for the neighborhood

Castelli’s gallery helped shape America’s 20th-century tastes in art. Pop art, minimalism, and conceptual art largely owe their success to his gallery. Castelli also used his success at 4 East 77th Street to help initiate the contemporary art gallery system as it exists today.

The townhouse was also home to Skyy Vodka inventor Maurice Kanbar

Maurice Kanbar, a prolific inventor, entrepreneur, and philanthropist, has owned the property since 1964.

During his residency at 77th Street, Kanbar invented Skyy Vodka, revolutionizing the spirits industry. But the popular drink is by no means his only creation; Kanbar’s numerous inventions also include a safety sheath for hypodermic needles and a cryogenic cataract remover.

Additionally, Kanbar (who passed away in 2022 at age 93) opened the Quad Cinema in Greenwich Village, the first multiplex cinema on the East Coast and the second in the United States. He furthered his impact on the arts by endowing the Maurice Kanbar Institute of Film and Television at NYU.

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Manhattan Townhouse Known as ‘the Waterfall Mansion’ Has a Towering 23-Foot Indoor Waterfall

Source: fancypantshomes.com

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How would you like to live in a community where your grocery store is right around the corner, work is a 10-minute walk and everything else you need just a quick light-rail ride away? No car is necessary!

Sound too good to be true? It’s becoming a reality. The idea of transit-oriented development (TOD) — conceptualized in the 1980s by architect Peter Calthorpe — places travel centers like light rail and bus stations at the heart of a well-planned neighborhood. The goal is to reduce dependence on cars, increase ridership, and create vibrant neighborhoods where residents enjoy many valuable conveniences.

Denver rail station – rendering (from architectmagazine.com: SOM | Sponge Production)

TOD rising

In Denver, Colorado, a TOD project aims to help reduce gridlock traffic, reduce urban sprawl and breathe new life into an old city center. Since 2004, the city has been working on a $6.5 billion expansion of its FasTracks light rail system, setting up TOD hubs along the way. Lower Downtown’s Union Station is the central hub for transit-oriented development in the city. Union Station revitalized an old train station, making it a hub for taxis, buses, the airport and Amtrak. The area includes office buildings, public plazas, and nearby, convenient apartment living. The development is planned to be complete by 2014.

Transit not the only factor, however

The foundation of the TOD idea is that centralizing all the best aspects of city living will lead to better, more appealing places to live. City planner Daniel Chatman of the University of California-Berkeley studied car use and the elements of transit-oriented development, sharing recently in the Journal of the American Planning Association his finding that transit itself wasn’t necessarily the most important piece of the puzzle. He found that the qualities which best characterize TOD communities include related factors like rental housing, available jobs and walkable downtown. Parking availability — or more often, the lack of it — was telling. For many, living in a place where you just don’t need a car may be the real appeal.

Let convenient living lead your search

You might start your apartment search with a city’s transit opportunities in mind. Look for the positive facets of TOD design to lead you home to a modern, connected apartment community.

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Congratulations! Buying a home is an exciting time for every family.
The next step is packing up your current home and moving into your new one. Moving can be overwhelming but, luckily, we have a checklist to help you make your move efficient and organized.

The Ultimate Moving Checklist:

1. Disconnect all utilities: Before you move schedule for your cable, internet, electricity, etc. to be turned off. Call your provider about a month before the move to let them know the date that you want to stop the service.

2. Schedule new utilities: Let there be light! A month before your move, call all your providers to schedule to have your utilities setup.

3. Measure doorways and furniture: Take the extra precaution of measuring all your furniture and doorways in both your new and old home. Inform the movers of the measurements and make sure they have a backup plan in case some pieces can’t fit.

4. Change mailing address: Don’t let your mail get lost in the shuffle. Call your post office five weeks before the big move and let them know of your change in address.

5. Leave a change of address: It’s better to be safe than sorry. Leave a note for the new residents, informing them of your new address. If any stray mail gets through the postal system, they’ll be able to send it your way.

6. Get covered: It seems like a tedious task but it’s important. If you’re moving outside of your current neighborhood, it’s best to call your old pharmacy and transfer all your current prescriptions to a local pharmacy closer to your new home. Tell your doctors that you are moving and ask for referrals and record transfers. If you have children, make sure to register them for school in your new school district.

7. Notify accounts of your move: Whether it’s your newspaper and magazine subscriptions or your credit cards, don’t miss anything. Call all the important companies and providers in your life to give them your new address. Don’t forget to get your homeowners insurance changed to your new address!

8. Tag your furniture for placement: You get to your new home, furniture is all moved in, and it just so happens that everything is in the wrong place. Prevent that by sticking notes on larger pieces of furniture, signifying where they belong in the home.

9. Create a “just in case” kit: If the movers are late or get lost on the way, it’s best to be prepared. Fill a box with cash, a first aid kit, toilet paper, snacks, and any other daily essentials you may need to get yourself through moving day.

10. Get a new driver’s license, voter’s registration, etc.: Changing your address through the postal service and other accounts are important, but don’t forget to take care of personal documents as well. Change your address on your driver’s license, insurance policies, and voter’s registration.

Moving to a new home is the start of a new chapter. Be prepared in all aspects to ensure that you have the best moving experience ever!

Source: century21.com

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Los Angeles Mayor Karen Bass’ homelessness team is looking to purchase a 15-story hotel in the city’s Westlake neighborhood, the latest big expenditure planned as part of her “Inside Safe” program.

In a memo sent to the council’s Budget, Finance and Innovation Committee, Bass and her team acknowledged they are seeking to acquire the 294-room Mayfair Hotel, which served for two years as interim homeless housing before closing its doors last summer. The building has been listed for nearly $70 million in recent months.

Bass and her team declined to say how much the city has offered, saying the price will be revealed when the transaction goes before the city’s municipal facilities committee next month. They said the hotel would serve as a critical tool in the city’s fight against homelessness, helping to reduce the leasing costs associated with Inside Safe, which has moved about 1,200 people off the street and into hotels, motels and other facilities.

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If the city finalizes the purchase, the Mayfair would be a key part of the city’s effort to create “permanent interim housing” — city-owned residential buildings where homeless people can live for up to a year before finding their own apartments.

Under the proposal, the city would provide an array of services on the Mayfair’s ground floor — substance abuse counselors, mental health clinicians and public health workers, Bass said.

“There’s no shortcut to do this. You can warehouse people in a shelter if you want, and they’ll stay there for a couple of days and they’ll be right back out on the street,” Bass said. “We have to think outside of the box, and maybe a little bit outside of the boundaries of what the city is normally doing.”

A broker representing the Mayfair referred questions to Alex Moradi, an executive with the ICO Group of Companies. Moradi did not respond to several requests for comment.

However, Bass’ homelessness team confirmed that the city signed a nonbinding letter of intent with Mayfair Lofts, the hotel’s owner, three weeks ago. That company is affiliated with ICO, according to information provided by the county assessor’s office.

Bass has asked the council to allocate $250 million for Inside Safe, which has targeted encampments in Hollywood, Venice, South Los Angeles and other parts of the city, in next year’s budget. That figure does not include any money that would be needed to purchase the Mayfair. If the sale goes through, the cost of Inside Safe could exceed $300 million for the coming budget year.

A bicyclist rides past the Mayfair Hotel, a 15-story hotel in L.A.’s Westlake neighborhood.

(Jason Armond / Los Angeles Times)

Councilmember Katy Yaroslavsky, who serves on the council’s budget committee, endorsed the idea of purchasing hotels and motels, saying the city will need “thousands and thousands of units” to address its crisis.

Yaroslavsky said her office has tried repeatedly without success to lease hotels and motels in her affluent Westside district. But paying rent to motel owners is also “not a good long-term strategy,” she said.

“The logistics of trying to negotiate one-off [agreements] with hundreds of motel owners puts us in a bad bargaining position,” she said. “When we go one by one, we’re not optimizing our buying power.”

On Wednesday, Bass and Yaroslavsky went to the mayor’s 16th Inside Safe operation, located along a stretch of San Vicente Boulevard in L.A.’s Beverly Grove neighborhood, which is part of Yaroslavsky’s district. Nearly two dozen tents had taken hold on San Vicente’s median strips and other rights of way.

Jeremy Mosley, who had been living on one of those medians, said Wednesday he was ready to make the move. But he sounded unsure about relocating to a motel in South Los Angeles, more than a dozen miles away.

“I want to see what it’s like. Because this does look bad. I know it does,” he said, gesturing to the furniture, tarps and other possessions that occupied the median.

The mayor’s proposed homelessness budget for the coming year lists four separate line items for the acquisition of interim housing, which add up to $73 million. Bass’ team declined to say whether all or a portion of those funds would go toward the Mayfair.

Those funds are not included in the $250 million being requested for Inside Safe.

The Mayfair was the site of a $37-million renovation in 2018 and 2019, according to the property’s real estate listing. In 2020, it became one of several hotels across the city to participate in Project Roomkey, a federally funded program that moved homeless Angelenos off the streets as part of the nation’s response to the outbreak of COVID-19.

City leaders voted to end the Project Roomkey program last year. But several of the locations that participated in the program continue to serve as temporary housing for L.A.’s homeless population.

Last fall, the council voted to keep the Highland Gardens Hotel operating as temporary homeless housing at least through June 30. That facility, located in the Hollywood Hills, offers 72 rooms, or up to 143 beds.

The Mayfair Hotel, a 15-story hotel in the Westlake/MacArthur Park neighborhood of Los Angeles. Mayor Karen Bass’ team is in talks to purchase the building to use as interim homeless housing.

(Jason Armond / Los Angeles Times)

City Administrative Officer Matt Szabo said the hotel will probably remain as interim homeless housing through 2025, at a cost of about $6 million per year. At that facility, leasing costs are about $4,550 per room per month, according to a report to the council. Once social services offered by PATH, or People Assisting The Homeless, are included, the monthly room cost exceeds $7,000.

Councilmember Nithya Raman, who represents the Hollywood Hills, worked to secure Highland Gardens before Bass took office. Bass, for her part, was closely involved in the effort to retain another Project Roomkey hotel, the L.A. Grand in downtown Los Angeles.

The L.A. Grand was originally slated to close as temporary homeless housing on Jan. 31. Bass’ team succeeded in leasing 481 rooms at that facility for an additional year. The monthly cost of a room, which includes not just lodging but also meals, is $154 per night, or nearly $4,700 per month, according to a memo provided to the council last month.

The council would need to sign off on a purchase of the Mayfair. Meanwhile, at least one former Mayfair resident is objecting to the proposed acquisition.

Cynthia “Mama Cat” Trahan, 62, who lived in the Mayfair for about four months, said Project Roomkey staff treated the hotel’s temporary guests with “very little respect,” searching them when they entered the building and sometimes going into their rooms without permission, she said.

Buying the hotel is “just not a good idea,” said Trahan, who now lives in an apartment in Glendale.

“We should be investing in putting people in apartments, not hotel rooms,” she said.

Watch L.A. Times Today at 7 p.m. on Spectrum News 1 on Channel 1 or live stream on the Spectrum News App. Palos Verdes Peninsula and Orange County viewers can watch on Cox Systems on channel 99.

Source: latimes.com

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Get yourself a place in the nation’s capital with the perfect outdoor spot.

There are so many great things to see in Washington, D.C., from the majesty of the monuments to the unique architecture of the everyday buildings, D.C. is filled with opportunities to soak up the sun and enjoy the great outdoors.

To ensure your search for a Washington, D.C. apartment delivers the best results, make sure you check out any and all outdoor spaces before signing your lease. A quality on-site garden or courtyard can take your time in D.C. to the next level and truly make your apartment feel like home.

To help you feel inspired, the 10 amazing apartments featured below have been hand-selected as having some of the best courtyards and gardens in the D.C. area. Find your favorite and fill out an application today.

Source: Rent. / Gables Dupont Circle

While the full outdoor space at Gables Dupont Circle is big and beautiful, this little garden-esque spot is a real hidden treasure. Fresh herbs creep up the stone flower bed, while other greenery surrounds the space. Nearby seating, under stringed lighting, gives this space a special ambiance as well.

Set in the quieter Northwest Washington neighborhood, this area boasts spectacular views while also being super walkable. It’s just steps away from great galleries and museums as well as some of the city’s best restaurants, delis, cafes and coffee shops. To keep that outdoor vibe going, there’s no shortage of parks nearby either.

Source: Rent. / The Lansburgh

An absolutely stunning courtyard awaits at The Lansburgh. This space has everything, including an eagle statue. Vibrant greenery rings the multi-tiered space with a combination of trees and bushes. At the far end, a decorative pergola also offers some shade. You’ll find a lovely fountain and plenty of seating throughout this amazing area as well.

Living within walking distance of four Metro stations makes it easy to access all D.C. has to offer from this central location. Within the Downtown – Penn Quarter – Chinatown neighborhood itself, you’re also close to just about everything, from entertainment to restaurants to historic monuments.

Source: Rent. / AVA NoMa

The courtyard is a busy place at AVA NoMa, but each section has its own special flair. For those who love outdoor games, this area features two ping-pong tables. For those who want to chill, there’s also a nice outdoor lounge with a fire pit. There’s even a small dog park for you and your furry friend to check out. Modern, metallic touches mix with hardscaping and slender trees to create a nice look and good vibes.

Providing you with easy access to downtown, finding a home in H Street-NoMa must mean food is on your mind. This is thanks to the neighborhood’s Union Market, which is within walking distance from AVA NoMA. Here, over 40 local vendors show off their culinary creativity to satisfy any palate.

Source: Rent. / Capitol View on 14th

Even if it’s not huge, most people can use a Zen garden in their lives, especially one with a trickling fountain. At Capitol View on 14th, this little pocket of relaxation comes with shaped greenery, nice seating and a multi-tiered fountain trickling down into a tranquil pool. The sound will instantly relax you and let you transition from your busy day to a chill evening.

The rest of the amenities in this Northwest Washington community don’t disappoint either. First, there are the views. You can see the Capitol building as well as other monuments from the rooftop, which is also where you’ll find the pool. There’s a great open-air kitchen up there as well and a year-round fireplace. Between these two areas, it may be hard to find a reason to come inside when the weather is nice.

Source: Rent. / Camden South Capitol

Bright yellow umbrellas add a happy pop of color to the courtyard at Camden South Capitol. They also ensure you’ll always have a shady spot to hang out in if you need it. Underneath one umbrella is a great lounge space with ample seating. The other shades the outdoor dining area, should you want to dine al fresco. This partially grassy area is also nicely landscaped.

For sports fans, living in Southwest – Waterfront has the added benefit of keeping you close to the action. You can easily head to Nationals Park for some baseball and Audi Field for some soccer. If you’re already out and exploring, make sure you head down to the waterfront for some excellent views of the Potomac River as well.

Source: Rent. / Camden Noma

Looking down onto the courtyard at Camden Noma is the best way to see just how impressive it really is. Altogether, this is a huge space, with sectioned-off areas for chilling, playing, food prepping and relaxing. A close-clipped lawn meets bushy patches of robust trees to create an inviting space whether you’re playing table tennis or grabbing a lounge chair to curl up with a good book.

You’ll find Camden Noma in the H Street – NoMa neighborhood. It’s a stress-free, luxurious community that uses modern elements to help residents feel right at home. Living here puts you near the highway, a number of parks, shops and so much more, making it an ideal spot for young professionals.

Source: Rent. / The Flats at Dupont Circle

With green space and a brick walkway both contained in the courtyard, The Flats at Dupont Circle has ideal hangout areas for everyone. For those who want to grab a lounge chair or slide into a hammock, stick to the manicured green space. For friends who want to gather and socialize, grab a cushy seat on the fringes. This is also where you’ll find the grill and outdoor eating space.

Another Northwest Washington community, living here means the luxury extends far beyond the courtyard to include an outdoor pool with sundeck and a state-of-the-art fitness center. There are even personal TV’s at each exercise machine and a separate pilates/yoga studio. The clubroom takes the fun from the courtyard indoors with its TV and kitchen to keep things popping.

Source: Rent. / Waterside Towers

For the perfect garden to walk through, make a date to explore Waterside Towers. The winding green space is full of grassy spots and excellent landscaping. Trees, bushes and small plants come together to make this whole space pop, giving you an outlet for a relaxing stroll whenever you need it. Benches throughout give you the opportunity to sit and absorb the natural beauty all around as well.

This Southwest-Waterfront community also has an impressive pond right nearby, complete with sprouting fountains, mature, bushy trees and an easy path to walk on. Living here also puts you close to all the waterfront fun beside the Potomac River where there are great restaurants and shopping right at The Wharf.

Source: Rent. / AVA H Street

A roaring fire draws the eye into the courtyard at AVA H Street. Covered to keep the flames contained, this funky and modern fire pit will keep anyone warm on a cold D.C. night. Part of the area’s lounge space, the courtyard is also where you’ll find a dual grilling station with a built-in bar and eating space. Additional groupings of seats enable a variety of large groups to gather here and enjoy themselves simultaneously.

A busy area, full of great bars and cool places to eat, Near Northeast is a neighborhood that combines culture and history with lots of shopping and fun. Living here, you’re close to the Smithsonian’s National Postal Museum, the Atlas Performing Arts Center and plenty of shopping. It’s also worthwhile to swing by the famous fountain in Columbus Circle for a photo op.

Source: Rent. / Alban Towers

A classic building with access to a wonderful green space, living at Alban Towers mixes old and new together in just the right way. The park-like garden features a rectangular strip of grass surrounded by a pebbled hardscape. Mature and lush trees line up around the edges to create a calming and isolated space for a little meditation. Additional landscaping keeps the area green and happy.

Keeping with the green theme of moving out into the Northwest Washington neighborhood, this community is close to Rock Creek Park. Another great outdoor space to explore, this 1,7540-acre city park provides a peaceful refuge as well with more beautiful trees, recreational activities and even a little wildlife. You’ll also find varying historical remnants from Civil War fortifications to colonial houses.

Grab an apartment with one of the best gardens in D.C.

There are so many special facts locals know to be true about Washington, D.C., one of which is knowing how to pick the right place to live. You need the right combination of amenities and location, and that should always include a usable outdoor space. No matter where you live in Washington, D.C., you can count on a sweet courtyard or garden if you pick an apartment from this list.

Featured Image Source: Rent. / The Flats at Dupont Circle

Source: rent.com

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The mortgage industry has its own language, and in order to understand it, homebuyers need to learn different acronyms and jargon when shopping for a home loan. A typical home loan payment or mortgage payment involves a single payment, which is the sum of four different line items: the loan principal, interest, taxes, and insurance – also referred to as PITI. 

Before you set your sights on a home, know if you can afford the costs by learning what PITI is and how it impacts your monthly mortgage payments.

What does PITI stand for? 

PITI stands for the loan principal, interest amount, taxes, and insurance on your home – the four major elements that make up mortgage payments. 

Homebuyers often underestimate the true cost of homeownership by failing to take into account property taxes and homeowners insurance. It’s crucial that you budget for all the components of your mortgage payment before purchasing a home.

What is PITI? The four components

Now that we know what PITI stands for, let’s break down each of the four components and analyze the individual elements that make up your monthly mortgage payment.

1) Principal

The mortgage principal is the loan amount before any interest is calculated. This is the base amount of your home purchase price minus any down payment you make. 

We’ll use a hypothetical home purchase for reference; if you buy a home for $450,000 with a 20% down payment ($90,000), your mortgage principal amount will be $360,000.

Over your mortgage term, you pay substantially more than the original $360,000 to the lender in the form of loan interest. The principal is the base amount used for loan calculations to determine if they will extend a loan to you. 

2) Interest

Your mortgage interest rate is what you pay the lender as part of your monthly mortgage payment to borrow the funds to purchase your home. The mortgage lender calculates interest as a percentage of your outstanding principal. If your principal loan is for $360,000 and your lender charges you an interest rate of 6%, this means that you will pay $21,600 (6% of $360,000) in interest for the first year of your mortgage.

Your mortgage interest and principal payments are itemized on a mortgage amortization table. The amortization charts show how much each mortgage payment pays down your principal and interest. When you first start making mortgage payments, most of your monthly payment goes toward interest instead of the principal. 

This split shifts over time, and eventually, the amount you pay toward interest decreases, and more is paid toward the principal. As the principal amount of your loan decreases, you start to earn equity on your home. Equity is the portion of your home that you own outright. Your interest decreases as well, as you only pay interest on the principal amount you have not paid off.

For our example, you will pay $21,600 in interest over the first year of your $360,000 mortgage. By the time you have paid down $260,000 of that principal, your principal amount will be $100,000; at that point, you’ll pay interest of $6,000 annually (6% of $100,000).

3) Taxes

When you own your house, you pay taxes on the property to your local government to maintain roads, emergency services, police, firefighters, schools, and more. Buyers often overlook property taxes when estimating homeownership costs, but it is important to consider this recurring annual cost when you’re searching for your new home. Property taxes vary by location and are the most expensive tax homeowners pay. Taxes may be higher in a newer neighborhood or an area coveted by many homeowners. They are often less if you live just outside coveted neighborhoods and in rural areas. 

The amount of property tax you pay is determined by the local property tax rate and the value of your home. A general guideline to estimate property taxes is to allocate approximately $1 for every $1,000 of your home’s value, paid on a monthly basis.For example, if your home is worth $450,000, you can expect to pay around $450 per month in property taxes or $5,400 per year. 

As part of the home purchase process, most states require that you get an unbiased, official appraisal to estimate your taxes accurately. Your lender usually orders the home appraisal and includes the cost in their list of closing costs. After you close on your home purchase, keep in mind that your local government will regularly reassess properties every few years for tax purposes, which could lead to a change in your tax bill.

4) Insurance

The “insurance” component of PITI refers to homeowner’s insurance and, when it’s required, private mortgage insurance (PMI). Let’s discuss each of these concepts in more detail. 

Private mortgage insurance (PMI)

Your PMI rates depend on how much of a down payment you made and your credit score. If you’re putting down less than 20% on a conventional loan, you’re required to pay for private mortgage insurance (PMI), which protects the lender if you default on your mortgage payments. Once you build at least 20% equity in your home — and your loan-to-value (LTV) ratio is 80% or less — you can get rid of PMI. For FHA loans, a similar mortgage insurance premium has to be paid throughout the life of the loan on any FHA-backed mortgage loan.

If your PMI comes in at a rate of 1%, here’s how you’d calculate a mortgage of $360,000: $360,000 x 1% = $3,600 per year; $3,600 ÷ 12 monthly payments = $300 per month.

Homeowners insurance

Most mortgage lenders require a homebuyer to purchase and maintain homeowners insurance over the entire loan term. Homeowners insurance covers you and the lender if something catastrophic happens to the home, and you need to rebuild or move. Most homeowners insurance policies cover your home in the event of a break-in, fire, or storm damage. 

Most insurance companies require you to buy additional coverage for damage from earthquakes or flooding. You can also purchase insurance riders to cover items of significant value, such as an expensive musical instrument, art, or jewelry. If you buy a condominium, you’ll also pay a homeowners association fee. Your lender may consider your HOA fee your insurance as the HOA carries its own insurance that covers the building, and thus you may not need another policy. 

Property insurance amounts can vary among different insurances. It’s wise to shop around after the seller accepts your purchase contract, and before you close on the property, to get a good idea of reasonable rates. Insurance companies consider these factors when calculating an insurance premium:

  • The home’s value
  • Whether you live in an urban area or a rural area
  • Whether you live in an area with high climate risk
  • How close your home is near a fire department or fire hydrant 
  • Whether you have an insurance risk on your property, i.e., something could injure children, such as a trampoline, pool, or specific dog breed 
  • How many insurance claims you make each year for other types of insurance

When estimating your homeowner’s insurance costs, it’s helpful to keep a general rule of thumb in mind. On average, you can anticipate paying approximately $3.50 per every $1,000 of your home’s value in annual homeowner’s insurance premiums. For instance, if your property is valued at $450,000, you can expect to pay around $1,575 per year for insurance coverage, which translates to roughly $131 per month.

How to calculate PITI

Before you start your search for a house, it’s a good idea to calculate PITI to determine your price range and help you find a mortgage option that will fit your budget. The exercise will make you a more rational home buyer and keep you from falling in love with a house outside your price range. 

The simplest way to calculate PITI is by using an online monthly mortgage calculator. Redfin’s mortgage calculator includes the principal and interest, taxes, insurance, HOA, and PMI. You can also add in your location for more accurate estimates.

PITI and the 28% Rule

Your PITI gives you a rough idea of what purchase price range you can afford. One way to identify a purchase price within manageable limits is to use the housing expense ratio. To ensure your ongoing ability to make your mortgage payments, home finance experts typically recommend that your housing costs should be equal to or below 28% of your monthly household budget. If your PITI is more than 28% of your monthly budget, your lender may require you to pay for additional mortgage insurance.

In our example, you can estimate your housing expense ratio by dividing your PITI by your total monthly income. If your household income is $10,000 a month, your PITI will make up about 28% of your monthly budget, well within recommended guidelines. ($2,800/$10,000 = 28%.)

Keep in mind that PITI may just account for just some of your monthly expenses when owning a home. Depending on where you live and how you are paying for your home, there may be additional costs to consider. Additionally, the components that make up PITI are broadly defined here; there is often more complexity that goes into each part of PITI.

How PITI impacts loan approval

During the home buying process, it can be easy to trick yourself into thinking you can afford a more expensive home if you only look at your mortgage’s principal and interest cost without considering the total PITI with taxes and insurance. 

For instance, let’s take a 30-year mortgage on a $450,000 property, assuming a property tax rate of 1.25% ($5,625 per year) and an annual homeowners insurance premium of $3,600. In this scenario, your monthly financial commitment would go beyond just the principal and interest amount, as you would need to allocate an additional $581 to cover taxes and insurance. Understanding and accounting for these factors will provide you with a comprehensive understanding of the actual costs involved in homeownership.

Here is a breakdown of the example discussed above. 

Principal and Interest PITI
Interest rate 7% 7%
20% down payment $90,000 $90,000
Property taxes N/A $450
Homeowners insurance N/A $131
Private mortgage insurance N/A N/A
Monthly payment $1,800 $2,381

How DTI factors in

The principal balance will factor into your debt-to-income (DTI) ratio. Your DTI ratio gives lenders an idea of how capable you are of managing money and the likelihood that you will consistently make your monthly payments. To determine your DTI, the lender uses your total minimum monthly debt obligation and divides it by your gross monthly income to arrive at a percentage. This calculation also includes payments on credit card accounts, auto loans, student loans, and other recurring debt payments. Lenders consider you a higher risk if your DTI ratio exceeds 43%, some lenders will allow a DTI as high as 50%. 

Don’t overlook other housing costs

PITI is just one fundamental concept to understand before applying for a mortgage. As you consider how much house you can afford, you’ll also need to plan for additional costs typically associated with homeownership. These include HOA or condo fees, which can range from $100 to $1,000 per month, with an average of $200 to $300. Additionally, budgeting for repairs and maintenance is crucial, with a general guideline of saving 1% to 5% of your home’s value annually. For a newer $450,000 home, this would mean setting aside $4,500 to $22,500 per year. Utility bills for electricity, water, gas, sewer, cable, trash, and internet should also be factored in, and contacting the utility company or asking the seller or neighbors can help estimate these costs.

The bottom line on PITI

Buying a home is very exciting, but before signing your mortgage contract, know what payment amount you can afford based on PITI and other monthly costs. The more you understand the home buying and mortgage process and the total cost of homeownership, the easier it will be to finalize your purchase decision. Your home purchase represents an important milestone in your life – avoid confusion and uncertainty by gaining a solid understanding of PITI and the cost of homeownership. 

Source: redfin.com

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Forget living the high life – go for the spa life! The newest things to look for in apartment community amenities are convenient spa services, on-site and off.

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If this kind of lifestyle is important to your well-being, here are some luxurious options you should be booking for.

On-site aaaaah-ptions
A developing trend in apartment living is the addition of on-site spa and wellness services, including massage, facial and custom treatments. Upscale residences may feature a wellness spa, especially when the building shares patronage with a hotel where guests can use the facility as well.

But you don’t have to be high-brow to make the most of spa life. Smaller apartment communities often offer basics like a pool, hot tub, sauna and steam room. Some even feature a spa treatment room where massage therapists and aestheticians can make house calls.

Nurturing nearby
On-site spa treatment might not be a necessity if you have a spa center located near your apartment. Self-proclaimed spa junkies might look for apartment communities adjacent to med spas, wellness facilities and beauty salons. If your aren’t sure what neighborhood conveniences are in the area, sites like Bliss and SpaFinder can help you scout out a soothing solution.

6 Cheap and Easy Ways to Relax at Home

Off-site services may give you a wider range of options, like laser hair removal, mud baths, specialty peels, collagen treatments and craniosacral (head) massage. To get the best deal on these delights, sign up online to receive updates from SpaWeek, a site devoted to discounts which encourage you to try new services. You can also find great deals on sites like Groupon and LivingSocial for the latest trends in treatments.

Spoil Your Senses at Home in Your Apartment

Outdoor ohms
Remember, not all pampering has to take place indoors. Relaxation is an essential part of the spa experience, and it might be easy to find soothing outdoor spaces in your apartment community.

Does your apartment have a Zen garden, nature trail or dog park? Those are all great places to escape to nature, relax and have a little fun. Venture outside and see what kind of spa-like experience you can create for free. An afternoon on a blanket in a grassy spot might just do the trick!

Creating a spa life means being open to unexpected moments of comfort and relaxation in or near your apartment community. When you need to chill out, why not get out there and explore your options!

How to Hang Out in Your Apartment Community

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I asked, as I sometimes do, what personal finance question my friends and Twitter followers had for me. It was a slow day on the internet and the responses flooded in.

My friend Neil asked, “what do you think about real estate?” A broad question, indeed, and I got him to clarify. “You know… should I buy a house? Why not just rent?”

Why not indeed.

The Dream of Home Ownership
I too bit off and gulped down the dream of home ownership when just a small lass. When I graduated from college, I moved to a Southern U.S. city — Charlotte, North Carolina — and like any young professional often in the company of older, established professionals — saw immediately that they all owned houses. And that this was very good.

What they had, I wanted: the houses with the staircases and the pretty backyard decks and the grand old trees in the back and the guest bathrooms with bowls of little colored soaps. I wanted a kitchen, with wide countertops and an arching clamp-hose faucet over the deep sinks and big drawers for flour and pot lids and recycling bins. And art on the walls, and a king-sized bed, and a walk-in closet, and a master bath.

My dream was only made more intense while shopping for condos in New York City, then in Reston, Virginia, with my 20s-era boyfriend. When he went to sign his first title, I went too, and we went out to lunch afterward at a restaurant on 54th street; we spent $112 and when I ate the tiny plate of tiny after-lunch sweets (a little cheesecake, a little truffle, a little gelee), I felt I’d arrived.

Years later, after the boyfriend, I became pregnant and my now-husband and I shopped for homes. My stories of those searches are intense and full of longing and stress; but by my fourth month of pregnancy I was living in house all my own. I vowed to never move.

Tip: Compare mortgage rates from multiple lenders for new home loans and mortgage refinance loans.

Other People’s Dreams
I am — I was — the classic case for home ownership. I live in a small city and, when I bought the house, prices were reasonable; my mortgage payment is now less than many pay for renting an apartment. I love working on the yard and painting walls and I even tiled my bathroom myself (with lots of structural help from my father and husband). My husband is handy, and can run wiring and solder plumbing and he built a whole room in the basement. We’re the home ownership success story (though admittedly we have a lot more work to do, and no walk-in closet, no master bath).

But for many people, home ownership should remain the stuff of other people’s dreams.

I think my friend Neil is a good example. His ex-wife longed to buy a home in Los Angeles, where they had made a home after Neil’s upbringing in New York City. The situation was probably even more intense for her than for me in Charlotte; their friends and colleagues owned expansive ranch-style show-homes and sweet artsy bungalows, in neighborhoods where the price-per-square foot probably neared four digits at the peak of the market. The mortgage on those homes would require all of one middle-class salary.

Even for the more economic choices, prices were high and there was no clear benefit to buying over renting; in fact, most mortgages would be more than the cost to rent a nice (and low-maintenance) apartment.

Neil wasn’t good with a hammer or a chop saw, nor did his wife have any desire to keep a fine vegetable garden. There was no dad around to rip out old bathroom floors or teach Neil to solder copper pipes. Neil had no dreams of living in his home forever with his growing family; to date, he has no children and he’s now divorced; he’s not sure if he’ll stay in LA for the rest of the year, let alone the decade. For him, home ownership is someone else’s dream.

Should I Buy a Home?
For me, Neil’s question was easy. “No,” I said finally. “I don’t think you should buy a home.”

“But isn’t that the goal?” he asked me. “Isn’t that what you’re supposed to do?”

Well, maybe. But I’ve found my own definition of “getting rich slowly” is often made up of doing few things that one is “supposed” to do; for me, living a double income, office job lifestyle is one such “supposed to” I’ve discarded. For Neil, I prescribed letting go of that “supposed to” of buying a home.

How to Know When You’re Neil
Are you Neil? That is to say, should you too avoid adopting the dream of home ownership? Here are a few signs you may be Neil:

  • You are still a transient. Of course, we know I don’t mean “homeless person.” I believe many of us today graduate college (or high school, if college wasn’t the path for you) as transients, expecting to live in one place for a few years before trying out another, and another, and another, until one feels like home (or until you fall in love with someone who’s rooted to a place, giving you a graft and rooting you, too). If you’re not sure yet if this place is going to be your home for more than the next few years, home ownership is not for you. With closing costs and the uncertainties of the real estate market, it’s very difficult to come out of a two-year home ownership transaction without losing money as compared to renting.
  • You have no desire to engage in home and garden upkeep. While some such people might hire gardeners and contractors to fill in the holes in their handy skills and passions, most of those who don’t care to pick weeds or fix fences or mow lawns or plant apple trees are better off with an apartment. Purchasing a condo might be an option, if you don’t say “yes” to any of the other items in the “are you Neil” list.
  • The market in your favorite neighborhood doesn’t make sense. If the cost of a monthly payment on a mortgage would be greatly higher than the price of a two-bedroom apartment or other rental suitable for your family’s needs — say, more than 25 or 30% higher — it’s probably not a good time to buy. While indeed mortgage interest deductions and home buyer credits and the time value of money might be squished around to make the comparative cost similar, do remember that life is uncertain and markets fluctuate and maybe you should wait a bit — or look around for a more sensible neighborhood — before buying something.
  • You’re not sure about your career or your job. Maybe you’re considering going back to school to become a sommelier. Maybe you’re pretty sure your boss wants to retire and sell the company. Maybe you just don’t love your job and you’re looking around for something new. If you’re not fairly confident your next few years won’t include a significant change in income, it’s probably not a good time to engage with the home ownership dream.
  • Your relationship with your partner is rocky. I’ve been watching several of my friends deal with the tough decision over what to do with the family home when a relationship is over. In one case that worked out for the best — the family made a nice profit from the sale. But that was a rarity. If you’re married, you might end up having to sell and take a significant loss, even if you’d rather stay in the house solo; if you’re not married, things could be even more wonky. One woman I know lost her grandmother’s home after a pre-marriage breakup (with someone who obviously turned out to be enough of a jerk to keep her grandmother’s home, though that analysis is one-sided and second-hand, so take it with salt). Be honest with yourself, and know that, much like puppies and babies, houses do not fix broken relationships.
  • You would have to cash in retirement or emergency savings to buy the house. A home buying fund should be separate from those savings for emergencies and retirement. You’ll have more emergencies, in all likelihood, with a home than without. And you know how we feel about retirement savings. If your dream is that intense, then you can use your intensity to fuel your frugality while you save up for the down payment.

It also makes sense to run the numbers through a rent vs. buy calculator to see if the results would influence your decision one way or another. Have you struggled with the decision to rent or buy? Where did you come out on the Neil/not Neil spectrum?

Source: getrichslowly.org

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A classic saltbox Colonial built in 1690 in Woodbury, CT, is the oldest home on the market this week on Realtor.com®.

The spacious property boasts the original wood shop where craftsmen are said to have created everything from wainscoting to built-in cabinetry.

Other vintage gems to hit the market this week include a center-chimney Colonial in New Hampshire, a charming Cape Codder in Massachusetts, and a New Jersey stone home.

Scroll down for a full look at this week’s 10 oldest homes.

Price: $589,000
Year built: 1690
Saltbox Colonial: This two-bedroom gem is one of the oldest homes in Woodbury, according to the listing.

The 2,034-square-foot residence features wide-plank flooring, original wainscoting, wood-paneled walls, and exposed-beam ceilings. Three fireplaces can be found throughout the home, including two with ovens.

The 3-acre property also features a two-story barn, a woodworking shop, and a shed with an attached outhouse.

Woodbury, CT

(Realtor.com)

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Price: $499,000
Year built: 1718
Cute Cape: This four-bedroom Cape Codder features built-in bookshelves, two fireplaces, and wide-plank pine floors.

The 1,580-square-foot residence has been updated over the years. The kitchen has maple cabinets and granite countertops, and the dining room has built-in cabinetry. New windows were recently installed on the first floor.

The detached garage includes a work area with new electrical.

Weymouth, MA

(Realtor.com)

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Price: $400,000
Year built: 1730
Francis Chase Homestead: This center-chimney Colonial boasts five fireplaces, wood-paneled walls, exposed beams, and wide-plank floors.

Affordably priced, the three-bedroom home is in need of some TLC. The open kitchen has a wood-burning stove with a beehive oven. The living room offers an oversized brick fireplace.

The 4-acre lot includes a two-car garage and a four-stall barn with a paddock.

Newton, NH

(Realtor.com)

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Price: $1,100,000
Year built: 1731
Berkshire beauty: This three-bedroom home has been thoughtfully modernized over the years.

Measuring 3,148 square feet, it features three en suite bedrooms, two offices, and a solarium. While there aren’t many interior photos, the listing notes that the “tastefully renovated home” offers large living rooms and an eat-in kitchen.

The 1-acre lot sits on Hubbard Brook. A second dwelling on the property is currently being rented out as a quilt shop, but it could be transformed into a guesthouse.

Egremont, MA

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Price: $679,000
Year built: 1735
Cute half-Cape: This cozy, three-bedroom home has been beautifully modernized over the years.

The 2,878-square-foot residence still features exposed-beam ceilings, preserved hardwood floors, and a fireplace with a beehive oven. The bright living room boasts built-in bookshelves, and the kitchen has granite countertops. The family room includes access to an oversized deck out back.

The primary suite is upstairs and features a cathedral ceiling. The newly renovated lower level has a wet bar and additional living space.

The 2-acre lot includes frontage along Soules Pond.

Kingston, MA

(Realtor.com)

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Price: $1,295,000
Year built: 1736
John Bassett House: This three-bedroom, waterfront dwelling is part of the Marblehead Historic District, located in the Colonial neighborhood of Old Town.

The four-story, 2,160-square-foot home features wide-plank wood flooring and wood-beam ceilings throughout. You can enjoy picturesque views from two decks. The fenced-in lot also has a patio and a detached, one-car garage.

Marblehead, MA

(Realtor.com)

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Price: $1,750,000
Year built: 1740
Bantam Farm: This updated, four-bedroom farmhouse offers wide-plank floors, three fireplaces, and built-in beds.

The cozy living room comes with built-in bookcases and an exposed-beam ceiling, and French doors lead to an airy sitting room. The bright kitchen has Mexican tile flooring and a large island with a prep sink. Sliders from here open to a large patio that overlooks the landscaped yard.

The first-floor bedroom could be used as an office. The remaining bedrooms are upstairs.

The 2.5-acre property includes a two-bedroom guest cottage, a one-bedroom art studio, and a barn.

Stamford, CT

(Realtor.com)

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Price: $1,075,000
Year built: 1740
Stone home: Historic highlights of the 2,052-square-foot home include random-width pine flooring, exposed stone walls, and a Dutch door.

There are no interior photos available, but the listing says the home features “a fieldstone fireplace with wood stove insert, exposed beams, many windows, and sliding glass doors leading out to the expansive stone patio.”

The 4.8-acre lot comes with a two-car garage, including loft space that could be used as a studio or office.

Stockton, NJ

(Realtor.com)

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Price: $839,000
Year built: 1743
Lt. Joseph Sanborn House: This three-bedroom home is said to have been part of the Underground Railroad.

While it does need some work to restore its historic beauty, the 3,440-square-foot home features many period details. Highlights include four fireplaces, original wood paneling, and exposed-beam ceilings. The large living room boasts a cathedral ceiling and a wood-burning stove. The dining room has a wall of built-ins.

This 4-acre property abuts Applecrest Farm and comes with a four-stall barn with a heated tack room, and a three-car garage.

Hampton Falls, NH

(Realtor.com)

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Price: $599,900
Year built: 1747
Waterfront wonder: Overlooking Wethersfield Cove, this five-bedroom Colonial has been thoughtfully modernized over the years.

Measuring 3,661 square feet, the home boasts a bright kitchen with a two-tier island and a custom pantry. Wide-plank flooring, three fireplaces, and original wood paneling can be found throughout the residence.

The primary suite comes with a custom closet and a spacious bathroom. You can enjoy waterfront views from the stone terrace or the balcony off the family room.

The 1.2-acre property includes a separate one-bedroom living space to accommodate extended family and guests.

Wethersfield, CT

(Realtor.com)

Source: realtor.com