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With friendly Midwestern cities and beautiful rolling plains and prairies, Kansas has a fantastic blend of urban and rural living. Cities like Topeka, Wichita and Kansas City (which is split between Kansas and Missouri) are world-class hubs for everything from industries like aircraft manufacturing to melt-in-your-mouth barbecue. While it’s true that Kansas City is a great city with cool neighborhoods, dining and more, Kansas has much more to offer. Artsy small cities and towns have affordable, family-friendly living, and a refreshing lake or scenic wilderness preserve is never far away.

Overall, the cost of living in Kansas is also affordable. While bigger cities may have higher rents and housing prices, the diverse range of cities and towns guarantees you’ll find a place that fits your budget and lifestyle. Some are up-and-coming destinations for young professionals, while others focus on relaxed, family-centered towns. Covering everything from housing to utilities, here’s what you can expect in terms of the cost of living in different places around the Sunflower State.

Kansas housing prices

One of the biggest benefits of living in Kansas is its low housing costs. In most Kansas cities and towns, the cost of housing is below the national average. In most major cities, you’ll find reasonably-priced apartments and houses, with rents rarely surpassing $1,000 a month.

Here’s what the average rent and home prices are like in some of Kansas’ biggest and most popular cities.

Hutchinson

Surrounded by the beautiful Kansas prairie in the center of the state, Hutchinson is a compact city with a population of around 39,712. Due to its location, some of its biggest industries are wheat farming and working in the local oil industry. In addition to being the site of the Kansas State Fair, city parks and nearby state parks make this a lovely place for outdoor recreation. It also has a zoo and the famous Cosmosphere, a space museum and STEM education center.

At 45.6 percent below the national average, Hutchinson’s total housing costs are the lowest beneath the national average of our highlighted cities. The average monthly rent for a one-bedroom apartment is $719, up 6 percent from last year. The monthly rent for a two-bedroom apartment is up 14 percent to $829.

Hutchinson’s housing market has also grown over the past year. The median sale price to purchase a home here is up 2.6 percent to $143,450.

Kansas City

Straddling the border of Kansas and Missouri, Kansas City, KS’s population of 154,545 makes it the third-largest city in the state. This dynamic metro area is best known for its jazz, barbecue and culture. Live sports are also a big deal here, thanks to both professional and collegiate teams, courtesy of local universities. The combination of a vibrant cultural scene, affordable cost of living and a diverse job market make it a popular Midwestern metropolis to call home.

Kansas City’s cost of housing is 0.4 percent below the national average. The average rent for a one-bedroom apartment is $915 and a two-bedroom unit is $1,034. These rates are up 5 and 2 percent from the previous year.

If you want to buy a home in Kansas City, KS, you’ll be looking at a median sale price of $205,000, which is up 10.8 percent from last year.

Manhattan

Located at the confluence of the Big Blue and Kansas Rivers in northeastern Kansas, Manhattan is one of Kansas’ top college towns. It’s the home of Kansas State University, which is one of the top higher learning institutions in the state. As a college town, Manhattan has great dining, a lively cultural scene and fun activities. Nearby Turtle Lake is a regional destination for boating, hiking and other outdoor recreation.

As a college town, housing costs here are affordable, falling 19.9 percent below the national average. You can rent a one-bedroom apartment for $805 and a two-bedroom apartment for $952. These rates are both up 10 percent from last year.

With no significant growth or decline over the past year, houses in Manhattan go for a median sale price of $178,000.

Topeka

Apart from being the state capital, Topeka in northeastern Kansas has many other claims to fame. For one, the landmark Supreme Court case Brown v. Board of Education of Topeka, which ruled that racial segregation in schools was unconstitutional, originated here. Along with the rest of its rich history, an abundance of parks, family activity centers and laidback neighborhoods make Topeka a very family-friendly city.

Extremely affordable housing is another benefit of living here, with housing costs being 20.4 percent below the national average. You can rent a one-bedroom apartment for $790 or a two-bedroom apartment for $857. However, rent prices have been going up slightly over the past year. The cost for a one-bedroom unit is up 1 percent and two-bedroom unit prices are up 12 percent.

Topeka offers potential homeowners a refreshing low median sale price of $140,000. This rate is up a whopping 64.7 percent from last year. With national median sale prices currently at $428,006, buying a home in Topeka is quite the deal.

Wichita

Located in south-central Kansas, Wichita is the most populous city in the state. In addition to being known as the “Air Capital of the World” due to its many airline manufacturing facilities, numerous airports and Air Force base, it’s a regional hub for art, culture, healthcare and the restaurant industry (Pizza Hut and White Castle originated here). Residents can enjoy the great outdoors in both the heart of the city at parks like Botanica, the Wichita Gardens and out of town at nearby wilderness and recreation areas like Cheney Reservoir.

Even though both average rent and home prices have increased over the past year, Wichita’s housing costs are 34.3 percent below the national average. One-bedroom apartments are up 15 percent to $800 and two-bedroom apartments are up 12 percent to $964.

Wichita also has one of the most expensive housing markets in the state. The median sale price for a house here is up 16.2 percent from the previous year to $215,000.

Kansas food prices

From access to fresh, local meat and produce to delicious state specialties like barbecue and chicken-fried steak, the cuisine in Kansas is some of the best in the Midwest. Agriculture is a major industry in Kansas, with wheat being its biggest cash crop. Corn and soybeans are also top crops. Along with Texas and Nebraska, it’s one of the biggest suppliers of cattle in America. Cities like Kansas City, Topeka and Wichita have fantastic dining scenes, with nationally-renowned barbecue joints.

With so much great food to enjoy, luckily, locals pay below the national average for the cost of living in Kansas for food costs. Total grocery costs here are 7.4 percent below the national average. The average Kansas resident pays between $233 and $266 a month on food, which comes out to between $2,801 and $3,200 annually.

Although overall food costs here are lower-than-average, some cities have even more affordable food prices:

  • Topeka is 22.9 percent below the national average
  • Manhattan is 8.1 percent below the national average
  • Kansas City is 7.8 percent below the national average
  • Hutchinson is 7.7 percent below the national average
  • Wichita is 2 percent below the national average

Topeka has some of the lowest food prices in the state. A dozen eggs cost $1.09 in Topeka compared to $1.60 in Manhattan and $1.70 in Kansas City. The price tag for a half-gallon of milk in Topeka is $1.55. In Manhattan, it will set you back $2.11 and $2.26 in Kansas City. Steak costs $15.09 in Wichita but $9.49 in Topeka and $13.28 in Kansas City. As you’ll see, even though Wichita is the closest to the national average, food prices are sometimes higher in other cities.

Kansas utility prices

In most cities, you’ll pay less than the national average for the cost of living in Kansas for utilities like electricity, water and internet.

Kansas boasts a diverse energy profile. The state gets its electricity from a mix of nuclear power and traditional natural gas and petroleum, as well as renewables like solar power and hydroelectric power. The majority of the state’s water comes courtesy of the Missouri River.

Here’s how total utility costs in these different cities stack up to the national average:

  • Topeka is 4.1 percent below the national average
  • Hutchinson is 2.5 percent below the national average
  • Wichita is 2.1 percent below the national average
  • Manhattan is 0.9 percent below the national average
  • Kansas City is 2.6 percent above the national average

Of our highlighted cities, Kansas City has the most expensive utilities. As an example, the average monthly energy bill is around $178.88. In Topeka, the least expensive city, your monthly energy bill will likely skew closer to $154.60.

The average water bill in Kansas is $26.

Kansas transportation prices

From gas prices to the cost of mass transit, transportation is a key part of any monthly budget to figure out the cost of living in Kansas. Overall, transportation costs in Kansas are below the national average. Along with personal vehicles, most cities and counties in Kansas offer some form of public transportation. These largely consist of bus routes. The Kansas Department of Transportation helps support 145 transit programs that cover most Kansas cities. In some cases, these services are focusing on aiding senior citizens, those with disabilities and other eligible riders with getting around easily and affordably.

Not only does using mass transit help residents save money on gas and other vehicle expenses, but using public transportation has a host of other benefits. In bigger cities, it can reduce commuting times and traffic congestion. It’s also more environmentally friendly, reducing the number of vehicles on the road and, therefore, emissions.

Here’s how transportation costs vary between these different Kansas cities:

  • Kansas City is 13.4 percent below the national average
  • Hutchinson is 10.2 percent below the national average
  • Topeka is 9.1 percent below the national average
  • Wichita is 8 percent below the national average
  • Manhattan is 6 percent below the national average

While each of these cities has some kind of mass transit, options are more limited in smaller cities. In Hutchinson, the Reno County Area Transit provides several fixed bus routes around the city and Reno County. It also has an on-demand service for rural routes. Fares for in-town service start at $4 and rural service at $8, with discounts for eligible citizens like the elderly.

Manhattan residents have the ATA bus system, with routes around Manhattan and surrounding counties and cities like Ogden and Junction City. There are five different routes in town, as well as dedicated routes to and around Kansas State University. All students, staff and faculty of K-State get to ride these routes for free. Bus fares within Manhattan start at $1 for a one-way ride and you can also get day, week and monthly passes.As two of the state’s biggest cities, Topeka and Wichita have some of the most extensive public transportation systems in Kansas.

Topeka Metro in Topeka

Residents of Topeka can get around their city with the help of Topeka Metro. Consisting of a fleet of buses and paratransit vehicles, it operates 12 different bus routes. In a more sustainable move, the fleet will soon acquire three all-electric vehicles.

Single ride fares cost $2, with day passes available for $4 and monthly passes for $50. Senior citizens, those with disabilities and youth between the ages of 5 and 18 are eligible for discounted rates.

However, with a low transit score of 25, having a car might be a necessity in Topeka. Car drivers may need to plan for tolls on the Kansas Turnpike. This 236-mile-long freeway starts in Kansas City and runs through several major Kansas cities, including Topeka. Toll fees vary depending on the length of your trip. You can use this toll calculator to estimate toll fees for your drive. Traveling the entire length of the turnpike would cost $11.15 with a K-tag and $15 without.

Topeka is also not the most bike- or pedestrian-friendly city, with a walk score of 41 and a bike score of 56.

Wichita Transit in Wichita

The Wichita Transit system in Wichita operates 18 different bus routes around the city. It also has paratransit services. The organization dedicates itself to making local mass transit more sustainable and eco-friendly, being the first city in Kansas to include zero-emission, 100-percent electric buses in its fleet. A single ride costs $1.75. Pass options include an unlimited day pass for $5 and a monthly pass for $55.

With a low walk score of 43 and a decent bike score of 50, it’s still necessary to own a personal vehicle to get around Wichita. The Kansas Turnpike also passes through Wichita, so you’ll need to know of tolls, as well.

RideKC in Kansas City

Consisting of buses, bus rapid transit and streetcars, RideKC provides mass transit throughout the interstate Kansas City metro area. It has 78 bus routes, three bus rapid transit lines and a downtown streetcar. Through 2023, all RideKC buses and streetcars are zero-fare.

With a transit score of 28, a walk score of 40 and a bike score of 32, having your own vehicle is likely a necessity in Kansas City. If you do plan to use a car in Kansas City, the Turnpike ends in Kansas City so you may need to pay tolls if you use it.

Kansas healthcare prices

Depending on where you live in Kansas, you may pay more or less than the national average for healthcare. While the location is a factor in healthcare prices, so is your personal health. In general, the cost of living in Kansas for healthcare is a difficult category to quantify and get accurate averages since healthcare costs vary by person. Some people may need to pay more for their healthcare due to pre-existing conditions or the need for specialized care. So, the prices below are not set in stone and are subject to change due to your individual healthcare needs.

But to give you a rough overview of how healthcare costs vary between Kansas cities, here’s the average cost to go to the doctor’s office in these different cities:

  • Topeka: $129
  • Hutchinson: $142.50
  • Wichita: $104.40
  • Manhattan: $137.50
  • Kansas City: $89.77

Although Hutchinson has the highest price for doctor’s visits, it’s one of the least expensive cities to go to the dentist. A dental check-up costs $92 in Hutchinson. In Manhattan, you’ll pay high prices for both general and dental health, as a dental check-up there costs $109.50.

Now, let’s see how overall healthcare costs in these cities compare to the national average:

  • Manhattan is 10.4 percent above the national average
  • Kansas City is 9.7 percent below the national average
  • Wichita is 2.9 percent below the national average
  • Topeka is 0.7 percent below the national average
  • Hutchinson is 6 percent above the national average

Looking at the overall average and individual costs, Topeka and Wichita have lower healthcare costs. But, prices do fluctuate between cities, so it’s something to know.

Another important factor to know is the quality of Kansas’ healthcare system. The state ranks 41st in the nation for healthcare, with especially low marks for quality. It also doesn’t score well for access to healthcare services and for overall public health. So, higher prices may not always correlate to the best care.

Kansas goods and services prices

Living in Kansas, you’ll pay below the national average for miscellaneous goods and services. These include routine activities like going to the movies or getting your hair cut or regular purchases like toothpaste and ibuprofen.

Overall, Kansas cities boast lower-than-average prices for goods and services:

  • Topeka is 23.4 percent below the national average
  • Kansas City is 8.7 percent below the national average
  • Manhattan is 5.5 percent below the national average
  • Hutchinson is 2.4 percent below the national average
  • Wichita is 0.1 percent below the national average

Wichita is the closest to the national average. Getting your hair cut in Wichita costs $19 compared to $14.25 in Hutchinson, which is the cheapest rate in our highlighted cities. But, prices in Wichita won’t always rank higher. In many cases, costs are higher in smaller cities like Manhattan or Hutchinson. For example, movie tickets in Manhattan cost $14 but $10.12 in Wichita. Taking your clothes to the dry cleaners in Manhattan costs $17.99, the most expensive rate in the state. You can find the cheapest dry cleaning bill in Topeka at $12.20. In other instances, prices in Kansas City are higher, with haircuts costing $19.70 and a trip to the dry cleaners costing $14.63.

Taxes in Kansas

Taxes are another cost of living in Kansas factor that can vary widely between states and even between cities within that state. If you live in a city with high sales tax, those added expenses will have an impact on activities like grocery shopping.

Kansas has a statewide sales tax of 6.5 percent. If you spend $1,000 on a delicious Kansas barbecue spread, you’ll be paying $65 extra in sales tax. But, many counties or cities also levy their own sales tax on top of the statewide rate. This can significantly hike up the amount you’ll pay in sales tax:

  • Topeka has a combined tax of 9.15 percent
  • Hutchinson has a combined tax of 8.6 percent
  • Wichita has a combined tax of 7.5 percent
  • Manhattan has a combined tax of 8.95 percent (with an increase to 9.45 percent in 2023)
  • Kansas City has a combined tax of 9.12 percent

This makes Wichita the most affordable city for sales tax. Instead of paying $65 in sales tax for every $1,000 spent, you’ll spend $75 in sales tax. Currently, Topeka has the highest sales tax, adding $91.50 to every $1,000 spent. But, Manhattan will claim the top spot next year when the sales tax within city limits increases to 9.45 percent. The sales tax for Riley County will stay the same. You can see exactly how much you’d pay in sales tax in different Kansas cities and counties with this tax rate locator from the Kansas Department of Revenue.

For income taxes, the tax rate in Kansas ranges between 3.10 percent and 5.70 percent depending on your income level.

How much do I need to earn to live in Kansas?

Overall, the cost of living in Kansas is below the national average. Living here has affordable rates on everything from housing to food. But, how much do you actually need to make to afford the cost of living here?

Since experts recommend you only spend 30 percent of your gross monthly income on rent, you’d need to make $3,380 a month or $40,560 annually to afford Kansas’ average rent of $1,014. Average salaries here range from $22,063 to $101,222, and a single person paying for only their expenses needs to make a minimum gross annual income of $34,073. If you work in a lower-paying field, you may need to spend more than 30 percent of your monthly income on rent. But, with a median household income of $61,091, family households or renters with roommates are better able to make things work.

If you’re unsure what you can comfortably afford to pay in rent, use our rent calculator.

Living in Kansas

Whether you want a vibrant city or a laidback small town, Kansas has a diverse range of places and price points to choose from when deciding where to live. Overall, though, the cost of living in Kansas is accessible for many different people and budgets. And, no matter where you live in Kansas, you can enjoy access to its delectable local cuisine and natural beauty.

Related Articles:

The Cost of Living Index comes from coli.org.
The rent information included in this summary is based on a calculation of multifamily rental property inventory on Rent. as of August 2022.
Rent prices are for illustrative purposes only. This information does not constitute a pricing guarantee or financial advice related to the rental market.

Source: rent.com

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Rent your home. Own your future.

Essentially, rent-to-own homes offer an alternative pathway to homeownership for individuals who might not otherwise be in a position to buy a house outright. It’s a strategy that represents the quintessential entrepreneurial mindset — seeing opportunities where others see only obstacles.

What is a rent-to-own home?

A rent-to-own property arrangement, sometimes also called a lease option or a lease-to-own agreement, is a deal in which a person rents a home for a specific period of time, typically between one to three years, with the option to purchase the home at the end of that period.

It’s a plan designed to facilitate homeownership for people who need time to save for a down payment, improve their credit or get their financial house in order. A portion of the monthly rent payment is typically set aside and used as a contribution toward the future purchase of the house.

Why are rent-to-own homes popular? What are some pros of this setup?

Rent-to-own homes continue to gain popularity, and there are a few compelling reasons why. At their core, these arrangements offer a unique blend of flexibility and opportunity that resonates with many potential homeowners.

Flexibility

One key reason is the financial flexibility rent-to-own homes offer. Not everyone has the resources to dive straight into homeownership, and traditional mortgage arrangements might be out of reach. Rent-to-own homes present a viable solution, allowing individuals to move into their dream home right away, while also providing a structured plan to eventually buy that home. It’s about breaking down a seemingly insurmountable financial leap into manageable steps.

Home prices

Another driving factor is the prospect of locked-in purchase prices. Given the volatility of real estate markets, the ability to set a future purchase price at the start of the lease agreement can be an enticing prospect. It offers a form of financial predictability, a rare commodity in an ever-fluctuating housing market.

Furthermore, rent-to-own homes also serve as a testing ground. They’re an option that allows potential homeowners to experience living in the home and neighborhood before making a long-term commitment. This ‘try before you buy’ aspect is a significant draw, reducing the risks of buyer’s remorse.

Building equity

Lastly, the concept of building equity from day one is attractive. Instead of paying rent with no long-term benefits, individuals in a rent-to-own agreement have the satisfaction of knowing that part of their monthly payment is going toward their future home ownership. This empowers people to invest in their future, even if they aren’t quite ready to fully commit to a mortgage.

However, it’s essential to understand that, while rent-to-own homes offer certain advantages, they aren’t a magic bullet solution. Like any financial arrangement, they come with their own risks and potential pitfalls. But for those who are clear about their financial capabilities and long-term plans, rent-to-own homes can be a strategic stepping stone on the path to homeownership.

Potential drawbacks of rent-to-own properties

However, renting to own is not for everyone. Here are some cons to consider when looking at this rent arrangement that might be non-starters for you.

Non-refundable payments

If the renter decides not to purchase the house at the end of the lease, they forfeit the extra money they have been paying towards the purchase. This can be a considerable loss, as these payments are typically non-refundable.

Maintenance responsibility

In many rent-to-own agreements, the renter is responsible for maintenance and repairs. This can be costly and differs from most traditional rental agreements where the landlord is typically responsible for these costs.

Risk of forfeiture

If the renter fails to abide by the terms of the agreement, they may lose their right to purchase the property and forfeit all payments made towards the purchase price.

The history of the rent-to-own contract

Rent-to-own homes, as a concept, trace back to the 1950s and 1960s, a period of significant changes in the housing market. During this time, returning World War II veterans and the resulting baby boom led to an increased demand for housing. However, many individuals found themselves unable to secure a mortgage due to strict lending standards. Rent-to-own homes emerged as a viable rental agreement solution to bridge this gap, allowing regular people to gradually work towards homeownership.

The approach gained even more traction during the late 1970s and early 1980s when the United States experienced a surge in interest rates, which made traditional mortgages less affordable for many prospective homeowners. The rent-to-own model gave people the chance to lock in a future purchase price and bypass the high-interest rates of their time.

The 2008 financial crisis and the ensuing tightening of mortgage lending standards again brought the rent-to-own option into the limelight. With many people’s credit scores damaged and banks more cautious about lending, rent-to-own homes became an alternative path to homeownership for those who might otherwise be left out in the cold.

The future of the rent-to-own housing market

As we look towards the future of the rent-to-own housing market, there are several factors at play. The aftermath of the COVID-19 pandemic and the subsequent economic volatility has left many people in challenging financial situations, possibly making the rent-to-own model more attractive to a larger audience.

Additionally, technology is playing a more significant role in the real estate market. Online platforms can connect renters and property owners, making the process of finding, inspecting and signing rent-to-own agreements more accessible and transparent than ever before. This technological shift could democratize the rent-to-own process, making it a more prevalent choice in the housing market.

It’s also important to keep in mind that the rent-to-own market’s growth will also depend on various factors like changes in real estate laws, fluctuations in the economy and shifts in societal attitudes toward homeownership.

Lastly, there’s an increased call for consumer protection in the rent-to-own sector. As the market grows, so too does the need for regulations to protect consumers from unscrupulous practices. The future might see more standardized contracts, more transparent disclosures and enhanced protections for those who choose this route to homeownership.

Is this rental agreement right for you?

Rent-to-own homes offer a unique blend of renting and buying, giving people a fresh shot at the dream of homeownership. As with any financial strategy, it’s critical to fully understand the implications and potential risks, making the most out of this innovative approach to securing a home.

It’s a market that has evolved throughout history, adapted to the changing times, and is likely to continue evolving in the future. There’s no better place to start your search for that perfect rent-to-own home than right here, right now.

Source: rent.com

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Last year I was closely involved with a hotel project on Crete which proved ultimately profitable even though the Greek economy tends to stifle profits. Located at a seaside fishing village turned favored tourist spot is where an entrepreneur named Dimitris Markakis spent sleepless nights to bring a stunning hospitality venture to life. SeaScape Luxury Residences are expanding this year because of a combination of impeccable design, efficient marketing and sales, and an age-old equation that involves geographical fate.

Agia Pelagia one of Cretes most amazing seaside villages Author image

“In Tune” Development

Not so many years ago Agia Pelagia was a tiny fishing harbor where goats and sheep were as likely to be seen on the stunning beach as sunburned tourists are today. Once a majestic port for the Bronze Age Minoan civilization, today the town offers delectable Cretan cuisine straight in front of one of Crete’s most stunning swimming, snorkeling, and watersports spots. But when Dimitris Markakis described for me how the good fortune played a role in Crete development, I was reminded how timing is everything. As it turns out, property on the seaside in places like Agia Pelagia was once deemed worthless by the patriarchs of agrarian families.

When these properties were passed down, the favored sons and daughters were given farmlands, olive groves, and orchards – the youngest or those in disfavor, they got beachfront. Talk about a “twist” of fate. As luck so often has it, those less favored siblings mostly sold their property for pennies rather than drachmas. Smart entrepreneurs and those seeking lots by the seaside were the beneficiaries. Today, however, the problem for property developers and entrepreneurs is the economy, taxes, and plummeting prices, not to mention the dire need to build sustainably. With the touristic corporations bearing down on Crete, local entrepreneurs are under increased pressure to conform. SeaScape is a truly non-conformist idea when compared to the big seaside developments.

Bucking the trend to build, Markakis’ and his brothers’ not only had the challenge of creating a luxury self-catered vacation abode, they were also building a brand new development into an already crowded village geography. Agia Pelagia, like other Cretan seaside villages, is struggling to preserve its Cretan traditions and identity, so the SeaScape development came with myriad difficulties above and beyond potential profit and loss. Ultimately, the property designed by the gifted architect, Lefteris Tsikandilakis got built despite a couple of hundred logistical and bureaucratic hurdles.

SeaScape Phases I II from above Courtesy Lefteris Tsikandilakis

Last year I interviewed Lefteris Tsikandilakis, the gifted architect who designed SeaScape Phase One to find out more about the overall vision of this amazing self-catering boutique resort. I got from the designer the developmental philisophy behind this new development:

“It is obvious that every residence is unique, but that wasn’t necessarily the principal design purpose. In this particular project, we had to deal with 2 challenging plots with sharp slopes, their integration in an already developed building, and the need for these plots to be configured in the best possible way. The sea view, the orientation and the scope for the internality of the plot, were principal elements that defined the spatial design.”

The Recipe

SeaScape Luxury Residences became a success in its first year of operation, despite all the hurdles, because of the cohesive efforts for design, efficiency, sensitivity to the local environment, marketing, sales, and creating the perfect guest experience. On the latter, Dimitris Markakis offered this:

”Seascape Luxury Residences” redefines the meaning of “Cretan hospitality” with the addition of 15 new residences with differentiated comfort and innovative design. Every guest here will experience luxury and truly relaxing vacations in the heart of the cosmopolitan village of “Agia Pelagia”. The additional residences feature a unique architectural design that combines simplicity with stylish luxury. The modern decoration aesthetics accentuate out themes of ultimate tranquility and relaxation that every guest needs and expects during summer vacations.”

SeaScape is a stunning property, in the perfect location, and the development actually adds to the aesthetic of Agia Pelagia, rather than detracting from it. This brings me to location, and how complex the job was for Markakis and his team. Choosing to put a hotel in the wide open spaces is one thing, but designing with a vision smack in the middle of a thriving small village is another. The developers of SeaScape had to take into consideration the streets, thoroughfares, zoning, touristic and service traffic, neighboring houses, stores, villas, and so forth. Knowing the value of being in Agia Pelagia may have been a given, but displaying everything in the town for a spell brought looks of concern from the community. I know Dimitris spent many sleepless nights worried over civic outrage over huge cement trucks and etc. I’m sure he wondered many times whether or not he’d selected the right location – ultimately he was proven right. The beautiful people lounging (as in the Instagram share below) at SeaScape last summer must have been a rewarding experience for the owner.

https://www.instagram.com/p/BpVBpSzg8Xy/?utm_source=ig_web_options_share_sheet

Building a brand new vacation residence is hard enough. No matter how compelling any development is on paper, the team that designs, builds, organizes, and promotes must work as harmoniously as possible with the same goals in mind. And once the luxury residences were up, the twin swimming pools filled, the chic pool bar stocked and pillows fluffed, then came the branding and the rush to bookings. I was on the site two weeks before the first guests were slated to arrive, and I can tell you SeaScape looked about half complete. Miraculously, the team opened on schedule and the world of the sales and marketing team came into play. I spoke briefly about SeaScape Phase One, and the new expansion with Giorgos Ergazakis, who’s the Director of Sales at Plarino – Hotel Management Services, the company that handles SeaScape sales strategy. Here’s what he had to say about SeaScape’s initial success:

“The SeaScape Luxury Residences case is interesting for several reasons. Given the end product and the clearly demonstrated vacationer value at the end, most sales execs would consider the property and easy sell. But SeaScape sits in the middle of the amazing competition. We are very prou ofd our marketing and pricing competitiveness helped make the property profitable in such a short time.”

Vision, location, a clear strategy, creating an effective team, and presenting the destination and the accommodation value to the public effectively, all this and more led to SeaScape’s initial successes. And now SeaScape Phase Two is slated to open in the Spring at Agia Pelagia.

Design projections SeaScape One and Two Courtesy Lefteris Tsikandilakis

Expanding On Success

SeaScape Phase One was built upon vacant lots alongside an existing apartment complex at Agia Pelagia. Markakis’ vision had always been to expand the new property to integrate with these existing apartments. Design wise, the trick is to shape the facades and the surrounding environment so that Phase One and Two are combined aesthetically and functionally. My texts from Lefteris Tsikandilakis’ offices speak of key materials usage to make this integration perfect, but the architect’s job is not only about congruent materials. Tsikandilakis will have to create the same sense of casual luxury in this second phase, that guest experienced and talked about from SeaScape Phase One. As the architect told me, SeaScape exists as a perfect balance of interiors and exteriors which create an overall sense.

The second part of the SeaScape story will be completed when more visitors to Agia Pelagia go home to express the special experience of place that many believe can only be achieved here on Crete. Marketing and sales for SeaScape Luxury Residences will be challenged to meet or exceed last year’s successes. The staff will certainly be expanded, guests will expect their luxury holiday, and if my guess is right, many more holiday seekers will become purist fans of one of the world’s most fabulous island getaways, in no small part due to the efforts of Dimitris Markakis, a smart Crete businessman bold enough to be different.

Phil Butler is a former engineer, contractor, and telecommunications professional who is editor of several influential online media outlets including part owner of Pamil Visions with wife Mihaela. Phil began his digital ramblings via several of the world’s most noted tech blogs, at the advent of blogging as a form of journalistic license. Phil is currently top interviewer, and journalist at Realty Biz News.

Latest posts by Phil Butler (see all)

Source: realtybiznews.com

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[Editor’s note: This is an excerpt from the conclusions from the category product review series for the small landlord property management software sector. The full conclusions can be found here. Originally published in the Geek Estate Mastermind.]

the act of partnering to improve the landlord experience.

Succeeding in the property management software sector requires partnerships. It’s impossible to build and deliver every valuable service to landlords directly. If you’re to truly be a one-stop-shop for your customers, you must integrate offerings from across the landscape.

Below are a few of the potential add-on services defining the category:

AirDNA: Could be leveraged to help inform landlord’s what returns they can expect by switching from long- to short-term. Learn more.

Arrived: Helps renters build real estate wealth while renting, they are a potential collaborator should their model shift to partnering with landlords rather than owning 100% of their inventory. Learn more.

Digs: Helps tenants automatically save for buying a home and monitor their credit. Learn more.

Keepe: An end-to-end property maintenance solution on top of a vetted, on-demand contractor network for property managers. Learn more.

Knock: Allows renters to tour apartments by themselves, with no agents on-site and no scheduling. Learn more.

RentSpree: Facilitates online rental application and/or screening reports, with full API support ripe for working with other landlord tech providers. Learn more.

Rhove: Helps renters build savings to eventually buy, while helping landlords lessen costly tenant turnovers. Learn more.

Setter: A home manager that ensures a landlord’s asset is maintained and improved. Learn more.

ShowDigs: Outsources the showings to a third party, which uses a network of licensed agents. Learn more.

Stake.rent: Increases loyalty by matching 2% of a tenant’s monthly payment. Allows them to keep 80% of the earnings saved in their Stake account, and they’ll earn bonuses on future rent payments. Learn more.

Super: A subscription maintenance service that pays to repair or replace covered appliance and home system breakdowns, plus manages the logistics for home service needs. Learn more.

Steady: Helps landlords protect themselves from non-payment with Rent Guarantee insurance, in partnership with Nationwide. Existing partnership with Avail. Learn more.

TheGuarantors: Lowers the barriers to renting by helping reduce upfront costs for tenants with a Security Deposit Replacement. Learn more.

Till: Provides rental loans to pay rent on-time, providing tenants repayment flexibility while helping them avoid late fees and eviction. Learn more.

Source: geekestateblog.com

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Secretary of the U.S. Department of Housing and Urban Development (HUD) Marcia Fudge “fired up” the crowd during her keynote speech at the 2023 National Association of Real Estate Brokers (NAREB) Annual Conference when she spoke about the recently-announced HUD-NAREB partnership designed to tackle appraisal bias.

“HUD and NAREB will work together to fight appraisal bias in the Black community,” Fudge said. “I live in a Black neighborhood by choice; my home is bigger, my lot is bigger, yet my home is valued less than the white neighborhood down the block; this must change.”

In an announcement, NAREB described Fudge’s speech as a “dynamic and inspirational address that ignited passion and commitment among attendees at NAREB’s annual convention.”

Fudge and NAREB President Lydia Pope both hail from the Cleveland, Ohio area. Fudge praised Pope’s work as the association’s leader during her speech. Fudge also addressed her commitment as HUD Secretary in addressing disparities for marginalized communities.

Fudge also addressed the access to credit for borrowers of color, and discussed the work HUD and the Biden administration are doing to address the role homeownership plays in building generational wealth, a common point of discussion for HUD under her leadership thus far.

“Some Black borrowers lack credit, but now when obtaining an FHA loan, rental history can be used as a credit history,” she said, touching on recent policy changes at HUD and the Federal Housing Finance Agency (FHFA) that considers on-time rent payments as a part of a potential borrower’s credit history.

In terms of the role homeownership takes in building wealth for families, Fudge reiterated her belief in forging a more direct path to homeownership. “We cannot deal with inflation until we deal with the housing crisis,” she said. “Most of us build wealth through homeownership.”

Fudge also admonished certain policymakers for telling younger people that they don’t need to own a home.

“Who told them that foolishness?,” she reportedly asked rhetorically. “We need to help get them in homes, so we need your advocacy. […] Stay encouraged, stay vigilant, We need you. Thank you,” she concluded.

Source: housingwire.com

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Today’s guest, commercial real estate broker Miguel Pinto, founded Apex Capital Realty in 2017. Since then, his company has closed over $2.25 billion in volume. Last year, it was included in Inc. 5000’s list of fastest growing companies. On this podcast, we discuss what it takes to achieve massive success in the commercial real estate space. Listen and learn how to win commercial real estate deals and how to scale as a commercial brokerage.

Listen to today’s show and learn:

  • Miguel Pinto’s start in real estate [2:50]
  • How long it can take to land a commercial real estate deal [4:51]
  • Ways to generate commercial real estate leads [7:13]
  • Florida real estate market predictions [12:46]
  • Tactics for getting developers’ deals done [16:03]
  • The biggest crisis in commercial real estate today [19:18]
  • Opportunities for today’s investors [22:30]
  • Advice on running a commercial real estate business [27:09]
  • Miguel’s goals for 2023 and beyond [33:54]
  • Where to find and follow Miguel Pinto [35:59]

Miguel Pinto

Miguel Pinto is a renowned figure in the world of commercial real estate, with an impressive ability to identify market opportunities before they arise. His expertise has earned him a reputation as one of the industry’s leading brokers, with recognition from top investors, banking institutions, equity advisors, and other top brokers.

Miguel’s success is reflected in his outstanding track record of closing a vast number of transactions, totaling over $1.5 billion. In acknowledgment of his in-depth industry knowledge and remarkable ability to secure competitive deals, Miguel was honored with the title of South Florida Business Journal’s Power Broker for both 2022 and 2023.

Driven by his entrepreneurial spirit, Miguel established APEX Capital Realty in 2017 with a desire to create his own path and connect with like-minded deal makers. Thanks to his leadership and passion, APEX Capital Realty has since closed $2.25 billion in transaction volume and has assembled a team of over 35 Commercial Advisors, and growing. The team has also extended into new markets within Florida and will be opening an office in Palm Beach County later this year. In 2022, APEX Capital Realty has also been recognized among Inc’s 5000 fastest-growing companies.

Miguel’s dedication to mentorship and belief in its importance in unlocking the potential of the South Florida community is evident through his active involvement in the Real Estate Council at FIU’s Tibor & Shelia Holo School of Real Estate. As a council member, Miguel provides valuable mentorship to students, helping to shape the future of the Real Estate program.

Related Links and Resources:

It might go without saying, but I’m going to say it anyway: We really value listeners like you. We’re constantly working to improve the show, so why not leave us a review? If you love the content and can’t stand the thought of missing the nuggets our Rockstar guests share every week, please subscribe; it’ll get you instant access to our latest episodes and is the best way to support your favorite real estate podcast. Have questions? Suggestions? Want to say hi? Shoot me a message via Twitter, Instagram, Facebook, or Email.

-Aaron Amuchastegui

Source: realestaterockstarsnetwork.com

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No matter whether you invest in publicly traded or private businesses, you’ll follow a similar process: determine the method in which you want to invest, how much you want to invest, and whether the company’s performance and potential is worth your hard-earned dollars.

Source: moneyunder30.com

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This is a guest-post from Tim Ellis, author of Seattle Bubble, a blog and forum dedicated to discussing real estate market conditions in the Seattle area.

“If you rent, you’re throwing away your money.”
“Owning your own home is a forced savings plan.”
“Home ownership is an excellent path to build wealth.”

You’ve probably heard statements like these plenty of times. On television, radio, the internet, and in casual conversation. Such sentiments are common in any discussion that involves home-buying and personal finances. It’s common knowledge that buying a home is a better financial move than renting. After all, you’re building equity instead of throwing away your money, right? Well, maybe not quite… Rather than assuming the “common knowledge” on this subject is accurate, let’s take a look for ourselves at some of the financial differences between renting and home-buying.

A Real-World Example

For the purpose of comparing renting to owning in this article, I’ll be using real-world data gathered from my area (northeast of Seattle). Although most first-time buyers tend to move from renting an apartment to buying a larger, stand-alone house, as much as I can I will compare apples to apples.

  • For rent, I located a 3-bed, 2.5-bath, 1,840 sqft house with an attached 2-car garage, on 0.2 acres. Monthly price: $1,495.
  • For purchase I found a 3-bed, 2.5-bath, 1,850 sqft house with an attached 2-car garage, on 0.22 acres. Price: $424,950.

The two homes are located within two miles of each other in similar neighborhoods, and neither is located on a busy road. We’ll assume that our hypothetical homebuyer is a married couple with $85,000 in the bank to make a 20% down payment. To calculate mortgage payments we will use a recent 30-year fixed interest rate of 6.25%.

Let’s look at how the monthly costs break down (approximately) for our hypothetical potential first-time homebuyer:

Renting Buying
Rent/Mortgage: $1,495 $2,093
Insurance: $20 $163
Property Tax: – $407
Tax Savings*: – ($327)
Maintenance: – $354
Total: $1,515 $2,690

*: (less standard deduction)

Right off the bat, you see that simply trading straight across from renting to owning results in a 78% more expensive monthly bill. That’s not exactly chump change. With even a slight upgrade from renting to buying (which most first-time buyers are prone to do), you can easily see how the total monthly costs would be more than double.

“If You Rent, You’re Throwing Away Your Money.”

Common knowledge says that despite today’s large premium, buying a home is a “good investment”. Hey, at least you’re not “throwing away” your money, right? True, the renter in our scenario spends $1,515 every month that they will never see again. I wouldn’t exactly say it has been “thrown away” any more than money spent on any other good or service is “thrown away,” but granted, there is zero financial return on that money.

However, when you take a look at the breakdown of the homebuyer’s monthly expenses, a large amount is money that will never return, either. Insurance, property tax (less tax savings), and maintenance, add up to $517 every month that is being “thrown away.” Even worse is the amount spent on mortgage interest. Consider how much of a mortgage payment is applied toward loan interest throughout the life of a 30-year fixed loan:

Years % toward interest
0-5 ~80%
6-10 ~70%
11-15 ~60%
16-20 ~50%
21-25 ~35%
26-30 ~10%

In the first five years, approximately 80% of the mortgage payment goes toward interest. That’s an additional $1,674, for a total of $2,191 being “thrown away” every single month by the homebuyer for the first five years. Ouch! In fact, not until the homebuyer has been paying down the mortgage for over 20 years will the amount they are “throwing away” be less than the renter.

“Owning Your Own Home is a Forced Savings Plan.”

As you can see above, if home buying is like a savings plan, it’s probably the worst savings plan on Earth. Would you voluntarily sign up for a savings plan where well over half of the money you deposit in the first 20 years simply vanishes, and from which you can only withdraw money by relocating and paying a 6-9% fee (not on the amount you have “saved” mind you, but on the total sale price of the home)? Of course not. That doesn’t sound anything like a savings plan.

If our potential homebuyer has that $85,000 saved up for a down payment and deposits it along with just half of the monthly savings over buying ($578 per month) into an account at 8% interest, the balance will be nearly $300,000 in just 10 years. That’s a liquid investment, that can be used for whatever you want, no relocation required. Buying a home is not a savings plan. Actually saving money every month is a savings plan.

“Home Ownership is an Excellent Path to Build Wealth.”

If your goal is to build wealth, you will be much better off investing your money in the stock market than buying a home. While both stocks and housing are cyclical markets, long-term historic trends show that housing appreciates at a rate barely above inflation, while stocks tend to return an inflation-adjusted 7-10%. In our hypothetical scenario, a renter who invested in the stock market with the $85,000 down payment plus the monthly difference between the $1,515 rent and the $2,690 home-buying costs would be over $500,000 better off after 30 years than the homebuyer, assuming 4% average appreciation.

An important thing to consider is that home prices in the United States are just now beginning to correct from an enormous unprecedented run-up in recent years. Despite what those in the business of selling real estate may insist, the correction in housing is still in the early stages. Four percent is most likely overly optimistic for most areas in the next 5-10 years. The only thing we know for sure is that double-digit gains are gone and won’t be coming back any time soon.

Also keep in mind — I mentioned it above but it bears repeating — in order to cash in on any “wealth” you build through your home you will need to sell that home and move. No, “extracting equity” does not count, since that simply results in a larger debt. Debt is not equal to Wealth.

Conclusion

For most people buying a home will result in their largest monthly bill (by far), and because they believe that it will bring them wealth or that they are “throwing away their money” if they rent, they often take on a much larger home debt than a prudent budget would allow. It is a real shame when people are driven to get into the housing market because of misplaced notions of imagined financial benefits. Of course, everyone’s circumstances are different, and for some (particularly those that live away from the coasts) the numbers may actually work out in favor of buying.

Don’t misunderstand me here. I am not saying that no one should buy a home, or that my example scenario is a golden standard of truth for all. Don’t take my word for it. Run the numbers for yourself, check out other articles (a small collection is listed below), and do what works for you. I highly recommend the great graphical calculator from The New York Times for comparing the financial aspects of renting and buying. Many people will consider all of the consequences — financial, emotional, etc. — and conclude that buying a home is the best decision. Just don’t trick yourself into thinking it’s a good financial decision if it’s not.

I myself intend to buy a house some day. However when that day comes, I will be buying a house because I want a nice, “permanent” place to live where I’m the boss, not because I think it will help me get me rich.

Additional Resources

Wall Street Journal: Your Home Isn’t the Nest Egg That You May Think It Is
New York Times: A Word of Advice During a Housing Slump: Rent
New York Times: Is it better to buy or rent? (graphical calculator)
The Motley Fool: The Worst Investment Ever
SmartMoney.com: Renting Makes More Financial Sense Than Homeownership
CNN Money: Stocks vs. Real Estate
Priced Out Forever: Renting vs. Purchasing

Source: getrichslowly.org

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RealtyTrac has released a new report that identifies potential bubble markets based upon three early warning signs.

There has been increased fear of another housing bubble for a while now, with some markets already identified as bubbles and others supposedly suffering from an affordability crisis.

Signs of a possible housing bubble include the following:

– A market that was less affordable in October 2014 than its peak price during the previous bubble between 2005 and 2008
– A market that was less affordable in October 2014 compared to its historical average since 2000
– A market with a rising foreclosure rate on loans originated this year compared to last year

Overall, the price of a median-priced home required 26% of median income in October in 475 counties nationwide.

This compares to a historical average of 28% going back to January 2000, and is still well below the 41% average seen in each county’s peak month during the most recent housing bubble.

In fact, just six counties were deemed less affordable in October than during their peak between 2005 and 2008, thanks in part to higher incomes and low mortgage rates.

The short list includes Suffolk County, Massachusetts, Travis County, Texas, Jefferson County, Alabama, Brazos County, Texas, Allegan County, Michigan, and Montgomery County, Tennessee.

These counties correspond to the metro areas of Boston, Austin, Birmingham, College Station, Grand Rapids, and Clarksville.

However, 21% of counties nationwide are now less affordable than their historic averages, including hot spots like Los Angeles, Orange County, San Francisco, Dallas, San Antonio, and even parts of Detroit.

Meanwhile, 37% of counties are reporting rising foreclosure rates on loans originated this year compared to last, including places like Chicago, San Diego, Brooklyn, Miami, Las Vegas, and Seattle.

And six percent (30%) of counties are both unaffordable by historic measures and experiencing rising foreclosure rates on recent loans.

This combined problem list includes places like the San Francisco metro area, Suffolk County, Orange County, Honolulu, Denver, the St. George, Utah metro area, and the Bend, Oregon metro area.

RealtyTrac vice president Daren Blomquist noted in the report that affordability and foreclosure rate by loan vintage are key metrics that help determine if a certain market is at risk of another pricing bubble.

He added that about 20% of markets have now surpassed their historical affordability norms, a “strong sign” that a bubble is forming or that appreciation will soon plateau until wages have a chance to catch up.

The fact that foreclosure rates are rising on new loans could be an indication that affordability is once again a concern as buyers stretch themselves too thin.

12% of Counties Have Reached New Home Price Peaks

In October, a total of 58 counties had higher median home prices than their prior peaks seen in 2005 to 2008.

The usual suspects made this list too, including San Fran, New York, Boston, and Denver, along with Charlotte, Raleigh, and Buffalo.

However, low interest rates are keeping homes in these highly sought-after areas affordable. But if rates rise and home prices continue to climb, the story could change in a hurry.

But nearly half (48%) of counties nationwide are still historically affordable and experiencing flat or declining foreclosure rates. So the whole nation isn’t yet at risk of another housing bubble.

The most affordable regions include Lansing, Syracuse, Cincinnati, Atlanta, and Buffalo.

There’s clearly some divergence in terms of affordability and home price peaks. Put another way, some areas of the country are experiencing new all-time highs but are still historically affordable.

The concerning thing is the unaffordable places, especially at a time when interest rates have never been lower. It doesn’t bode well for them or those at new highs, unless interest rates stay low forever.

Read more: When will the next housing crash take place?

Source: thetruthaboutmortgage.com