2021 VA Home Loan Limit: $0 down payment up to $5,000,000* (subject to lender limits) /2 open VA loans at one time $548,250 (Call 877-432-5626 for details).
How to Apply for a VA Home Loan?
This is a quick look at how to apply for a VA home loan in Merced county. For a more detailed overview of the VA home loan process, check out our complete guide on how to apply for a VA mortgage loan. Here, we’ll go over the general steps to getting a VA home loan and point out some things to pay attention to in Merced County. If you have any questions, you can call us at VA HLC and we’ll help you get started.
Get your Certificate of Eligibility (COE)
Give us a call at (877) 432-5626 and we’ll get your COE for you.
Are you applying for a refinance loan? Check out our complete guide to VA Refinancing.
Get pre-approved, to get pre-approved for a loan, you’ll need:
Previous two years of W2s
Most recent 30 days paystubs or LES (active duty)
Most recent 60 days bank statements
Landlord and HR/Payroll Department contact info
Find a home
We can help you check whether the home is in one of the Merced County flood zones
Get the necessary inspections
Termite inspection: required
Well or septic inspections needed, if applicable
Get the home appraised
We can help you find a VA-Certified appraiser in Merced County and schedule the process
Construction loan note: Construction permit/appraisal info
Building permit
Elevation certificate
Lock in your interest rates
Pro tip: Wait until the appraisal lock in your loan rates. If it turns out you need to make repairs, it can push your closing back. Then you can get stuck paying rate extension fees.
Close the deal and get packing!
You’re ready to go.
What is the Median Home Price?
As of March 31, 2021, the median home value for Merced County is $326,192. In addition, the median household income for residents of the county is $53,672.
How much are the VA Appraisal Fees?
Single-Family: $600.
Individual Condo: $600.
Manufactured Homes: $600.
2-4 Unit Multi-Family: $850.
Appraisal Turnaround Times: 7 days.
Do I need Flood Insurance?
The VA requires properties are required to have flood insurance if they are in a Special Flood Hazard Area.
In Merced County, there are many flood plains, especially in the low-lying areas. Your agent can help you to check whether a property will require flood insurance.
How do I learn about Property Taxes?
For questions about property tax, you can get in touch with Merced County Assessor Barbara Levey. Her office is located at 2222 M. St. Merced, CA 95340 or by calling (209) 385-7434.
Veterans, owner-occupiers, and senior citizens may be eligible for property tax relief. You can find out whether you qualify through the county assessor. In addition, the Assessor’s Office can do re-appraisals to determine property values and flood risks.
What is the Population?
The county’s population of 277,680 is, 61% Hispanic, 26% White, and 7% Asian.
Most county residents are between 18 and 65 years old, with 29% under 18 years old and 11% older than 65.
In total, the county has about 79,606 households, with an average of three people per household.
What are the major cities?
There is a total of six cities in the county including the city of Merced which also served as the county seat. In addition, the five other cities in the county are Atwater, Dos Palos, Gustine, Livingston, and Los Banos.
About Merced County
Merced County, California is located right in the heart of California’s San Joaquin Valley. This region is known as the breadbasket of the US because of its agricultural production. In addition, while Merced is away from the bustle of California’s biggest cities, the I-5 runs through the county and connects it to the rest of the state.
The City of Merced is the county’s cultural and economic hub. In addition to its connection to California’s primary highway system, it is also home to a major train station. The downtown area has plenty of exciting restaurants, shops, and nightlife.
The county is also home to plenty of green space. There are two national wildlife preserves along the river, where you can hike or bike along miles of trails. Plus, the City of Plenada, on the county’s eastern edge, contains one of the entrances to Yosemite National Park. Residents don’t just enjoy the park’s natural beauty but the droves of tourists it brings to the region each year.
Veteran Information
The county is currently home to 9,662 veterans.
Merced County is home to four VFW post:
Post 4327 Robert M Kelley – 939 W. Main St. Merced, CA 95340.
Post 8327 Livingston – 1605 7th Street, Livingston, CA 95334.
Post-2487 Lieut. Laurence F. Muth – 615 E Street, Los Banos, CA 93635.
Post 7635 Joseph G. Rose – 145 5th Street, Gustine, CA 95322.
VA Medical Centers in the county:
Merced VA Clinic – 340 East Yosemite Avenue, Suite D, Merced, CA 95340.
County Veteran Assistance Information
Merced County Veteran Services – 3376 N State Hwy 59, Merced, CA 95348.
VA Home Loan Information
For more information about VA Home Loans and how to apply, click here.
If you meet the VA’s eligibility requirements, you will be able to enjoy some of the best government-guaranteed home loans available.
VA loans can finance the construction of a property. However, the property must be owned and prepared for construction as the VA cannot ensure vacant land loans.
VA Approved Condos
Name (ID): VILLA DEL SOL (C01070) Address: NONE MERCED CA 95348-0000 MERCED Status: Accepted Without Conditions Request Received Date: 11/16/1986 Review Completion Date: 11/16/1986
With international airfare up 20% compared to last year, a business-class fare deal to Europe, with availability this summer, is absolutely amazing.
Fares from across the U.S. to Italy, France, Spain, Germany, Switzerland and Belgium start as low as $2,400 round-trip.
Deal basics
Airlines: American, United, Delta, Air Canada, Lufthansa, British Airways and TAP. Routes: From Chicago, Dallas, Houston, New York, Miami, Baltimore, Washington, Los Angeles and others to Europe. How to book: Browse Google Flights and book directly with the airline. Travel dates: May through December 2023 and January through March 2024; exact availability depends on the route. Book by: ASAP.
Going, formerly known as Scott’s Cheap Flights, originally discovered this deal. Sign up for Going to get deals up to 90% off via its Premium membership, which users can try for free for 14 days and then $49 per year. You can also upgrade to the Elite membership for $199 per year and receive all the Premium deals plus premium economy, business-class and first-class alerts.
Sample routes
The following flights were priced as listed at the time of publication. We cannot guarantee the below round-trip flights will be available when you book.
To Rome Fiumicino Leonardo da Vinci Airport (FCO), from:
San Francisco International Airport (SFO), starting at $2,515.
Los Angeles International Airport (LAX), starting at $2,809.
George Bush Intercontinental Airport (IAH), starting at $2,814.
Seattle-Tacoma International Airport (SEA), starting at $2,916.
To Paris-Charles de Gaulle Airport (CDG), from:
SEA, starting at $2,650.
SFO, starting at $2,677.
To Brussels Airport (BRU), from:
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Newark Liberty International Airport (EWR), starting at $2,028.
Miami International Airport (MIA), starting at $2,226.
William P. Hobby Airport (HOU), starting at $2,379.
O’Hare International Airport (ORD), starting at $2,416.
To Geneva Airport (GVA), from:
LAX, starting at $2,305.
Hartsfield-Jackson Atlanta International Airport (ATL), starting at $2,315.
Austin-Bergstrom International Airport (AUS) and Minneapolis−St. Paul International Airport (MSP), starting at $2,320.
SFO, starting at $2,381.
HOU, starting at $2,391.
IAH and Denver International Airport (DEN), starting at $2,417.
To multiple airports in Germany, from:
LAX or SEA to Frankfurt Airport (FRA), starting at $2,380.
IAH to FRA, starting at $2,437.
DEN to FRA, starting at $2,438.
HOU to Munich Airport (MUC), starting at $2,449.
DEN or LAX to MUC, starting at $2,484.
IAH to MUC, starting at $2,484.
Dallas Fort Worth International Airport (DFW) to FRA, starting at $2,619.
SEA, starting at $2,660.
Since this deal includes round-trip flights on multiple airlines, be sure to book with each airline directly and review the terms and conditions of the fare type, as they vary by carrier.
For example, most major airlines’ business-class fares on flights from the U.S. to Europe feature lie-flat seats, but not all. Most bigger carriers do, but some older planes might not have the most up-to-date seats, so be sure to check the details for the aircraft listed for your specific flight before you book.
Maximize your purchase
Don’t forget to use a credit card that earns bonus points on airfare purchases, such as:
Bottom line
This is an opportunity to save up to 50% off round-trip business-class flights to Europe. Run, don’t walk to catch this deal before it flies away.
A wash sale occurs when an investor sells a security at a loss, and buys a very similar security within a 30-day window of the sale (30 days before or after). The wash-sale rule is an Internal Revenue Service (IRS) regulation that states an investor can’t receive tax deduction benefits if they sell an investment for a loss, then purchase the same or a “substantially identical” asset within 30 days before or after the sale.
While investors may find themselves in a position in which it may be beneficial to sell securities to harvest losses, it’s important to know the wash-sale rule in and out to avoid triggering penalties.
Which Investments are Subject to the Wash-Sale Rule?
The wash-sale rule applies to most common investments, including:
• Stocks
• Bonds
• Mutual funds
• Options
• Exchange-traded funds (ETFs)
• Stock futures contracts
Transactions in an individual retirement account (IRA) can also fall under the wash-sale rule. The wash-sale rule does not apply to commodity futures or foreign currency trades. The rule also applies if an investor sells a security that has increased in value and within 30 days buys an identical security. They will need to pay capital gains taxes on the proceeds.
What Happens When You Trigger a Wash Sale?
Investors commonly choose to sell assets at a loss as part of their tax or day trading strategy, or they may regret selling an asset while the market was down, and decide to buy back in.
The intent of the wash-sale rule is to prevent investors from abusing the tax benefits of selling at a loss, and claiming artificial losses.
In the event that an investor does trigger a wash sale, they will not be allowed to write off the loss when they do their tax reporting to the IRS. This means the investor won’t receive any tax benefit for selling at a loss. The rule still applies if an investor sells an investment in a taxable account and buys it back in a tax-advantaged account, or if one spouse sells an asset and then the other spouse purchases it that also counts as a wash sale.
It’s important for investors to understand the wash-sale rule so that they account for it in their investment and tax strategy. If investors have specific questions, they might want to ask their tax advisor for help.
Recommended: Investing 101 for Beginners
Avoiding a Wash Sale
Unfortunately, the guidelines regarding what a “substantially identical” security is are not very specific. The easiest way to avoid wash sales is to create a long-term investing strategy involving few asset sales and not trying to time the market. Creating a diversified portfolio is generally a good strategy for investors.
Another important thing to keep in mind is the wash-sale rule applies across an investor’s accounts. As such, investors need to keep track of their sales and purchases across their entire portfolio to try and make sure that the wash-sale rule doesn’t affect any investment choices.
What to Do After Selling an Asset at a Loss
The safest option is to wait more than 30 days to purchase an asset after selling a similar one at a loss. An investor can also invest funds into a different asset–a different enough asset, that is–for 30 days or more and then move the funds back into the original security after the wash sale window has passed.
There are benefits to selling an asset at either a profit or a loss. If an investor sells at a profit, they make money. If they sell at a loss, they can declare it on their taxes to help offset their capital gains or income. If an investor has significant capital gains to report, they may decide to sell an asset that has decreased in value to help lower their tax bill. However, if they hoped to reinvest in an asset later, a wash sale can ruin those plans.
In some cases, simply selling a stock from one corporation and purchasing one from another, different corporation is fine. Even selling a stock and buying a bond from the same company may not trigger a wash sale.
Investing in ETFs or Mutual Funds Instead
If an investor wants to reinvest funds in a similar industry while avoiding a wash sale, one option would be to switch to an ETF or mutual fund. There are ETFs and mutual funds made up of investments in particular industries, but they are often diversified enough that they wouldn’t be considered to be too similar to an individual stock or bond. It’s possible that an investor could sell an individual stock and reinvest the money into a mutual fund or ETF within a similar market segment without violating the wash-sale rule.
However, if an investor wants to sell an ETF and buy another ETF, or switch to a mutual fund, this can be more challenging. It may be difficult to figure out which ETF or mutual fund swaps will count as wash sales, and which won’t.
Wash-Sale Penalties and Benefits
If the IRS decides that a transaction counts as a wash sale, the investor can’t use the loss to reduce their taxable income or offset capital gains on their taxes for that year.
However, there can be an upside to wash sales. Investors can end up with a higher cost basis for their new investment, because the loss from the sale is added to the cost basis of the new purchase. In addition, the holding period of the sold investment is added to the holding period of the new investment.
The benefit of having a higher cost basis is that an investor can choose to sell the new investment at a loss and have a greater loss for tax reporting than they would have. Conversely, if the investment increases in value and the investor sells, they will have a smaller capital gain to report. Having a longer holding period means an investor may be able to pay long-term capital gains taxes on a sale rather than short-term gains, which have a higher rate.
The Takeaway
The wash-sale rule is triggered when an investor sells a security at a loss, but then turns around and buys a similar security within 30 days–either before, or after. It’s a bit of an opaque rule, but there can be consequences for triggering wash sales. That’s why understanding regulations like the wash-sale rule is an important part of being an informed investor.
Part of making solid investing decisions is planning for taxes and understanding what the benefits and downsides may be for any particular transaction. This is just one aspect of tax-efficient investing that investors might want to consider.
Ready to invest in your goals? It’s easy to get started when you open an Active Invest account with SoFi Invest. You can invest in stocks, exchange-traded funds (ETFs), and more. SoFi doesn’t charge commissions, but other fees apply (full fee disclosure here).
For a limited time, opening and funding an account gives you the opportunity to win up to $1,000 in the stock of your choice.
SoFi Invest® The information provided is not meant to provide investment or financial advice. Also, past performance is no guarantee of future results. Investment decisions should be based on an individual’s specific financial needs, goals, and risk profile. SoFi can’t guarantee future financial performance. Advisory services offered through SoFi Wealth, LLC. SoFi Securities, LLC, member FINRA / SIPC . SoFi Invest refers to the three investment and trading platforms operated by Social Finance, Inc. and its affiliates (described below). Individual customer accounts may be subject to the terms applicable to one or more of the platforms below. 1) Automated Investing—The Automated Investing platform is owned by SoFi Wealth LLC, an SEC registered investment advisor (“Sofi Wealth“). Brokerage services are provided to SoFi Wealth LLC by SoFi Securities LLC, an affiliated SEC registered broker dealer and member FINRA/SIPC, (“Sofi Securities).
2) Active Investing—The Active Investing platform is owned by SoFi Securities LLC. Clearing and custody of all securities are provided by APEX Clearing Corporation.
3) Cryptocurrency is offered by SoFi Digital Assets, LLC, a FinCEN registered Money Service Business.
For additional disclosures related to the SoFi Invest platforms described above, including state licensure of Sofi Digital Assets, LLC, please visit www.sofi.com/legal.
Neither the Investment Advisor Representatives of SoFi Wealth, nor the Registered Representatives of SoFi Securities are compensated for the sale of any product or service sold through any SoFi Invest platform. Information related to lending products contained herein should not be construed as an offer or prequalification for any loan product offered by SoFi Bank, N.A. Investment Risk: Diversification can help reduce some investment risk. It cannot guarantee profit, or fully protect in a down market. Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances. Claw Promotion: Customer must fund their Active Invest account with at least $10 within 30 days of opening the account. Probability of customer receiving $1,000 is 0.028%. See full terms and conditions. SOIN0523034
Save more, spend smarter, and make your money go further
If you haven’t taken a cruise lately, you might be surprised by the variety of offerings now available. No longer are cruises the sole province of greasy buffets, cheesy dance contests and screaming kids – some of the newer ships are downright luxurious, offering five star dining created by celebrity chefs and onboard activities to rival the fanciest resort. But don’t take my word for it. Here are some down and dirty tips on how to score a cruise vacation so cheap, you’ll almost feel like you took advantage of the cruise company.
Don’t Book in Advance
No, that’s not a typo. I said don’t book in advance. Unlike the airlines, the best cruise deals are usually available at the very last minute. That’s because also unlike the airlines, most people don’t take last minute cruises. (Last minute business trips or hurried flights to see a sick relative mean airlines can afford to jack up prices for people who need to travel immediately.)
But cruises are vacations. People don’t need to scurry last minute, and in fact, they usually have to plan time off work pretty far in advance. That means cruise ships with unsold capacity a few days prior to sailing need to dump it pronto, because they’re unlikely to get a last-minute rush of passengers.
So when is the ideal time to buy? As close to departure as you can. Cruise lines will usually start lowering prices 4-8 weeks prior to sailing, but it’s during the last week or two that you’ll really see prices plummet by over 50%. The cruise companies offer unsold inventory to their employees a week before the cruise. That means anything that does not sell after that goes on an absolute fire sale. The craziest deals are available 2-7 days before departure. We recently scored a 5-night Western Caribbean cruise for $149 by purchasing 4 days out. The original price was $329.
Long Cruises – and Trans-Atlantics
The best deals are often on longer cruises, because most people can’t afford to take off a week or more at a time. In fact, you’ll sometimes find 7+ night cruises selling for the same (or just a bit more) than shorter ones.
But the most screaming deals are on Trans-Atlantic trips. True, these sailings mean a lot of time at sea, but they can sometimes sell for less than 3-night cruises. We recently booked a 13-night trip from Fort Lauderdale to Barcelona for just $369. An 11 night from Miami to Southampton, England was on sale a few weeks ago for about $400.
Heck, you’d probably spend that much money on food, alone. You’re basically getting the transportation, lodging, and entertainment for free. And how many people get to say they crossed the Atlantic by sea, stopping in unusual ports like the Azores or Tenerife?
Senior, State Resident, Military and Police Discounts
Most cruises will offer hefty discounts for senior citizens, members of the military, police officers and state residents of the port of departure. But the best news is that depending on how and where you book, these discounts often apply to everyone traveling in the same room –even if only one person qualifies for the discount. Since some accommodations can fit up to four travelers, that means big savings for your party.
Choose the Big Ships
When people book cruise vacations, they usually look at the dates and itineraries first. But checking out the ship’s capacity can yield even bigger benefits. First, the ship is likelier to be newer or offer more restaurants and amenities. More importantly, the extra capacity means more rooms to sell – and the potential for cheaper prices. When comparison shopping, start with the bigger ships first. They’re the likeliest to offer lower-priced fares when compared to smaller ships on similar itineraries.
Mileage & Point Conversions
Got any unused airline miles or hotel, credit card or Amtrak points? Most of these can be readily converted into cruise credits. Depending upon the program, you can either convert into a cash-equivalent or a voucher specifically for cruise purchases. On many major airline programs, 10,000 miles are usually the equivalent of a $100 cruise credit.
Share your tips of how you saved on your last vacation or cruise below. Bon voyage!
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Looking for a greener Christmas? Re-think your gift wrap. According to Stanford University:
If every U.S. family wrapped three gifts in repurposed materials, the gift wrap saved would cover 45,000 football fields.
If every family reused two feet of holiday ribbon per year, the ribbon saved could tie a bow around Earth.
Feeling like a planet-despoiling bastard yet? Don’t beat yourself up too badly. I use some holiday paper myself. But I obtain/use it in very specific ways:
Buying during post-holiday clearance sales — they’re practically giving the stuff away
Re-using wrap when possible
Using non-traditional wrap
Getting paper and gift bags in non-traditional ways
You can frame the “to wrap or not to wrap” question in three ways: frugal or eco-friendly, or both.
A lot of people are seriously concerned about the amount of paper we produce and quickly discard. The weeks between Thanksgiving and New Year’s Day see an extra 25 million tons of garbage in the United States. How much of that waste is Pokemon wrapping paper, holographic gift bags, and curly ribbon that will still be curly (and recognizably ribbon) after 50 years in a landfill?
That bothers me. But like companies that use environmental mitigation to offset the effects of development, I’m as eco-friendly as I can be while still indulging in a certain amount of despoilation. All year long I recycle, cook from scratch, buy clothes from thrift stores, walk or take the bus, and do other things to limit my impact on the Earth.
But I also take a lot of plane trips, which apparently have a major environmental impact. I choose to eat meat. I don’t purchase strictly organic foods or green goods. And every few years I buy holiday gift wrap.
Why only every few years? Because I make it last, that’s why. That’s where the frugal part comes in.
Go paperless The first and most obvious alternative: Don’t wrap at all. If you’ve got friends/family/a partner who also feel that gift wrap is an eco-disaster, agree to put the presents out completely nekkid.
Yes, it spoils the excitement of wondering what you got for Christmas. The knowledge that you’ve kept a bunch of wrapping paper out of the landfill will have to substitute for that holiday frisson.
Or try temporary camouflage: Burrito-up gift items in bath towels or sheets. House smaller presents in old sour-cream containers and larger ones in pillowcases, or in cardboard boxes you got free from local stores. Rubber-band them shut if you can, to save on strapping tape, or tie them closed with the shoelaces you’ve taken from worn-out shoes.
(You do take them out, don’t you? And cut the buttons off shirts you’ve worn to shreds, before you cut them up to use for cleaning rags? If not, hand me your Frugal Hacker badge right now. You can have it back once you’ve earned it.)
Tip: Liquor stores discard tons of boxes, especially during the holidays, which drive us to entertain or to drink (or both). If you’re required to separate the recyclables, plan to flatten those booze boxes one or two per week for a while. Otherwise your neighbors will discuss an intervention.
You can also repurpose a cigar or shoe box. Erin Huffstetler opens the side seam of cereal boxes, turns them inside-out and re-tapes them to house shirts and other gifts. “Let your kids stamp or paint on designs,” says Huffstetler, who writes the Frugal Living Guide for About.com.
I think that’s clever. But if an empty Rice Krispies box just isn’t festive enough, how about a tin? I end up with these every year because they’re sent to me full of homemade treats. I also find them at rummage sales for practically nothing and, occasionally, in the “free” boxes at yard sales. If you don’t want your gift sliding around you can wedge it in place with crumpled-up newspaper.
Bag it Decorative gift sacks are increasingly popular. My theory is that a lot of people are as bad as I am at wrapping packages but are too classy to give lumpy presents. (My gifts look positively glandular.) Gift bags would seem to be the perfect solution. But unless they have handles that can be tied shut, you need to add tissue paper to cover up the presents.
Fiendishly clever of the gift-wrap companies, isn’t it, selling an easy-to-use item that requires a corollary purchase?
A close relative of mine uses gift bags made of super-strong paper, versus the flimsier, single-use varieties. Since she gives only to people she’s known a long time, they’ve accepted that it’s one of her idiosyncrasies to ask for the bags back. Pick the right gift sack (and the right recipients) and you won’t have to buy wrapping supplies for years.
If you’ve got a sewing machine, you could make simple cloth bags to cover the goods. (Hand-stitching is possible, obviously, but more time-consuming.) Look for fabric remnants at thrift shops. You might even luck into a holiday-themed pattern; how often do people plan to make gifts but wind up donating that holly-printed flannel? Watch for old sheets or Christmas-y dish towels, too. But not Christmas guest towels, because it’s a known fact that these should never be used.
The bags don’t have to include a drawstring or Velcro unless you want to show off. Just tie it closed with a piece of ribbon, string, or raffia.
Tip: Did you buy rolls of ribbon at that post-holiday clearance sale? Cut a single long piece into 1/8th-inch-wide slivers. Each will hold bags closed just as well as a wide ribbon would. The ends may even become curly, and you can pretend that you did it that way on purpose.
Or how about putting gifts in reusable shopping bags? It’s possible to ask for these bags back, too, unless you want to make them part of your gifts. You’re looking for environmental mitigation, remember? Encouraging others to eschew plastic bags counts.
More than one way to wrap I haven’t bought clearance holiday wrap for at least two years yet my supply is still pretty ample. In part that’s because whenever possible I save the paper from gifts I receive and use it the following year to wrap items of similar size. If there are marks where tape or ribbon was removed, I cut down the paper to fit smaller items.
I’ve heard of people using a warm iron on the opposite side of gift wrap, to make it nicer for reuse. Since I barely iron my clothing, I’m unlikely to press paper. If you do this, please don’t cause any house fires.
(Speaking of which: Don’t throw commercial gift papers into a fireplace or wood stove. They burn so fast and so hot that they could create a flash fire. Besides, the inks could contain metallic materials and heavy-metal compounds, according to Consumer Reports.)
You don’t necessarily need to buy paper designed specifically for presents. Some other possibilities:
Newspaper end rolls. If there’s a newspaper or printing company in your area, ask if you can buy an almost-finished roll. These still contain a ton of paper that can be used as-is or customized any way you want. Rubber-stamp it. Flick a loaded paintbrush at it. Let your kids draw holiday pictures on it. Or do the messy-but-fun activity of dipping their li’l hands into water-based acrylic paint and making hand prints on the paper. (And if your recipient is a “CSI” fan? Have them leave only their fingerprints.)
Secondhand finds. Sometimes I find gift wrap at thrift stores or yard sales. But I’ve also seen rolls of butcher paper or brown at thrift shops; these can be decorated as noted above.
Grocery bags. Cut open paper ones and use the non-logo sides for wrapping. Let your kids decorate them with bright paint.
The Sunday funnies. These make great gift wrap year-round. Don’t subscribe? Harvest them at coffeehouses on Mondays. Tip: Discarded wrapping paper of any type can be crumpled up for use as packing material.
Old maps. Doctors Without Borders sends me several huge maps of the world every year. Maps also end up in the free box at yard sales, and may be given free of charge at visitors’ centers.
Periodicals. Small gifts can be wrapped in pages from magazines, calendars, catalogs or even comic books. You may luck into these in the “free” bin at yard sales.
Foreign-language newspapers. Weeklies written in Chinese, Korean and Spanish can be found in my neighborhood. The interesting typefaces could be a hit with someone who knows or is trying to learn those languages.
Dumpster paper. A whole lot of gift-wrap items will be tossed after Dec. 25. I’ve pulled gift bags, colorful tissue, ribbons, and large pieces of wrapping paper out of the recycle bin. Note: You don’t necessarily have to get down and dirty. I’m more of a dumpster wader than a dumpster diver, myself. A few years ago I found a large, still-shrink-wrapped roll of Christmas paper outside the dumpster. Still slowly making my way through it because of its design — not everyone appreciates the delicacy of Batman holiday wrap.
Frugal and/or reusable finishing touches
Raffia
Strips of tulle
Fabric “ribbons” cut with pinking shears
Shoelaces (come on, everybody needs an extra pair — and some are really cool-looking)
Strings of beads
Hemp twine
Which brings me to a fairly obvious point: These solutions might not work for everyone. Your fastidious Great-Aunt Mildred might not care for a repurposed grocery bag tied with wild grapevine you gleaned from the woods behind your house.
In fact, I wouldn’t do offbeat wrapping for anyone I didn’t know well. For example, your new sweetheart’s parents may look at gifts hidden inside old cottage-cheese containers and think not “eco-warrior” but rather “illegitimus frugalis.”
As always, do what works for you. But no matter how you wrap or don’t wrap your presents, the same rule applies: Every time someone opens a present early, Santa Claus kills a puppy.
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Wall Street is a place that people love to hate.
The Wall Street of today, however, could not be further from the one we know and fear: it’s a trillion-dollar industry with innovation brewing in every corner. You may have heard about these innovations on The Big Short or Moneyball but you might want to broaden your horizons when it comes to movies that feature this major American institution.
While learning about money, finances, and the stock market may or may not be your thing, there is plenty to learn while being classically entertained.
When you’re studying for the MCAT, going through a financial audit, or watching skyrocketing inflation happening before you, it can be hard to find films that accurately portray modern finance.
But Wall Street is full of memorable characters and interesting situations with plenty of twists and turns to keep your attention.
Whether you’re looking for movies about trading on Wall Street or movies about money itself, here are 25 classics worth watching over and over again!
Followed by a list of the best documentaries on stock market trading.
Best Movies About Wall Street
Plenty of movies have been made about Wall Street over the years. There is a fascination with the life of a trader and how it intersects with business.
The order dated from the oldest movie to the most recent film.
Here are 25 of the best films set at the intersection between finance and our culture:
1. “Edison, the Man” (1940)
The movie is about the life of Thomas Edison, one of the most famous inventors in history.
The main character is played by Spencer Tracy, who does a great job portraying businessman Thomas A. Edison. The story follows Edison’s journey from being a stockbroker on Wall Street to becoming one of the most famous inventors in history.
Most of the film’s script is fictionalized or exaggerated, it should be viewed as such.
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2. “Citizen Kane” (1941)
Citizen Kane is a 1941 American drama film directed by, produced by, and starring Orson Welles. The picture was Welles’s first feature film. The screenplay, written by Herman J. Mankiewicz and Welles, was based on the life of William Randolph Hearst.
Citizen Kane helped form the idea that there should be a cultural shift in how we view Wall Street. It is considered to be one of the greatest movies ever made because it’s highly innovative, artistic, and technical with many different themes being explored throughout its runtime.
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3. “It’s A Wonderful Life” (1946)
“It’s A Wonderful Life” is a classic movie for the generations.
The protagonist of the movie is George Bailey. The movie revolves around the idea that if George Bailey never existed, life would be much worse off. This film is a classic and a must-watch for anyone interested in finance or business.
Ultimately, he learns some valuable lessons about life and himself.
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4. “Trading Places” (1983)
“Trading Places” is the funniest movie about Wall Street. The plot revolves around how one man’s fall from Wall Street is another man’s blessing.
It’s a classic movie about Wall Street that is still relevant today. The film follows the story of two men whose lives are drastically changed when they’re made the subject of a bet on Wall Street. It stars Dan Aykroyd, Eddie Murphy, Ralph Bellamy, Don Ameche, Denholm Elliott, and Jamie Lee Curtis.
Released in 1983, Trading Places was a box-office success. Earning over $90 million, the film became the fourth-highest-grossing film of that year in the United States and Canada. Furthermore, it was critically acclaimed for its humor and cast.
John Landis directed “Trading Places” and it is an absolute classic. Watching Murphy talk about futures and markets is hilarious.
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5. “Working Girl” (1988)
“Working Girl” is a 1986 romantic comedy-drama film directed by Mike Nichols and written by Kevin Wade. The film stars Melanie Griffith, Harrison Ford, Sigourney Weaver, Alec Baldwin, and Joan Cusack. It received many Academy Award nominations in 1989, including Best Picture and Best Actress (for Griffith).
The story follows Tess McGill (Griffith), an ambitious secretary who pitches a profitable idea to her boss only to have her boss take credit. After her boss (Weaver) is out with a medical injury, Tess teams up with investment banker Jack Trainer (Ford) to make a big deal. Things get complicated when her boss comes back and discovers what Tess has been up to.
“Working Girl” was praised by critics upon release and became a box office success. It grossed over $96 million worldwide against its $13 million budget.
The idea for Working Girl came when writer Kevin Wade and producer Douglas Wick were in New York City together in 1984 and noticed throngs of career women walking to work while carrying their high heels (source).
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6. “Wall Street” (1987)
“Wall Street” is a 1987 American drama film directed by Oliver Stone and starring Michael Douglas, Charlie Sheen, and Daryl Hannah. The film tells the story of Bud Fox (Sheen), a young stockbroker who wants to make it big in the world of finance.
An eager and inexperienced stockbroker is willing to do anything to get ahead, including going through an unscrupulous shady corporate raider who takes the young-in-awe under his wing.
The movie was nominated for seven Academy Awards, including Best Picture and Best Actor (Michael Douglas).
A sequel titled “Wall Street: Money Never Sleeps” was released 23 years later.
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7. “Bonfire of the Vanities” (1990)
“Bonfire of the Vanities” is a movie that captures the class-consciousness of 1980s New York.
The film focuses on Wall Street and New York City’s stratification issues. In particular, it focuses on the Manhattan elite and how they are separated from other social classes in the city.
The film is based on a book by Tom Wolfe, who was inspired by his own experiences living in Manhattan during that time period.
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8. “Other People’s Money” (1991)
Other People’s Money is a 1991 American comedy-drama film directed by Norman Jewison and starring Danny DeVito, Gregory Peck, and Penelope Ann Miller. DeVito plays a ruthless businessman who buys companies and sells off their assets to make him rich.
Along the way, this corporate raider falls in love with the wife’s daughter, who is a lawyer. An avid lover of this woman, the corporate raider attempts to win her heart through legal maneuvering.
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9. “Glengarry Glen Ross” (1992)
Glengarry Glen Ross is a 1992 American drama film adapted by David Mamet from his 1984 Pulitzer Prize-winning play Glengarry Glen Ross. The film was directed by James Foley and stars Al Pacino, Jack Lemmon, Alec Baldwin, Alan Arkin, and Kevin Spacey.
“Glengarry Glen Ross” is a movie about the incentives of real estate salesman. This drama-filled movie shows what people will do to close a sale.
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10. “Barbarians at the Gate” (1993)
Barbarians at the Gate is a 1993 American drama made-for-TV movie based on the book of the same name by Bryan Burrough and John Helyar. The film was directed by Glenn Jordan and stars James Garner as H. Ross Perot, Peter Riegert as Henry Kravis, and Swoosie Kurtz as Ruth Harkness.
The film tells the story of a leveraged buyout between two Wall Street insiders who battle for control over a company. It is considered one of the best movies about Wall Street because it provides an inside look at how these deals are made.
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11. “The Associate” (1996)
The Associate is an American comedy movie released in 1996.
Investment banker Laurel Ayres (Whoopi Goldberg) is an associate for an investment firm who has great advice but doesn’t get the respect she deserves because she is a black woman.
Money is power, so she uses a white man as her partner. The protagonist has great advice but no one will take it seriously because she’s a woman of color with an African American sounding name. To prove her worth, the protagonist creates a fictional white male figure to be her business partner to make people listen to her more than they would otherwise.
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12. “Rogue Trader” (1999)
Rogue Trader is a 1999 British drama film directed by James Dearden and starring Ewan McGregor and Anna Friel. It is based on the true story of Nick Leeson, a British trader who caused £800 million or about $1 billion in losses through unauthorized trades in 1987, and his attempt to cover up his losses by falsifying account documents.
Nick reads in the newspaper that the company went bankrupt and then realizes the severity of his losses. Him and his wife then decided to go back to London, but Nick is arrested en route from Frankfurt. Finally, Nick is extradited to Singapore where he is sentenced to six and a half years in prison.
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13. “American Psycho” (2000)
American Psycho is a satirical psychological horror film that was released in 2000 and is based on the novel of the same name by Bret Easton Ellis.
The film stars Christian Bale, Willem Dafoe, Jared Leto, Josh Lucas, Chloë Sevigny, Samantha Mathis, Cara Seymour, Justin Theroux, and Reese Witherspoon. It debuted at the Sundance Film Festival on January 21, 2000, and was released theatrically on April 14, 2000.
American Psycho is a movie about Patrick Bateman, a successful Wall Street executive with an inner darkness that leads him to commit heinous crimes. The film has developed a cult following over the years and is now considered a classic. Additionally, it has made a strong presence in contemporary meme culture.
A direct-to-video sequel, “American Psycho 2” was released in 2002.
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14. “Boiler Room” (2000)
Boiler Room is a movie about Wall Street corruption. It stars Giovanni Ribisi, Vin Diesel, Nia Long, Ben Affleck, Nicky Katt, and Jamie Kennedy.
This movie is about a young man, played by Giovanni Ribisi, who ran an unlicensed casino, but wasn’t making the living his father, a New York City judge wanted. So, with the promise of being a millionaire, he becomes a stockbroker in a brokerage firm.
In fact, the brokerage firm was running Pump and Dump schemes – investment scams that involve artificially inflating the price of stocks before dumping them onto uninformed investors.
The movie was met with mixed reviews by critics but audiences seemed to enjoy it more. I mean it did star Ben Affleck.
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15. “The Bank” (2001)
This Australian movie “The Bank” is about finance software that predicts stock market trends.
This drama-thriller heist film was directed by Frank Oz and written by Paul Schrader. The critical response was mixed but praised its acting performances, particularly from Al Pacino and Jennifer Wright Penn.
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16. “The Pursuit of Happyness” (2006)
“The Pursuit of Happyness” is a 2006 American biographical drama film based on the life of Chris Gardner. It tells the story of how he rose from homelessness to Wall Street success. The movie was directed by Gabriele Muccino and stars Will Smith in the leading role. It grossed over $307 million worldwide, making it one of Smith’s highest-grossing movies. In 2006, Will Smith was nominated for the Academy Award for Best Actor for his portrayal of Gardner.
The movie is set in San Francisco, California, and follows Gardner’s trials and tribulations as he strives to become a successful stockbroker. Despite being homeless with a young son, he never gives up on his dream. The film finishes with him landing a job at Dean Witter Reynolds and becoming a millionaire five years later.
Although “The Pursuit of Happyness” is not technically about Wall Street, it is an excellent depiction of what it takes to be successful in this field – grit, determination, and perseverance in the face of adversity.
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17. “Wall Street: Money Never Sleeps” (2010)
Wall Street: Money Never Sleeps is a 2010 American drama film directed by Oliver Stone. It is a sequel to Wall Street (1987), which was also directed by Stone. The film stars Michael Douglas, Shia LaBeouf, and Carey Mulligan.
The movie begins with the release of Gordon Gekko (Michael Douglas) from prison, where he has been for eight years for insider trading and securities fraud. He immediately goes to see his future son-in-law, Jacob (Shia LaBeouf), who is now working on Wall Street. Gordon helps Jacob get back at the man who screwed his mentor’s firm over.
The movie covers the events leading up to the financial crisis of 2008 and explores how it affects individuals, society, and culture. The firm was highly successful at the box office earning more than $134 million worldwide.
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18. “Margin Call” (2011)
Margin Call is a movie about Wall Street and bankers. It is considered a classic, and it was released in 2011. The banker in the movie has created a financial model that shows the firm will be completely underwater, but before he can show anyone else, he gets fired. He hands his model off to a junior banker who then has to save everything from this one data point on his laptop in the middle of the night while everyone is asleep.
Everyone wonders if “Margin Call” is a true story. While there is no specific person or company name, it rings true of what happened in the 2007-2008 financial crisis.
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19. “Too Big To Fail” (2011)
“Too Big To Fail” is a 2011 HBO adaptation of the book by Andrew Ross Sorkin. The movie covers the 2008 financial crisis and follows bankers who meet behind closed doors with regulators to negotiate the federal bailout of the financial industry.
The film was able to feature a parade of stars who played different bank and investment bigwigs. While it’s based on true events, there are some dramatizations in order to make for a more compelling film.
It’s an interesting look at how Wall Street operates and what happens when things go wrong.
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20. “Cosmopolis” (2012)
“Cosmopolis” is a movie starring Robert Pattinson about an incident involving currency speculation. The plot of the movie is quite complicated and may leave viewers scratching their heads as to what just happened.
The protagonist, Eric Packer, is a Wall Street investor who finds himself in the middle of an unexpected incident while in New York City. His wife and lover are introduced throughout the story but it doesn’t make sense why they would be in New York City together.
This movie has a lot of intrigues that will keep you on your toes as you weave through his personal life and the emotional rollercoaster of trading!
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21. “Arbitrage” (2012)
“Arbitrage” is a movie about an ambitious hedge fund manager who tries to sell his company before anyone finds out he’s cooked the books. The plot involves a mistress accidentally dying in a car accident and its cover-up, with help from an unlikely source.
The movie is well acted and suspenseful and provides great insight into the world of high finance.
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22. “The Wolf of Wall Street” (2013)
The Wolf of Wall Street is a 2013 American biographical black comedy crime film directed by Martin Scorsese and written by Terence Winter, based on the memoir of the same name by Jordan Belfort. The film stars Leonardo DiCaprio as Belfort, Margot Robbie as his wife Naomi Lapaglia, Jonah Hill as Donnie Azoff, and Kyle Chandler as Patrick Denham.
This true story of Jordan Belfort, who starts his own company in the early 1990s and quickly grows their company – more importantly their status in the trading community on Wall Street. At the same time, so do their substance abuse and lies. Belfort is named the Wolf of Wall Street by Forbes Magazine. Soon after, the FBI look into Belfort’s trading schemes…
Now, you will have to finish the movie to see what happens.
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23. “The Big Short” (2015)
The Big Short is a movie about the 2008 financial crisis and Michael Burry’s role in it. It was directed by Adam McKay and stars the brilliant ensemble cast in this movie of Christian Bale, Steve Carell, Ryan Gosling, Brad Pitt, and Marisa Tomei. The film was nominated for five Academy Awards, including Best Picture and Best Director (source).
Viewers praise the film for being entertaining and broad. It is among the top Wall Street movies.
Not many people are brave enough to go against the market trends and big banks except for Michael Burry. Who came out ahead on the big short in the housing market?
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24. “Money Monster” (2016)
George Clooney and Julia Roberts team up in this financial thriller as TV show hosts who are taken hostage at gunpoint due to an irate investor. There is a tense standoff taking place on live television.
The film was directed by Jodie Foster and received mixed reviews, but still did well at the box office.
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25. “The Wizard Of Lies” (2017)
The Wizard of Lies is a 2017 American biographical drama film about the fall of Bernie Madoff. Madoff’s Ponzi scheme was highly watched across the world as it was the largest spam in US history as he robbed at least $65 billion from unknowning victims. The film stars Robert De Niro as Bernie Madoff, Michelle Pfeiffer as Ruth Madoff, Alessandro Nivola as Mark Madoff, Nathan Darrow as Andrew Madoff, and Kristen Connolly as Catherine Hooper.
The film shows how the family of Bernie Madoff falls apart amidst the scandal.
“Bernie Madoff” is a biopic about the infamous Ponzi schemer who was jailed for orchestrating one of history’s largest financial pyramids. The film utilizes Robert DeNiro as Bernie Madoff, and tells the story from his perspective. Critics praised the film for being powerful.
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What movies are about Wall Street?
There are a lot of great movies about Wall Street, but it can be hard to pick the best ones.
Some of our favorites include “Too Big to Fail,” “Boiler Room,” and “The Wolf of Wall Street.”
Which movie is based on stock market? Much Watch Ones
There are many movies based on the stock market. Some of the most popular ones include “The Wolf of Wall Street,” “The Big Short,” and “Margin Call.”
These movies tell the story of people who have made or lost a lot of money trading stocks and other investments. They offer a fascinating look at what happens behind the scenes on Wall Street, and they can be very educational for anyone interested in investing.
What Are the Top 3 Hedge Funds Movies to Watch?
There are a number of great movies about Wall Street and the hedge fund industry. Some of the most popular ones include “The Big Short“, “Boiler Room“, and “Arbitrage.”
These movies offer a fascinating look into the world of high finance and provide an interesting perspective on the industry. Hedge funds can be very profitable, but they can also be risky. Watch these films to learn more about the risks involved in this kind of investing, as well as the rewards.
Best Finance Documentaries
Ever since the 2008 financial crisis, film buffs have been obsessed with anything related to Wall Street.
From the “Trader” to the “Inside Job”, Hollywood seems ready to take on the global financial sector.
We’ve compiled a list of some of the best finance-related documentaries available to watch.
1. “Trader” (1987)
In the 1987 film “TRADER,” Paul Tudor Jones II offers a highly charged look at what it takes to make it as a Wall Street trader. The film was shot before the October 1987 crash, so it is an interesting historical artifact.
It delivers a rarely seen view of this marketplace and explains the workings of this frantic, highly charged area. This film is important because it captures America as it nears the end of its 200-year bull market.
“Trader” is a fascinating look into the minds of traders and their thought processes. It provides an inside look at the strategies that traders use to make money and how they think about the markets. If you are interested in learning about trading or want to get a better understanding of how it works, then Trader is a must-read documentary.
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2. “The Trillion Dollar Bet” (2000)
The Trillion Dollar Bet is a documentary about a magic formula, specifically the Black–Scholes–Merton formula, which was dreamed to reduce risk in the stock market.
It is an interesting film because it portrays Wall Street in a way that many people have never seen before. As they started to use this “dream” formula, they started losing huge amounts of investments each day. The movie focuses on the rise and fall of hedge funds, with a specific focus on the 1994-1998 period when one of them went bankrupt.
The documentary will interest many people who are interested in finance, economics, and investing.
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3. The Corporation (2003)
“The Corporation” is a documentary film written by Joel Bakan, and directed by Mark Achbar and Jennifer Abbott.
Released in 2003, the film examines the nature of the modern corporation, considering its legal status as a “person”, and how this affects different aspects of corporate behavior. The film won numerous awards including at the Sundance Film Festival (source).
And check out the latest… The New Corporation: The Unfortunately Necessary Sequel
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4. Enron – The Smartest Guys in the Room (2005)
The film “Enron – The Smartest Guys in the Room” tells the story of Enron, a company that was involved in accounting fraud and created $30 billion worth of debts. Enron is often seen as an example of corporate corruption and the Enron incident is often considered the best example of that.
This documentary tells the story of how Enron became one of the largest companies in America before its collapse.
Critics reviewed the film positively and it also received good ratings from audiences.
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5. Wall Street Warriors (Season 1-3 | 2006)
If you’re looking for a reality TV series that will take you inside the fascinating and high-pressure world of Wall Street, look no further than “Wall Street Warriors”.
The show follows the lives of those working on Wall Street – from traders to investment bankers to hedge fund managers.
There are 3 seasons, with each season consisting of 26 episodes. So whether you’re looking for an hour of entertainment or you want to learn more about the financial industry, “Wall Street Warriors” has something for you.
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6. The Ascent of Money (2008)
The documentary traces the origins of money, credit, and banking throughout history.
The title is interesting because it provides a comprehensive overview of how money has evolved over time. The documentary also interviews experts from various financial backgrounds, which makes it an insightful watch for anyone looking to gain a better understanding of finance.
The Ascent of Money is a 2008 documentary film written and directed by Michael Lewis and won an International Emmy Award.
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7. Floored (2009)
The documentary focuses on the futures exchange in Chicago, and how digitization and computerization are changing trading floor practices. It features interviews with various traders who offer their insights into this rapidly-changing industry.
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8. Million Dollar Traders (2009) – Mini Series
These ordinary traders did better than the pros. Some of the best traders included a student, a soldier, and a single mother of 2 children. They may have lacked experience, but they made up for it with guts and determination.
The reality mini-series happens during the recession of 2008 – also known as not a great time to be a trader. As the market falls, the story becomes personal for many of these non-traditional traders.
In fact, this is similar to what Teri Ijeoma is doing today.
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9. Capitalism: A Love Story (2009)
Capitalism: A Love Story is a 2009 documentary film written and directed by Michael Moore. The film examines the financial crisis of 2007-2008 and the subsequent economic recession.
The criticism in Capitalism: A Love Story is clearly pointed at businesses that take risks for profit-led motives, with public funds ultimately securing the risk. For example, Moore interviews former Merrill Lynch CEO John Thain, asking how much money he made while his company was losing $8 billion per quarter.
Moore interviews many too financial gurus to ask the question – What is America’s cost for its love of capitalism?
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10. “Inside Job” (2010)
Inside Job is a made-for-television documentary about the Fall 2008 financial crisis.
This documentary tackles the 2008 financial collapse in a way that is easily digestible, featuring interviews with experts in the field of finance. The film takes a look at some of the factors which led to the Great Recession, such as deregulation and Wall Street executives going unpunished.
The film walks viewers through topics such as extreme consolidated power on Wall Street, questionable banking practices which helped create the housing bubble, and federal regulators’ bailout that kept most big banks afloat after the 2008 financial collapse.
The movie was directed by Charles Ferguson, and it won an Academy Award for Best Documentary in 2011.
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Most Acclaimed Wall Street Movies
Many people ask, is there any movie on stock market? In fact, there are plenty!
In fact, there is probably a new flourish of movies being made about the economic effects from 2020 onward.
These are the top Wall Street Movies you must watch!
What is your favorite movie about wall street?
Everyone will have their favorite pick!
Start a movie club and discuss which Wall Street movies. This is a great way to understand the impact of what is going on in the financial markets.
Which Must Watch Stock Market Movies are on Your List?
These movies and documentaries are incredibly informative to find out what is happening on Wall Street and how things are handled.
They offer great insights into what can happen when things go wrong on Wall Street. If you’re interested in finance or investment banking, I highly recommend watching these movies!
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In today’s modern world, the house goals of yesteryear are a distant memory.
Long gone are the days of window shutters, oversized crystal chandeliers, multiple small rooms, intricate designs, wrought-iron railings, small windows, and large porches with overhanging beams.
Modern mansions favor simple and clean designs with open spaces.
While traditional mansions offer intricate and elegant details, today’s luxury homes feature straight lines, geometric shapes, a flat or low-sloped roof, and clean exteriors with little to no texture.
Luxurious homes of the past featured building materials such as brick, wood, plaster, stucco, and stone. Meanwhile, contemporary mansions favor newer, more technologically-advanced building materials including reinforced steel and concrete.
And windows, lots and lots of floor-to-ceiling windows.
Sophisticated smart homes are all the rage, as are connected outdoor spaces, white rooms and simple color palettes, open floor plans, glass walls allowing for ample natural light, green features, security settings, and the utmost privacy.
While traditional mansions typically featured a number of small, single-purpose rooms, modern floor plans include seamless open-ended spaces.
After all, one cannot be confined to small spaces while living that luxurious lifestyle!
A closer look at 18 of our favorite modern mansions
When it comes to stunning estates, we’ve got you covered.
From wraparound pools featuring panoramic views to glass walls for days, to dream chef kitchens, to seamless indoor-outdoor living spaces, we’re taking a look at 18 modern mansions that have knocked our socks off.
And we think you’ll (really, really) like them too.
A Marc Whipple-designed modern mansion with a wraparound pool
Designed by acclaimed architect Marc Whipple, this massive 11,200-square-foot home in Beverly Hills is quite a stunner.
Offering six bedrooms, seven bathrooms, and two half baths, the multi-million dollar manse features disappearing walls of glass, so that its residents can enjoy the stunning views from each and every room.
Speaking of views, they’re completely unobstructed, with downtown Los Angeles, Catalina Island, and the coastline on full display. Those lovely landscapes can be seen from the home’s stunning wraparound pool.
Other luxurious amenities include a movie theater, a secret Zen garden, gym, guest house, glass wine cellar, gated driveway, and an outdoor kitchen.
This Beverly Hills manse had its moment of fame a few years back, when it was rented by Rockstar hitmaker Post Malone. It was later listed for sale with a whopping $26 million asking price.
A breathtaking Hollywood mega mansion with museum-quality energy crystals throughout
Built in 2021, this mega mansion is located in the heart of Hollywood.
Boasting panoramic views of downtown Los Angeles, the Pacific Ocean, and the canyon, the home offers six beds, nine baths, and nearly 10,365 square feet of living space.
Photo credit: Sean Gordon courtesy of The Agency
The sophisticated smart home features museum-quality crystals sourced from around the world and placed with extraordinary care throughout to energetically enhance the residence.
Offering double-height ceilings and incredible indoor/ outdoor living spaces, the California compound also includes a custom home theater, fitness center, wine cellar, second living room and all the finest custom finishes.
Photo credit: Sean Gordon courtesy of The AgencyPhoto credit: Sean Gordon courtesy of The AgencyPhoto credit: Sean Gordon courtesy of The AgencyPhoto credit: Sean Gordon courtesy of The AgencyPhoto credit: Sean Gordon courtesy of The AgencyPhoto credit: Sean Gordon courtesy of The Agency
Setting a new gold standard for Southern California living, the picturesque backyard — which is front row to the city and canyons — features a beautiful sparkling pool/spa, a built-in BBQ area, and a grassy green lawn.
See more of this unique Hollywood mega-mansion here.
A striking $150M modern mansion in Bel-Air with 360-degree views
This beautiful home in Bel-Air has all the bells and whistles you’d expect in a modern mansion (and then some).
Photo credit: Matthew Momberge courtesy of Compass
Designed by award-winning architecture and design firm, Saota, the private compound is perched on a promontory high above the city — opening up to unobstructed, 360-degree views of Los Angeles.
Set on a 1.15-acre lot, the swanky crib offers nine bedrooms and fourteen baths spread across 20,841 square feet.
Some of the luxury amenities include an infinity pool with a secluded cabana and pool-side sunken fire pit, three separate staff quarters, and a one-bedroom guest house with a separate, private pool.
Photo credit: Matthew Momberge courtesy of CompassPhoto credit: Matthew Momberge courtesy of CompassPhoto credit: Matthew Momberge courtesy of CompassPhoto credit: Matthew Momberge courtesy of CompassPhoto credit: Matthew Momberge courtesy of CompassPhoto credit: Matthew Momberge courtesy of Compass
This magnificent manse was owned by George Ruan, co-founder of online coupon-clipping company Honey (now part of Paypal).
The Razor House in San Diego, the real-life Iron Man house
The one-of-a-kind architectural masterpiece known as The Razor House was designed in 2007 by San Diego-based architect Wallace E. Cunningham.
Photo credit: Gary Kasl courtesy of The Agency
The striking concrete and glass mansion — dubbed ‘the Iron Man house’ due to its resemblance to Tony Stark’s mansion in the famous Marvel movie — is perched on the edge of a cliff overlooking the Pacific Ocean.
Offering endless concrete terraces, the stunning estate has mesmerizing views of surrounding hills and the ocean below.
Photo credit: Gary Kasl courtesy of The AgencyPhoto credit: Gary Kasl courtesy of The AgencyPhoto credit: Gary Kasl courtesy of The AgencyPhoto credit: Gary Kasl courtesy of The AgencyPhoto credit: Gary Kasl courtesy of The Agency
Featuring several outdoor lounge areas, the luxurious three-story home comes with six bedrooms and six baths, with nearly every room opening up to jaw-dropping views.
In 2019, Grammy Award-winning singer Alicia Keys and husband Swizz Beatz bought The Razor House in a $20.8 million deal.
Villa Vella, one of Europe’s finest contemporary homes
Spanish dream house, anyone?
Dubbed Villa Vela, this sprawling 23,476-square-foot property is located in the sun-bathed province of Andalusia, Spain.
Photo credit: The Agency
Sitting behind its own gates, at the end of a sweeping driveway, Villa Vela offers a total of six bedrooms and six baths.
The posh property has been designed to be free-flowing and, as such, has an open plan, including floor-to-ceiling retracting windows that open directly onto a terrace that stretches from one end of the house to the other.
Photo credit: The AgencyPhoto credit: The AgencyPhoto credit: The AgencyPhoto credit: The AgencyPhoto credit: The Agency
Not to mention, each of the suites has its own outdoor space, and they also all connect directly to the vast upper terrace, its lawn, garden, and dining area, and benefit from breathtaking views.
A futuristic, yacht-shaped mansion perched high atop the Los Angeles hills
This 17,000-square-foot modern residential oasis in the upscale LA neighborhood of Brentwood is redefining luxury living.
Photo credit: The Agency
Southern California-based architectural firm de Loren & Associates purposefully designed the building by superior wellness standards, without sacrificing on design but rather adding to it.
Inspired by the clean lines and interior spatial layouts of yachts paired with the motion of the sea, the curving exterior facades are reminiscent of ocean waves, wind, and clouds that make not only for an exhilarating lifestyle but also appealing to the eye.
The modern mansion boasts seven bedrooms, eight bathrooms, and three powder rooms across three levels.
Photo credit: The AgencyPhoto credit: The AgencyPhoto credit: The AgencyPhoto credit: The AgencyPhoto credit: The AgencyPhoto credit: The Agency
Featuring a massive list of upscale amenities, the beautiful Brentwood home offers a 610-bottle wine cellar, commercial speed glass elevator, movie theater, state-of-the-art gym, a 300 sq. ft. green wall, and a lower-level entertainment area with a full bar, pool table and more.
And there’s plenty of room for Stormi and Wolf to explore! Turns out, this luxurious residence is owned by none other than rapper Travis Scott.
A newly-built Encino mansion with bright, airy, and warm interiors
We can’t get enough of this amenity-rich mansion with modern interiors and a killer guest house.
Photo credit: LA Light Photography and The Luxury Level
The seven-bedroom, eight-bathroom Encino home offers 9,081 square feet of living space enclosed within a private, gated estate with surrounding landscape.
The stunning estate is a beautiful example of modern California living, with picture-perfect interiors, exquisite finishes, jetliner views, and plenty of attractive amenities.
Featuring warm wood tones, the large windows and Fleetwood doors open up to unobstructed views and plenty of natural light.
Photo credit: LA Light Photography and The Luxury LevelPhoto credit: LA Light Photography and The Luxury LevelPhoto credit: LA Light Photography and The Luxury LevelPhoto credit: LA Light Photography and The Luxury LevelPhoto credit: LA Light Photography and The Luxury Level
The carefully thought-out finishes give the home a modern vibe that extends into the bedrooms as well. The second level of this luxury Encino home has four bedrooms, including the master suite, which walks out to a 1,200-square-foot balcony with a fire table.
Naturally, this wonderful modern manse caught the eye of a famous buyer; it’s now owned by Modern Family star Jesse Tyler Ferguson and husband Justin Mikita.
A modern 4-story house facing one of the most beautiful coastal shorelines in all of California
We love this modern mansion set in the most desirable area of Manhattan Beach, The Strand, an oceanfront neighborhood lined with modern-looking mansions that typically sell in the $5 million to $15 million range.
Photo credit: Paul Jonason courtesy of Stroyke Properties Group
Spanning 6,978 square feet of modern living space, the home offers six bedrooms and eight baths.
Designed by renowned L.A. studio KAA Design, this four-story home was envisioned around life, in all its texture, at the beach.
Rather than cluster sleeping areas on a single floor, they’re strategically spaced across the four levels, with the third floor being home to a primary suite with a private office that’s luxuriously sequestered in the style of a penthouse.
Photo credit: Paul Jonason courtesy of Stroyke Properties GroupPhoto credit: Paul Jonason courtesy of Stroyke Properties GroupPhoto credit: Paul Jonason courtesy of Stroyke Properties GroupPhoto credit: Paul Jonason courtesy of Stroyke Properties Group
The private elevator takes residents and guests down to the beach room, which is level with the Strand itself, and lounge on the patio, front row to a peaceful scene of sea, sand, and sky.
Read more about this beautiful modern mansion here.
A $70M contemporary marvel that reimagines luxury living for the 21st century
Located in the coveted Brentwood neighborhood of Los Angeles, this modern mansion is what happens when a star-studded team consisting of award-winning architect Noah Walker, AD 100 interior designer, Jamie Bush, and renowned landscape designer, Christine London LTD comes together.
Image credit: Benny Chan courtesy of The Agency
Spanning 19,000 square feet, this beautiful abode is set on a sprawling four-acre lot and offers six bedrooms and 12 bathrooms alongside many recreation rooms.
The plush property has 270-degree views of the city, ocean, and canyon, and a long list of amenities that include a theater room — with acoustical wall paneling and a commercial cinema-quality projection system — a gym with a steam room, a 75-foot indoor lap pool, outdoor architectural pool and dual offices.
Image credit: Benny Chan courtesy of The AgencyImage credit: Benny Chan courtesy of The AgencyImage credit: Benny Chan courtesy of The AgencyImage credit: Benny Chan courtesy of The Agency
We first covered this luxurious contemporary home when it first came to market last year with an ambitious asking price of $70 million.
Just a few months later, it was purchased by music mogul Scooter Braun (better known as Justin Bieber and Ariana Grande’s manager, and Taylor Swift‘s manager-turned-foe) for $65 million.
The Ora House in San Diego, where contemporary architecture meets serene living
In the hilly, seaside neighborhood of La Jolla in San Diego, a modern cliffside mansion has all the dream house vibes.
Street view of the property. Photo credit: Blue Heron
Built by Blue Heron’s BH Elite custom home division, the Ora House, as the property has been named, is a true architectural marvel.
The stellar design team incorporated the same innovative biophilic design and advanced Savant technology used in Blue Heron’s flagship home, VM001 in Las Vegas, to “enhance the flow of life while creating an overall sense of peace and natural wellbeing.”
The cliffside estate is set in La Jolla’s exclusive Bird Rock Waterfront enclave and totals 8,878 square feet of living space.
Photo credit: Blue HeronPhoto credit: Blue HeronPhoto credit: Blue Heron
The architectural marvel has five bedrooms and eight baths across its four levels, with each level embracing the outdoors with spaces tailored for both entertaining and private moments.
A striking celebrity compound with a modern heptagon-shaped house
Check out this contemporary compound in La Crescenta, Calif.
Photo credit: Cameron Carothers courtesy of Compass
Designed by AD100 architect Michael Maltzan, this dramatic, heptagon-shaped house has spaceship vibes, is surrounded by seven exterior walls (some made out of glass), and is anchored by an open-air courtyard that sits right at the center.
Nearly all the rooms of the house come with sliding floor-to-ceiling windows that open up to either the serene courtyard or beautiful mountain and city skyline views.
Some of the stand-out features of the modern mansion include a primary suite with an entire wall of glass that opens up to a generously sized balcony and a particularly unique bathroom with a blue curved penny-tiled wall surrounding the shower.
Photo credit: Cameron Carothers courtesy of CompassPhoto credit: Cameron Carothers courtesy of CompassPhoto credit: Cameron Carothers courtesy of Compass
This unique home was owned by Red Hot Chili Peppers bassist Michael Peter Balzary, known professionally as Flea.
A $25 million Napa Valley glass house with killer views
Surrounded by over 40 acres of lush grounds set amidst California’s world-class wine country, this striking architectural home goes by the name of Karinya.
The highly suitable moniker originates from the Australian aboriginal culture and is simply translated as “peaceful home.”
Image credit: Adam Rouse courtesy of Coldwell Banker
Built in 2017, the stunning estate is nestled in the small community of Deer Park right next to St. Helena in Napa County.
Spanning 8,837 square feet, the impressive residence was built with natural materials, a deep connection to the valley’s views, and a design that boasts both beauty and luxury.
Not a detail is spared at Karinya, with many luxurious features such as endless walls of glass, a 2,000-bottle wine room, and an acoustically-designed media/ theater room.
Image credit: Adam Rouse courtesy of Coldwell BankerImage credit: Adam Rouse courtesy of Coldwell BankerImage credit: Adam Rouse courtesy of Coldwell BankerImage credit: Adam Rouse courtesy of Coldwell Banker
Fitting a modern dream house, it also comes with a detailed smart home system with mobile phone control access that controls the music, air conditioning, security and programmable LED recessed lighting in 11 separate zones and a fire sprinkler system.
See more of this lovely Napa Valley home here.
A modern mansion that was once featured in the Oscar-winning “La La Land” movie
Set in the popular Encino neighborhood of Los Angeles, this modern mansion offers an impressive cutting-edge design.
Photo credit: Compass
The six-bedroom home wows with its soaring ceilings and walls of glass that bring the outdoors in.
Complete with an infinity pool and spa (with a cascading waterfall) and a nifty pool/guest house with a sundeck for outdoor entertainment, the home is peppered with outdoor spots to relax and enjoy the lovely Cali weather.
In case you’re getting a strong sense of deja vu, this beautiful home was featured in the popular film, La La Land.
As the story goes, Mia (played by Emma Stone) and her friends attend a lavish party hoping to meet influential people in the business and finally get their lucky break.
You guessed it, this memorable movie scene was filmed at this gorgeous Los Angeles estate.
A celebrity chef’s former home with a massive kitchen anchored by a 24-foot stone island
Located in the coveted Via Bluffs enclave of Pacific Palisades, this modern mansion spans 6,500 square feet of luxurious living.
Photo credit: credit: Smith Cho / Compass
Offering massive sliding windows that open up to beautiful views of Potrero Canyon and beyond, the sumptuous five-bedroom, five-bathroom home is filled with natural light streaming in from the surrounding floor-to-ceiling windows and sliding glass doors, while the skylights pour even more light onto the main and top floors.
The Pacific Palisades property also flaunts features like a dual-faced fireplace, a nearly 24-foot kitchen island, and a distinct living room that’s pouring out onto the outside deck overlooking the pool.
A large open-layout living area is anchored by an impressive dream kitchen.
Photo credit: credit: Smith Cho / CompassPhoto credit: credit: Smith Cho / CompassPhoto credit: credit: Smith Cho / CompassPhoto credit: credit: Smith Cho / CompassPhoto credit: credit: Smith Cho / Compass
This beautiful home was once owned by celebrity chef, Everyday Italian, and Giada At Home star Giada de Laurentiis.
A beautiful modern mansion tucked in the Hollywood Hills
Built in 2019, this Marc Whipple-designed home is a true Hollywood gem.
Located on the glamorous Sunset Strip, in the Hollywood Hills West neighborhood of Los Angeles, this home oozes that clean-lined modernist approach, while still offering warmth and comfort.
Photo credit: credit: Jonathan Ducrest and Tom Hunter
The posh property incorporates five bedrooms, six bathrooms, as well as two half-bathrooms, all with breathtaking views spreading from the Hollywood sign right to the Pacific Ocean.
The main entrance offers an open-concept kitchen and three terraces that total 5,000 additional square feet of outdoor living space.
And, the middle level features a second living room and a luxurious ‘floating glass box’ master suite.
Photo credit: Tom Hunter Photography.Photo credit: credit: Jonathan Ducrest and Tom HunterPhoto credit: credit: Jonathan Ducrest and Tom HunterPhoto credit: Tom Hunter Photography.Photo credit: credit: Jonathan Ducrest and Tom Hunter
All the bedrooms offer easy access to the infinity pool, which provides stunning views of the surroundings and a perfect setting to enjoy summer nights and sunsets in complete privacy.
A Malibu gem that’s often rented to high-profile celebrities
This Malibu celeb magnet is the epitome of indoor-outdoor Cali living, featuring large glass walls that seamlessly blend the interior with the grounds.
Perched above the Pacific Ocean, the three-bedroom, three-bathroom, 2,100-square-foot Malibu mansion is every bit the modern gem.
Photo credit: Hagai Aharon
It’s the perfect property for entertaining, as it includes an infinity pool with fabulous ocean views, a spa, and a fire pit.
The entertainment continues inside, as the house includes not one, but three indoor fireplaces, as well as a media room, making sure you stay entertained throughout the entire year.
Amenities include everything you could possibly need, from in-unit laundry and air conditioning to five parking spaces, an outdoor patio, and a cabana.
The house not only rents out to celebrities such as Matthew Perry, Cardi B, and Taraji P. Henson, but it’s also owned by one.
Betty Moon, a celebrated Los Angeles musician, songwriter and producer, currently owns the plush property which she recently renovated before listing it for rent.
An impeccably designed modern mansion that embraces indoor-outdoor living
Located in the upscale neighborhood Pacific Palisades in Los Angeles, this three-story home was designed and built by renowned developer/designer duo David and Eliana Rokach.
Photo credit: The Agency
This multi-million dollar mansion offers a sprawling 13,543 square feet of modern living space and packs nine bedrooms and twelve bathrooms.
Boasting unobstructed views of the Pacific Ocean and the Santa Monica Canyon, the stunning estate offers an open-concept living/dining room finished in a chic, contemporary style.
The living room features custom-made electronic sliding steel doors that open to a beautiful outdoor area, which features a barbecue area, a grassy backyard, and an infinity-edge swimming pool opening up to views for miles.
Photo credit: The AgencyPhoto credit: The AgencyPhoto credit: The Agency
A modern hillside lair with canyon views
Situated in Los Angeles’ coveted Brentwood neighborhood, this hillside lair with expansive living spaces, eco-friendly details, and ultra-high-end finishes gives us serious dream house goals.
Photo credit: Noel Kleinman courtesy of Compass
The main entrance features a Japanese-imported Yakisugi front door and bonsai adorned atrium that leads to the open-concept living space.
Here, a chic palette of luxurious stone and reflective glass is accented by unique designer details, and floor-to-ceiling windows provide natural light throughout the day.
Photo credit: Noel Kleinman courtesy of CompassPhoto credit: Noel Kleinman courtesy of CompassPhoto credit: Noel Kleinman courtesy of Compass
Offering sweeping views of the canyon, the four-bedroom home comes equipped with the latest technology for entertainment, comfort, and sustainability.
This includes a full automation system, Lutron Solar System lighting, home theater and surround sound from Bang & Olufsen, a home gym, and much more.
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If you visit personal finance or investing blogs on a regular basis, you’ve probably read countless articles on the virtues of passive income. After all, many personal finance experts believe that passive income is the key to early retirement, financial independence, and permanent wealth. But, what is it exactly?
A Definition:
Investopedia describes passive income as “earnings an individual derives from a rental property, limited partnership or other enterprise in which he or she is not actively involved.”
In addition to rental property, typical sources of passive income can include money earned from investments such as mutual funds, dividend-paying stocks, Real Estate Investment Trusts (REITs), and asset-backed securities. Unconventional forms of passive income can include earnings from copyrights, patents, and licenses or even royalties. The birth of the Internet also created a generation of entrepreneurs forging their own path toward passive income via the Internet, including Pat Flynn from Smart Passive Income. Except, according to Flynn, blogging is just part of the game.
“Although a blog isn’t passive in nature, it’s one of the best platforms for launching other passive income opportunities.“
-Pat Flynn
Simply put, passive income is the opposite of active income. The money you earn at your 9-to-5 job is not passive income, nor is the money you earn through your side hustle or garage sale. Real passive income is earned in your sleep and regardless of the amount of effort you put into it. And that’s why the idea of passive income has always been so popular. J.D. even wrote about passive income back in 2006, which seems like a lifetime ago.
“Passive Income is money that you earn without having to work for it. When you earn interest on a savings account, you are earning money passively; it accrues whether you’re working or not.”
-J.D. Roth
The pursuit of passive income through rental property: Is it the right time?
One of the most popular ways to generate passive income is to buy (or finance) an income-producing rental property and become a landlord. And, according to a recent study from the Joint Center for Housing Studies at Harvard University, now may be the perfect time.
According to Harvard researchers, the percentage of households that rent is on the rise, up from 31 percent in 2004 to 35 percent in 2012. That may not sound like a giant surge, but it is when you’re dealing with the entire population of the United States. To keep things in perspective, the Harvard study claims that the total number of renting households surpassed 43 million in 2013.
Researchers blame the increase in renters on a convergence of factors, including a record number of foreclosures in 2008 and economic troubles caused by the Great Recession. However, it also points to certain benefits that make renting a popular option. Some of the benefits of renting named in the study: greater mobility, protection from fluctuations in the housing market, and freedom from home maintenance and repairs.
The fact is, renting has simply become the best option for many. In fact, recent reports show that rents have skyrocketed in many parts of the country due to increased demand, so much so that the cost of renting has moved out of reach for many middle-class families. And while that’s bad news for those who simply want an affordable place to call home, it’s a real estate investor’s dream.
My Experience as a Landlord
Becoming a landlord might sound tempting, but — trust me — it’s not as glamorous as it seems. It’s also not nearly as passive as many think it to be, despite what Investopedia or others claim. As someone who has owned and managed two single-family rental properties for almost a decade, I must confess that the income I’ve earned has been anything but effortless. The truth: It’s actually been a lot of work.
For example, we’ve spent far too many weekends painting and cleaning our properties in between tenants. We’ve driven to and arranged countless meetings to discuss remodeling projects and repairs. We’ve had to deal with a whole host of random issues such as late rent payments, feuding neighbors, and secret pets. Once, one of our properties was even left in total shambles — with oil-stained carpet, missing doors, busted windows, and broken everything.
Using Passive Income for Early Retirement and Financial Independence
On the other hand, we do expect all of our hard work to pay off sooner or later. The fact is, both of our properties should be completely paid off in about 12 years. By then, we’ll be 46 years old and (hopefully) on the homestretch of our journey to retirement. Since we’ll have two children nearing college around that time, we plan to use our monthly rental income to help pay for their higher education. After that, we’ll keep it for ourselves and use the earnings to supplement our own income and early retirement plans. Our properties currently rent for around $1,800 total, but that’s only because I’ve promised not to raise rent on either of our long-term tenants. But they’ll move out eventually. And when they do, we hope to pull in at least $2,200 per month or more.
Want to Become a Landlord? Consider This
Since real estate markets are vastly different in different parts of the country, I couldn’t possibly write something that applies to everyone. On the other hand, if you’re considering purchasing an income-producing property to secure your own stream of passive income, there are certain things you should know:
You need plenty of cash — Banks have tightened lending standards significantly over the last decade, which means that a down payment of at least 20 percent is almost always required. If you can’t afford to come up with the down payment, then you probably can’t afford to own rental property in the first place.
You are taking a risk — Many people think owning rental property is always a money-making endeavor. However, that couldn’t be further from the truth. Investing in rental property has plenty of risks including nonpayment, property damage, prolonged vacancies, and more.
Bad things do happen — When you’re a landlord, “no news” is typically good news. However, there’s a reason why so many people are hesitant to get into the game. We’ve all heard rental horror stories and the fact is that many of them are true. You’d be amazed at the kind of damage people can leave behind, and how much of a headache it can cause. You know the saying, “Hope for the best, but prepare for the worst.”
Before you jump in head first, it’s important to understand what you’re getting into. That typically means researching the rental market in your area and gaining an understanding of current and past trends in rents and occupancy.
It’s also important to figure out what you need to earn in order to cover your expenses and turn a profit. And if you don’t like dealing with people or doing repairs, you can also research property managers in your area. For a monthly fee, they’ll do most of the heavy lifting for you — including finding tenants, hiring out repairs, and more.
Becoming a landlord isn’t for everyone, but it is a great way to earn (somewhat) passive income. And if early retirement, money for college, or financial independence are your goals, it’s just another way to make them happen.
Have you ever considered buying rental properties as a source of passive income? If so, why? If not, why not?
A new policy for mortgage borrowers from U.S.-government-backed institutions has inspired mostly right-wing criticism suggesting the changes benefit individuals with lower credit scores at the expense of borrowers with higher credit scores, but proponents suggest that’s an incomplete characterization of the situation.
Critics of U.S. President Joe Biden are calling him out for his administration requiring some home … [+] buyers to pay higher mortgage fees.
AFP via Getty Images
Key Facts
Beginning Monday, the Federal Housing Finance Agency altered the loan fees charged to Americans with mortgages from Fannie Mae and Freddie Mac, which provide more than half of all mortgages in the U.S.
According to the Urban Institute, out of 81 types of borrowers classified by down payments and credit scores, the FHFA increased the fees of 23 groups—mainly those with excellent credit scores—by as much as 75 basis points and slashed the fees of 45 groups—largely borrowers with fair scores and lower down payments—by as much as 200 basis points.
Criticism of the plan has escalated in recent days: On Monday, 34 high-ranking financial officials across 27 states sent a letter to Biden claiming the “unconscionable policy” would “further depress” the real estate market and “unfairly cost” middle-class Americans “millions upon millions of dollars.”
But some experts disagree: Jim Parrott and Janneke Ratcliffe of the Urban Institute think tank’s Housing Finance Policy Center point out a separate policy forces borrowers with a down payment of less than 20% to buy mortgage insurance—allowing the FHFA to charge them less because their loans are less risky and making it so less-qualified buyers are still ultimately paying higher fees.
The FHFA is “not raising fees on borrowers with good credit to lower them for those with bad credit,” Parrott explains, arguing the agency is instead “raising fees on loans there is little reason to discount so that it can better serve those who need the help.”
FHFA head Sandra Thompson has also addressed the “misunderstanding,” saying much of the hostility focuses on separate recently announced policies, which ended upfront mortgage fees for low- and middle-income first-time home buyers and upped fees for mortgage seekers for second homes.
Chief Critic
Railing against “President Biden’s mortgage socialism rule,” Rep. Barry Loudermilk (R-Ga.) tweeted Tuesday that borrowers with a credit score of 680 and above with mortgages from Fannie Mae and Freddie Mac will “see a spike in your borrowing costs” to fund the mortgages of individuals with worse credit. It’s unclear what Loudermilk, who sits on the House’s financial services committee, is referring to, as less than half of the down-payment-based groupings of borrowers with credit scores 680 and above saw fee hikes beginning Monday.
Big Number
About $3,200. That’s how much more a borrower in the most-affected qualifying group buying a new home at the average U.S. sale price of $516,500 will pay under the new FHFA rules. These borrowers with credit scores between 720 and 759 taking out a mortgage for between 80% and 85% of the home’s value will pay a 75-basis-point higher fee. Despite the changes, however, the fees remain far greater for individuals with lower credit scores. Borrowers with credit scores over 780 now pay a 0.4% fee for loans worth 75% to 80% of the home price, while borrowers with credit scores below 640 pay a 2.8% fee on the same mortgage.
Contra
“It’s not the case that every category of person with good credit will pay more. There’s not that sort of direct relationship here and it does not affect any particular category of borrower across the board,” George Washington University professor Vanessa Perry told Bloomberg last week.
Key Background
The FHFA policy updates come at a particularly tenuous time for the housing market. Hovering near a two-decade high, 30-year mortgage rates were 6.4% as of last week, more than twice as high as they were at the beginning of last year—before the Federal Reserve started hiking interest rates in its attempt to slow inflation.
Further Reading
What You Need to Know About the Biden Administration’s New Mortgage Fees (Bloomberg)
Spinning Federal Mortgage Fees (Wall Street Journal)