January 4, 2023
As we enter the new year, many of us are taking time to evaluate our lives, goals, and habits—focusing on becoming better versions of ourselves. Whether you want to be healthier, happier, more productive, or anything else this year, it’s important to consider how your physical environment will influence your mental health and mood. The first step towards a “new you” may actually be refreshing your home’s interior design to better facilitate your goals.
From personality-driven designs to vintage pieces and bold colors, we’ve gathered some up-and-coming design trends that will inspirit your dreams for 2023.
Minimalism has been eminent in the modern design world over the past several years, but in 2023, we’re turning the page. While not everyone may be ready to embrace a fully maximalist home, it’s easy to take the first steps toward one if you’re still stuck in your minimalist era.
“We have seen so much minimalism over the last few years; our clients are now craving warmth, depth, and character in their personal spaces.”David Frazier, Architect and Interior Designer
Not sure how to make the switch? Consider adding personal collections, art that inspires you, or a mix of old and new furnishings. The goal is to create a room that speaks to you, not an uninspiring, Pinterest-perfect space.
Textures, curves, and accents
As we covered last year, curves are in—now alongside textured and accented walls. Another step away from modernist and minimalistic design, these features invite a breadth of character and whimsy to your home. Arched doorways and curves around exterior walls add fresh, exciting shapes, and textured wallpaper and decorative accessories offer eye-catching surprises. While it may not be possible to install a new curved wall this year (or maybe it is), it’s easy to add textured and accented pieces to the rooms where you already live.
“Opt for an accent with a unique texture or wallpaper in a similar color to the rest of the room. If you want to create a wooden accent wall, make sure you’re using vertical slats as they give a roof a lift and make small spaces feel more intimate and large spaces feel more inviting.”Rudolph Diesel, Interior Designer
The most important part? Location, location, location. Choose the right wall to refresh, typically the first one you see when you enter a room.
Wellness at home
The subject of our fall edition of GG magazine, mindful living remains a top priority for many homeowners across the Americas. This trend can take shape in a number of different ways; from water features and open-air spaces to home gyms and spas, the goal is the same: helping you take care of yourself by creating a space for nourishment and focus.
“When it comes to space planning, clients are requesting intentional spaces for activities like meditation, yoga, exercise, and last but not least, home spas.”Joshua Smith, Interior Designer
These spaces, often called wellness rooms, are on track to eventually replace home gyms. Designers creating wellness rooms integrate materials with a positive impact on conditions like diabetes and anxiety; lighting technology that supports natural circadian rhythms; and high-tech air purifiers to ensure you breathe easily.
In 2023, we’re saying out with the old and in with the older. That’s right; vintage furniture is having its (second) moment in the spotlight. Ditch inexpensive (and cheaply made) items that will likely find their end in a landfill, and substitute them with used, vintage, or antique furnishings. These pieces call upon past memories and add character to any room.
“People are going to begin investing more in quality products that will stand the test of time. Rather than buying something cheap to get the look at the moment, people will be more selective about what they put in their home in order to have it for years to come.”Susan Hayward, Interior Designer
Not only are they sustainable but they also seamlessly integrate personal and family histories into the spaces we live—whether it’s a grandfather clock that’s been passed through generations or a desk from your childhood home.
Bold, unexpected colors
Alongside minimalism, natural and neutral-colored spaces have dominated interiors in the Americas for the past several years. Now, however, we can look forward to spending time in brighter spaces, particularly those drenched in yellow, as gray interiors take a back seat. Expect to see rich, warm tones inspired by nature, as well as bold pops of color in furniture, throw pillows, and accent rugs.
Temperatures are dropping, the sun is setting earlier, and we’re all in search of ways to invite a little extra warmth into our homes. “Home and hearth,” as the idiom goes…and that’s exactly what a fireplace brings, a feeling of warmth and security to any room.
For all their utility, fireplaces serves as much more than just a battleground for winter’s bite. Beyond this, fireplaces quite literally light up a room and warm our souls when friends, family, and loved ones join us around the chattering crackles and pops.
Last but not least, fireplaces can be absolutely gorgeous. Coming in a variety of sizes, combinations, and locations, there is a mantle for everyone’s taste. As such, we are taking this opportunity to feature five stunning fireplace vignettes for five distinct personalities, as well as highlighting two Engel & Völkers listings with mantles blazing their own trails.
The Bookworm’s Haven
What goes better together than a book and a fireplace?
With that being said, avid readers may be wondering, “Can I combine my fireplace and living room to create the perfect reading atmosphere?” The answer: an emphatic yes. First and foremost, flank your fireplace with floor-to-ceiling bookshelves on either side. Perhaps the finishes that you choose could reflect your favorite genre—our mystery lovers may opt for the complexity of deeply stained oak, while our romance novelists lean into the depth of a heart-stopping emerald.
As for the mantle’s material, highlight the oak’s character with corbels and an applique—hinting towards a storied Victorian backstory. Top it all off with a mirror above the mantle, and there is no question who the main character is.
The Artist’s Muse
What is more inspiring than a flickering fire within a thoughtfully articulated mantle-scape?
Here in lies an opportunity to bring this centerpiece outdoors. Whether in a more traditional, stone mantle fashion, a circular fire pit, or an artisanal stone fire bowl, a fireplace enjoyed amidst the peace and quiet of the great outdoors is one that inspires. This is perhaps the perfect opportunity to go for a bold, wrapping mantle made of stone or reclaimed wood that matches the natural surroundings. A sturdier base can also double as a seating arrangement for chillier nights.
For ease of use, consider including a wood storage solution in the design of your outdoor fireplace, and enjoy.
The Classicalist’s Monolith
There’s something to be said for the classics—grounding, timeless, and constant. For the classicalist, the hearth is truly the heart of the home. Its gravity pulls all, residents and guests alike, to gather in front of its flames.
Here, there is no question of material; marble is a must. Not only gorgeous, but marble also provides superior durability and longevity. Though like many natural stones, it will etch, and each addition to its surface will add to its old-world appeal.
The rest is up to you. White marble? Black? We would suggest a hearty mantlepiece.
The Traveler’s Vitrine
As a global brand, we know that many of our readers enjoy traveling, and, naturally, have brought home tchotchkes from every corner of the globe. What better place to tell the stories behind them than by a fire, and where better to display them than on your mantle?
Make it an homage, a collection of memories—a wanderlust, conquered. The only detail required for the traveler’s fireplace is a generously oversized, wrapping mantle. Be it wood, stone, or brick, you choose a material that best compliments the treasures you wish to display.
Alternatively, if you wish to house souvenirs elsewhere, a fireplace can be a blank canvas for creative tilework. Whether sourcing the tiles from one of your favorite countries or letting a beautiful design boldly tell the tales of your travels, don’t be afraid to let creativity take the reins of your fireplace’s design. Standing in the center of your home will be a reflection of your core beliefs: that there is a beautiful world out there waiting to be seen, enjoyed, and appreciated.
The Modernist’s Showpiece
Every home needs a statement, and a fireplace can be a hotbed of innovation.
For decades, interior designers and architects have proved that warm and cozy rooms do not need to come at the expense of a cool and contemporary style.
Consider playing up the scale of your fireplace; an entire wall of stone, tile, or marble will leave guests awestruck. Dual-sided fireplaces will undoubtedly strike up a conversation about the intersection of utility and design, and a fireplace painted to match the walls of the room creates the “white box” feeling that contemporary museums are famous for.
Now that we have struck the hotbed of inspiration, here are two current Engel & Völkers listings that feature gorgeous fireplaces.
400 Deep Fork Circle
Just outside of Oklahoma City, this home features a grand total of eight fireplaces, as well as an outdoor fire pit. No shortage of luxury, the primary suite includes a see-through fireplace. Sounds like a modernist’s dream, no?
255 N Green Bay Road
Bookworms will enjoy an elevated reading experience surrounded by the book-lined shelves that flank the fireplace in this Lake Forest mansion. Make sitting back and grabbing your favorite book while the fire casts a warm light amongst the pages your daily reality.
If you’ve found yourself staring out the window lately, maybe it’s time for an invigorating European getaway. And, no, it isn’t too late to plan an excursion across the Atlantic. In fact, tourism in Europe hasn’t been showing any signs of slowing down this fall. Not convinced by gorgeous views, amazing food, enriching architecture, and an enchanting lifestyle? Maybe the economic incentives will tempt you; the dollar and euro are holding an unprecedented, nearly equal value—making right now the perfect time to set sail.
Once you’ve decided to book a trip, you’re left with your most important choice: where do you go? The unique personalities of Europe’s many countries, communities, and cul-de-sacs can complement a myriad of vacation hopes and dreams. As such, we took the liberty of breaking down a few different paths for you to consider for your fall European trip:
Without a doubt, museum enthusiasts must visit Paris, France, a city densely packed with over 250 museums and galleries. Albeit most famously known for The Louvre, our advisors at Engel & Völkers Paris can happily steer you in the direction of the galleries known and loved by true Parisians.
The would-be beacher
Although we are in the midst of planning a fall European getaway, the ease and allure of a summer climate can still be wistfully enjoyed in certain spots. In Tenerife, the sun continues to shine over world-famous beaches—creating an ideal destination for beach lovers in need of a little autumnal rest and recovery.
Tenerife, the largest of Spain’s Canary Islands, is home to idyllic fishing towns, lively beachside oases, and everything in between. To discover the best spot for your vacation, reach out to one of our advisors at Engel & Völkers Costa Adeje.
For those truly entranced by romantic European architecture, Budapest, Hungary, may be just the spot for you. Its Central Market Hall, Opera House, and Castle Hill are accentuated by the season’s change, an ideal time to visit this bustling European center.
Engel & Völkers Hungary can give you the full rundown on must-see streets and sites that await your Hungarian holiday.
For true adventurers, the Puglia region of Italy, while not a common stop on regular tours of the country, epitomizes the Italian spirit and lifestyle
If you’re yearning for an Italian excursion, chances are you are also craving some Italian food; Lecce will happily provide this—and our advisors at Engel & Völkers Lecce can point you to the best-of-the-best restaurants in the city. Between stops, make sure to enjoy its famous and historic Roman amphitheater.
No matter where you are going in the world, our global network of local experts will undoubtedly be able to assist you—from knowing the true local hotspots to extending your vacation to a lifetime, helping you achieve your goals is just what we do.
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Buying a home is one of the most important personal and financial decisions that you’ll make in your life. In today’s market, it is essential that you understand the journey you are about to embark upon. Complex and seemingly contradictory economic headlines have misled many potential buyers into hesitance. While it’s easy to prioritize mortgage rates in your decision-making process, the economy is just one factor, but should not be the sole deciding factor. Your personal finances, life journey, and local market trends should all be taken into account and given their own weight.
There are a number of elements that may make this the ideal time for you to buy a home. Engel & Völkers has compiled a list of some of the most important factors to consider.
Credit. A high credit score will help you lock in a lower interest rate—which could save you thousands over your loan’s lifetime. And, get this, a recent credit scoring ruling has given millions of U.S. consumers 22 extra credit score points.
Savings. Lenders want to see that you have cash set aside in case of an emergency. While your down payment should cover 3.5 – 20% of the listing price, it’s essential to have extra cash—be it in savings, retirement, or anything else—so you can have a fallback in case of a job loss or need for major repairs.
Debt. Lenders considering your mortgage applications will be sure to look at your debt-to-income ratio. As its name implies, this number gives insight into how much of your monthly income is being used to pay off debts. Most lenders look for a ratio lower than 28%.
Market Prices vs. Your Budget: While both listing prices and your budgets are influenced by the economy, higher market prices do not necessarily mean your dream home is unaffordable. The trick is to evaluate the homes available in your desired market at your desired price range to see if they meet your needs.
Investing in Your Future
Over the past month, you’ve probably heard a lot about mortgage rates, inflation, and a pending recession. If these headlines are making you hesitant to buy a home, rest assured that the real estate market is in a much better position than they imply. Here’s why:
Historically low mortgage rates: Despite recent increases, mortgage rates are still historically low. However, they will continue to rise. By purchasing today, homebuyers can lock in lower rates and lower monthly payments than those that will be available in the future.
Prices are rising: While the real estate market has slowed, home prices have continued to climb—albeit more slowly. Delaying purchasing a home in the hopes that prices will fall does just the opposite: it ensures your new home will be more expensive. The moment buyers who are taking a ‘wait and see’ approach return, the market will accelerate again.
A substantial investment: As prices around the world rise, property values also increase—ensuring that real estate remains a stable investment. A home you purchase today could be worth significantly more in the future.
Make a deal: As the market cools, home sellers are more open to negotiations. Where earlier in the year buyers have been compromising on home inspections and inadvertently entering bidding wars, buyers now have more opportunities to make a deal. In fact, listing adjustments were up slightly from August 2020, with 17.3% of active listings having seen a price adjustment.
These market conditions will only hold for so long, and buyers who act quickly have the opportunity to purchase a property to secure their future.
Like many others, you’ve probably considered whether today’s economy is conducive to your homebuying goals. While mortgage rates and inflation are meaningful considerations, the real question is whether you are ready to buy a home.
Starting a family? Need to relocate for a new job? Or, perhaps, you finally have enough savings to enter the real estate market? No matter why there’s likely a timely reason that you are considering buying a home. Don’t delay in taking the next step in your life…the timing won’t be right forever.
National vs. Local Trends
Finally, most headlines focus on national and international housing trends—not those impacting your local market. It’s important to research local housing conditions, specifically mortgage rates, housing inventory, and listing prices. For example, cities like Cleveland, Ohio, are seeing median listing prices of less than $120,000 USD and are also reporting discounts in selling prices over the past months.
In order to properly assess your local market, it’s essential to work with an expert real estate advisor like those at Engel & Völkers—who, first and foremost, are your neighbors. Our local advisors have a comprehensive understanding of the trends affecting their markets and are well-equipped to evaluate how the market looks given your personal circumstances.
As pandemic restrictions have lifted, travelers are once again venturing out of their home countries to explore the world—be it via land, air, or sea. The tourism industry is back and running, with nearly 76% of Generation X comfortable traveling.
Going abroad is your chance to see the world—both its natural beauty and the genius human creations that together define its landscape. As a global luxury real estate brand, Engel & Völkers is highlighting just a few architectural monuments that are worth the trip. Starting with an ancient town in Italy and ending with the tallest building in the world, this list compiles some of the world’s most stunning structures, with design nuances that serve as inspiration for modern architects and designers alike.
San Gimignano | Italy
Located midway between Siena and Florence, San Gimignano and its iconic towers sit perched on a scenic hilltop. The town gained its independence in 1199 and reached its glory days in the 1300s. During this century, the noble families who controlled the town constructed 72 towers—exceptional in their height, magnificence, and expense. While only 14 towers have survived, the town’s skyline maintains its resemblance to those of major cities like New York.
Thousands of tourists visit every year to experience the distinctive medieval architecture that has earned the town a spot as a UNESCO World Heritage Site. Beyond the stunning architecture, visitors to San Gimignano can visit local museums like San Gimignano 1300 and take a peek at local life at the Tower and Casa Campatelli. The town’s tallest tower, Torre Grossa, overlooks a striking panoramic view of the historic district.
Tiger’s Nest | Bhutan
Also known as Taktshang Goemba, Paro Taktsang, and the Tiger’s Nest Monastery, Tiger’s Nest is one of Bhutan’s most famous and recognizable structures. Constructed in 1692, the building is centered around one of the Himalayas’ 13 tiger lairs. Guru Rinpoche (Padma Sambhava), who is credited for bringing Buddhism to Bhutan, is believed to have meditated there for three years, three months, three weeks, and three hours.
What makes Tiger’s Nest so beloved is its location and beauty. Almost 3,000 feet in the air above the Paro Valley, perched on a cliff, the monastery is comprised of four temples, residential houses, and a series of wooden bridges. The only catch: guests must travel through miles of treacherous terrain to reach this remote location.
Royal Palace of Brussels | Belgium
Across the park from the House of Parliament, the Royal Palace of Brussels sits imposingly in front of its meticulously maintained landscaping. Located in the Kuntsberg district, the palace is one of Belgium’s most breathtaking works of architecture—a must-see for lovers of art and history alike. The structure features the magnificent neoclassical architecture popular at the time of its construction, between 1820 and 1934.
Throughout the majority of the year, the palace serves as the king’s main office, and its interior is closed to visitors. While the building is closed, guests are welcome to visit the building’s exterior and the surrounding park. Those who hope to take in the architectural brilliance inside should plan to visit between July and September.
Chrysler Building | The United States of America
Constructed in 1930, the 1,048-foot Chrysler Buidling was the tallest building in the world for just 11 months (surpassed by the Empire State Building in 1931); however, that does not take away from its architectural brilliance and significance. Located on Manhattan’s East side, the skyscraper was designed by William Van Alen on behalf of developer William H. Reynolds. Its Art-Deco-style architecture was considered modern and luxurious at the time of its construction, and it remains a favorite of architects, builders, critics, engineers, and historians.
Originally housing the Chrysler Corporation’s headquarters, the building is now home to storefronts, restaurants, cafes, bars, office suites, apartments, the exclusive Chrysler Club, a library, a lounge, and a yoga and meditation room.
Hungarian Parliament Building | Hungary
The Hungarian Parliament Building is located on the left bank of the Danube River in the center of Budapest. Although more than a century has passed since its opening, it remains the largest building in Hungary, covering more than 193,800 square feet (or 4.5 acres of land).
The building harmoniously combines elements of Neo-Gothic, Beaux–Arts, and Italian Renaissance architecture. The interior of this impressive building contains the main state symbols of Hungary in its dome hall: the Holy Crown, sword, and globus cruciger, Hungary’s sacred symbols of full sovereignty in the medieval period.
Maropeng Visitor Centre | South Africa
Maropeng Visitor Center was constructed in 2006, making it a more modern addition to our list. This state-of-the-art, award-winning visitor center is dedicated to telling the story of human development over the course of the past few million years. The exhibition goes all the way back to Earth’s formation and follows our ancestors to the modern day.
“You enter the building as ants would enter an ant heap, or bees a hive.”Chris Kroese, GAPP Architects
Once you exit the building at the end of the exhibition, however, the view transforms. From the back, Maropeng Visitor Center is sleek, modern, and futuristic. Kroese goes on to explain that this is representative of how we have not yet come to the end of history, as the future awaits.
Peleș Castle | Romania
Located in Sinaia, Romania, Peleș Castle is considered one of Europe’s most beautiful neo-Renaissance-style castles. Previously a summer residence for Romania’s royal family, the castle is now home to the Peleș National Museum and is occasionally used for royal ceremonies.
The palace’s exterior is breathtaking, and its interior feature incredible worksand of art. It boasts more than 160 rooms, over 4,000 pieces of weaponry, an extraordinary ceramic collection, and thousands of art pieces like works from Gustav Klimt.
The Burj Khalifa Tower | The United Arab Emirates
The Burj Khalifa Tower in the center of Dubai is both the tallest and most expensive construction in the world. With superb, panoramic views, chic restaurants, luxurious shops, and lively entertainment, it is one of the most exclusive buildings in the city.
While the tower is surrounded by high-rise buildings, its height of 2,717 feet ensures it’s visible from almost everywhere in the city. The building includes an Armani hotel, luxury apartments, a restaurant, a rooftop with 360° views, office spaces, and a lounge. It meets the highest environmental protection standards as it independently generates electricity via a wind-driven turbine, an array of solar panels, and a rainwater collection system.
Holiday properties are attractive capital investments that have become very popular. Ideal for partial owner-occupation, as a retirement property or financial provision in old age, holiday properties are usually more suitable than many other financial investments. An accurate yield calculation for holiday properties is necessary, however, because not every in-demand holiday property is equally lucrative as an investment. Apart from the location, amenities and size of the holiday properties, investors are therefore primarily interested in the financial aspects of the investment. How much return can you achieve with a holiday property? We show you what options there are for calculating the return on a holiday property and how you can determine it yourself.
What is the gross yield and how can it be calculated?
The gross yield or gross rental yield indicates what percentage of the purchase price of the holiday property the annual rental income represents. For example, the income in the form of a basic rent from letting the holiday property amounts to 24,000 euros or $24,596 USD per year. If the purchase price is 350,000 euros or $357,837 USD, this means that the gross yield is 6.86 percent. To calculate the gross yield, simply multiply the annual basic rent by 100 and then divide by the purchase price. The gross yield thus compares the rental income with the purchase price. It serves as a simple yield calculation of a holiday property, but does not take into account the utility costs and maintenance expenses.
- Example calculation of gross yield: 24,000 euros/$24,596.34 USD basic rent x 100 / 350,000 euros/$357,836.64 USD purchase price
What factors influence the net yield?
In addition to the calculation base of the gross yield, the net rental yield also takes into account the incidental acquisition costs and other consequential costs. After all, it is not only the value of a property that is taken into account when calculating the yield. The purchase of a holiday property entails incidental acquisition costs that are part of the investment. The rental itself also incurs consequential costs. These are therefore important elements when calculating the exact yield of holiday properties. This is because they are part of the non-apportionable operating costs borne by the owners of a holiday property and not its tenants. To calculate the net yield, reduce the annual rental income by the non-apportionable operating costs and the annual reserve for maintenance work. The result is the net rental income. Multiply this again by 100 and divide by the investment costs.
- Calculation of net rental income = basic rent – operating costs – reserves
- Calculation of investment costs = purchase price + incidental acquisition costs
What are the costs for a holiday property?
Depending on the holiday region, the exact location and the type of holiday property, the purchase prices can vary significantly. A villa with a wellness area and pool as well as a fantastic panoramic view costs a lot more, but at the same time yields higher rental income. A small apartment is much more affordable. On the other hand, the rental income is lower and there may be shared costs for communal facilities. The yield calculation shows in each individual case which holiday property is suitable as a yield property. Even the purchase of a holiday property incurs additional incidental costs. This includes, for example, the notarial purchase agreement and the land register entry. Regardless of whether you only let the holiday property or partly use it yourself, you will incur basic charges for electricity, water, gas, telephone and internet. Likewise, the property manager, the cleaning staff and the garden maintenance staff also need to be paid. These expenses are ongoing, regardless of whether the holiday property is let or vacant. The higher the occupancy rate, the more wear and tear on the holiday property. Depending on the condition and age of the holiday property, expenses for maintenance and renovation may be incurred over time. You should make provisions for these in good time. The following costs are to be expected when investing in a holiday property:Incidental acquisition costs:
- purchase price
- notary fees
- brokerage fee
- land register entry
- property transfer tax
- financing costs
Non-apportionable operating costs:
- development costs
- road construction
- garden redevelopment
- property management
- utility costs during vacancy
Detailed yield calculation for a holiday property
While the gross yield only takes into account the actual purchase price of the property as well as the net rental income, the net yield is much more meaningful. It takes into account all investment and operating costs as well as reserves for future repairs. If you want a very detailed yield calculation for your holiday property, you can also take into account a vacancy rate or the owner-occupancy rate. Depending on the holiday region and location, you can expect different rental occupancy rates. While holiday properties in ski regions are suitable for rental in summer as well as winter, most holiday apartments and houses generate the highest yield in the summer peak season. Tax incentives make the purchase of a holiday property even more attractive. It should be noted here that owner-occupation can reduce or eliminate the tax rebate if you fall short of the required local minimum occupancy rate. If you are planning a longer period of owner-occupation during the peak season, you may miss out on valuable rental income. And this in turn then affects the yield of your holiday property.
What is important when buying a yield holiday property?
If you know how you want to use the holiday property, you should choose the best location for it. A pure capital investment usually brings the best return in popular holiday regions that make high occupancy rates possible. Beachfront or seaside holiday properties require a higher investment. As a rule, you will achieve significantly higher rental income in prime locations than in peripheral locations. Nevertheless, even holiday properties in peripheral locations can achieve an attractive return if the purchase price and the general conditions are correspondingly good. Holiday properties intended to serve as retirement domiciles later on require a corresponding infrastructure as well as age-appropriate furnishings. Accordingly, senior citizens are particularly suitable as a target group for these holiday homes and apartments when it comes to letting them out. Families with children, on the other hand, prefer outdoor pools, playgrounds and other tourist attractions in the surrounding area. Romantic holidays or a quiet location in the countryside is optimal for holidaymakers seeking peace and quiet. When choosing a holiday property, you should consider your investment potential on the one hand and the target group and their requirements on the other. The legal aspects should also be examined before buying a holiday property. Can the property be used for any purpose? May a holiday apartment be let out or used as a retirement domicile under the terms of the owner’s agreement?
As a Broker with Engel & Völkers, I will be happy to advise you in more detail on the subject of calculating the yield of holiday properties. Take advantage of our many years of expertise and find your high-yield holiday home or lucrative holiday apartment with us that meets all your requirements.
|John Beuerlein |
The Federal Reserve’s declaration of war on inflation has increased market volatility as investors position themselves for the anticipated economic slowdown resulting from the Fed’s tighter monetary policy. Except in a few instances, it is too soon to see the impact in economic data; however, consumer spending indicates an imbalance between supply and demand. The Fed’s actions are focused on slowing demand for products and services, but the supply side of the economic equation also continues to aggravate inflationary pressures.
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Why Multifamily Real Estate is a Good Hedge Against Inflation?
With inflation already a major concern, investors are looking for ways to protect their portfolios or even benefit from rising costs. One asset class that is becoming increasingly popular as an inflation hedge is multifamily real estate. The multifamily sector has some unique benefits, making it an exceptionally attractive investment.
Ability to Adjust Rents: The leases in multifamily properties typically last only one year, which allows property owners to respond quickly to inflationary pressures and adjust rents accordingly.
Necessity-Based Asset Class: Multifamily real estate is a necessity-based asset and hence it is less likely to lose value during an economic downturn than other types of assets. Most people will pay their rent before paying for other expenses
Maximizing Returns Through Value-add: The value of multifamily real estate is soaring, but investors can still find great opportunities by using a value-add strategy. This strategy allows an investor to purchase an underperforming property at a discounted price and significantly increase its value through renovations, improved management efficiencies, and rising rents.
Growing Demand: Home prices have increased dramatically over the past 18 months, and many signs point to this trend continuing. This is great for homeowners but bad for buyers, many of whom cannot afford to purchase a home. Since owning a home has become increasingly unattainable for many people, demand for rental units in multifamily properties has increased.
If you are beginning your home selling journey, first and foremost, congratulations. While undoubtedly stressful, this is also an exciting time, and I want to ensure you’re equipped with the tools you need for your journey.
According to the National Association of REALTORS® (NAR), homebuyers’ expectations are higher than ever before. Whether this is because of ever-popular home design television shows or easy access to home design inspiration, potential buyers arrive at showings with every intention of finding exactly what they have imagined.
Deliberate and thoughtful home staging enhances your property’s unique features, ensuring your home stands out from other listings. Through proper staging, the physical landscape of the home becomes highly enticing to potential buyers who can already see themselves living there. Small changes here and there can have a huge return on investment and play a major role in differentiating your home.
When buyers are eager to jump at a house that they can imagine themselves calling home, why not do what you can to deliver it to them? With this in mind, Engel & Völkers and I are excited to present our new Home Staging Guide.
The Home Staging Guide
In the pivotal time before listing your home, reach out to real estate professionals and interior designers to make it the best debut possible. As a top advisor with Engel & Völkers, I know what home buyers are really searching for and the most effective ways of presenting homes. Within our Home Staging Guide, we have compiled key tips, tricks, and hacks into one comprehensive guide—just for you.
What to Expect Inside
The Home Staging Guide details the nuances of optimizing your home for buyers’ imagination. Doing so will protect the memories you have made, increase the value of your home, decrease the time spent on the market, and prepare you for your next chapter as best as possible. With the help of our Staging Guide and expert advisors, you can expect:
- Industry observations on what buyers expect to find.
- Access to insider tips and tricks.
- The resources to build a bespoke staging strategy.