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Why you should Refinance your mortgage with Q-Kapital

Refinance your mortgage!

You should always look for ways to lower your interest rates. Refinance with Q-Kapital today

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Refinancing a mortgage means paying off an existing loan and replacing it with a new one. There are many reasons why homeowners refinance: to obtain a lower interest rate; to shorten the term of their mortgage; to convert from an adjustable-rate mortgage (ARM) to a fixed-rate mortgage, or vice versa; to tap into home equity to raise funds to deal with a financial emergency, finance a large purchase, or consolidate debt. Since refinancing can cost between 2% and 5% of a loan’s principal and—as with an original mortgage—requires an appraisal, title search, and application fees, it’s important for a homeowner to determine whether refinancing is a wise financial decision.

1. Refinancing to Secure a Lower Interest Rate

One of the best reasons to refinance is to lower the interest rate on your existing loan. Historically, the rule of thumb is that refinancing is a good idea if you can reduce your interest rate by at least 2%. However, many lenders say 1% savings is enough of an incentive to refinance.

Reducing your interest rate not only helps you save money, but it also increases the rate at which you build equity in your home, and it can decrease the size of your monthly payment. For example, a 30-year fixed-rate mortgage with an interest rate of 5.5% on a $100,000 home has a principal and interest payment of $568. That same loan at 4.1% reduces your payment to $483.

2. Refinancing to Shorten the Loan’s Term

When interest rates fall, homeowners sometimes have the opportunity to refinance an existing loan for another loan that, without much change in the monthly payment, has a significantly shorter term. For a 30-year fixed-rate mortgage on a $100,000 home, refinancing from 9% to 5.5% can cut the term in half to 15 years with only a slight change in the monthly payment from $804.62 to $817.08. However, if your’e already at 5.5% for 30 years ($568), getting, a 3.5% mortgage for 15 years would raise your payment to $715. So do the math and see what works.

3. Refinancing to Convert to an Adjustable-Rate or Fixed-Rate Mortgage

While ARMs often start out offering lower rates than fixed-rate mortgages, periodic adjustments can result in rate increases that are higher than the rate available through a fixed-rate mortgage.2 When this occurs, converting to a fixed-rate mortgage results in a lower interest rate and eliminates concern over future interest rate hikes.

Conversely, converting from a fixed-rate loan to an ARM—which often has a lower monthly payment than a fixed-term mortgage—can be a sound financial strategy if interest rates are falling, especially for homeowners who do not play to stay in their homes for more than a few years. These homeowners can reduce their loan’s interest rate and monthly payment, but they will not have to worry about how higher rates go 30 years in the future.

4. Refinancing to Tap Equity or Consolidate Debt

While the previously mentioned reasons to refinance are all financially sound, mortgage refinancing can be a slippery slope to never-ending debt. Homeowners often access the equity in their homes to cover major expenses, such as the costs of home remodeling or a child’s college education. These homeowners may justify the refinancing by the fact that remodeling adds value to the home or that the interest rate on the mortgage loan is less than the rate on money borrowed from another source.

Another justification is that the interest on mortgages is tax deductible.3 While these arguments may be true, increasing the number of years that you owe on your mortgage is rarely a smart financial decision nor is spending a dollar on interest to get a 30-cent tax deduction.

 Q-Kapital offers interest rates as low as 3.5%

Rate & Term Refinance

A rate and term refinance allows you to lower your rate, change your loan program (e.g., 5 year ARM to a 30 year fixed) or both. If you would like to take advantage of lower rates and a different loan program this type of refinance loan is a good option.

Cash-Out Refinance

A cash-out refi allows you to take advantage of current market rates and keep one mortgage loan.  If your home is worth more than you owe on your existing mortgage, you may be able to pull out equity and secure a lower interest rate. The tradeoff? A larger loan amount and a prolonged loan amortization. As a general rule of thumb, you may want to consider a cash-out refinance if you need more than $50,000. In order to take advantage of the best rates, you will not want to exceed a 60 percent loan-to-value ratio (what your home is worth versus what you owe) and have at least a 740 credit score.

Cash-out refinancing is also something to consider if you’re paying cash for a home but need the money back right away. The benefit of paying cash for your home eliminates the stress of meeting the contract deadlines as well as the process of obtaining financing for your purchase.

Call us today for more information! New opportunities come through working with Q Kapital

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Investing in real estate with no money: Is it possible?

real estate with no money

When we talk about investing in the real estate market, we automatically think of big amounts of money that are hard to get for most people. What if we tell you that these kinds of investments are possible even if you don’t have all the money that is required for it? The answer is easy: YES, it’s possible to do it! In this article, we will show you the best options to make it happen. 

 

Private Money Lenders and Hard Money Lenders

Private Money Lenders are individuals or a pool of individuals that loan their own money without middlemen, usually for real estate investments. These transactions are fast and efficient and can cost between six and 12 percent of interest on the money borrowed. 

In a similar path, Hard Money Lenders might be a fund of investors that typically offer short-term loans secured by real estate investments. The terms are usually between 12 months and five years and they might charge up to 18 percent of interests. 

The mentioned ones are the most popular choices when financing real estate deals because these loans are not given by banks. Additionally, these loans have their own guidelines, which include higher fees and higher interest rates. 

 

Wholesaling 

This option doesn’t require large amounts of money nor a high credit score. It consists of finding a home for an interested buyer at a higher price than the value agreed with the seller, and keep the difference as a profit.  

 

Equity partnership

Partnerships are a very common option for real estate investments. It’s about finding different people interested in the investment. Each one of them contributes in a different way or with different amounts of money. Keep in mind that aspects such as goals, risks, roles, and returns should be discussed and clarify before creating a partnership.  

 

Home equity

This alternative consists of rewrite the first mortgage and do a cash-out refinance or keep the first loan and add a home equity line of credit. It is a viable option considering how property values are going up in recent months. 

 

Option to buy

This method allows an investor to obtain a property without initially taking its legal ownership. In this case, the investor signs a legal “option to buy” from the owner at a specific price for the future. That agreement ensures the purchasing of the property at a later date and for the specified price. In the meantime, the investor rents the property on a long-term basis. 

 

Seller financing 

An option to traditional loans where an investor buys a property directly from the owner/seller without a bank’s mediation. Both sides sign a written contract where they agree to the terms: interest rate, payment schedule, and consequences of default. 

 

House hacking

In this strategy, an investor earns income by renting their primary residence. For those in single-family homes, they can rent a spare bedroom. For those with more than one property, renting at least one of them is the best option. This allows investors to have a cash flow. 

 

Government loans

These are the most well-known sources of funding for a real estate investment and usually, they imply good deals. It’s worth mentioning that these loans can take a long time to receive approval, which makes them less attractive than other options. 

 

Microloans

These loans are offered by individuals (a single lender or many people), each of whom is expected to contribute to a portion of the total amount of money that is required for the investment. 

 

As you can see, there are plenty of options when it comes to finding financing for a real estate investment. It is possible to do it if you don’t have the needed amount to start and even if you don’t have a good credit score, many choices don’t require it. Investing in real estate with no money is possible. You just have to know which is the best finance opportunity for you. 

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How to choose where to invest

real estate market

When investing in real estate, some people prefer to do it in a market they know, usually close to where they live, on local properties. But some others take the risk to find new places where the profits could be greater. They don’t limit themselves to buy in just one area. Instead, they study different regions looking for the one that might offer a tempting housing market, better property prices, and positive demographics to support a growing real estate market. 

The first thing to do when investigating which real estate market to invest in is to review overall property trends. To do so, we have gathered here some advice that will guide you through the previous research to invest in a foreign market.

 

Check out the taxes and demography

When searching for a place to make a long-distance investment, you should look at countries, states and cities without income tax or with low sales taxes, and even cities with tax incentives to real estate investors. That’s a way to reduce your fixed costs.  

Another thing to have in mind is the area’s demography. You can invest in a metropolis or an area an hour away from a big city. Make sure the city has population and labor growth. To do so, you can use census information about population, economic and employment growth, as well as check on information such as household income and amount of renters versus the number of owners. This way you can divide the different areas according to their target, which will help you decide where to invest and in which type of property according to your capital and the conditions of the place. 

 

Work with local real estate agents

Once you have chosen a city, the best thing you can do is work with a local real estate agent because they understand that particular market better than anyone. For example, property values ​​may vary from one block to the other, which might cost you a lot. These agents have a strong sense of the local economy and will keep you updated on any activity or changes that may affect housing prices, and they can also manage the property and find tenants for you, two very important details if you are investing from a long distance. 

 

Review the real estate market trends

Some trends are local, and as an investor, you need to know them. One of these trends might be the rise in apartment rental buildings instead of condominium buildings because millennials prefer to rent. But if you want to invest in a residential area, perhaps a condominium or a small family house will be a better choice. 

There is also the trend of short-term vacation rentals, thanks to many new apps and platforms that allow owners to rent their properties per day. In this case, you should review the tourism in the area and the touristic seasons to make sure the place will be rented. 

 

Decide on how much rental income you will need 

As an investor, you need to make sure the future rental income can support the price you will pay for a property. That income has to be enough to pay the debt for the property, its maintenance and cover its taxes. As a general rule, the property’s price should be about a hundred times the rent cost. 

 

Now you have a general outlook of the important things you need to check before investing in another location, you will be are able to specify in which city is best for you to invest. We assure you that the results are much more favorable when you make investments like these. 

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Be part of the future Miami

construction industry

Miami’s construction industry keeps growing by leaps and bounds. As the city goes taller, the new towers are expected to be more modern and superior than ever, with high standard services and luxury designs. 

We know best that an investment in real estate is one of the top ways to keep your money safe and guarantee a secure profit from it. We have reviewed in previous articles the high opportunities and earnings and the low risks that come with these types of investments, so this time we’ll bring you a list of new projects that are expected to be constructed in Miami this 2020, and in which we know it is worth to invest:

 

1) Okan Tower

This 70-floor mixed-use building will be the tallest skyscraper in Miami. It combines a hotel operated by Hilton Hotels & Resorts, four floors for office usage and a residential area with 236 condo-hotel units, 149 condominium residences, and four luxurious penthouses. Its glamorous location directly on Biscayne Boulevard offers stunning views of the bay and the city skyline. 

 

2) Aston Martin Residences

The construction has already started for the first Real Estate project in Miami of the British firm Aston Martin. This A-World class residential building will be 66 stories tall on 300 Biscayne Boulevard Way, with 391 condo units. It will also hold a gym, spa, two movie theatres, a beauty salon, a virtual golf course, a barbershop, an art gallery and a pool on the 55th floor. 

 

3) 830 Brickell

830 Brickell is not just expected to be the second tallest office building in Miami, but the most modern one. Situated on the heart of Miami’s financial center, it will rise with 57 stories totally dedicated to offices. 

 

4) Missoni Baia 

Living in front of the Bay has never been so elegant. Missoni Baia is a 57 stories tower with 200 feet of frontage on Biscayne Bay and 649 feet above sea level. The building is planned with 249 elite residences, all of them with sophisticated designs and exclusive amenities, which include the largest spas in the city. 

 

5) Una Residences

These condominiums are located at the heart of the city, in South Brickell. The futuristic and unique design of 46 stories features modern waterfront condos with floor to ceiling windows, giving the best views of the Biscayne Bay and the Rickenbacker causeway. It will also hold elegant amenities like gym, spa and private boat slips. 

 

6) Natiivo

Natiivo: a 50 stories tower that mixes a hotel and a condo-hotel, will break ground in early 2020. Located in Downtown Miami, it will offer a new model of home-sharing rent thanks to a partnership with Airbnb, which allows residents to rent their condos whenever they want. With a great design, modern technology, an exceptional service, the security of a hotel and professional hosts, this building is an outstanding opportunity. 

 

7) Society Biscayne

Society Biscayne includes 646 apartments with a highly modern design. Due to its location in a great neighborhood, it will be easily connected to any part of the city. The amenities include a lobby market and café, a pool with Bay views, a deck, a performance stage, a modern gym, a coworking lab area, and a dog park. 

 

8) Legacy Miami Worldcenter

This mixed-use project of 50 stories is set in the Miami Worldcenter. It includes 255 hotel rooms, along with 278 condo-hotel units. With a partnership with Airbnb, there there are no restrictions for renting. The investors can either live in their units or rent them for a short or long term period, rent per day or assigned the space for the hotel to rent it. 

 

9) Luma Miami Worldcenter

The Luma Miami Worldcenter will be built with 434 luxurious apartments in 49 stories of pure elegance. This colossal tower will have 503 feet above the sea level when finished.

 

10) Downtown 5th

Downtown 5th consists of a pair of twin towers that will rise 53 stories and 495 feet each, with 1,042 apartments and 1,049 parking spaces. The ground floor will hold the lobby and 12,506 square feet of commercial space. 

 

11) Virgin Hotel Brickell

This 40 stories building in Brickell will have nearly 250 hotel rooms and 15 stories of furnished residential units with access to the hotel’s common spaces and amenities. The building is planned to open in 2023 and will have a spa, communal workspace, a bar and social club, a beer garden with live music, space for food outlets and 15,000 square feet of meeting and event space. 

 

12) Block 45

Block 45 will feature twin towers with 36 stories, 600 apartments, 645 parking spaces and 23,000 square feet of ground-floor retail on three streets.  What’s more, 60% of the apartments are thought to be affordable units for workforce housing.

 

13) 2000 Biscayne

2000 Biscayne is a 393-unit apartment project of 36 stories with 25 studios, 175 one-bedrooms, 181 two-bedrooms, 12 three-bedrooms and eight floors of parking space.

 

14) Yotelpad

The construction is on the way for the Yotelpad building, a 453 unit tower with a mix of condo and hotel of 31 stories. The residential area will have 231 apartments above the hotel, with share amenities and exclusive areas for owners. There are no rental restrictions for investors.

 

15) Modera Biscayne Bay

Modera Biscayne Bay is already in construction. It will have 28 stories of sophisticated mixed-use apartments, 296 units from one to three bedrooms and 11,000 square feet of retail space. Community amenities include a deck, rooftop pool, fitness club, barbecue, clubhouse, lounge, conference room, and coffee bar. 

 

16) Grand Station

The Grand Station includes 300 residential apartments, 5,000 square feet for retail stores and amenities like gym, pool, spa, rooftop deck and community workroom, everything distributed in 31 stories. The apartments will be a combination of studios, one- and two-bedrooms. 

 

17) CitizenM Brickell

CitizenM Brickell will be a hotel with great rates, big-city locations and amazing design, but no parking space. The building, with 21 stories, 252 rooms and located in the city center, is planned to have affordable prices for the guests. 

 

18) AC Hotel By Marriott and Element By Westin Hotel Brickell

This will be one of the first dual-branded hotels in Miami, and it will be comprised of 264 hotel rooms, 156 from the Marriott and 108 for the Westin, along with 23,000 square feet of retail space in the 1st and 2nd floors. 

 

19) Smart Brickell

Smart Brickell will consist of three towers of 25 stories, with two of them expecting to be rising in 2020. It is designed with the Smart Living Philosophy, where every aspect is made to make the most of it. It will also have a hotel, electric parking stations, bars and restaurants, a gym and a rooftop lounge.  

 

That was Miami’s construction industry scenery. Now that you have a better idea of the great projects to come, we hope it will be easier to decide which choice can be better for your investments. There is no need to be a big investor to be part of the future of Miami, and we are here to guide you through the process and make sure you get the best from it.

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Miami, more economic by square foot than some Latin American countries

investing in miami

As we have seen in our previous article, investing in real estate can be the safest choice for sheltering your capital. Properties not only avoid devaluation but also go through a process of appreciation with time. On top of that, if you invest in a real estate market that’s solid, like Miami, you’ll be safe from economic downfalls back home. Besides, if you turn your property into a rental, you can count on an extra income in a strong currency that will never let you down.

 

For sure, none of the things we have mentioned are new to you. But what if we tell you that there’s even more? The pricing of a square foot in Miami could be lower than in some Latin American countries. The difference lies in the interest rate. If you buy with a mortgage loan back home, we are talking of at least a 12% to 15% interest. Instead, if you get a mortgage loan in Florida, the interest rate could be as low as 5%. This means if you rent the property you can get an income high enough to pay the loan and, at the same time, get a monthly profit.

 

What else is it good about investing in Miami?

 

Miami’s real estate market will always thrive, being the seventh-largest in the US. After LA, NY, and Washington, Miami has the fourth-best value in the housing market in the country. On top of that, during the last quarter, appreciation rates in the area have been between 0.7% and 0.8%. If this trend continues the same, we can forecast 3% for the whole of 2020. But let see some specific numbers:

 

  • Unemployment rate below 4%.
  • More than 70% of the population rents.
  • There are no income taxes or low property taxes.
  • Miami is among the top 10% for real estate appreciation in the US.
  • The average list price per square foot in the city is $420.

 

A hot place for real estate investment

 

Leaving the numbers behind, the qualities of Miami that make the city a hot place for real estate investment are a lot. Take a look at some of them:

 

  • Miami is attractive to immigrants, so it’s fertile ground for closing deals when it comes to international business.
  • The subtropical weather makes Miami a tourist destination of choice. That gives us a massive tourist market, creating opportunities for investment not only in properties for renting but also in commercial real estate, for example in gastronomy or hotels.
  • Miami is on the water, so the skyline is amazing from any point. Whether you invest in an apartment on a high floor, or you’re building a whole tower, the landscape will be a strength.
  • ⅔ of Miami residents are not owners, they rent. If you invest in properties for rent, you won’t struggle to find renters.
  • As the business activity in Miami never sleeps, the job market is always growing and creating new opportunities.
  • The students’ market is big, as we are talking about a city with more than 40 universities and colleges.

 

Not all deals will be solid investments, but if you’re keen to invest in real estate in 2020, Miami will be one of your best options.

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How to consistently build wealth through real estate

build wealth through real estate

 

If you have experienced the economic and real estate crisis a decade ago, then this article may impact you. But the truth is that today, the market is recovered and, even if you are a beginner, you can build wealth through real estate.

Stop gambling

 

When you make an investment, in most cases you have personal expectations that don’t differ that much from gambling. You are waiting for an asset to appreciate, or for a business to improve or grow. But if your presumptions are not based on real data and statistics you’re just throwing away your money and wishing to have good luck. 

 

Real estate will provide you an opportunity of investment that’s safe and conscious. If you buy a property that you know it’s going to generate more income than it costs owning, after paying all the expenses and collecting rent, you’ll be left with positive cash flow. Taxes, insurance, mortgage loan, maintenance costs and fees, everything will be covered with the rent that you’ll get from the tenant and you’ll start to see profits as soon as you begin.

 

Stop investing in assets which you’ll be waiting to increase its value. Go with the option that’s safer: a property for renting. If you’re lucky and the future real estate market is benevolent, you’ll also have the option to resell and make an extra difference.

 

Appreciation and tax benefits

 

As we have said before, you can always resell. And we have said “if you’re lucky” but the real thing is that everyone has been lucky in this aspect. Real estate will always appreciate in the long-term. Even when prices do fluctuate, in the end, the result will always be higher than when you’ve purchased the property. So it’s always a matter of waiting for the right moment. 

 

On top of appreciation, you’ll also access some tax benefits. You should consult a tax advisor, but we can tell you you can deduct 1/27.5 of your property value against the income you’ve got with the rental. This is because the government considers a property weathering.

 

In the end, you’ll be investing in a property that will generate a constant income and positive cash flow, will for sure see an appreciation in the long-term and will also protect your income against taxes. What could be better?

 

Really good financing options

 

When investing in any kind of business, we can guarantee you will never get terms of financing as good as when you invest in real estate. If you get a mortgage loan, you’ll have interest rates that are currently below 5% and down payments that for a citizen can be less than 20% and for a foreign around 30%. Your mortgage loan will be amortized in a period of 30 years. There are no such conditions for another kind of loan, for any other type of investment.

 

If you buy with a mortgage loan, you can go into a cycle: Buy, Rent, Refinance and Buy another property. When you refinance you’re getting the possibility of recovering your capital to invest in something else. The only thing you have to make sure is that your properties are producing more income than costs. Your cash flow should stay always positive.

 

Now that we have gone over its benefits, you are ready to build wealth through real estate. What are you waiting for?

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Why investing in real estate

investing in real estate

Investing in real estate for the first time could be seen as a risky bet, we know it. The last economic crisis might make you rethink it. But do not fear! Like any investment, it has its risks, but it also has a great truth behind: vast fortunes are being amassed through real estate in a steady, safe and simple way. One of the best characteristics of it is that there is no need to be a big investor to do it. 

To do so it is important to have the know-how of real estate, which is not a small thing if we consider that it is not as easy as buying low and selling high. So we have created a sort of guide to help you appreciate why real estate is a consistent option to build wealth more than other kinds of assets. Whether you have a big amount of money to start investing or you start from zero, here we will give you a little help with these expert tips for investing in real estate, that will grant you benefits sooner than later. 

 

1) Get an income from the beginning 

While one way of making a good deal is buying something, wait until its value is increased and then sell for a profit, an even better idea for the start could be buying something and secure a steady income. A wise investment is not based on hoping for a value to escalate but in purchase a property knowing that it will generate a greater income than what it cost to buy it. 

The easiest way to do it is by buying a property that you can rent. With the money you will earn periodically after all the expenses are paid (such as a mortgage, taxes, insurance, maintenance, etc.), the difference goes right to your pocket. Nowadays, it is possible to make more profits thanks to the rise of temporary rental platforms, since those short-period rents are usually much higher than the longer-term ones.

 

2) Obtain the best financing terms

Real estate has incredible terms of financing, perhaps better than any other kind of loan. The interest rates are remarkably low, down payments are around 20% or even less and mortgage loans are amortized over periods of 30 years. 

You can either pay the mortgage loan with the money you receive from your tenant and keep the difference (in which case your tenant is paying off the loan for you) or buy a property, improve its value and then recover the capital by 100% or more by refinancing. These loans result in an easy option to grow your wealth passively and steady. 

 

3) Add value by improving the property

At the moment of purchasing a property, you can check the ones that allow you to improve their condition. This means you can pay below market value for a property that needs to be fixed or one that needs upgrades. The key here is to do a little investigation to find the properties with weaknesses and then add what they lack to increase its value. 

 

4) Learn about the market and find assistance 

Real estate, like any other market, has pitfalls. So you will have to learn as much as you can about the market in general and in particular in the areas you want to invest in. Information is everywhere! Articles, books, videos, seminars, talk to brokers and contractors, view open houses; everything helps. Once you find an exciting deal, you will need some assistance to answer the questions you will have in the heat of the deal. To answer them, find a real estate mentor, someone specialized in this kind of investment, and then go for it!

As we have seen, investing in real estate could really change your financial scenery in the short-term. Contact us if you want to take advantage of our experience in this market.

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West Palm Beach: An exciting place to live

west palm beach

In South Florida, along the Intracoastal Waterway and the Atlantic Ocean sets West Palm Beach. The city was founded in 1984 and has been through major transformations during its history which led to the vibrant city that it is today. 

Although small in population with under 100.000 people, 22% of them are Latins and a bit more from different nationalities. That means West Palm Beach has a diverse community rich in cultural heritage. There’s nothing better than a cosmopolitan community to be immersed in the globalized world!

The modern vibe of the area makes a perfect match with its historical side. As one of the oldest cities in South Florida, architectural preservation is key to keep its image of colonial style. Combine it with a tropical location and weather and you will be living in Caribbean-like heaven. You could walk through one of the fifteen historic neighborhoods that give the city its real character, admiring the Spanish colonial styled houses built around the 1920s and the modern beauty of the contemporary buildings, or go on a boat trip through the coast to photograph the landscape from the water. 

Living in West Palm Beach is very convenient if you want to have the rest of the city close at hand. An example would be the Palm Beach International Airport, that’s just a forty-minute distance driving from West Palm Beach. It also gives you all the benefits of a larger city in an exciting downtown that draws visitors from all over the world, as well as residents hoping to be part of its growing economy and an environment in which people can feel safe and quiet. 

West Palm Beach, as the rest of the Palm Beach County, offers services and amenities to satisfy the highest standards of living and entertainment with its outstanding restaurants, exclusive shopping, and distinctive art galleries and museums, among others. But what really stands is the vibrant offer of cultural activities. 

The heart of the city is the Arts & Entertainment District, where you can find museums like the Norton Museum of Art or the Flagler Museum, a very active Historical Society, the Palm Beach Opera, the Ballet Florida, the Symphony, and many others. 

Head to the City Place to have a bite of anything you want, delighting yourself with all kinds of restaurants and stores around the European style plaza, and enjoy the live music of the weekends. If you are a water kind of person, don’t hesitate in going to the Waterfront and the Atlantic Ocean at the east or the Clear Lake and Magnolia Lake in the west, to practice a wide range of activities, such as kayak, Jet Ski, snorkel or sailing. 

The latest hot spot in West Palm Beach

At the southwest of downtown West Palm Beach, Florida, stands a group of industrial warehouse buildings built between 1926 and 1968 that are turning into the new coolest neighborhood. It is the Warehouse District, space where one can breathe creativity. 

This 85,000 square feet location consists of a six-building facility that used to be a run-down area until not long ago. In its best times it was a major industrial zone but now has been reimagined and evolved into a trendy district for shopping, eating and drinking, among other activities. 

Millennial families and young couples have made their way into the Warehouse District to be part of the lively buzz formed by fashionable boutiques, craft breweries, distilleries, and restaurants. The buildings maintain their character as former fabrics, but they have been restored with a bohemian and artistic vibe. 

A fine example is The Grandview Public Market, an indoor-outdoor food market where consumers can find signature dishes made with organic ingredients as sustainable fruits and vegetables and meat from farms that ethically raise animals, but also lots of vegetarian and vegan options. There are also well-equipped offices, stores selling art, furniture, decoration, clothing and jewelry, a health and fitness club with workshops, live music and yoga, and a squash team. 

There is so much going on West Palm Beach. It has a great urban lifestyle, services of a larger city, beautiful views, proximity to water, a thriving economy and a culturally diverse population. Now that we have shown you the perfect spot, what are you waiting to start enjoying it?

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Fort Lauderdale: the answer to a high-quality life

fort lauderdale

Fort Lauderdale is experiencing a significant commercial and residential development that turned the location in one of Florida’s most popular destinations. The times of being a spring-break destination for students have been left far behind. A few decades of steady growth have led to a family-friendly environment that embraces a high-quality lifestyle. If you are thinking of investing here but haven’t made up your mind yet, let’s check the things you might want to have in consideration. 

First, the numbers

Fort Lauderdale has a population of about 180.000 people and integrates the metropolitan area of Miami-Fort Lauderdale-West Palm Beach that nowadays consists of around 5.5 million people. It has also 23 miles of paradisiac-like beaches and its vast network of canals runs for more than 500 miles. No wonder why it’s called the “Venice of America”. 

The ideal lifestyle

Fort Lauderdale has climbed to one of the best places to live in Florida. With a rich history and a wide range of activities for all generations, the city has gradually developed a luxury lifestyle that’s worth to keep an eye on. 

The new residents want to have a comfortable lifestyle with easy access to the water and open outdoor spaces to enjoy the warm weather all day. This most wanted living standard, combined with the restrictions on high-rises on the area, creates a low-density urban atmosphere. 

Moreover, the demand to satisfy an upscale niche market with a luxurious living standard has turned the city into an ideal location. If anyone is looking for all the advantages of an urban city lifestyle but without the stress of a lousy metropolis, this is the place. They could have a slice of paradise close at hand. 

Let’s not forget how Fort Lauderdale has been modernized to welcome young generations seeking a balance between their work, their free time and a better quality of life. In addition, the lack of density offers proximity to many different recreational venues, like cultural spaces, ethnic food experiences, shopping, water sports, and a breath-taking beach. 

You’ll never get bored in Fort Lauderdale

Fort Lauderdale enjoys great weather for the most part of the year. Combined with the stunning coasts of the Atlantic ocean, the network of canals inside the city and the many open spaces, allow the residents to participate in numerous outdoor activities.

Your days could be filled with bicycle rides or picnics under the trees of the Hugh Taylor Birch State Park, or maybe practicing a water sport at the Las Olas Marina and Fort Lauderdale Aquatics Centre, such as boating, fishing, rollerblading, jet skiing, scuba diving, snorkeling, windsurfing and even playing volleyball at the beach. 

Cultural activities also have a big place in Fort Lauderdale’s community, where the Broward Centre for Performing Arts stands as the main complex to enjoy some concerts, comedy shows, and different creative performances. Combine these artistic experiences with a visit to the many art galleries and boutique shops around the city center to explore the modern style that prevails in the city. 

The options of entertainment are constantly growing in Fort Lauderdale. This community, as it might look small, it also has a wide range of nightlife and some of the best shopping options in South Florida. 

The downtown feel of tranquillity and comfort of the residents is the main key, and the diverse kinds of activities keep every person living in this city active and entertained. The quiet life, outdoor spaces, water sports, ethnic restaurants, contemporary art… All of these are the main characteristics of this eclectic and very modern environment of Fort Lauderdale.

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The best investment strategies for 2020

investment strategies

 

This quarter, the economy grew at 1.9%, which is lower than the growth last quarter of 2.0%. The economy is slowing down and, in this scenery, investors are figuring out new investment strategies to take care of their portfolios. Don’t panic, leave anxiety out of the picture, we have some ideas for you.

 

New investment strategies to take advantage of this market moment

 

Economists say a recession is coming, but actually, the market is doing just well. How can you take care of your capital?

 

  • The endowment model

This is an investment strategy that is not directly aligned with market behavior. So if a recession comes, it promises higher returns and fewer risks. Among the options here we can find private credit, real estate and private equity. This is an approach that will perform better in a not so promising market.

 

Types of endowment investments

  • Venture capital is when you see potential in a startup and benefit from its growth over time.
  • Private equity is when you invest in a more mature company with a growth strategy. 
  • Private credit is when you provide credit for individuals or companies in debt, usually with high risk and profit.

 

Pros

  • The expected returns are higher.
  • Depending on the investment, you can receive interest payments.

 

Cons

  • The lockup, that period in which you won’t have access to your money, is longer than in other cases. It typically lasts between five to fifteen years, sometimes more.
  • Sometimes you can be asked for more money at certain points, depending on the kind of investment.
  • Usually have high minimums of investment, from $250,000.

 

As in any private investment, the risks are bigger but the gains can also be more. David F. Swensen, endowment fund manager, American investor and philanthropist, says:

 

“Market participants willing to accept illiquidity achieve a significant edge in seeking high risk-adjusted returns. Because market players routinely overpay for liquidity, serious investors benefit by avoiding overpriced liquid securities and by embracing less liquid alternatives.”

― David F. Swensen, Pioneering Portfolio Management: An Unconventional Approach to Institutional Investment, Fully Revised and Updated

 

  • 60/40 investment portfolio

With more liquidity than the endowment model, this option is composed of a fixed income plus equities. 

 

Pros

  • Liquidity. In any unpredictable life event, you can count on your money.
  • In a low inflation scenery, it’s less risky than the endowment model.

 

Cons

  • If inflation goes above 3%, you’ll lose money in the long-term.
  • The expected returns are usually not that high as in an endowment model.

 

The decision upon which kind of investment you can make depends on your expertise, your preference and your tolerance. Of course, we suggest if you go for an endowment option, set aside some cash. For example, if you invest in real estate, It’s preferable to ask for financing but still count with some liquidity to move around. The important thing is that you rebalance your portfolio on a frequent basis. Things change fast and you can’t lose sight of opportunities. If you pay attention to these last suggestions on investment strategies, you’ll be closer to achieving more.

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