Friday Financial Five: November 21 2014
Dan Forbes, GoLocalProv MINDSETTER™
Friday Financial Five: November 21 2014
Home buying fence-sitters may view this as the last opportunity to lock in a four percent mortgage. October saw home sales rise at their fastest pace in more than a year. According to the Mortgage Bankers Association, mortgage applications and the appetite for higher prices homes also increased last month. There’s a traditional slowdown entering the winter months as families don’t want to brave the cold or interrupt the start of school. The combination of Federal Reserve sentiment and a strengthening economy may have buyers thinking this is the last chance for historically low rates.
Fed looks out for inflation dip
GET THE LATEST BREAKING NEWS HERE -- SIGN UP FOR GOLOCAL FREE DAILY EBLASTAs for the Federal Reserve, inflationary expectations are indeed a top priority, according to a review of last month’s minutes. The committee members cite improvements in the labor market, unemployment and increased consumer and business spending, but note that inflation is still under the two percent long term goal. That could be cause for concern, as much as consumers like the idea of the prices remaining stable. In the Fed’s determination, 2 percent is the proper long term projection, with current lower inflation influenced by the decrease in energy prices.
Consumer sentiment is at its highest since January 2008, sometimes an indication that it may be a reason to batten down the hatches. This calculation comes courtesy of the Bloomberg Consumer Comfort Index. The index creators cite stock market advances, lower payments at the gas pumps, and the upcoming holiday season as playing a big role. Income is also a factor, as those making $50,000 or more saw their highest index score since July 2013, while the calculation for those making below $50,000 declined to a five-week low.
Solar power continues to get more affordable
A Kiplinger’s report details the important issues for evaluating a conversion to solar powered energy. The cost of a system is getting lower as competition increases, but it will still take quite a few years to recoup the initial outlay. A federal tax credit through 2016 allows a deduction for 30 percent of the cost for buying and installing the system, and there may be other rebates or incentives available through individual states.
Bank of America clears another hurdle
It might be tough to see a silver lining when paying almost $17 billion in fines, but Bank of America did get some relatively good news from the SEC this week. After being fined last week by the OCC on a separate matter, SEC commissioners waived sanctions that, as part of the settlement with the Department of Justice, would have prevented the bank from managing mutual funds. Bank of America also received a partial waiver for the business they conduct with hedge fund clients. Getting these matters resolved with the SEC should pave the way for the institution to complete the multi-billion settlement it agreed to in August of this year.
10 Most Expensive Properties For Sale in RI
#10: 125 Kenyon Farm Road
Narragansett RI
$5.9 million
3 Beds, 1 Baths
Kenyon Farm is 65 acres of pristine land, bordering Point Judith Pond, including 6 waterfront cottages, 3 docks, and out buildings. A private compound, with abundance of nature's beauty and ocean access.
To see more on this property, go here.
#9: 589 Beavertail Rd.
Jamestown RI
$6.9 million
5 Beds, 6 Bath
Exceptional oceanfront location, perfectly sited with commanding waterviews and nestled in a park-like setting, this gracious, architecturally designed home lends itself to comfortable living and is defined by elegance, sophistication and beauty.
#8: 41 Ledge Rd.
Newport, RI
$6.95 million
8 Beds, 6 Baths
"Plaisance" is an elegant oceanfront manor house in an exceptionally beautiful setting. West-facing and featuring a private sandy beachfront. Manageable in scale and size, with beautiful rooms for entertaining. Glorious sunsets.
To see more on this property, go here.
#7: 5 Hammersmith Rd.
Newport, RI
$6.995 million
6 Beds, 5 Baths
Historic Moorland Lodge is an exceptional 13.64-acre estate with a 7-bedroom manor house, 2-bedroom cottage, 2-bedroom carriage house, all impeccably renovated. Includes separate 3.75-acre lot with barn and shed. Pastorally perfect.
#4 (T): 0 Beavertail Rd.
Jamestown, RI
$7.9 million
6 Beds, 4 Baths
Beaverhead Farm; a unique offering in Jamestown with conserved acreage, waterviews, spectacular house, two additional houses, barn, a buildable extra lot and so much more.
#4 (T): 1 Tower Drive
Portsmouth, RI
$7.9 million
5 Beds, 5 Baths
Breathtaking 360 degree views of the ocean, bridges, equestrian facilities and golf course on 450 acres from this state of the art residence. Gracious seaside living with every possible amenity. Includes private poolside cabana, and roof top decks.
To see more on this property, go here.
#4 (T): 36 Beacon Hill Rd
Newport, RI
$7.9 million
7 Beds, 7 Baths
Enter "Wyndham Estate" through one of two gated entrances to one of Ocean Drive's highest elevations. Spectacular ocean view panoramas. This stone Baronial style estate has just undergone extensive restoration. Extra lot included and a second lot available.
#3: 9 Manatuck Avenue
Westerly, RI
$8.5 million
5 Beds, 5 Baths
Stunning oceanfront home, in-ground pool, magnificent sunrises, views from Weekapaug, Block Island, to Watch Hill Lighthouse. 2,400 square feet of decks and an open living area make this home ideal for entertaining.
#2: 21 Hammersmith Road
Newport, RI
$9.9 million
9 Beds, 6 Baths
Meticulously restored McKim Mead White/Olmsted estate "Wild Moor" on 23+ gated, scenic acres overlooking ocean and Newport Country Club. Magnificent stone main house, 2-unit carriage house, cottage and numerous outbuildings. Heliport approved.
#1: 254 Ocean Avenue
Newport, RI
$19 million
8 Beds, 11 Baths
Seafair is an entire gated oceanfront peninsula. Gracious interiors, state of the art amenities, 8 ensuite bedrooms, estate drive, expansive terraces, ocean-facing pool, carriage/pool house, tennis, and garages. Condominium rights retained; development opportunities. Or just estate living.
To see more on this property, go here.
