MONEY Investing

13 Things to Do with $100,000 Now

domino stacks of $10,000 bills
Ralf Hettler—Getty Images

Oh, if only six figures landed in your lap tomorrow. Hey, you never know. In case it does—or in case you're lucky enough to have 100 grand put away already—you'll want to have these smart moves in your back pocket.

1. Say “yes” to a master
Unless you live in one of the few areas where the real estate market hasn’t come to life, the decision of whether to move or improve is likely tipped in favor of remodeling, says Omaha appraiser John Bredemeyer. A new bedroom, bath, and walk-in closet may cost you $40,000 to $100,000. But it’s unlikely you’d find a bigger move-in-ready abode with every­thing you want for only that much more, especially after the 6% you’d pay a Realtor to sell your current home.

2. Burn the mortgage
If you’re within 10 years of retiring, paying off your house can be a wise move, says T. Rowe Price financial planner Stuart Ritter. You’ll save a lot of interest—$24,000, if you have a $100,000 mortgage with 10 years left at 4.5%. Eliminating the monthly payment reduces the income you’ll need in retirement. And as long as you’re not robbing a retirement account, erasing a 4.5% debt offers a better return than CDs or high-quality bonds, says Ritter.

3-5. Buy a business in a box
One hundred grand won’t get you a McDonald’s (for that you’ll need 10 or 15 friends to match your investment)—but there are a number of other good franchises you can buy around that price, says Eric Stites, CEO of Franchise Business Review. Here are three that get top raves in his company’s survey of owners:

  1. Qualicare Family Homecare (a homecare services firm)
  2. Window Genie (a window and gutter cleaning service)
  3. Our Town America (a direct mail marketing service)

6. Tack another degree on the wall
On average, someone with a bachelor’s degree earns $2.3 million over a lifetime, vs. $2.7 million for a master’s and $3.6 million for a professional degree. The payoff varies by field: In biology a master’s earns you 100% more, vs. 23% in art. So before applying, find out how much more you could earn a year, research tuition, and determine how long it’ll take you to recoup the investment.

7. Make sure you won’t be broke in retirement
More than half of Americans worry about running out of money in retirement, Bank of America Merrill Edge found. Allay your fears with a deferred-income annuity: You pay a lump sum to an insurance company in exchange for guaranteed monthly payments starting late into retirement. Because some buyers will die before payments start, you get more income than with an immediate annuity, which starts paying right away. A 65-year-old woman who puts $100,000 into an annuity that kicks in at age 85 will get $3,500 a month, vs. $600 for one that starts this year. In the future you could see deferred annuities as an investment option in your retirement plan; the Treasury Department just approved them for 401(k)s.

8. Get a power car that runs on 240v
For just over $100,000 (after a $7,500 tax rebate), you can be the proud owner of an all-electric Tesla Model S P85, with air suspension, tech, and performance extras. Yes, that’s a pretty penny. But you’ll help the planet, eliminate some $4,000 a year in gas bills—and get a ride that gets raves. “The thing has fantastic performance,” says Bill Visnic of Edmunds.com. It goes from 0 to 60 in 4.2 seconds and drives 265 miles on a charge, which requires only a 240-volt outlet.

9-12. Put hotel bills in your past
Think you missed the window on a vacation-home deal? True, the median price has jumped 39% since 2011, according to the National Association of Realtors. “But while you can’t buy just anything, anywhere, for 100 grand anymore, there are still decent deals out there in appealing ­places,” says Michael Corbett of Trulia.com. Here are four markets where the price of a two-bedroom condo goes for around that amount:

  • Sunset Beach, N.C./$96,000
  • Fort Lauderdale/$116,000
  • Colorado Springs/$117,000
  • Reno/$117,000

13. Tone up your core
The average American saving in a 401(k) has nearly $100,000 put away ($88,600, to be exact, according to Fidelity). With this core money, you’re likely to do better with index funds vs. active funds, says Colorado Springs financial planner Allan Roth. “The stock market is 90% professionally advised or managed, and outside Lake Wobegon, 90% can’t be better than average.” His three-fund portfolio: Vanguard’s Total Stock Market Index, Total International Stock Index, and Total Bond Market.

Related: 35 Smart Things to Do With $1,000

Related: 24 Things to Do with $10,000

Tell Us: What Would You Do With $1,000?

MONEY home prices

Slowing Price Gains Reveal Little Exuberance for Homes

140826_REA_HousePricesSlow
Dimitri Vervitsiotis—Getty Images

Looking ahead, the rate of home price growth may slow even further, especially if mortgage rates increase.

While housing prices continue to rise, the rate of that growth nationally slowed in June, according to a leading gauge of the real estate market.

The S&P/Case-Shiller Home Price Indices showed that home prices throughout the country increased 6.2% since last year. Meanwhile, separate indexes that track 10 and 20 large U.S. cities showed gains of 8.1% during the same time period.

Though decent, those gains were a far cry from the double-digit growth in home prices late last year. Moreover, all three indexes showed deceleration from the prior month, and every city measured experienced lower year-over-year price growth.

“Home price gains continue to ease as they have since last fall,” said David Blitzer, chairman of the index committee at S&P Dow Jones Indices. “For the first time since February 2008, all cities showed lower annual rates than the previous month. Other housing indicators — starts, existing home sales and builders’ sentiment — are positive. Taken together, these point to a more normal housing sector.”

Blitzer also cautioned that an increase in interest rates, which Federal Reserve chair Janet Yellen hinted at last week, may mean further deceleration if they lead to higher mortgage rates.

“Bargain basement mortgage rates won’t continue forever,” he said. “Recent improvements in the labor markets and comments from Fed chair Janet Yellen and others hint that interest rates could rise as soon as the first quarter of 2015. Rising mortgage rates won’t send housing into a tailspin, but will further dampen price gains.”

To be sure, home prices are still going up across the board. All cities reported higher prices for the third consecutive month, and price growth in markets such as Dallas and Denver has continued unabated.

Nationally, average home prices in June are back to Spring, 2005 levels. But city composites are still roughly 17% down from their peak prices in June/July of 2006.

MONEY Odd Spending

7 Crazy New Products You Can Buy to Spoil Your Pet

BEETHOVEN'S 2ND, Beethoven and Missy, 1993
Dating services can coordinate matches for you--and your pets. Universal—courtesy Everett Collection

Pet dating services? Dog selfies? "Pre-pups?" The world of pampering pets has hit new heights. Like: outer space. Literally.

In recent years, pet owners have been tempted—perhaps guilted—into treating their beloved dogs and cats to products and services that run the gamut from $350 doggie strollers to pet tattoos, luxury doghouses , and gourmet pet cuisine. And how can anyone forget about the fitness-tracking dog collar and the Grumpy Cat-endorsed line of bottled coffee? (The latter was created for human consumption, natch.)

At some point, it would seem like pet marketers simply must run out of every dog-gone idea under the sun. But based on American pet spending—a total of $56 billion last year, and forecasts call for $60 billion in 2014—for entrepreneurial players in the pet economy, the best time to roll out new pet-related products and services is always right meow. Here, in celebration of National Dog Day on Tuesday, are some of the latest options to trot onto the scene.

Personal Trainers for Dogs
Crain’s New York recently reported on some of the latest ways New Yorkers are giving their dogs the very best, including organic artisanal food and the hiring of specialized dog trainers. Not simply traditional trainers who will do the basics like teach a dog to sit, but ones who will run pooches throughout a calorie-burning workout like personal trainers do with humans. Other trainers give dogs swimming and Frisbee-catching lessons, or teach them tricks like taking their own selfies with an iPad. (Warning: Once your dog knows this one, your iPad will bear traces of a wet nose. But the resulting images are probably worth it.)

In-Home Pet Suites
Home builders such as Standard Pacific Homes now offer optional in-home pet suites as part of new construction designs. “The optional pet suite can be customized with a pet shower and removable shower head, built-in cabinetry and other conveniences,” a brochure for one design in a residential community in southern California explains. Pet suites add an average of $8,000 to a home, but more extravagant ones, with flat-screen TVs and a pet door that opens up to a dog run, can go up to $35,000, the Los Angeles Times noted.

Pet Memorial Space Flights
At long last, you can send your deceased pet’s remains into space thanks to Celestis Pets, “the world’s first pet memorial spaceflight service.” The company, which already offers a similar service for human remains, expanded into the pet market this summer. Services range from the basic “Earth Flight,” in which only a symbolic portion of the pet’s cremated remains are sent skyward before returning to earth, to the top-of-the-line “Voyager,” which for $12,500 takes the remains into the deepest space for eternity.

Pet Dating Services
The Associated Press covered the rise of pet-friendly dating services such as PetsDating.com and YouMustLoveDogsDating.com, where like-minded pet-loving singles are supposed to find matches. Love isn’t necessarily the goal, though; PetsDating, “an online community for pet owners who want their pet to enjoy a long, healthy, and fulfilling life in the company of another pet,” has pets rather than human hookups as the primary focus. People who meet through the site could wind up dating, but they also might simply be looking for doggie play dates or someone (and some dog) to go for a walk in the park with. Yet another service, DateMyPet.com, is indeed all about making love matches—within one’s own species, to clear up any confusion about the name.

Dog Toiletries
Companies like Fort Lauderdale’s Synergy Labs are “tapping into the worldwide trend to humanize pets,” according to the Sun Sentinel. The company sells a kennel’s worth of atypical pet merchandise, including a lineup of Pooch Scents (basically: perfume for dogs, with scents like POSH, Rain Fresh, and STUD), high-end organic shampoos and conditioners, and a forthcoming one-of-a-kind toothbrush “designed with three heads to clean the inside and outside of the mouth and the pet’s face at the same time.”

Pet Annuities
A survey by the Securian Financial Group found that nearly 20% of pet owners have made financial plans for the wellbeing of their pets if the owners pass away. Of those, 13% had bought annuities that named the pet’s caregiver as the beneficiary.

Pet Prenups
The rise of couples battling over custody of their pets when they break up—seen this summer with the split of Antonio Banderas and Melanie Griffith, who wants to get their three dogs in the divorce settlement—has raised the profile of “pre-pups.” Like it sounds, the pre-pup is part of a prenuptial agreement that specifies who gets ownership of a pet in the case of a breakup. More attorneys are specializing in pet issues including custody disputes, and apparently there’s quite a need. Data cited by the Daily Mail indicates that one-fifth of separating couples with pets said figuring out who gets the dog was just as stressful as determining who would get custody of the children. Yahoo News reported that without a pet prenup, pets tend to be viewed in the eyes of the court as furniture or any other possession owned by the couple, and bidding wars often determine which party ultimately gets to keep the pooch.

MONEY Investing

35 Smart Things to Do With $1,000 Now

Andrew B. Myers

These moves can make you smarter, healthier, happier—and richer.

1. Buy 1 share of Priceline Group THE PRICELINE GROUP INC. PCLN 0.8511%
The fast-growing travel biz has just 4% global market share, leaving plenty of room to expand.

2. Buy 10 shares of Apple APPLE INC. AAPL 0.7805%
The Mac daddy has a dividend yield of 1.9% and a cheap price/earnings ratio of 14.1.

3. Buy 50 shares of Ford FORD MOTOR CO. F 1.0913%
The automaker has a P/E of 10.5, a 2.8% dividend yield, and a record (5%) market share in China.

4. Grab the last of the great TVs
While they’re considered superior to LCDs—for having deeper blacks and any-angle viewing—plasma TVs haven’t been profitable enough for manufacturers, so most are curbing production. LG is one of the last in the game, and its ­60-inch 60PB6900 smart TV (around $1,000) has apps to stream digital content and 3-D performance besting its peers. Get the extended warranty, since a service company would have to replace the TV if parts are no longer available.

5. Kick tension to the curb with yoga…
Half of workers say they’re less productive due to stress, the American Psychological Association found; worse, research from the nonprofit Health Enhancement Research Organization found that health care expenses are 46% higher for stressed-out employees. Regularly practicing yoga can help modulate stress responses, according to a report from Harvard Medical School. Classes cost about $15 to $20 a pop, which means that $1,000 will keep you doing downward dog twice a week for about half a year.

6. …Or acupuncture
A recent article in the Journal of Endocrinology found a connection between acupuncture and stress relief. Your insurer may cover treatment, but if not, sessions run $60 to $120 a piece. So you can treat yourself to around 10 to 15 with $1,000.

7. …Or biking
Research suggests that 30 minutes a day of moderate exercise can lower levels of the stress hormone cortisol. So take a bike ride after work. The ­Giant Defy 2 ($1,075) is one of the best-value performance bikes out there, Ben Delaney of BikeRadar.com says.

8. Give your kids ­a jump on retirement
Assuming your kids earn at least a grand this year from a summer job or other employment, you can teach them the importance of saving for retirement by depositing $1,000 (or, if they earn more and you’re able, up to $5,500) into Roth IRAs in their names. Do so when the child is 17, and it’ll grow to over $18,400 by the time he’s 67 with a hypothetical 6% annual return, says Eau Claire, Wis., financial planner Kevin McKinley.

9. Get over your midlife crisis
Would getting behind the wheel of your dream vehicle make you feel a teensy bit better about reporting to a 30-year-old boss? Then sow your oats—for 24 hours. Both Hertz and Enterprise offer luxury rentals; you can find local outfits by searching for “exotic car rental” and your city. Gotham Dream Cars’ Boston-area location rents an Aston Martin Vantage Roadster for $895 a day.

 

Andrew B. Myers

10. Iron out your wrinkles
For a safer and cheaper alternative to going under the knife, try an injectable dermal filler. Dr. Michael Edwards, president of the American Society for Aesthetic Plastic Surgery, recommends Juvéderm Voluma XC, which consists of natural hyalu­ronic acid that helps smooth out deep lines and adds volume to cheeks and the jaw area. It lasts up to two years and costs near $1,000 per injection.

11. Live out a dream
Play in a fantasy world with these adult camps, which cost in the neighborhood of $1,000 with airfare: the four-day Adult Space Academy in Huntsville, Ala. ($650); the Culinary Institute of America’s two-day Wine Lovers Boot Camp in St. Helena, Calif. ($895); or the one-day World Poker Tournament camp in Vegas ($895).

12. Hire someone to fight with your folks
Is your parents’ home bursting at the seams with decades of clutter … er, memories? Save your breath—and sanity—by hiring a profes­sional organizer (find one at napo.net) for them. Mom and Dad may listen more to an impartial party when it comes to deciding what to toss, says Austin organizer Yvette Clay. Focus on pile-up zones, like the basement, garage, and living room (together, $500 to $1,500).

13. Launch you.com
A professional website will help you stand out to employers, says Jodi Glickman, author of Great on the Job. Buy the URL of your name for about $20 a year from GoDaddy and find a designer via Elance​.com or Guru.com; $1,000 should get you a nice-looking site with a bio, blog, photos, and portfolio of your work.

14. Become a techie—or just learn to talk to one
Technical knowledge isn’t just for IT folks anymore. “Digital literacy is becoming a required skill,” says Paul McDonald, a senior executive director of staffing agency Robert Half International. Get up to speed with one of these strategies. Understanding how websites, videogames, and apps are built is useful to almost any job dealing in big data or search algorithms, says McDonald. Take a course in programming for nonprogrammers at ­generalassemb.ly ($550), then get a year’s subscription to Lynda.com ($375) for more advanced online tutorials.

15. Get tweet smarts
Take a class to give you expertise—and confidence— in using social media and analyzing metrics. MediaBistro’s social media boot camp includes five live webcast sessions for $511, and you can add four weeks of classroom workshops with pros for $449. #olddognewtricks

16. Buy the Silicon Valley gear
Need a new laptop now that you’re a tech whiz? To best play the part, go with Apple’s MacBook Air ($999) or its big brother the MacBook Pro ($1,099). With a long battery life and powerful processors, the Air and Pro are the preferred picks for developers, coders, and designers, says PCmag.com’s Brian Westover.

David Kilpatrick—Alamy

17. Save your cellphone camera for selfies
Your most important memories shouldn’t be grainy. Get a digital SLR camera featuring a through-the-lens optical viewfinder, “which is still essential for shooting action,” says Lori Grunin of CNET. Her pick, Nikon’s D5300 ($1,050). Its 18–140mm lens produces sharp images shot quickly enough for most personal photography.

18. Class up your castle
Interior decorating can cost a fortune—insanely priced furnishings, plus a 30% commission. Homepolish.com, launched in 2012 and now in eight metro areas, upends the model. The site’s decorators charge hourly ($130 or less) and suggest affordable furnishings.

19-21. Hire a good manager
With only 10 C-notes, your mutual fund choices are limited by minimum investment requirements. Besides simply letting you in the door, these actively managed funds have relatively low fees and beat more than half their peers over three, five, and 10 years:
Oakmark Select large blend; 1.01% expenses
Schwab Dividend Equity large value, 0.89% expenses
Nicholas large growth, 0.73% expenses

22. Primp the powder room
Get a new sink and vanity for a refresh of your guest bathroom without a reno. You can find a combined vanity and sink set for under $650; figure another $100 to $200 each for faucet and labor.

23. Replace light fixtures
Subbing in new lighting in the dining room, the front hall, and possibly the kitchen can take 20 years off your house, suggests Pasadena realtor Curt Schultz. You’re likely to pay $100 to $400 per fixture, plus $50 to $100 for installation.

24. Swap out the front door
It’s the first impression guests and buyers have of your home. Look for a factory-finished door—possibly fiberglass if it’s a sunny southern or western ­exposure without an overhang. You could pay $1,000 for the door and the installation.

25. Catch up on retirement.
If you’re 50 or older, you can put in $1,000 more in an IRA (above the $5,500 normal limit) each year. Do so from 50 to 65, and you’ll have $27,000 more in retirement assuming you get a 6% annual return, per T. Rowe Price.

Ingolfur Bjargmundsson—Getty

26. Fly solo to see the Northern Lights
As more companies package deals to Iceland, prices are dropping, says Christie McConnell of Travelzoo.com. You could recently find four-night packages with airfare, hotel, and tours for $800 a person. Go in late fall to see the Northern Lights.

27. Hit the beach in Hawaii
The islands are still working through the overbuilding of hotels that began before the recession, says Anne Banas of Smartertravel.com. Three-night packages for fall with hotel and airfare start around $500 a person from the West Coast.

28. Give your car a makeover
You can’t get a new set of wheels for 1,000 smackers, but you can make your old car feel new(ish) again with this slew of maintenance fixes: A new set of tires ($600), a full car detail ($100), new wiper blades ($50), a wheel alignment ($150), and a synthetic oil change ($100). You’ve likely been putting these off until something breaks, but there’s good reason to do them all at once. Besides giving your car a smoother ride, “this preventative maintenance will help you nurse your car longer, while also saving some gas,” says Bill Visnic, senior editor at Edmunds.com. New car smell not included.

29. Make like (early) Gordon Gekko
Wall Street buyout firms KKR and Carlyle are inviting Main Street investors into private equity funds for $10,000 and $50,000, respectively. Want to play the game with less scratch? Invest $1,000 in Blackstone GroupBLACKSTONE GROUP LP, THE BX -0.1789% . Shares of the private equity giant have a 5.1% yield and a cheap P/E of 8.5, plus Blackstone is a top-notch alternative-asset firm, says Morningstar’s Stephen Ellis.

30-32. Put your donations to work where they’ll do the most good
Groups that focus on improving healthcare in the developing world have some of the best measurable outcomes of all charities, says Charlie Bresler, CEO of The Life You Can Save. Many of the supplies used to improve and save lives, like vaccines or mosquito nets, cost pennies to produce, he says, and surgeries that cost tens of thousands in the U.S. can be performed for a few hundred bucks overseas. Three great organizations working in those areas: SEVA Foundation, which works to prevent blindness; Deworm the World, which seeks to eradicate worms and other parasitic bacterial disease; Fistula foundation, which provides surgical services to women with childbirth injuries.

33. Defend the fort
An alarm system can pare as much as 20% from a homeowner’s policy, and the latest ones have neat bells and whistles. Honeywell’s LYNX Touch 7000 (starting at $500, plus $25 to $60 a month) links to four cameras that stream live video. It randomly switches on lights to make an empty home look occupied—and can detect a flood and shut down water.

34. Enjoy a buffet of entertainment
The average cable bill is expected to hit $123 a month in 2015—or $1476 a year—according to the NPD group. What if we told you you could cut the cord, redeploy $1,000 of that to getting two years worth of the following digital libraries, and still bank about 500 bucks? Yeah, we thought so.
For old movies and TV shows…get Netflix ($7.99-$8.99/month). Analysts estimate the company’s library is much larger than that of Amazon Prime.
For current TV shows…watch via Hulu ($7.99/month), which offers episodes from more than 600 shows that are currently on air.
For music…stream with Spotify Premium ($9.99/month). The premium version lets you skip commercials and listen to millions of songs even offline.
For books…read via Kindle Unlimited ($9.99/month). You can access the company’s library of more than 600,000 ebooks and audiobooks with one of its free reading apps, which work Apple, Android or Windows Phone devices.

35. Protect your heirs.
For about $1,000 you can have a will, durable power of attorney, and health care directive written up. Find an estate planner at naepc.org.

Related: 24 Things to Do With $10,000 Now
Tell Us: What Would You Do With $1,000?

TIME World

Landlord Fined for Renting Apartment Only Accessible via Crawling

It cost an arm and two legs

Finding housing is difficult, wherever you are: It’s got to be affordable, located in a moderately convenient area (for your lifestyle), and not completely terrible to inhabit. Of course, those three—extremely broad—categories are flexible depending on one’s immediate need. You’re not gonna worry so much about livability if you really need a place now, right?

In England the situation seems to have come to a head. A British landlord, Yaakov Marom, was fined £1,500 for renting an apartment only accessible by crawling, the BBC reports. The local council fined Marom for having a two-foot high staircase, which was deemed a fire hazard. Apparently this isn’t the first time Marom has tried to rent out this patently uninhabitable space—in November 2012, he was issued a prohibition order that banned the use of the second floor of the house.

The occupants of the apartment were paying £420 per month. Marom was only made to pay £1,420 in costs and a victim surcharge of £120. Which begs the question: If it’s like that across the pond, how bad is it here?

[BBC]

MONEY Housing Stocks

Smart Ways to Play the Uneven Housing Recovery

Home Depot shopping cart in store aisle
Jim Young—Reuters

While shares of homebuilders remain iffy, there are other attractive stocks in the broader real estate recovery.

The U.S. housing market roared in July, but investors may want to tiptoe rather than jump into the sector.

That’s because much of the 15.7% increase in new home construction in July, the first gain in two months, came from apartment buildings, which tend to attract lower income renters and do not generate as much overall economic activity as single-family homes.

The appeal of apartments to millennials, a generation laden with student loan debt that may make it difficult to afford a down payment on a home, is one reason why some noted investors, such as DoubleLine Capital’s Jeffrey Gundlach, have said they are betting against the shares of homebuilding companies.

Fannie Mae on Monday downgraded its outlook for home sales and construction, estimating that 1.4 million single-family units will be constructed during 2014 and 2015 combined, compared with an earlier forecast of 1.6 million units.

“From an investment standpoint the homebuilder trade has been one of the most hotly anticipated trades over the past few years. Yet it continues to be nothing spectacular,” says James Liu, a global market strategist at J.P. Morgan Funds.

Fund managers, as a whole, are not taking a rosy view of the homebuilding segment. Actively managed U.S. mutual funds, on average, devote just 1.06% of their portfolio to companies such as Toll Brothers TOLL BROTHERS TOL 0.1124% and KB Home KB HOME KBH -0.4507% , according to Lipper. That was unchanged from the end of 2013.

Yet analysts and strategists say there are some attractive pockets of the housing market.

Housing-Related Retail

Phil Orlando, chief equity strategist at Federated Investors, built up positions in select retail stocks throughout the summer in expectation that a slowly improving housing market would help retailers such as Home Depot THE HOME DEPOT INC. HD -2.0209% and apparel and home fashion company TJX TJX TJX 1.3924% , parent of TJ Maxx and HomeGoods.

Both companies should benefit not just from new home construction, which accounts for approximately 8% of the housing market, but from rising home prices, which could spur homeowners to upgrade their appliances or otherwise put more money into their homes, he says.

“I’m very comfortable that when the dust settles we will see a resurgent consumer in the back-to-school season,” he says.

Home Depot on Tuesday reported a higher-than-expected 6.4% increase in same-store sales in the United States and raised its full-year forecast. Shares of the company are up nearly 8% for the year, or nearly one percentage point more than the broad S&P 500 index.

Apartment Buildings

To be sure, some investors have already done very well betting on a 2014 multi-family housing market. Exchange-traded funds focusing on residential real estate investment trusts, which typically hold apartment buildings and other multi-family developments, have been on a tear this year. The iShares Residential Real Estate Capped ETF is up 22.3% year-to-date, while the Vanguard REIT ETF is up 17.6%.

Those gains raise the possibility that shares of the companies in the multi-family sector already reflect the boom in apartment buildings and have little room to run, analysts say.

“The data remains inconclusive and uneven, says Dan Veru, chief investment officer at Palisade Capital, “and that’s the nature of the housing recovery right now.”

TIME real estate

This Could Be the World’s Most Expensive Apartment

Courtesy of NBCNews.com

Behold: A 3,300-square-meter, quintuplex "Sky Penthouse"

The tiny principality of Monaco, nestled on the French Riviera, is best known as a playground of the rich and famous. But it could soon garner a reputation for more than its glamourous Grand Prix and numerous casinos. It’s now home to what could become the world’s most expensive apartment: the 3,300-square-meter, quintuplex “Sky Penthouse” in the soon-to-be-completed Odeon Tower. Developed by Groupe Marzocco – a luxury real estate company – the double skyscraper of 70 apartments will tower over the principality at 170 meters high…

Read the rest of this story at NBC News.

MONEY Education

You’ll Never Guess the City Where Private School Is Most Common

Ben Affleck, Randall Batinkoff, Matt Damon, Brendon Fraser, Cole Hauser, Andrew Lowery, Chris O'Donnell in SCHOOL TIES (1992).
Paramount—Courtesy Everett Collection

Whether a family sends its children to private or public school can be influenced by a number of factors, and it's not always about money.

Private school versus public school isn’t an option for most Americans. The average annual cost of a private education is $10,940, and only about 20% of students have parents willing or able to pay that freight.

Knowing that, one would expect the city that sends the highest percentage of its children to private school to be among the richest in the country. Manhattan perhaps? Somewhere in Connecticut? Wherever the prep school in School Ties was located?

Nope. According to a new study by real estate website Trulia, the city with the highest proportion of private school enrollees is New Orleans. A whopping one-fourth of all students in the Big Easy attend a private institution—and it’s not the only Louisiana city in the top 10 for private school enrollment. Baton Rouge ranks fourth, with just under 20% of all students going the private route.

Many of the cities you might expect to see don’t even make the list. While the East Coast generally sends a higher than average percentage of students to private school, its only cities to place in the top 10 are Philadelphia (18.4%) and Wilmington, Del. (17.6%). The rest of the list is dominated by Midwest cities in Ohio, Wisconsin, and Missouri, as well as outliers like Honolulu and San Francisco.

Why do some areas choose private school at a higher rate than others? According to Trulia, metros that are largely more wealthy, more educated, more white, and more Catholic are the most likely to have their children privately educated. Faith is especially important, because most private schools are religiously affiliated, and half of those schools are Catholic. New Orleans, Philadelphia, and Cleveland all have a large Catholic population.

Dr. Jan Daniel Lancaster, superintendent of Catholic Schools for the New Orleans archdiocese, was surprised to learn that her city led the nation in private school enrollment rate, but had no doubts about why New Orleans’ Catholic schools were so popular. “New Orleans is a very Catholic area,” said Lancaster. “People want a very strong academic education that is embedded in the catholic faith, and Catholic schools are so strong academically.” Another reason might be the example set by prominent members of the community. Lancaster says two state senators, the mayor, and the local district attorney, among others, all received a Catholic education.

Courtesy of Trulia

Screen Shot 2014-08-12 at 7.43.23 PM

Public school quality matters too. After adjusting for neighborhood demographics, Trulia found that students in areas with the worst public schools were four times as likely to attend private schools than their peers in areas with the best public education. Areas with high income inequality also showed an increased percentage of private school students, which the study speculates could be caused by more affluent families wanting to keep their children out of public schools with greater income diversity.

Screen Shot 2014-08-12 at 8.03.41 PM

Some public schools are so good that even the wealthiest families choose them over private options. However, those areas aren’t exactly cheap to live in. After looking at affluent Zip codes where over 90% of students received a public education, Trulia determined these areas had housing prices that were more than twice the national average on a square-foot basis. In fact, housing prices were directly correlated with the quality of local public schools.

Home prices in the worst school districts were 41% lower than the national average, while areas with top-tier instruction were 32% more expensive. That means anyone hoping to move from a terrible district to a great one could face a 73% price increase.

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It’s interesting (and a little depressing) to see how expensive living near a good school can be. Where families ultimately decide to send their children “really depends on the specific neighborhoods you’re considering, how much house you need, and the type of private school you’re considering,” says Jed Kolko, Trulia’s chief economist. “But I think a larger point is that both private and public schools can cost a lot of money.”

MONEY home prices

These Places Have the Best Housing Bargains in the Country

Scioto River and Columbus, Ohio skyline at dusk.
Columbus, Ohio, skyline at dusk. VisionsofAmerica/Joe Sohm—Getty Images

As the market tries to adjust to a post-recession world, there are plenty of deals to be had. But there are also plenty of markets where housing is more unaffordable than ever.

With housing price growth slowing down nationwide, and a gradually improving economy, many Americans who’ve been waiting to make a decision on a home are wondering if it’s time to buy or sell.

Here’s some data that might help with those decisions: A new study by RealtyTrac determined which housing markets are more and less affordable relative to their historical averages. The real estate data firm computed the numbers by determining what percentage of an area’s median income would be needed to make payments on a median-priced home in over 1,000 counties, and then compared that to the county’s historical price-to-income ratio over the past 14 years.

So which areas are looking like a bargain? RealtyTrac identified 66 counties with a combined population of 16 million (about 5% of the total survey area’s population) where home prices are lower than historical averages and the unemployment rate was 5% or lower—well below the national unemployment rate of about 6.2%.

This, according to RealtyTrac, is the best way to measure affordability because many markets with cheap housing don’t have quality jobs to offer to new residents. Some undiscovered markets are “undiscovered for good reason because their economies are struggling,” says Daren Blomquist, vice president at RealtyTrac. “A good example of that is Detroit. Affordability alone isn’t an indication that a market is a good one to buy in or invest in.”

The study found Columbus, Ohio; Oklahoma City; Tulsa; Akron, Ohio; Omaha; Greenville, S.C.; and Des Moines, Iowa, are among the markets with an advantageous combination of employment and affordable housing.

Courtesy of RealtyTrac

Why is housing in these areas undervalued? Basically, the overall real estate market is still recovering from the recession, and prices have yet to adjust in certain markets as investors are slow to discover lesser-known areas with strong economic growth. This pro-buyer environment might not last much longer, though. Blomquist says there’s been an uptick of institutional investor purchasing in Columbus, which means prices are set to rise in the near future.

There’s good news for prospective sellers as well. Prices in over one-third of the counties surveyed are less affordable than their historical averages, suggesting homes there may be over-valued. These cities include San Francisco; Portland, Oregon; Austin; San Antonio; Houston; and Atlanta.

Courtesy of RealtyTrac

Should sellers jump at the high prices? If you’re a homeowner in one of these markets, a lot of things are going your way. As prices rise, institutional investors are rushing to invest in these markets, inflating values even further. But there’s also a lack of supply because builders are still reluctant to start new construction.

“It’s a sellers market still [in these areas] because you have a combination of strong demand from this new breed of buyers and low supply because builders are very hesitant,” says Blomquist. “If you’re a seller, you’re not competing against too many others and you have a long liner of buyers.”

However, he cautions that for sellers looking to buy another home in the same market, less affordable home prices may be a double-edged sword. “The catch-22 is if you’re trying to buy too — if that’s the case, then it’s not a great market to buy in.”

MONEY mortgages

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