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Housing sales drop 11% in top 7 Cities in Q3 2024: Here’s what you need to know!

<ul class="summary-list"><li><keyword id="23150740" type="General" weightage="20" keywordseo="Daniel-Daggers" source="keywords">Daniel Daggers</keyword>, star of the Netflix show "<keyword id="23150739" type="General" weightage="100" keywordseo="buying-london" source="Orion">Buying London</keyword>," sells some of the UK's most expensive homes.</li><li>He spoke to BI about what selling multimillion-dollar properties to the supersuccessful is like.</li></ul>This as-told-to essay is based on a transcribed conversation with Daniel Daggers, a luxury real-estate agent and star of the Netflix show <a href="https://www.businessinsider.com/netflix-buying-london-luxury-real-estate-market-super-prime-property-2024-5" target="_blank">"Buying London."</a> It has been edited for length and clarity. I came from humble beginnings. When I was a kid, I would never have believed it if someone had told me, "You're going to be representing the most successful people on the planet and bouncing around the world, seeing incredible homes." When I was 17, a short internship with a local real-estate agent led to a full time job. I spent 10 years carrying the keys, driving around, and learning the industry. Then, I moved into a big firm where I started dealing with the <keyword id="23150738" type="General" weightage="20" keywordseo="super-prime-market" source="keywords">super-prime market</keyword> — properties valued in excess of $12.8 million. Now, I run my own agency. <h2>There's nuance in what makes a property super-prime</h2>People misinterpret shiny as luxury. It's not about that. Maybe it's an incredible location, the specification of finishes is out of this world, or the live style, meaning how you live in a property, is groundbreaking. There's all this nuance and when you get a number of those assets right, that's what makes a super-prime property. To be an agent at this level, you need to use different language with your client — be more articulate, provide more detailed information, and have a different attitude to work. A knowledge of <a target="_blank" class="" href="https://www.businessinsider.com/rich-real-estate-estate-gift-tax-avoidance-wealth-planning-inheritance-2024-4">taxation</a>, structure, interior design, art, and the legal system becomes more important because you're in more of an advisory role. <h2>This job gives me a wider understanding of what's shaping our world</h2>These people are often very time-poor. There is no finishing work at 6 p.m. You have to be available by phone for help or advice at any moment in the day. But working at the top end of the market is very enjoyable. I am blessed with access to some of the best minds on the planet. We talk about anything, not just real estate. It could be children, society, art, the legal system, friends, technology, how the industry's changing — the much more macro, big-picture things. It gives you a wider understanding of what's shaping our world and how business takes place. <div type="image" title="Daniel Daggers stands against a white background in a white shirt and suit trousers smiling with his hands in his pockets." height="1280" width="855" msid="112782190" hostid="261"></div><h2>Buyers are getting younger</h2>I noticed about a decade ago that buyers were becoming much younger. Internet 2.0 enabled anyone to build businesses online, which meant the entry barrier to being <a target="_blank" class="" href="https://www.businessinsider.com/meet-the-15-youngest-billionaires-in-america-forbes-2021-10#1-sam-bankman-fried-crypto-entrepreneur-15">a successful entrepreneur</a> dropped drastically when it came to age and increased when it came to talent. I tend to attract a lot of entrepreneurs. They come into the market after five or 10 years of hard work. You can almost watch the pattern play out with how they want to live compared to people who've grown up with wealth. They are contemporary and mobile, have a different perspective on life, and an appetite for a different kind of real estate. The traditionalists will stay in the "<a target="_blank" class="" href="https://www.businessinsider.com/london-eaton-square-where-russian-billionaires-live-red-square-2022-3">golden postcodes</a>." Contemporary money is indifferent; they don't necessarily want that period house in Belgravia or Mayfair. They're happy to have more properties but smaller ones worldwide. There's also a massive thunderstorm of change in our industry regarding how people are made aware of real estate. We've sold properties over social media for over a decade, and now all the top agents around the world know one another and can refer business across this network. I sold a $51 million property through my close friend's network on Instagram. I was one of the first people ever to sell a property over <a target="_blank" class="" href="https://www.businessinsider.com/elon-musk-says-twitter-could-be-western-wechat-china-superapp-2022-6">WeChat</a>, a Chinese app I used to communicate with the buyers, a 25-year-old billionaire who didn't speak very good English. <h2>I call myself 'Mr. Super Prime.' Building a brand in this industry is essential.</h2>It's essential to build your <keyword id="20587722" type="General" weightage="20" keywordseo="personal-brand" source="keywords">personal brand</keyword> if you want to be successful in this industry. When I worked in the firm, I started traveling to the US and saw how entrepreneurial they are. Every day is their best opportunity. I realized that being that person, sharing information and access was valuable. So, I started curating content, documenting my days, and building my brand online. I called myself "Mr. Super Prime," and the nickname stuck. My colleagues thought it was an ego play. I got a lot of pushback even though I was telling them all to do the same. But I was generating £400 million worth of leads a month. Now, I've scaled things up a level with <a href="https://www.businessinsider.com/netflix-buying-london-luxury-real-estate-market-super-prime-property-2024-5" target="_blank">my Netflix show,</a> "Buying London." This city is a hidden gem, and my agency, DDRE Global, has access to some of the most desirable homes here. People are interested in very expensive and special properties. We are all voyeurs occasionally, and there's an element of aspiration to the show. <div type="image" title="Daniel Daggers and the cast of Selling London at the premiere of the show, standing by a board with the DDRE Global branding." height="3500" width="5250" msid="112782192" hostid="261"><payload><![CDATA[Daniel Daggers and the cast of "Buying London" at its premiere]]></payload></div>Most real-estate agents are outgoing people, and if you put cameras inside anyone's house for a year and squeeze it into three hours, there will always be some drama — the show also has a fair amount of it among my employees. But competition is a healthy ingredient for people who want to be successful. Without it, you can become lazy and weak. You just need to remember that anyone you do business with today may be needed in the future. Correction: August 30, 2024 — An earlier version of this story incorrectly named the Netflix show. It is titled "Buying London," not "Selling London."

I sell multi-million dollar homes to London's super-successful. The internet has meant buyers have become much younger.

The residential market shows a positive outlook, with 51% of stakeholders predicting higher sales over the next six months. However, a notable 24% expect stability, while 25% predict a potential decrease, reflecting a balanced yet cautious sentiment, as per a recent <keyword id="19895043" type="General" weightage="20" keywordseo="Knight-Frank" source="keywords" meta.keywordsubtype="org" meta.entityname="Knight Frank" meta.hostid="261" meta.entityid="Knight Frank">Knight Frank</keyword> report. The outlook for residential launches is also positive, with 61% expecting an increase, suggesting continued demand. A more tempered view is held by 20% of respondents who expect stability, and 19% foresee a decrease in launches. The Indian <keyword id="20152263" type="General" weightage="20" keywordseo="real-estate-sector" source="keywords">real estate sector</keyword> continues to reflect a positive outlook for the near future, though with a more cautious approach. In terms of pricing, 63% of stakeholders expect a rise, but 36% anticipate stable prices, and a very small minority predict a decline. G Hari Babu, National President, National Real Estate Development Council (<keyword id="20429653" type="General" weightage="20" keywordseo="naredco" source="keywords">NAREDCO</keyword>), said, "The residential and office markets continue to show notable activity, signaling ongoing growth and opportunity. Developers and other key stakeholders, including banks and financial institutions, are maintaining a positive outlook." He added, "This suggests that while there may be short-term challenges, the sector is well-positioned to adapt and thrive. The continued optimism and activity in the market highlight the sector's ability to sustain its momentum and drive forward, amidst changing conditions." The <keyword id="22822547" type="General" weightage="20" keywordseo="office-leasing-market" source="keywords">office leasing market</keyword> shows signs of strong recovery, with 63% of respondents predicting an increase in leasing activity, driven by positive business sentiments and <keyword id="21313740" type="General" weightage="20" keywordseo="economic-revival" source="keywords">economic revival</keyword>. However, 24% expect stability, and 13% foresee a decline. New office supply also remains a point of interest, with 47% expecting an increase, while 29% anticipate stability, and 24% forecast a decrease. Furthermore, 67% of stakeholders expect office rents to rise, signaling confidence in the market's ongoing growth, even as 27% anticipate stable rents and 7% expect a decrease. The <keyword id="20635920" type="General" weightage="20" keywordseo="future-sentiment-score" source="keywords">Future Sentiment Score</keyword>, which measures stakeholders' outlook over the next six months, saw adjustments across various regions. The North Zone score slightly decreased from 65 in Q1 2024 to 63 in Q2 2024, though it remains firmly optimistic. The South Zone witnessed a more significant drop from 76 to 65, signaling a moderated outlook. In the East Zone, the score fell from 77 to 65, largely influenced by the discontinuation of the 2% stamp duty cut. The West Zone also saw moderation, with the score dipping from 73 to 66, though it too, remains optimistic. The overall Developer Future Sentiment score decreased from 72 to 61, reflecting a more guarded approach. Developers, while cautious, continue to remain optimistic due to strong sales since early 2023. On the other hand, the Non-Developer Future Sentiment core, which includes financial institutions and PE funds, also moderated from 73 to 68. This shift indicates stakeholders' careful consideration of macroeconomic concerns. Optimism in India's broader economic scenario remains strong, with 59% of respondents expecting an improvement, reflecting confidence in the country's economic resilience. However, 24% foresee stability, and 17% predict a decline, underscoring global economic uncertainties. Meanwhile, 51% of respondents anticipate increased funding availability for real estate investments, reflecting continued confidence in the financial sector's support for the real estate market. Shishir Baijal, Chairman and Managing Director of Knight Frank India Pvt Ltd, noted, "As we transition through 2024, a host of factors are playing out globally. The global economic landscape shows resilience despite ongoing challenges. Inflation rates are gradually aligning with central bank targets, enabling a more supportive monetary policy. India, benefiting from stable post-election conditions, remains a strong growth beacon." He added, "Domestic consumption is robust, supported by consumer loans, though there are some signs of growth moderation. Food inflationary pressures persist, but are converging overall towards price stability targets. With a projected GDP growth rate of 7.2% for FY 2025, India's outlook remains positive. An effective monetary policy by the Reserve Bank of India has helped sustain growth with price stability, positioning India as one of the fastest-growing large economies globally." The Current Sentiment score, which reflects stakeholders' view of the market compared to six months ago, moderated from a decadal high of 72 in Q1 2024 to 65 in Q2 2024. This suggests a more measured outlook as stakeholders navigate evolving global economic conditions. Despite the dip, the score remains indicative of optimism. Looking forward, the Future Sentiment index also adjusted from 73 in Q1 2024 to 65 in Q2 2024, signaling a positive yet more conservative outlook for the near term. While macroeconomic uncertainties may dampen enthusiasm, stakeholders continue to show confidence in the sector's resilience and adaptability.

Despite budget provisions, residential housing market will see sales growth, notes recent report by Knight Frank

<ul class="summary-list"><li>Commercial real estate foreclosures spiked last month. </li><li>Foreclosures rose 48% year-over-year in September, according to data from ATTOM.</li></ul>Commercial real estate foreclosures jumped on a monthly and year-over-year basis in September, according to real estate data and analytics firm ATTOM. <a target="_blank" class="" href="https://www.attomdata.com/news/most-recent/september-2024-u-s-commercial-foreclosures/">Commercial foreclosures</a> rose 48% year-over-year in September. There were 695 foreclosures nationally, a report from ATTOM said. That's slightly lower than where commercial foreclosures peaked earlier this year, but marked a 15% increase from the prior month, the report said."Starting in June 2023, foreclosure numbers saw a sharp increase, peaking at 752 in May 2024, before settling at 695 in ATTOM's most recent data for September 2024. This recent surge suggests renewed financial stress or changes in commercial real estate dynamics," the firm said in a note this week.Commercial foreclosures saw the biggest year-over-year increase in California, with foreclosures on commercial buildings soaring 238% from the same time last year. In New York, foreclosures rose 48% year-over-year, while in Florida, foreclosures rose 49% year-over-year.The delinquency rate for commercial mortgages also rose slightly in the third quarter, with the percentage of loans that were 60-90 days late rising to 0.3%, and the percentage of loans that were at least 90 days late rising to 2.7%, according to the <a target="_blank" href="https://www.mba.org/news-and-research/newsroom/news/2024/10/22/commercial-and-multifamily-mortgage-delinquency-rates-increased-in-the-third-quarter-of-2024">Mortgage Bankers Association</a>. Outstanding loan balances that were less than 30 days late, meanwhile, fell slightly but remained elevated at 96.8%.<a target="_blank" href="https://fred.stlouisfed.org/series/COMREPUSQ159N">Commercial real estate prices</a> for the US dropped 9% year-per-year in the first quarter, according to International Monetary Fund data.Real estate experts have been warning of more <a target="_blank" class="" href="https://www.businessinsider.com/office-market-interest-rates-commercial-real-estate-federal-reserve-pandemic-2024-9">distress</a> to come for commercial real estate, particularly in the office segment. Demand for second-tier <a target="_blank" class="" href="https://www.businessinsider.com/commercial-real-estate-big-trouble-crash-bank-crisis-2024-2">office</a> buildings has fallen since the pandemic, leading some to forecast a <a target="_blank" href="https://www.businessinsider.com/commercial-real-estate-office-outlook-fire-sales-apartment-conversions-housing-2024-10">wave of forced sales and defaults</a> as debt continues to mature in the sector. Some property experts have speculated that the sale of unused office space could <a target="_blank" class="" href="https://www.businessinsider.com/commercial-real-estate-office-outlook-fire-sales-apartment-conversions-housing-2024-10">result in a wave of conversions to apartments</a>, solving an issue for office owners and helping to add supply to a constrained housing market. However, such overhauls are<a target="_blank" class="" href="https://www.businessinsider.com/how-nyc-office-buildings-towers-became-housing-2023-9"> difficult and costly</a> for landlords. Meanwhile, other more optimistic forecasts see a <a target="_blank" class="" href="https://www.businessinsider.com/investing-strategy-real-estate-stocks-bonds-portfolio-jpmorgan-asset-management-2024-10">rebound</a> coming for the commercial real estate market. A Moody's analysis found that transactions in the space had <a target="_blank" class="" href="https://www.businessinsider.com/commercial-real-estate-cre-debt-office-vacancy-bank-lending-moody-2024-9">already bottomed</a>, with sales volume rising for the first time in two years in September.

Commercial real estate foreclosures jumped almost 50% in September, report says

<ul><li>LTCG of up to Rs 1,20,000 in a single financial year is tax-free. </li><li>Effective July 23rd, 2024, <keyword id="21006654" type="General" weightage="100" keywordseo="indexation-benefits" source="keywords">indexation benefits</keyword> will no longer be available for real estate, gold</li><li>Effective July 23rd, LTCG will be charges at 12.5%, sans indexation benefit</li></ul> After FM <keyword id="19916618" type="General" weightage="20" keywordseo="nirmala-sitharaman" source="keywords">Nirmala Sitharaman</keyword> proposed to remove indexation benefits on <keyword id="20584761" type="General" weightage="20" keywordseo="long-term-capital-gains" source="keywords">long-term capital gains</keyword> (LTCG) on real estate, gold, and other unlisted assets, discussions were abuzz on the internet as to how this would lead to significantly higher <keyword id="20118944" type="General" weightage="20" keywordseo="taxation" source="keywords">taxation</keyword> on gains from <keyword id="20008581" type="General" weightage="20" keywordseo="property-sales" source="keywords">property sales</keyword>. Previously, LTCG on long-term capital gains was marked at 20%, but it came with indexation benefits, which eventually lowered the individual's overall <keyword id="19974193" type="General" weightage="20" keywordseo="tax-liability" source="keywords">tax liability</keyword>. Now, it has been lowered to 12.5%, but minus any indexation benefit. So, with indexation gone, how will gains from property sales be taxed going ahead? Is this applicable to all properties? What is set to change? Does it help that the <keyword id="22480102" type="General" weightage="20" keywordseo="LTCG-tax" source="keywords">LTCG tax</keyword> has been brought down from 20% to 12.5%? Lets take a deep-dive First, explain this long term short-term conundrum to me So, how much capital gains tax you're supposed to pay depends on how long you hold a particular asset before selling it. Prior to yesterday's announcement, there were 3 holding periods which determined whether an asset was held for long-term or short-term: The situation before- <ul><li>Shares, units of mutual funds would qualify for LTCG tax, if they are held for more than 12 months. If the holding period is less than 1 year, you'd have to pay short-term capital gains (STCG).</li><li>Real estate and immovable property would qualify for LTCG tax, if held for more than 24 months (2 years), along with indexation benefit. </li><li>Bonds, debentures and gold were to be considered long-term capital assets, if they were held for more than 36 months (3 years), with indexation benefit. </li></ul>But going ahead, there will only be two waiting periods which will determine whether an asset would be classified as long-term or short-term The situation now- <ul><li>For all listed securities (stocks, mutual fund units), the holding period for LTCG tax purposes would be more than 1 year (sans indexation benefits) All other assets (real estate, gold, bond, debentures) will qualify for LTCG tax, if they are held for more than 24 months (minus indexation benefits). </li></ul>What was the taxation situation earlier on long-term capital gains? What has changed? So, lets say Tara purchased a property in FY 2004-05 for Rs 20,00,000. In FY 2024-25, she decided to sell it for Rs 60,00,000. You'd think she'll have to pay a flat 20% on Rs 40,00,000, which was her total profit earned from selling her property (Rs 60,00,000-20,00,000). But this is where indexation swooped in and helped cushion the overall tax liability. Prior to July 23rd, 2024, the government considered something known as "indexed cost of acquisition" for determining an individuals' total LTCG tax liability, which was calculated using the following formula: [Cost Inflation Index (CII)value for transfer/sale year/CII for purchase year, or 2001-02 (whichever is later) X cost of acquisition]. Thankfully, you don't have to go about calculating this CII value, since the government does this for you, and notifies the same officially. What CII essentially does is that it compares the current prices of basket A(which contains a bunch of products and services) to the price of the same basket A in the year of comparison, to reflect the change in prices caused by inflation. So, for Tara, her indexed cost of acquisition would come down to Rs 64,24,778 [363(CII for 2024-25) /113(CII for 2004-05)X 20,00,000]. This would mean she incurred a capital loss of Rs 4,24,778, since her indexed cost of acquisition is more than her sales receipts. So, she does not need to pay any LTCG tax. She can set off this loss, but only against her other long term gains with a limit of Rs 2 lakh in one financial year, and can carry forward the same for a maximum of 8 years. However, this changed when the budget memorandum noted yesterday, "indexation available under the second proviso to section 48 is proposed to be removed for calculation of any long-term capital gains which is presently available for property, gold, and other unlisted assets. This will ease the computation of capital gains for the taxpayer and the tax administration". This means that indexation benefits on LTCG will be applicable starting July 23rd, 2024. To understand its impact, assume that this rule is in effect from April 1, 2024. In that case, Tara's LTCG will be a flat 12.5% of her total gains of Rs 38,75,000 (remember, Rs 1,25,000 per year on LTCG are tax-exempt). This would bring Tara's taxability to Rs 4,84,375 Long story, short, minus the indexation benefit, Tara will have to pay Rs 4,84,375 as long-term capital gains tax. However, there has been a slight increase in the basic tax exemption limit for LTCG. Previously, LTCG of up to Rs 1,00,000 in a single financial year was tax-free. But now, this threshold has been raised to Rs 1,25,000. Small wins! <div type="Article" hostid="261" msid="111956035" title="Decoding capital gains taxes: What FM Nirmala took from your pocket, what she gave you in Budget 2024" mstype="2" mssubtype="0"></div> Okay, is there something that continues to be the same for long-term capital gains? Yes, roll-over benefits continue without change. This means you can re-invest the proceeds from sale of your old property into buying a new, residential one, in order to avoid capital gains tax. But that too, is not without its share of catches: You can reinvest these funds in either 54EC bonds, which have a maximum annual investment limit of Rs 50,00,000. Or, you can avail this exemption for a maximum of 2 residential houses, provided your capital gains are limited to Rs 2 crore. Also, if you've it purchased a property, or held from before 2001, you can continue to avail indexation benefits, thanks to something called a grandfathering clause. Does indexation or lower tax rates work better? There's no general rule here. But a cursory look indicates that high capital gains would be favorably taxed under these reduced tax rates, while lower returns and holding periods would find indexation to be a better option. Says Pankaj Kumar, VP – Fundamental Research, Kotak Securities, "the Union Budget-FY25 has rationalized long-term capital gains tax on real estate transaction. It proposed to remove indexation benefits and reduce the long term capital gains tax rate from 20% to 12.5% with immediate effect (grandfathering for properties held before 2001). We find that the new capital gains tax structure for real estate favours investors, who have generated high IRRs, while investors with poor IRRs would be worse off in the new regime". "On the other hand, it is expected to have limited impact on end users who purchase homes for personal consumption. The budget has also talked about encouraging states to lower the stamp duty and consider lower duties for women buyers. Lowering of stamp duties would reduce the overall acquisition cost in high stamp duty states/markets like Gurgaon, Chennai, Mumbai and Kolkata", continued Kumar.

Budget 2024: How will long-term capital tax change your real-estate investments post-budget?

<ul class="summary-list"><li>The growing ranks of boomers aged 65-plus could spark a boom in the senior housing market.</li><li>Demand for senior housing is expected to surge 50% by 2040, Capital Economics estimated.</li></ul>A big investment opportunity is brewing in one corner of the real estate market, thanks to a wave of <a target="_blank" class="" href="https://www.businessinsider.com/how-retirement-of-peak-boomers-could-affect-economy-social-security-2024-4">baby boomers</a> that are about to age into retirement, according to Capital Economics.The research firm pointed to the so-called "<a target="_blank" class="" href="https://www.businessinsider.com/what-will-happen-baby-boomer-homes-die-millennials-gen-z-2024-1">silver tsunami</a>," the moniker that's been given to describe the imminent surge of Americans over the age of 65 entering prime retirement age. It says this will drive strong demand for <a target="_blank" class="" href="https://www.businessinsider.com/cost-of-a-retirement-home-community-in-every-state-2019-7">senior housing</a> facilities, including assisted living, independent living, skilled nursing, and memory care.For real-estate investors faced with a prolonged slump in the <a target="_blank" class="" href="https://www.businessinsider.com/commercial-real-estate-office-debt-investing-outlook-blackstone-jon-gray-2024-11">commercial real estate</a> space, senior housing offers an enticing alternative, wrote Imogen Pattison, an assistant economist at Capital Economics."With an <a target="_blank" class="" href="https://www.businessinsider.com/baby-boomer-gen-z-millennials-economy-housing-job-market-stocks-2024-2">aging population</a>, senior housing has a clear long run structural demand driver pointing to further growth in the sector. Our analysis shows rent prospects appear strong on the back of undersupply and solid wage growth," Pattison wrote. "That makes senior housing a compelling option for investors looking to break away from traditional property investment."The 65-plus population is on track to grow 30% over the next 16 years, encompassing 80 million Americans by 2040, according to estimates from the US Census Bureau.<div type="image" title="Graph showing number of Americans over age of 65" height="964" width="1396" msid="115427149" hostid="261" sizebytes="21546"></div>Meanwhile, around 11% of those over the age of 65 are currently living in a form of senior housing, according to the American Senior Housing Association. Assuming that percentage holds steady, that implies demand for senior housing will grow 50% over the next 16 years, per Capital Economics' analysis, up from 6 million in 2023 to 9 million in 2040.Rents, meanwhile, are seeing a strong uptrend, thanks to the supply of senior housing growing tighter after the pandemic. The sector posted more than 5% year-per-year rent growth in 2023, nearly double its 20-year average, the firm added.<div type="image" title="Chart showing senior housing rent growth" height="1001" width="1413" msid="115427143" hostid="261" sizebytes="26652"></div>That puts the senior housing sector on track to see average annual returns of 13% for the next four years, the firm estimated. Yearly returns are also set to peak in 2026 at around 16%, it added, more than triple the 4.5% yearly growth expected in 2024."We expect continued tight supply to bolster rents over the next year or so," Pattison added. "Taken together, strong capital value growth and income returns mean the sector looks relatively attractive compared to the other real estate sectors."The <a target="_blank" class="" href="https://www.businessinsider.com/commercial-real-estate-office-outlook-fire-sales-apartment-conversions-housing-2024-10">commercial real estate</a> space has been challenged in recent years, with the demand for offices being weighed down by work-from-home trends while borrowing costs rise in the sector. That means the most troubled office buildings could see a wave of fire sales and conversions, potentially sparking steep losses for property owners, real estate experts told Business Insider.

A 'silver tsunami' of retirement-age baby boomers is creating a big opportunity for real-estate investors, research firm says

<ul class="summary-list"><li>Michael Hyun used creative financing to buy a home amid high mortgage rates in 2023.</li><li>He used a 'subject-to' method, taking over a mortgage with a lower interest rate.</li></ul>In 2022, Michael Hyun was worried about his household's <a target="_blank" class="" href="https://www.businessinsider.com/personal-finance/taxes">tax liability</a> as he and his spouse, Eileen, earned a combined $422,000 in income.But they had one advantage: Eileen was a real-estate agent, which qualified her as a real-estate professional under tax law. This provision allowed them to use their properties to reduce taxes by filing jointly and posting their real estate expenses as business expenses. Doing this enabled them to reduce their federal taxes by 99%, including what Hyun owed from his W-2 income. In a previous <a target="_blank" class="" href="https://www.businessinsider.com/how-w2-employee-reduced-federal-taxes-for-tax-refund-issued-2024-2">interview with Business Insider</a>, he explained the process, including how non-real estate professionals could use a similar process.They wanted to continue <a target="_blank" class="" href="https://www.businessinsider.com/personal-finance/investing/how-to-invest-in-real-estate-make-money">purchasing property</a> to replicate the tax benefits yearly. However, in 2023, they ran into one problem: <a target="_blank" class="" href="https://www.businessinsider.com/todays-mortgage-rates-friday-8-2024-11">mortgage rates</a> were above 7%, making homeownership unaffordable, even if they rented the house for cash flow.Shopping at different banks and mortgage brokers wouldn't yield much difference in rates. So Hyun tried creative financing, an idea he got after following a YouTuber and real estate investor, Pace Morby. The influencer had a Facebook page where a community of real estate buyers and sellers could connect. There, he found <a target="_blank" class="" href="https://www.businessinsider.com/real-estate-how-wholesaling-works-earn-money-investing-investor-property-2022-11">wholesalers</a>, middlemen that buy property under contract to sell the contracts and transfer the property to the buyer."Wholesalers basically post their deals there. And if you like them, then you'll email the wholesaler, and they will basically get you to buy their contracts," Hyun said. "And when I say contract, I mean basically they already have written an agreement with the seller saying that they will buy the house. And that contract, the wholesalers are selling to me for about $10,000."Hyun used this method to locate a property that could be purchased using what's called "subject-to", when the buyer takes over the property ownership and the mortgage tied to it.In Hyun's instance, It was a fairly new, single-family 3,000 square-foot home built in 2022 in a small town in Texas at a sale price of $475,000. The homeowner was behind on payments. So, instead of going into foreclosure, they sold it to Hyun and transferred the mortgage, which had a balance owed of $368,486 at a 2.75% mortgage rate. For Hyun, this meant a total monthly payment of $2,844, according to records viewed by Business Insider."With a property like this, it would not cashflow if we had gotten the 7% interest rate, meaning the rents would not pay for our mortgage and expenses, and we would be negative every month," Hyun said. "So it just isn't an option unless you get really good financing terms."He paid the seller $16,735 in cash and used carry-back financing for the remainder, which is when the seller finances the gap by accepting monthly payments until the owed amount is reached.Hyun noted that the biggest risk with subject-to is something called the due-on-sale clause, a provision in the mortgage contract that allows the lender to call in the loan if the property title is transferred. The clause isn't commonly enforced, but a lender does have the right to exercise it."What that means is that the mortgage company will basically say you need to pay off the loan immediately, and they'll give you a couple months' notice," Hyun said.Hyun addressed this by working with an attorney to transfer the title to a land Trust or a Living Trust. It requires multiple steps and considerations. However, this is not a required part of the process.

A real-estate investor explains how he got a 2.75% mortgage amid 7% rates

The <keyword id="20759748" type="General" weightage="20" keywordseo="housing-market" source="keywords">housing market</keyword> is in the midst of its biggest slowdown since the pandemic, according to <keyword id="23342837" type="General" weightage="20" keywordseo="Redfin" source="keywords" meta.keywordsubtype="org" meta.entityname="Redfin" meta.hostid="261" meta.entityid="Redfin">Redfin</keyword>. The real-estate listings firm <a target="_blank" class="" href="https://www.redfin.com/news/sales-speed-stale-listings-august-2024/">cited</a> that 48% of US <keyword id="23342838" type="General" weightage="20" keywordseo="home-listings" source="keywords">home listings</keyword> stayed on the market longer than 60 days in August, the biggest share since 2019. The figure marks a 43% increase from the year before. It's also the fifth straight month where the share of homes on the market that long has climbed — a sign that more houses are growing stale as demand cools. The summer also tends to be a weak month for home sales, adding to the standstill, the report said. Existing home sales slumped another 1% in August to their lowest levels since May 2020, when the housing market shuttered to a halt as the result of the pandemic, the firm said in a separate <a target="_blank" href="https://www.redfin.com/news/home-sales-lowest-since-pandemic-2024/">report</a>. Towns in Florida and Texas dominated the list of slowest housing markets in the US. Homes stayed on the market for the longest in West Palm Beach, Florida, with listings taking a median 79 days before being sold. That was followed by Fort Lauderdale, Florida, and Jacksonville, Florida, where homes stayed on the market for a median 75 and 65 days respectively. "We usually see home sales pick up when <keyword id="19979912" type="General" weightage="20" keywordseo="mortgage-rates" source="keywords">mortgage rates</keyword> fall, but this year we are seeing the opposite — sales are dropping and homes are sitting longer on the market," Sheharyar Bokhari, a Redfin senior economist, said in a statement. He continued: "Last week's big interest rate cut by the Federal Reserve will give buyers a boost in confidence, but it remains to be seen whether sales will speed up in any meaningful way as we move into the slower Fall season." The central bank <a target="_blank" class="" href="https://www.businessinsider.com/federal-reserve-interest-rate-cuts-mortgage-investment-credit-savings-2024-9">cut interest rates 50 basis points</a> at their last policy meeting, which was expected to influence mortgage rates to tread lower. But borrowing costs will probably stay elevated over the near-term, forecasters say, with Redfin predicting the 30-year fixed mortgage rate will remain above 6% by the end of the year. Still, not all housing markets in the US have grown stale. Seattle was the hottest housing market in the nation last month, with homes staying on the market for a median of 12 days, per Redfin's report. That was followed by Indianapolis, Indiana, and Warren, Michigan, where homes stayed on the market for a median of 16 and 17 days, respectively. Daryl Fairweather, Redfin's chief economist, said buyers might also be pickier about the homes they make an offer on. "Anyone who has been paying attention to the housing market over the past few years knows that desirable homes sell right away," Fairweather said. "Now if a home is still on the market after a few weeks, buyers assume there's something wrong with it. That's why it's so important to price your home to move quickly. Buyers see the days on market and when it starts to tick up, it's like a scarlet letter." More sellers have resorted to slashing prices in a bid to attract buyers. The share of homes that saw a price cut in August rose to over 19%, Realtor.com said in a previous report, the highest share of homes with a price reduction in August in five years. Correction: September 26, 2024 — An earlier version of this story misspelled the name of Redfin's chief economist. She is Daryl Fairweather, not Darryl Fairweather. Additionally, a data point in the 12th paragraph was incorrectly cited as being from Redfin. It is from Realtor.com.

The housing market is seeing its biggest logjam since before the pandemic

<ul class="summary-list"><li>Selling appreciated assets like stock and real estate can trigger high capital gains taxes.</li><li>Moguls can save big by gifting assets to their parents, inheriting them back, and then selling them.</li></ul>Wealthy entrepreneurs face hefty capital gains taxes if they want to cash out after building a successful business from the ground up.But if they are willing to wait, they can save big by gifting their stock to their parents and getting it back when they die. Capital gains tax applies to the appreciation between the sale price and the asset's cost basis, typically its purchase price. "Upstream transfers" take advantage of a tax loophole for inherited assets that boosts the cost basis to its fair market value at the time of inheritance.For instance, a top earner looking to sell shares that had appreciated by $1 million since they bought them would have to pay about $238,000 in taxes, according to Pam Lucina, chief fiduciary officer at Northern Trust.But if they give the stock to their parents and sell it after inheriting it, they only have to pay that 23.8% tax rate on how much the stock had appreciated since their parents died, even if the stock had surged in value after they gave it away.You get the most bang for your buck by choosing assets with a low cost basis relative to their current value. Publicly-held stock, real estate, and private business interests are popular choices, Lucina said.Upstream planning is a powerful but risky tool, she told Business Insider. Individuals can lose their assets for good if their parents decide to share the wealth with a new spouse or other children. She estimates that only a quarter of clients actually go through with upstream planning after discussing it."Once you talk through the risks and the family dynamics aspect of it, it doesn't work for every family," she said.Thanks to tax cuts made during the Trump administration, individuals can gift or bequeath $13.61 million before triggering a 40% federal estate tax. The high exemption threshold has made upstream planning more popular. Lucina expects giving to pick up before the tax cuts expire at the end of 2025, barring action by Congress.Robert Strauss, partner at estate planning firm Weinstock Manion, typically uses upstream planning with ultra-rich clients who have already used their exemption but have less-wealthy parents who haven't. They can stash assets in a trust that benefits their parents until their passing and then the children. After the grandparents die, the children inherit the assets with a step-up basis. The federal estate tax doesn't kick in as long as the grandparents' estate does not exceed $27.22 million, the exemption for a married couple.<h2 id="fbe1dfa3-c1f3-49ff-b862-66a8fe0d22db">Buyer beware</h2><ol><li>The parents' creditors may have a right ot the assets.</li></ol>According to Lucina, the parents are usually given power of appointment over the assets to make sure they are included in their taxable estate. This legal right allows the parents to give or transfer the assets while they are alive. It also allows their creditors to pursue the assets, she warned.<ol start="2"><li>Make sure the whole family is on board.</li></ol>Lucina said best-laid plans are more likely to fall apart when more people are involved, from siblings to spouses. For instance, the parents might change their minds about leaving a bigger inheritance to one child, even if that child gifted substantial assets to them.One of Lucina's clients had to promise to pay the parents' medical bills in order to get their siblings to agree to the arrangement.Family dynamics are the thorniest part of upstream planning. Strauss said it is important to be transparent with everyone involved before the upstream transfer."You've got to navigate the family dynamics to make sure that an upstream actually isn't going to piss other people off or create an unrealistic expectation in an inheritance that's not intended," Strauss said.<ol start="3"><li>The age of the parents is very important.</li></ol>While there is no hard and fast rule, Strauss typically uses upstream transfers when the wealth creator's parents are at least in their seventies or expected to live five more years or less.It's a delicate balance. If the parents die within one year of the transfer, the assets do not receive a step up in basis.However, the assets are tied up during the parents' lifetime. During that time, the tax law and the value of the assets are bound to fluctuate. It is possible to unintentionally trigger estate taxes if the assets exceed the exemption amount by the time the parents die."Ideally, what you're doing is you're targeting the exemption amount and not less and not more, but the value of the asset will change and the exemption amount will change," Strauss said. "It makes it harder to deal with."

How rich Americans can save on taxes by giving stock and real estate to their parents 

<ul class="summary-list"><li><keyword id="19979912" type="General" weightage="100" keywordseo="mortgage-rates" source="keywords">Mortgage rates</keyword> are falling but remain high compared to the rates of the past few years.</li><li>Assumable mortgages can help <keyword id="19907145" type="General" weightage="20" keywordseo="homebuyers" source="keywords">homebuyers</keyword> get lower rates and reduce their monthly payments.</li></ul>Over the past few years, <a target="_blank" href="https://www.businessinsider.com/personal-finance/mortgages/average-mortgage-interest-rate">US mortgage rates</a> have fluctuated wildly, leaving both homebuyers and sellers scrambling. In 2021, rates fell to as low as 2.1% as the <a target="_blank" href="https://www.businessinsider.com/how-fed-rate-cut-could-impact-mortgage-rates-homebuyers-2024-9">Federal Reserve</a> acted to keep the economy ticking during the COVID-19 pandemic. But then inflation spiked. To cool inflation, the Fed implemented a series of rate hikes, pushing mortgage rates to a peak of 7.79% in October 2023, according to data tracked by the <keyword id="19904332" type="General" weightage="20" keywordseo="Federal-Reserve" source="keywords" meta.keywordsubtype="org" meta.entityname="Federal Reserve" meta.hostid="261" meta.entityid="Federal Reserve">Federal Reserve</keyword> Bank of St. Louis. But over the last few years, some homebuyers have used a workaround to get lower rates anyway: a lesser-known loan option called an <keyword id="23243178" type="General" weightage="20" keywordseo="assumable-mortgage" source="keywords">assumable mortgage</keyword>. Assumable mortgages let qualifying buyers take over a seller's existing loan, including its interest rate, principal balance, and other terms. This can lead to significantly lower <keyword id="19950650" type="General" weightage="20" keywordseo="interest-rates" source="keywords">interest rates</keyword>, making monthly mortgage payments more affordable and saving thousands over the life of the loan. It's important to note that not all loans are eligible for assumption, but ones backed by the Federal Housing Administration (FHA) and the Department of Veterans Affairs (VA) are. 2024, however, has brought some relief from high rates. In January, <a target="_blank" href="https://www.businessinsider.com/fed-cut-lower-mortgage-rates-should-you-refinance-2024-9">rates</a> hit about 6.7% and have been slowly decreasing since. According to Freddie Mac, the 30-year fixed-rate mortgage dropped to 6.2% as of mid-September, its lowest level since February 2023. The Federal Open Market Committee, which oversees US monetary policy, is expected to <a target="_blank" class="" href="https://www.businessinsider.com/interest-rate-cuts-decision-this-week-federal-reserve-powell-inflation-2024-9">cut interest rates</a> at its <a target="_blank" class="" href="https://www.businessinsider.com/personal-finance/banking/when-is-the-next-fed-meeting">meeting</a> this week. This could lead to further declines in mortgage rates in the coming months. Still, the 2%-ish rates of 2021 aren't likely to return as the Fed remains wary of inflation. So while additional rate declines may ease monthly mortgage payments for some, they won't necessarily make homebuying significantly more affordable for most Americans. For that reason, assumable mortgages still might be the best option for some people to get the lowest rates. Here are the stories of three homebuying couples who secured mortgage rates below 3% since March 2023 using assumable mortgages. They described how they redirected the funds they would have spent on higher monthly mortgage payments into healthcare, renovations, or retirement. <h2>One couple got a 2.6% rate and became the youngest homeowners in their families</h2>In 2022, <a target="_blank" href="https://www.businessinsider.com/first-time-buyers-got-lowest-best-interest-rate-assumable-mortgage-2024-3">Grace Lucchese</a> had just graduated from college. Her partner, Mickey Ricard, had finished his military service two years prior. The Gen Z couple had moved into an apartment in Lucchese's hometown of Sudbury, Massachusetts — a town about 40 minutes outside Boston — and found themselves spending much of their incomes on rent. "We were paying ridiculous <a target="_blank" href="https://www.businessinsider.com/rental-market-housing-affordability-real-estate-apartments-2024-1">prices for rent</a>, and our money was going nowhere," Lucchese told Business Insider. "We also have a dog with special needs, so we wanted to find a home with a backyard." <div type="image" title="Grace Lucchese, Mickey Ricard, and their dog at home." height="1701" width="2268" msid="113465770" hostid="261"></div>For the first-time homebuyers, finding an affordable, well-maintained home in their area was challenging. "During our homebuying search, we looked all around Boston," Lucchese said. "We could not find a home that was move-in ready and under $650,000. We put offers on probably seven different homes and got into bidding wars on two." After months of searching and nearly giving up, Lucchese and Ricard finally found their perfect home: a 1,600-square-foot, two-story Colonial built in 1885 with three bedrooms and one bathroom. The home also came with an assumable mortgage. "Our home was originally listed for $429,000," Lucchese said. "When we were <a target="_blank" href="https://www.businessinsider.com/real-estate-investing-how-to-negotiate-best-price-down-2023-4">negotiating with the seller</a> and trying to talk him down on the price, they brought up the assumable loan — I had no clue what that type of mortgage was." After learning about assumable mortgages and realizing they could take over the homeowner's 2.6% rate, they jumped at the opportunity. <div type="image" title="Grace Lucchese and Mickey Ricard's Massachusetts home." height="3024" width="4032" msid="113465773" hostid="261"></div>In January, they made a $13,000 down payment and bought the home for $422,500. With homeowners' insurance included, their monthly payments are around $2,100 — about half of what they would likely pay if they had gotten a traditional mortgage earlier this year. Their mortgage term is 26 years. The couple, now the youngest homeowners in both of their families, are using their monthly savings to renovate their home and help cover their dog's veterinary expenses. "Now that our assumable mortgage is saving us about $2,000 each month, it makes the stress a little less because we have the option of having more money available," Lucchese said. <h2>Retirees who got a 2.75% rate say their lives are easier</h2>In June, <a target="_blank" href="https://www.businessinsider.com/homebuyer-got-low-mortgage-interest-rate-assumable-mortgage-save-retirement-2024-7">Brian Sankey</a>, a retired military police officer, purchased a $400,000 home in Elizabethtown, Kentucky — a small town south of Fort Knox — with an assumable Veterans Affairs, or VA, mortgage. The loan has a 2.75% interest rate and 26 years remaining on its 30-year fixed-rate term. Sankey said it was "a win-win" situation for him and the seller. "The benefit of a loan assumption for the seller was that it allowed them to sell their home at a higher price," Sankey told BI. "For my wife and me, it allowed us to get a lower interest rate." <div type="image" title="Brian Sankey on the beach." height="1200" width="1600" msid="113465776" hostid="261"></div>Sankey said he learned about the assumption feature of Veterans Affairs mortgages years ago but had forgotten about it over time. It wasn't until he came across the four-bedroom, four-bathroom home in Elizabethtown that his memory was jolted. The home's proximity to an Army base led Sankey to suspect that the sellers might be connected to the military and have taken out a VA loan, making an assumable mortgage possible. He was right. However, getting the seller on board wasn't as easy as Sankey had hoped. "They weren't inclined to do it at first because they felt the assumption process would take too long, and they were looking for a quick sale," he said. "But after about 30 days, they realized that cash buyers wouldn't be throwing money at them and agreed to proceed with the assumption." According to Sankey, the assumption process took just about six weeks from the time he and his wife first viewed the home to closing the loan. "I'm happy I remembered it because it made our home purchase more affordable," he said. "Despite the current market conditions and higher interest rates, my wife and I were able to purchase a larger home with lower monthly payments." A smaller mortgage is allowing Sankey and his wife to <a target="_blank" href="https://www.businessinsider.com/personal-finance/how-much-do-i-need-to-retire">retire more comfortably</a>. "I can now use the money I would have spent on high-interest payments to cover living expenses," Sankey said. "We should also have more discretionary income." <h2>A couple is able to pay down medical debts after buying a house in Oregon</h2>In 2022, <a target="_blank" href="https://www.businessinsider.com/couple-got-low-mortgage-when-everyone-getting-high-interest-rate-2024-3">Amy Yzaguirre</a> was diagnosed with cancer. At the time, she and her son were living in Idaho while her husband looked for a job in Oregon. They had planned to reunite in Oregon after he found one and their Idaho home sold. However, following her diagnosis, the couple decided it was best to be together before the Idaho home was sold. Faced with the financial burden of paying the Idaho mortgage and Oregon rent at the same time, they moved into an RV on her parents' property in Tigard, a suburb about 20 minutes outside Portland. "It was pretty rough, but we made it work," Yzaguirre told BI. They lived rent-free in the RV for months while waiting for their Idaho home to sell and Yzaguirre to recover. Then, they began searching for a home to buy in Tigard. <div type="image" title="Amy Yzaguirre and her husband pose in front of the RV they purchased." height="542" width="720" msid="113465772" hostid="261"></div>It wasn't the experience they had hoped for. "It's funny how an area can be a nice, family-friendly, affordable place to live and then suddenly become overpopulated and much more expensive," she said. They eventually toured a townhome in nearby Sherwood listed for $416,000. The seller's flyer noted that a buyer could take over their 2.5% mortgage rate. "I did the math," Yzaguirre said. "The seller was locked in at 2.5%, so if we qualified to assume the loan, our mortgage would be a little over $2,100 a month versus the over $3,000 we would be paying with a traditional mortgage at current market rates. It would save us over $40,000 in the long run." <div type="image" title="Amy Yzaguirre, her husband, and son." height="3024" width="4032" msid="113465778" hostid="261"></div>In March 2023, the couple purchased the townhome for $418,900. They made a down payment of $48,000 and assumed a 30-year fixed-rate FHA loan with an interest rate of 2.5%. They have 28 years left on their mortgage. The money they are saving each month is helping them pay down Yzaguirre's bills. "Even though I was fortunate to have good insurance during chemotherapy and have excellent insurance through my current job, I still had quite a few medical bills to pay off," she said. "With the extra money we have saved on our mortgage payment, I've been able to pay them down." The family also used some of their extra funds to pay off other debts and purchase a Toyota Tacoma pickup truck with cash, covering the full amount upfront Correction: September 19, 2024 — An earlier version of this story misspelled Mickey Ricard’s last name.

3 couples who recently got mortgage interest rates under 3% share how they did it

<ul class="summary-list"><li>This post originally appeared in the Insider Today newsletter.</li></ul>On the agenda:<ul><li>Don't make these mistakes when <a target="_blank" href="https://www.businessinsider.com/high-end-golf-course-mistakes-to-avoid-seasoned-golfer-2024-8">visiting a high-end golf course</a>.</li><li>Everyone wants to live in a Nancy Meyers home, but <a target="_blank" href="https://www.businessinsider.com/nancy-meyers-home-aesthetic-interior-design-tips-2024-7">it won't happen overnight</a>.</li><li>Real estate's next trend is Lamborghini and <a target="_blank" href="https://www.businessinsider.com/luxury-real-estate-condos-miami-branded-residences-porsche-lamborghini-homebuyers-2024-8">Dolce &amp; Gabbana-branded homes</a>.</li><li>Unlimited PTO sounds like a dream. <a target="_blank" href="https://www.businessinsider.com/unlimited-vacation-pto-wins-risks-2024-8">Is it</a>?</li></ul>But first: Parents, beware of August.If this was forwarded to you, <a target="_blank" href="https://www.businessinsider.com/subscription/newsletter/insider-today-sunday-edition">sign up here</a>. Download Insider's app <a target="_blank" rel="" href="https://www.insider.com/app">here.</a><h3 id="2d2d81c1-e984-4ab1-b11e-26ada0d3da0b">This week's dispatch</h3><div type="image" title="A boy shields himself from the blast of a water blaster in the backyard of a home during the summer" height="1414" width="2121" msid="112590423" hostid="261" sizebytes="312062"></div><h2 id="7a9be7c5-663d-453c-8fe0-9bd3f7873c61">Parents, it's not you. It's August.</h2>Have you noticed that your family is on edge lately? Between the thunderstorms, the heat, the last of the summer vacations, and the long list of things to buy to go back to school, it's been a bit tense around the house.A child psychologist told Business Insider, it's not you — or your family. It's August."New teachers, new classmates, new apartments, new separations, gathering school supplies and loading the car trunks. It's a time of great anticipation and worry," <a target="_blank" href="https://www.businessinsider.com/youre-not-failing-as-a-parent-august-is-hard-2024-8">writes Jennifer Underwood</a>.This time of year brings different feelings for different families. While some parents are relieved they can <a target="_blank" href="https://www.businessinsider.com/back-to-school-season-homeschooling-benefits-2024-8">opt out of back-to-school</a> preparations since they homeschool their children, others are debating whether to post <a target="_blank" href="https://www.businessinsider.com/parents-experts-divided-on-back-to-school-photos-safety-concerns-2024-8">back-to-school photos</a> on social media.Regardless of your situation, August is still likely a tense time. Experts told BI there are four key ways to <a target="_blank" href="https://www.businessinsider.com/prepare-kids-back-to-school-season-tips-2024-8">alleviate back-to-school stress</a> on your children and family:<ol><li>Validate your children's feelings.</li><li>Create a new school-friendly schedule.</li><li>Connect with your child's school or educational community.</li><li>Encourage your child to think about their long-term goals.</li></ol>With these four tips, this time of year may still be stressful, but at least you and your family will be prepared.<div type="image" title="Man golfing on course with palm trees" height="853" width="1280" msid="112590420" hostid="261" sizebytes="160034"></div><h2 id="ea51ae55-4153-401a-8daf-34389e2282f6">Rookie mistake</h2>When first-timers set foot on a fancy golf course, there are a few mistakes they're sure to make. At least that's according to a golfer who's written about the sport for the past 30 years.After visiting more than 200 upscale golf courses, he's found that newcomers often forget to check the dress codes, and sometimes choose the wrong tee. Oh, and there's an important rule when it comes to packing for a golf trip.<a target="_blank" href="https://www.businessinsider.com/high-end-golf-course-mistakes-to-avoid-seasoned-golfer-2024-8">See the rest of his advice</a>.Also read:<ul><li><a target="_blank" href="https://www.businessinsider.com/phoenix-open-waste-management-golf-drunk-bros-party-2024-2">Nine hours at the most unhinged hole in golf</a></li></ul><div type="image" title="Nancy Meyers surrounded by past movies" height="1500" width="2000" msid="112590417" hostid="261" sizebytes="233350"></div><h2 id="624af23c-8c71-4fd3-853b-0735662a3328">Nancy Meyers' enchanting aesthetic</h2>The homes in Nancy Meyers' films — think "Something's Gotta Give" and "The Parent Trap" — are known for their impeccable interior design. Her homes have become one of the go-to styles for social-media users trying to create their own dream homes.Jon Hutman, a production designer and interior designer, has worked on Meyers' films. To create a similar look, he says to start with a clear idea of what you want your space to look like before buying decor.<a target="_blank" href="https://www.businessinsider.com/nancy-meyers-home-aesthetic-interior-design-tips-2024-7">How to achieve a Meyers home</a>.Also read:<ul><li><a target="_blank" href="https://www.businessinsider.com/guides/home/nancy-meyers-inspired-decor">9 'coastal grandma' decor items to make your home look like a Nancy Meyers movie</a></li></ul><h2 id="4f6d9625-e84c-47ce-ae52-f80974eac7d5">Branding is everything</h2>What do Lamborghini, Nobu, and Baccarat have in common? They're all luxury lifestyle brands, and they're all expanding into the world of luxury real estate.High-status brands from the worlds of fashion, food, and auto are all lending their names to swanky residential towers from Miami to Dubai. For brand loyalists, they're an added perk. For developers, they're a cash cow.<a target="_blank" href="https://www.businessinsider.com/luxury-real-estate-condos-miami-branded-residences-porsche-lamborghini-homebuyers-2024-8">Coming to a condo near you</a>.<div type="image" title="A calendar overlaid on top of an image of a beach" height="1500" width="2000" msid="112590424" hostid="261" sizebytes="70024"></div><h2 id="3217fc20-7e30-470e-a04e-c87cd0e35a05">To vacay or not to vacay</h2>Unlimited PTO is a double-edged sword. Take too much time off, and you risk being secretly judged or punished. Take too little, and you could burn out. While some employees have mastered the balance, others have learned that pushing the limits doesn't always pay off.BI spoke with employees who've tested the boundaries of their companies' PTO policies. They explain how they found the sweet spot.<a target="_blank" href="https://www.businessinsider.com/unlimited-vacation-pto-wins-risks-2024-8">Maximize your unlimited PTO</a>.<div type="image" title="A Television showing Chris Hemsworth in Furiosa" height="1500" width="3000" msid="112590428" hostid="261" sizebytes="303278"></div><h2 id="5f54d8d8-b53f-452b-84c6-90272df7f976">What we're watching this weekend</h2><ul><li>"Furiosa": The "Mad Max" prequel starring Anya Taylor-Joy and Chris Hemsworth is available on Max.</li><li>"Immaculate": Sydney Sweeney is a terrorized nun at an Italian convent in one of the year's best new horror movies, now streaming on Hulu.</li><li>"Emily in Paris": The frothy Netflix show is back for its fourth season.</li></ul><a target="_blank" href="https://businessinsider.com/best-tv-shows-movies-streaming-netflix-max-hulu-august-16-24">See the full list</a>.<div type="image" title="A red shopping bag surrounded by $100 bills." height="1500" width="2000" msid="112590426" hostid="261" sizebytes="244828"></div><h2 id="a09a70ef-5e7e-4bf4-80b2-3731f70bdc6e">Deals we love</h2><ul><li>Yet another trendy bottle: The Owala FreeSip Water Bottle is making its rounds on social media, but is it really worth it? <a target="_blank" href="https://www.businessinsider.com/guides/kitchen/owala-freesip-water-bottle-review">Our kitchen editor put it to the test</a>.</li><li>Rare sale on diamonds: Blue Nile, one of our top-recommended jewelry retailers, is having an anniversary sale that can save you hundreds on diamond rings, bracelets, and more. Here are <a target="_blank" href="https://www.businessinsider.com/guides/deals/blue-nile-anniversary-sale-2024-8">our favorites from the sale</a>.</li><li>iPhone 16 is on its way: September is coming soon, which is when Apple typically announces its newest iPhone. <a target="_blank" href="https://www.businessinsider.com/guides/tech/iphone-16">We've explored and debunked predictions</a> about the new device so you know what to expect.</li></ul><h2 id="3a2e4b99-8063-4f80-8653-d1ec4a2af89a">More of this week's top reads:</h2><ul><li>Olympian breakdancer Raygun is <a target="_blank" rel="noopener" href="https://www.businessinsider.com/rachael-gunn-australian-breakdancer-online-bullying-misinformation-2024-8">the internet's newest villain</a>.</li><li>A couple tested out life in Canada and Italy. <a target="_blank" href="https://www.businessinsider.com/couple-lived-canada-italy-chose-where-salaries-lower-life-better-2024-8">Here's where they chose to move</a>.</li><li>"Shut-up rings" are <a target="_blank" href="https://www.businessinsider.com/shut-up-ring-proposal-wedding-therapist-relationship-red-flag-2024-8">relationship red flags</a>.</li><li>Why one writer hated <a target="_blank" href="https://www.businessinsider.com/paris-olympics-awful-surprises-reporter-2024-8">her experience at the Paris Olympics</a>.</li><li>A millennial and her retired parents are <a target="_blank" href="https://www.businessinsider.com/millennial-retired-parents-digital-nomad-family-live-abroad-cheaply-2024-8">living the digital nomad life</a>.</li><li>Barcelona is the latest city to effectively <a target="_blank" href="https://www.businessinsider.com/barcelona-airbnb-ban-florence-amsterdam-lisbon-are-regulations-working-2024-8">ban Airbnbs</a>.</li><li>Review: Nine hours in <a target="_blank" href="https://www.businessinsider.com/quiet-room-airport-lounge-sleeping-qatar-airways-garden-lounge-review-2024-8">Qatar Airways' newest airport lounge</a>.</li><li>One bride explains why she opted for <a target="_blank" href="https://www.businessinsider.com/bride-solo-bachelorette-trip-saved-money-stress-2024-8">a solo bachelorette party</a>.</li><li>Locals say tourism is <a target="_blank" href="https://www.businessinsider.com/tourism-is-killing-the-blue-zone-lifestyle-in-costa-rica-2024-7">killing Costa Rica's Blue Zone lifestyle</a>.</li><li>Tips for visiting the Amalfi Coast <a target="_blank" href="https://www.businessinsider.com/things-to-know-visiting-amalfi-coast-busy-season-first-time">during its peak tourism season</a>.</li><li>Here's what the wealthy are <a target="_blank" href="https://www.businessinsider.com/expensive-drinks-rich-people-order-luxury-bars-bartenders-2024-8">actually ordering at bars right now</a>.</li></ul>The Insider Today team: <a target="_blank" href="https://www.businessinsider.com/author/jordan-parker-erb">Jordan Parker Erb</a>, editor, in New York. <a target="_blank" href="https://www.businessinsider.com/author/dan-defrancesco">Dan DeFrancesco</a>, deputy editor and anchor, in New York City. <a target="_blank" href="https://www.businessinsider.com/author/lisa-ryan">Lisa Ryan</a>, executive editor, in New York. Amanda Yen, fellow, in New York.

Insider Today: Real-estate status symbols

The Italian carmaker Pagani produces fewer than 100 vehicles a year, and each comes with a seven-figure price tag. The brand is known among gearheads for its attention to detail and air of exclusivity, qualities that Pagani hopes will translate to its next project: luxury condominiums.This spring, the company unveiled plans for Pagani Residences, a 70-unit condo development in Miami's North Bay Village. The automaker says the building will offer waterfront views and living spaces "meticulously curated" by its interior-design arm. Pagani condos, much like Pagani cars, start at about $3 million. But for people desperate to claim a piece of Pagani, the price tag may be no problem at all."I sold a unit to a guy that loves Pagani cars, and it just didn't matter to him what the location was," Carlo Dipasquale, a luxury-real-estate agent in South Florida, told me. "They could've built the building inland, anywhere in Miami, for all he cared."Pagani is the latest high-end car brand to lend its name to a shiny condo project along the Miami coast, joining the likes of Mercedes-Benz, Porsche, Aston Martin, and Bentley. Beyond automakers, there's a growing list of luxury brands hoping to use real estate to turn their cultural cachet into cold, hard cash. The owner of the trendy Italian eatery Carbone is partnering with developers on a high-rise; Dolce &amp; Gabbana also has one in the works. Even Elle magazine announced this spring that it would get in on the action with a condo project near Miami Beach, hoping to sell buyers on a lifestyle pulled straight from its glossy pages.When I heard of these plans a few months ago, I was tempted to dismiss them as the kinds of vanity projects that matter only to people with too much money and an insatiable hunger for status. Some of the announcements also struck me as a bit of a stretch. Magazines have a hard enough time peddling subscriptions these days — what makes them so sure they can sell condos? But as I talked with more people, it became clear that so-called branded residences are a global phenomenon that's here to stay, with developers laying the groundwork for branded towers in hot spots like Dubai, London, and New York. The hottest — and weirdest — trend in condominiums could actually tell us a lot about the future of real estate, not to mention our brand-addled brains.The concept of branded real-estate projects isn't new. New York's five-star Sherry-Netherland Hotel began welcoming long-term residents almost a century ago, and since then roughly 700 branded residences have graced skylines around the world. But the recent boom in these projects makes it clear that we've entered a new era: More than 650 branded projects are set to open over the next five years, a doubling that Riyan Itani, the founder of the specialty consulting firm Global Branded Residences, told me is "pretty much unprecedented in any sector." Condo developers these days are laser-focused on the bottom line, and they believe linking up with a well-known label will help them sell units faster and at higher prices. Brands like Elle or Pagani stand to collect some nice licensing fees, too. But that's not what they're really after."It's about outreach to a customer base beyond your core business," Itani said. Whether you sell handbags or golf clubs, "you're able to reach out in a different way and get brand loyalty."<div type="image" title="A digital rendering of a Pagani car parked outside the planned Pagani Residences condo development at sunset." height="1754" width="3200" msid="112521069" hostid="261" sizebytes="412604"></div>Most of these projects are tied to big, swanky hospitality names like Four Seasons or Ritz-Carlton, which set aside parts of their buildings as for-sale units. These arrangements feel like natural unions — if you're a big-money traveler with a fierce loyalty to the Four Seasons, for example, you might be inclined to purchase a home that promises the same level of comfort, service, and brand recognition. But a smaller slice of branded residences, about 20%, are partnerships between forward-thinking real-estate developers and companies that appear to have nothing to do with housing. These are the most attention-grabbing, and sometimes head-scratching, marriages: Lamborghini villas in Dubai and Spain; Nobu Residences in Toronto, named for the Japanese Peruvian restaurant favored by celebrities like Drake; a Miami tower branded by the fine crystal maker Baccarat that touts the tagline "Where life forever sparkles."It's not as if these luxury-goods companies suddenly morphed into real-estate experts. They typically license their names to seasoned development firms that front the money for these projects, shepherd them to the finish line, and ultimately bear the risk and reward of the actual condo sales. While the brands leave the number crunching and floor planning to the developers, they weigh in on design flourishes — Giorgio Armani himself apparently lends a personal touch to the interiors of Residences by Armani Casa in South Florida — and the condos' marketing campaigns. The contributions may appear comparatively small, but adding a well-known company to the marquee can deliver real results for the building's owner. Itani estimates that developers working on a branded residence spend an extra 10% to 15% of what they would spend on a standard condo project, since they have to pay for all the additional amenities and the right to splash the brand's logo across the building. But in crowded cities like New York or Miami, a recognizable logo can help a new building stand out. It also translates to cash: Itani told me units in branded towers go for a global average of 30% more than comparable non-branded units."It's kind of a no-brainer for a developer," Itani told me. "From a financial standpoint, it's a very profitable enterprise."No-brainers for developers aren't always a win for consumers (take, for instance, the recent <a target="_blank" href="https://www.businessinsider.com/why-are-new-homes-ugly-construction-builders-design-materials-architecture-2024-7">race toward the bottom in homebuilding</a>). But when it comes to branded residences, there are real selling points for buyers. Brand loyalists may be eager to welcome their favorite company into yet another corner of their lives. They're invited to consider what it might feel like to live inside a Lambo rather than merely speed down the coastal highway in one. There's a novelty aspect to these purchases, too. Plenty of people own luxury condos, but far fewer get to flex a prestigious name like Bentley or Porsche when directing visitors to their new pad. Developers load up these buildings with amenities to help discerning buyers feel like they're getting bang for their buck. Convenience waits around every corner: infinity pools and thermal spas, private boat slips, rooftop helipads. The Bentley Residences allows owners to park their cars in their units via a vehicle elevator. Villa Miami, the 58-story Miami condo project from Major Food Group, which owns a slew of exclusive restaurants such as the impossible-to-get-a-table-at Carbone, promises residents private dining experiences and VIP status at all its outposts. Hotels, meanwhile, offer to list branded condos on Airbnb and manage them when their owners aren't there, helping buyers make a return on investment even in their absence.The biggest attraction of these glitzy homes, however, may be peace of mind. Plenty of condos are vying for rich buyers' eyes and wallets, and they're not all created equal. But when a prestigious name like Aston Martin or Dolce &amp; Gabbana stakes its reputation on a project, buyers get some added assurance that the units will meet — or exceed — their lofty standards."These are all very well-known, established brands that people feel comfortable buying into," Laura Steinbruckner, a luxury agent in the Miami area, told me.Developers aren't likely to stray too far from this lucrative pitch. Luxury brands will probably always offer the biggest upside for builders, and even the "non-luxury" projects in the pipeline are still tied to respected brands like Hilton and are only slightly cheaper than the big-name buildings. But developers interested in branded residences have a plethora of other candidates, some of which could stretch the boundaries of the sector even further. The Elle project may seem out of left field, but Itani told me he's talking with another publication interested in making similar inroads. After all, magazines like Elle portray enviable lifestyles tied to fashion, celebrity, health, and beauty. All those things could translate to experiences within buildings, Itani told me. That's not to say all branded residences offer the same gilded path to profits. Car companies and fashion labels, unlike hotels, aren't known for their property-management chops, and there's a risk that buyers eventually tire of the marketing schtick. In a few years, you may well see some condo owners complaining that they got a Fiat level of service when they were promised a Ferrari. Rob Sykes, an associate principal at the global design firm WATG who advises companies on hotels and branded residences, told me developers shouldn't count on slapping a big name on a building and instantly reaping rewards. But he does expect to see the sector expand as non-hotel brands enter the market — just last year he was in conversations with a client who was interested in bringing a luxury jewelry brand (he wouldn't name names) into the fray.Itani was still amazed that two sectors in particular — tech and food — hadn't made more of a splash in the world of branded residences. There are a few big restaurant names, including Nobu, Major Food Group, and Cipriani, the famed Italian eatery. But Itani envisions a world in which many other newcomers turn corner-table regulars into corner-unit owners. He also sees an opening for ubiquitous tech companies like Apple or Google to sell loyal fans yet another product, one tricked out with all the latest tech and infused with their design ethos."If there are two things that a modern human being cares most about, it's what they're putting in their mouth and what phone they've got in their pocket," Itani told me. "So I would expect to see those two elements represented."<a target="_blank" rel="" href="https://www.businessinsider.com/author/james-rodriguez">James Rodriguez</a> is a senior reporter on Business Insider's Discourse team.

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