Tag Archives: Investment

USA: How Would You Invest $10,000?

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How would you invest $10,000 given to you tax-free? Despite the fact that it is highly unprobable that somebody will just randomly gift you this amount of money, it is a very interesting question to ask as the answer reveals a lot about the problems and wishes of a person.

Well, as this infographic shows, some 27 percent of all Americans asked in a survey conducted by LendEDU, would pay down their debt first. Secondly, they would invest in real estate and if anything is left, they would rather add it in their savings account than put it in their children’s education.

However, there are high disparities on how to invest a $10,000 check. Whilst millennials are more open to converting their money into cryptocurrency (9.2%), Baby boomers would rather stash their money on a savings account which comes with more security of investment but also with much smaller interest rates.

Investment Infographic

Fannie Mae Announces $26 Million Low-Income Housing Tax Credit Investment

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Financing Backs First Phase of Largest Residential Development in Downtown Far Rockaway, New York

WASHINGTON, June 28, 2018 /PRNewswire/ — Fannie Mae (OTC Bulletin Board: FNMA) announced today that it will provide a $26 million LIHTC equity investment to facilitate the construction of Far Rockaway Village, a 457 unit residential development in the downtown Far Rockaway area of Queens, New York. Fannie Mae will back the project through The Richman Group Affordable Housing Corporation, a Fannie Mae Low-Income Housing Tax Credit (LIHTC) fund partner.

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The project is the first phase of the largest residential development planned in the Downtown Far Rockaway neighborhood rezoning plan. Far Rockaway Village (Phase 1), will consist of two, twelve-story residential high-rise buildings located at 20-02 Mott Avenue in Queens, NY. The development will comprise 227 LIHTC units available for residents earning between 30% and 60% of area-median-income (AMI). Remaining units will have rent affordable to households earning approximately 70% of AMI. In addition, 46 units available at 30% of AMI will be targeted to formerly homeless people though the “Our Space” program and will be underwritten at the NYC Shelter Allowance level. The property also will include sustainable features, such as energy-efficient measures, ENERGY-STAR® appliances, a rooftop solar array, and will be certified under Enterprise Green Communities standards. Construction is expected to begin in July 2018 with an expected completion date of June 2021.

“This LIHTC investment helps us support affordable multifamily housing in one of the highest cost markets in the U.S.,” said Dana Brown, Vice President, LIHTC Investments, Fannie Mae. “LIHTC enables Americans to find affordable rental housing, and we are excited to work with our partners to address our country’s pressing affordable housing challenges.”

The developer of the project is Phipps Houses, the oldest and largest non-profit developer of affordable housing in New York City. Phipps Houses owns more than 4,000 units of affordable housing. Other investors in the development are People’s United Bank, N.A. and Signature Bank. NYC Housing Development Corporation and NYC Department of Housing Preservation and Development are providing significant investments of Tax Exempt Bonds, allocation of the 4% Low-Income Housing Tax Credits, and low cost loans.

The Federal Housing Finance Agency (FHFA) in November 2017 approved Fannie Mae’s re-entry into the LIHTC market as an equity investor. Fannie Mae’s deep experience, long history, strong leadership, and partnership approach in the LIHTC market positions the company to provide immediate and ongoing support for the production and preservation of affordable rental housing.

For more information about Fannie Mae’s Low-Income Housing Tax Credit program, visit our LIHTC program website.

Fannie Mae helps make the 30-year fixed-rate mortgage and affordable rental housing possible for millions of Americans. We partner with lenders to create housing opportunities for families across the country. We are driving positive changes in housing finance to make the home buying process easier, while reducing costs and risk. To learn more, visit fanniemae.com and follow us on twitter.com/fanniemae.

Foreign Investment in U.S. Commercial Real Estate Remains Strong, China and Mexico Top Investors

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Washington, D.C. – June 28, 2018 (nar.realtor) Nearly one-fifth of Realtors® practicing in commercial real estate closed a sale with an international client in 2017, and 35 percent said they have experienced an increase in the number of international clients in the past five years, according to a report from the National Association of Realtors®.

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NAR’s 2018 Commercial Real Estate International Business Trends report analyzed cross-border commercial real estate transactions made by Realtors® during 2017. The study found that most Realtors® who specialize in commercial real estate reside in smaller commercial markets where the typical deal is less than $2.5 million.

“The profile of smaller commercial markets is continuing to rise as many foreign investors are attracted to smaller-sized properties in secondary and tertiary markets, bringing Realtors® confidence that increased sales and leasing activity will continue to occur in 2018,” said Lawrence Yun, NAR chief economist.

“Since 2016, world economies have regained their footing and have pressed toward higher ground. Global economic output increased in 2017, and commercial real estate continues to be a healthy investment for global investors,” Yun added.

Of the 59 percent of Realtors® who indicated they completed a commercial real estate transaction last year (69 percent in 2016), 18 percent reported closing a deal for an international client (20 percent in 2016). Among survey respondents who closed an international transaction, 46 percent closed a buyer-side transaction, 13 percent a seller-side transaction and the remainder closed both types of transactions.

Over 60 percent of buyer-side sales were transactions with foreign buyers who primarily reside abroad. Most seller-side transactions (57 percent) were of properties sold by clients who were temporarily residing in the U.S. on non-immigrant visas.

Nineteen percent of Realtors® said they completed a lease agreement on behalf of a foreign client, down from 22 percent in 2016. The median gross lease value for international lease transactions was $200,000 ($105,000 in 2016) with most space typically under 2,500 square feet.

The top countries of origin for buyers were China (20 percent), Mexico (11 percent), Canada (8 percent) and the United Kingdom (6 percent). While sellers were typically from Mexico (20 percent), China (15 percent), and Brazil and Israel (both at 10 percent).

Florida and Texas were the top two states where foreigners purchased and sold commercial property last year, with California being the third most popular buyer and seller destination.

International commercial buyer and seller transactions typically tend to be at the higher end of the market. Last year, the median international buyer-side transaction was $975,000 and a median seller-side transaction was $1 million, while the median commercial transaction was $625,000.

“Realtors®’ international clients found U.S. commercial real estate markets to be a good value in 2017. About seven in 10 respondents reported that international clients view U.S. prices to be about the same or less expensive than prices in their home country,” Yun stated.

The survey also found that foreign buyers of commercial property typically bring more cash to the table than those purchasing residential real estate. Seventy percent of international transactions were closed with cash, while NAR’s 2017 residential survey found that half of buyers paid in cash.

For those not using all cash, 25 percent of commercial deals involved debt financing from U.S. sources. A majority of buyers purchased commercial space for rental property (39 percent) or for business investment purposes (34 percent).

NAR’s commercial community includes commercial members, real estate boards, committees, advisory boards and forums; and NAR commercial affiliate organizations – CCIM Institute, Institute of Real Estate Management, Realtors® Land Institute, Society of Industrial and Office Realtors®, and Counselors of Real Estate.

Approximately 80,000 NAR members specialize in commercial real estate brokerage and related services including property management, land counseling and appraisal. In addition, more than 200,000 members are involved in commercial transactions as a secondary business.

The National Association of Realtors® is America’s largest trade association, representing more than 1.3 million members involved in all aspects of the residential and commercial real estate industries.

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Cole Henry
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