The ‘art effect’ allows nearby landlords to charge higher rent

 

CHICAGO – May 14, 2018 – Public art has been linked to building booms and price increases for residential real estate, so developers and city planners are working to weave art throughout new real estate projects and public spaces.

"Developers are beginning to see that if they want to attract tenants, they have to offer them more than just four walls," says Barbara Goldstein, a public art planner and consultant in San Jose, Calif. "We're going to see more and more of this kind of thing."

The art effect can be seen in real estate across the country. For example, Chicago's Millennium Park, which opened in 2004, features open-air galleries and interactive public art. After its opening, the prices of nearby condo buildings skyrocketed. Some in the city credited the "Millennium Park factor" for the area's real estate growth by about 10,000 new units over the following decade and $1.4 billion in residential development (as estimated by an economic impact study by URS and Goodwin Williams Group).

A suburban Brookland neighborhood in northeast Washington, D.C., now features Monroe Street Market, a five-block mixed-use development that includes two buildings devoted to artists' studios on the ground floor. The studios have glass doors and are part of an art walk in the community. When the development first opened in 2014, the median home list price in its ZIP code was $474,000. By 2017, the median price had jumped to $598,400 – a 26.2 percent increase in three years, according to realtor.com data.

The High Line in New York is a one-mile park that reclaimed an abandoned elevated railroad track to become a tourist attraction. The park features art and attracts 1.3 million visitors each year. The real estate prices and development near it have soared since its opening in 2014.

"People really want to be near these great, iconic places or things that make a city recognizable," says Scott Stewart, executive director of the Millennial Park Foundation in Chicago. "A lot of these spaces where you've created something spectacular out of something less than desirable … those are attractive. They naturally draw people to them."

Source: "As Public Art Goes Up, So Do Nearby Home Prices," realtor.com® (April 25, 2018)

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The ‘art effect’ allows nearby landlords to charge higher rent

Older adults have option to sell a home without moving

 

NEWARK, N.J. – May 10, 2018 – A new investment system not yet in Florida may appeal to aging boomers: In exchange for some money now and perhaps more later, "Irene" buys houses, allows residents to stay "forever" or rent it out, and pays for all real estate taxes, insurance and structural maintenance.

It's not a reverse mortgage, which generally doesn't involve a change of homeownership. It gives the homeowners a percentage of their existing equity in exchange for taking ownership at a later date when the older adults move out.

Instead, Irene buys seniors' homes now, though the amount of money involved is still based on the equity they have in the house.

While Irene only operates in New Jersey so far, the new system could prove to be a viable option for older adults considering a reverse mortgage since they remain in the home under both scenarios, but Irene offers freedom from property taxes, property insurance and home maintenance.

"Every one of our client's situation is unique," Irene explains on its website. "There are no out-of-the-box solutions when it comes to navigating retirement."

Irene has two programs for older-adult homeowners. The first, Safe Stay, "is designed for those with low outstanding mortgage balances to secure retirement in their home." In the Safe Stay alternative, older adults can continue to live in the home for free.

The second Irene option, Safe Lease Back, provides more money upfront to the homeowner – up to 80 percent, according to its website – but the owner would then pay monthly rent as long as they live in the house.

One difference in a comparison with a reverse mortgage: The amount of money a homeowner might receive from Irene when they eventually leave the property could vary and perhaps be nothing depending on their equity, the original deal and how long they ended up living in the house. With a reverse mortgage, there would be fewer financial unknowns upfront and likely a higher amount of money in the beginning.

Irene says its arrangement would be best for older adults who "want the comfort of their homes without the expenses (and) have low outstanding mortgage balances."

In a theoretical example posted on its website, Irene says a widower who owns his $300,000 home outright might receive $135,000 upon sale to Irene under the Safe Stay option. In exchange, he could live there for the rest of his life with no worries about real estate taxes, insurance and structural maintenance. If he decides to leave the home, Irene will pay "an additional amount" and "inherits the home upon John's passing."

© 2018 Florida Realtors®  

Older adults have option to sell a home without moving