Friday Financial Five: November 21 2014

Friday, November 21, 2014

Dan Forbes, GoLocalProv MINDSETTER™

An October housing surge

Home buying fence-sitters may view this as the last opportunity to lock in a four percent mortgage. October saw home sales rise at their fastest pace in more than a year. According to the Mortgage Bankers Association, mortgage applications and the appetite for higher prices homes also increased last month. There’s a traditional slowdown entering the winter months as families don’t want to brave the cold or interrupt the start of school. The combination of Federal Reserve sentiment and a strengthening economy may have buyers thinking this is the last chance for historically low rates.

Fed looks out for inflation dip

As for the Federal Reserve, inflationary expectations are indeed a top priority, according to a review of last month’s minutes. The committee members cite improvements in the labor market, unemployment and increased consumer and business spending, but note that inflation is still under the two percent long term goal. That could be cause for concern, as much as consumers like the idea of the prices remaining stable. In the Fed’s determination, 2 percent is the proper long term projection, with current lower inflation influenced by the decrease in energy prices.

Consumers feeling good

Consumer sentiment is at its highest since January 2008, sometimes an indication that it may be a reason to batten down the hatches. This calculation comes courtesy of the Bloomberg Consumer Comfort Index. The index creators cite stock market advances, lower payments at the gas pumps, and the upcoming holiday season as playing a big role. Income is also a factor, as those making $50,000 or more saw their highest index score since July 2013, while the calculation for those making below $50,000 declined to a five-week low.

Solar power continues to get more affordable

A Kiplinger’s report details the important issues for evaluating a conversion to solar powered energy. The cost of a system is getting lower as competition increases, but it will still take quite a few years to recoup the initial outlay. A federal tax credit through 2016 allows a deduction for 30 percent of the cost for buying and installing the system, and there may be other rebates or incentives available through individual states.

Bank of America clears another hurdle

It might be tough to see a silver lining when paying almost $17 billion in fines, but Bank of America did get some relatively good news from the SEC this week. After being fined last week by the OCC on a separate matter, SEC commissioners waived sanctions that, as part of the settlement with the Department of Justice, would have prevented the bank from managing mutual funds. Bank of America also received a partial waiver for the business they conduct with hedge fund clients. Getting these matters resolved with the SEC should pave the way for the institution to complete the multi-billion settlement it agreed to in August of this year.

Dan Forbes is a regular contributor on financial issues. He is a CFP Board Ambassador. He leads the firm Forbes Financial Planning, Inc in Providence, RI and can be reached at [email protected].

Related Slideshow: 10 Most Expensive Properties For Sale In MA

Take a look at some of the highest priced properties for sale right now in Massachusetts...

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#10: 261 Park Lane

Concord, Massachusetts

$5.4 million

7 Beds, 5 Baths

Riverfront Farm is a place of beauty & inspiration. An extremely rare offering-this 10 acre equestrian compound is idyllically positioned on the bank of the Assabet River. Extraordinary views over meandering waters, home to wildlife & the gateway to an incomparable lifestyle. For the equestrian, garden pathways open to an expanse of equine amenities w/15 stalls, 70 x 180 indoor & adjacent 85 x 200 outdoor arena. Separate in-law apt, farm apt & office. Heated Workshop, pool & garages for 10 cars.

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#8 (T): 45 Little Neck

Falmouth, Massachusetts

$6.5 million

4 Beds, 3 Baths

Black Beach - 900 feet of sandy beach and 9.5 acres of land. Enjoy the glory of West Falmouth Black Beach, an unspoiled stretch of sandy beach. This serene conservation area has little human habitation, but is alive with shore birds and spectacular sunsets year round. Set in this natural getaway is this four bedroom home on 9.5 acres, family owned since 1955. The non buildable portion of the land has a conservation restriction. This special location offers privacy and simplicity of beach life with 900 feet of private sandy beach.

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#8 (T): 477 Beacon St.

Boston, Massachusetts

$6.5 million

3 Beds, 3 Baths

New and with haute luxury construction, this is a 3-bedroom, 3.5-bathroom, penthouse duplex of 3480 sq ft with direct elevator access, river views, 2 garage parking spaces and a gorgeous private roof deck. Fabulous living/dining with 8x8 ft custom skylight & fireplace. Huge family room/ kitchen with 6x6 ft skylight, 14 ft marble island, rolling panel niche for concealing television, plus fireplace and amazing river views. The details from room to room go on and on. Meticulous renovation underway, which mean there's still time for the buyer to add their personal touch. Completion summer 2014.

http://realestate.golocalworcester.com/property/massachusetts/boston/02115/neighborhood/477-beacon-st/526db40b0378152977000358/" target="_blank">To see more of this property, go here.

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#7: 88 Beacon Street

Boston, Massachusetts

$7.25 million

4 Beds, 4 Baths

Gracious living in a 4-bedroom, 4.5-bathroom architectural masterpiece home of beauty, comfort & elegance enviably located across from The Boston Public Garden. Situated in a stately bow-front townhouse, this high parlor level, mezzanine & 2nd floor offer a rare opport to live in truly grand style in the heart of Boston. Features social gourmet kitchen, cross ribbed vaulted ceiling dining room, baronial paneled library, luxury baths, a master bedroom with private sun deck, smart house tech & 3 parking spaces.

http://realestate.golocalworcester.com/property/massachusetts/boston/02108/neighborhood/83-beacon-st/51a6f7dc03781563f3001bdf/" target="_blank">To see more of this property, go here.

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#5 (T): 35 North Neck Roa

Edgartown, Massachusetts

$8.9 million

3 Beds, 2 Baths

Endless views of the sea outside the kitchen window. Sailboats rocking in the distance. A golf course in the backyard, beckoning to be played. A deep water dock walking out to sea. A private beach waiting to be touched. Room to roam. Room to relax. Welcome to Chappy’s Big Camp and the Royal and Ancient Chappaquiddick Links golf course. Hidden on a sand road, surrounded by the sea, sand and grasses, is an 18 acre enclave consisting of 2 homes, outbuildings, a private beach, a deep water dock and some have said, the most natural and beautiful 9 hole golf course in the world. Tucked into the island shores, the classic New England style summer cottages fit seamlessly into the landscape, affording views that emphasize the solitude and calm that is The Big Camp, a private oasis, an escape from urban chaos—yet only miles from Boston.

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#5 (T): 183 Bay Street

Barnstable, Massachusetts

$8.9 million

5 Beds, 5 Baths

This outstanding estate consists of two lovely homes located within the heart of Osterville. The waterfront property has gorgeous views of North Bay/Osterville Marinas/draw bridge. The home has been recently renovated and features a new outstanding master suite with two private balconies overlooking the Bays. The guest house is Cape Cod at its finest which dates back to 1939. The owners have retained the charm of yesteryear with french doors overlooking the back yard. Landscaping is wonderful w/many stone walls, mature plantings and a fantastic pool. Recently approved for a great dock that can accommodate a 20' boat.

http://realestate.golocalworcester.com/property/massachusetts/barnstable/02655/osterville/178-bay-st/522b0c050378153e1d00000d/" target="_blank">To see more of this property, go here.

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#4: Charles River Street

Needham, Massachusetts

$9.989 million

7 Beds, 5 Baths

Enjoy your very own private majestic realm and bask in the natural beauty of New England pristine forest. Your chioce of home to be built. 12,000 sq ft home, 4 car garage, pool with cabana. All nestled in 20 acres of verdant woodland banking on over 1200 sq ft on the Chares River, this unique offering is located 20 minutes west of Boston.

http://realestate.golocalworcester.com/property/massachusetts/needham/02492/neighborhood/charles-river-st/523cc3b803781524f900016c/" target="_blank">To see more of this property, go here.

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#3: 144 Edmunds Road

Wellesley, Massachusetts

$10.955 million

7 Beds, 7 Baths

Prestigious much-admired property in heart of Cliff Estates. Double lot provides private backyard and 12 years young,"smart" home with sophisticated architectural & design features. Elegant foyer with dramatic bridal staircase open to 2nd floor wiwth custom chandelier & mutiple moldings.Beautiful library, large billiard room with amazing bar & circular staircase leading to wine cellar.

http://realestate.golocalworcester.com/property/massachusetts/wellesley/02481/cliff-estates-plus-extra-33875-sq-ft-78-acres-on-wachusett-rd/148-edmunds-road/51117612bc274919e90000c8/" target="_blank">To see more of this property, go here.

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#2: 9 Drumhack Road

Gloucester, Massachusetts

$11.5 million

3 Beds, 4 Baths

With woodland behind and open rocky shoreline in front, Killybracken stands amid expansive lawns, glorious perennial gardens and specimen plantings on just over two oceanfront acres. Located on the eastern most point of Eastern Point, the compound consists of five structures, including the main house, the pool house, and the caretaker's cottage, and offers over 10,000 sq.ft. of indoor space. Killybracken is truly one of the finest seaside retreats to grace the Atlantic coastline.

http://realestate.golocalworcester.com/property/massachusetts/gloucester/01930/eastern-point/9-drumhack-road/52684ff6960df96abe00011c/" target="_blank">To see more of this property, go here.

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#1: 45 Strawberry Hill St

Dover, Massachusetts

$12.375 million

8 Beds, 9 Baths

Magnificent shingle style country estate minutes to train and major routes. Nearly 30 acres of land, two ponds, 5 stall stable plus guest house. Completely updated and tastefully renovated, with strict attention to quality and detail .One of a kind property seldom found in such proximity to Boston's metropolitan cosmos.