A year after its initial public offering, Peloton Interactive Inc. is pedaling toward new highs amid a pandemic that is forcing people into their homes and away from gyms, creating demand for at-home fitness equipment.
Peloton PTON, -3.75%
on Thursday wrapped up its fiscal year by reporting that sales and subscribers roughly doubled in the 12-month period, and revealed its first profitable quarter as a public company and record quarterly revenue a little less than a year after its September 2019 IPO. Shares fell 3.8% Thursday from Wednesday’s record closing price of $91.17 — more than three times the IPO price of $29 a share — but pushed back toward record highs in after-hours trading following the release of the report, with gains of more than 7%.
Peloton reported fiscal fourth-quarter profit of $89.1 million, or 27 cents a share, on sales of $607.1 million, up from $223 million a year ago. Peloton reported a net loss of $47 million in the fiscal fourth quarter a year ago, just ahead of its IPO. Analysts on average expected earnings of 10 cents a share on sales of $586 million, according to FactSet.
“It has been another staggering year of growth, and I know all parts of the organization have had to work together to do everything possible to meet the incredible demand for our products and services,” Chief Executive James Foley said in a conference call Thursday. “The strong tailwind we experienced in March as the COVID-19 pandemic took hold has continued to propel demand for our products into the fourth quarter and first couple of months of Q1 fiscal year 2021.”
While still attempting to catch up to a flood of orders amid the COVID-19 pandemic — Peloton said Thursday it does not expect order-to-delivery times to normalize until around the end of the calendar year — the company is also looking to expand its customer base. On Monday, Peloton announced that it will reduce the price of its standard exercise bike and introduce a lower-priced treadmill, which could clear a path for potential buyers who were not willing to pay the large upfront costs for its products. It will also introduce a premium bike for fans who want top-of-the-line equipment.
Wedbush analysts noted that in a previous survey of 1,200 people, they found that Peloton could “dramatically improve” sales at a lower price point, especially in treadmills.
“42% of non-Peloton owners that were interested in fitness and familiar with the brand showed some level of interest in a $2,500 Tread, compared to just 30% showing interest in the current Tread,” the analysts wrote in a Sept. 9 note, after Peloton announced its new lineup. “Among existing Peloton bike owners, the number of respondents saying they would be ‘very interested’ in owning a treadmill from Peloton doubles based on the lower price, from 14% based on the $4,295 price point to 28% assuming a theoretical (at the time) $2,500 price point.”
While lower sales prices could hurt hardware margins and average selling prices, much of Peloton’s long-term prognosis focuses on the subscriptions for interactive workout media that owners continue to pay after they have received the equipment. Peloton announced Thursday that it now has 1.09 million subscribers, nearly doubling the 511 million that it reported at the end of its last fiscal year, topping its forecast of 1.04 million to 1.05 million.
In total for the fiscal year, Peloton collected revenue of $1.46 billion from the sale of equipment and $363.7 million from subscription services, up from $719 million and $181 million, respectively, in the previous fiscal year. Combined with other revenue from merchandise and other offerings, Peloton ended the year with $1.83 billion in sales, up from $915 million.
“By the end of FY 2020 our Peloton membership base grew to approximately 3.1 million, compared to 1.4 million members in the prior year,” Peloton detailed in a letter to shareholders Thursday. “Fueled in part by the challenges associated with COVID-19, member engagement reached new highs with 164 million Connected Fitness Subscription workouts completed in FY 2020.”
For the current fiscal year, which began in August, Peloton predicted htat subscribers and revenue would roughly double yet again. The company guided for revenue of $3.5 billion to $3.65 billion, with connected subscribers swelling to 2.05 million to 2.1 million. Analysts on average were predicting revenue of $2.74 billion and subscribers of 1.78 million ahead of the report, according to FactSet.
Peloton stock has gained more than 260% since its IPO; the S&P 500 index SPX, -1.75%
has returned 17.7% in that time. In after-hours trading Thursday, shares topped $94 following the release of the report.
The midsize luxury SUV segment is extremely competitive. This is an area where almost every luxury brand has a seat at the table and they all have different sets of strengths and weaknesses. Some are better off-road, some are all about on-road performance and some are more family-oriented with roomy 3-row seating. Whatever you’re looking for in a midsize luxury SUV, you’ll find something perfect for your wants, your needs and your budget on this list.
Here are the best midsize luxury SUVs for 2020, ranked.
1. Mercedes-Benz GLE-Class
Score: 4.8 / 5
Mercedes-Benz has been working on midsize luxury SUVs for quite some time and the all-new 2020 Mercedes-Benz GLE-Class is the closest that the brand has come to truly perfecting this formula.
In classic Mercedes-Benz fashion, the GLE-Class seamlessly combines high-end luxury with engaging performance and in this case, it’s wrapped in a practical and stylish SUV that’s just the right size. The interior is arguably the nicest in this class and it’s packed with the latest technology in both safety and infotainment. One of its few faults is a cramped optional third row of seats.
This SUV makes more sense with the standard 2-row configuration. We admit, sometimes the technology can get in its own way. If you prefer just the basics when it comes to lowering the interior temperature, you might not like the Benz setup here. Still, this is an excellent midsize luxury SUV. It’s a little pricey for this class with a starting MSRP of $54,250, but it’s so good that the price tag is justified. The GLE was on our list of the best cars of 2019.
2. Audi Q8
Score: 4.8 / 5
When a luxury brand comes out with an “SUV coupe,” it usually means making big compromises on practicality to get a more stylish body. However, the Audi A8 is a sleek SUV with a sloping roofline that also manages to have generous passenger space and plenty of cargo space. Its interior is breathtaking, with a high-end design and quality materials throughout, and its sharp handling makes it feel like a smaller car. All-wheel drive is standard, which improves all-season traction.
Many of us prefer the equally spectacular Q7 but that’s largely a matter of individual taste. The starting price is high at $68,200, but it comes generously equipped with standard features, delivering a truly luxurious experience.
3. BMW X5
Score: 4.8 / 5
The BMW X5 is one of the original midsize luxury SUVs and in 2020, it’s still one of the best. We know it’s cliché to call it “the BMW of SUVs,” but it’s an accurate way to describe this luxurious crossover with agile handling and a powerful engine lineup. A third row of seats is optional, but they’re a bit cramped and we’d recommend a different SUV on this list if you need extra seats.
Where this BMW BMWYY, +1.62%
excels is in the fun-to-drive factor while also serving up practicality with its roomy cargo hold and its intuitive infotainment system. The starting price of $58,900 puts it on the expensive side, but it’s well worth it for the right driver.
4. Audi Q7
Score: 4.7 / 5
The Audi Q7 is right up there with its chief competitors from BMW and Mercedes-Benz in terms of interior opulence, stately styling and agile handling. The Q7 features standard 3-row seating, but like most of its competitors, space in the third row is quite tiny. The Q7 received a nice mid-cycle refresh for 2020 which includes updated styling, a dual-screen infotainment system, a new mild-hybrid setup for the V6 engine and the debut of the high-performance SQ7 for drivers looking for some extra punch under the hood. Like the Q8, AWD is standard on the Q7. Pricing is a little steep starting at $54,800, but like its other German competitors, it’s worth it for drivers who appreciate the finer things in life.
5. Acura MDX
Score: 4.6 / 5
The Acura MDX is arguably the strongest value of any SUV on this list with its attractive starting MSRP of $44,500. It’s also a family-friendly choice, with standard 3-row seating that actually has some decent room in the third row. The interior design is getting a little dated and it’s not quite as premium as many of its rivals, but it’s nice considering the price tag.
The standard V6 engine delivers an excellent balance of performance and fuel economy, but if you’re looking for something even more efficient, there’s a Sport Hybrid variant available which improves both performance and efficiency and throws in standard AWD. The hybrid starts at $52,800, which is still more affordable than many non-hybrid rivals. Find an Acura MDX for sale
6. Volvo XC90
Score: 4.6 / 5
In terms of interior quality, the 2020 Volvo XC90 is just as nice as more expensive German rivals while carrying a competitive starting MSRP of $48,350. That price is even more attractive when you consider the long list of standard technology and safety features in this handsome Volvo VLVLY, +2.72%
This is a great 3-row luxury crossover for families with its roomy cabin with standard 3-row seating and a generous cargo area to boot. The XC90 gets some slight tweaks for 2020, including revised styling and, finally, available seating for six with second-row captain’s chairs. The base engine is good on gas but a bit lacking in performance and we prefer the T6 powertrain setup. Find a Volvo XC90 for sale
7. Porsche Cayenne
Score: 4.5 / 5
The 2020 Porsche Cayenne is still fresh off a 2019 redesign and introduces a new “coupe” body style for 2020. The Cayenne checks every box you would expect from a Porsche SUV. It’s fast, it’s luxurious and it carries styling that makes it unmistakable as a Porsche.
You could upgrade to one of the hotter available engines, but most drivers will be more than satisfied with the standard turbocharged engine and standard AWD. Unsurprisingly for a Porsche, the Cayenne is toward the top of the price range in this segment with a starting MSRP of $66,800, making it good for drivers to prioritize performance over value.
8. Lexus RX
Score: 4.5 / 5
The 2020 Lexus RX is a favorite among drivers looking for a midsize luxury SUV that is safe, comfortable, reliable and efficient. There aren’t a lot of surprises with the RX and for many drivers, that’s a good thing. The interior is very nice and the ride is gentle, making it a good commuter with the versatility of an SUV. A third row of seats is available in the form of the RXL, but the optional extra seats don’t offer much legroom. The RX is a great family SUV as long as you don’t really need a third row. Value is the name of the game with a starting MSRP of $44,150, while the thrifty RX Hybrid starts at just $46,245.
9. Land Rover Range Rover Sport
Score: 4.3 / 5
If you’ve always wanted a Range Rover but you also want available three-row seating and a more affordable price, then the 2020 Land Rover Range Rover Sport is the luxury SUV for you. With standard 4-wheel drive, the Range Rover Sport doesn’t skimp on the off-road performance that its name promises, and its range of powerful engines gives it outstanding on-road performance as well.
The interior is comfortable and nicely designed, but the cargo area is a bit tight. Mild-hybrid and plug-in hybrid options were added for 2020, making this SUV a little greener. Base price for a Range Rover Sport is just under $70,000.
10. Infiniti QX60
Score: 4.2 / 5
Looking for a luxury midsize SUV with third-row seating you can actually use? The 2020 Infiniti QX60 isn’t as opulent or sporty as some of its rivals, but it’s one of the most family-friendly crossovers in this class with a standard third row that is easy to access thanks to sliding second-row seats.
Adding to its family-friendliness is good cargo space, an available rear-seat entertainment system and a coveted Top Safety Pick+ from the Insurance Institute for Highway Safety. The standard V6 is strong and good for family-hauling while also being pretty good on gas. It’s also a strong value, with a starting MSRP of $44,350. Even upgrading to the Luxe AWD model still keeps the price under $50k.
11. Land Rover Range Rover Velar
Score: 4.2 / 5
Sitting above the Evoque and below the Range Rover Sport in the Range Rover lineup is the 2020 Land Rover Range Rover Velar. This 2-row midsize SUV exudes elegance inside and out with posh styling and a composed ride. A new V8 engine making a whopping 550 horsepower joins the Velar lineup for 2020, making this Range Rover more competitive with high-performance German luxury SUVs. Four-wheel drive is standard and its off-road capabilities are better than you might expect for such a fashionable SUV. Its starting price of $56,300 is a bit steep considering some of its more modern German rivals with nicer interiors and similar prices.
12. Lincoln Aviator
Score: 4.1 / 5
The roomy 2020 Lincoln Aviator is another family-friendly choice in midsize luxury SUVs with standard 3-row seating. It’s one of the most stylish SUVs in this segment with a gorgeous exterior and a more opulent interior than you might expect. It’s also quite advanced technologically with one of the best infotainment systems in this class.
The ride is comfy and the standard twin-turbo V6 engine pumping out 400 hp is fantastic, but when it comes to handling, some rivals are more agile. It starts at a reasonable $51,100 and the higher-performance Grand Touring plug-in hybrid variant starts at $68,800. The all-new Aviator is the only vehicle from a luxury brand to earn a spot on our Best New Cars for 2020 list.
13. Maserati Levante
Score: 4.1 / 5
Maserati performance and style come in a versatile midsize SUV in the form of the 2020 Maserati Levante. The Levante offers two incredible Ferrari-built engines under the hood, a 345-hp twin-turbo V6 and a 590-hp twin-turbo V8. Think of it like a high-end sport sedan but with an SUV body. The Levante also has sharp handling and it just might have the most satisfying exhaust note of any SUV on this list. However, its $72,990 base price makes the interior quality feel a bit lacking. The Porsche Cayenne is arguably a better value for a performance-oriented midsize luxury SUV.
All-new for 2020, the BMW X6 has a sleek coupe-like body that looks cool but results in a compromise of practicality. The seats are super-comfortable, but the steep roofline cuts into the cargo area quite a bit while also hurting rear visibility. That said, the cabin is extremely well-designed and full of high-end materials plus a long standard features list. It has a lineup of very strong engines, but as comfortable and as fast as it is, its 6-figure starting MSRP of $108,600 is hard to justify. The BMW X5 M is slightly cheaper, much more practical and delivers 567 hp that you’re unlikely to get bored with.
15. Cadillac XT5
Score: 4.0 / 5
The Cadillac XT5 is a competitively priced midsize 2-row luxury SUV that takes the fight directly to the Lexus RX but can’t quite match its Japanese rival. The XT5 is a good SUV with a sharp aesthetic, a comfortable ride and a strong predicted reliability rating from J.D. Power. It got some nice updates for 2020 including a new infotainment system, a new turbocharged base engine that is good on gas and a stylish new Sport trim. Where the XT5 is lacking is interior quality and tight back seat headroom for a midsize SUV. It’s attractively priced starting at $44,095, but similarly-priced Japanese luxury SUVs are better buys.
16. Lincoln Nautilus
Score: 3.9 / 5
The Lincoln Nautilus is another American 2-row luxury SUV that takes a shot at the Lexus RX and makes a good effort but falls a bit short of greatness. It’s a nice, comfortable, practical crossover, but there’s nothing that makes it really stand out in this class.
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In Black Label form, it does eclipse the RX in terms of interior materials, color choices and textures, but that’s nearly a $60,000 car. You do get a host of concierge-level service but it’s a pricey option. Its most competitive factor with the Nautilus is actually at the other end of the spectrum — its price, which starts at $41,040, making this Lincoln a strong value for anyone looking for a comfy, quiet cruiser with SUV versatility. Both available engines are efficient and upgrading to the twin-turbo V6 adds more power, but the handling of the Nautilus isn’t what we’d call athletic.
The 2020 Cadillac XT6 is an all-new entry in the competitive 3-row luxury crossover segment and fails to stand out compared with the best midsize luxury SUVs. It has a dignified appearance, and its interior is roomy and family-friendly with plenty of room in its standard third row of seats, but that’s about where its virtues end. The sole engine choice is a naturally aspirated V6, which has enough guts for family-hauling duty, but there isn’t much of a fun-to-drive factor here. The interior quality is good but not great, which kind of sums up this whole SUV. This Cadillac is moderately priced starting at $52,695.
As schools and colleges reopen across the country, scientists say social distancing remains a critical public-health response to COVID-19. New research released Thursday sheds more light on children who test positive for COVID-19, and the contagiousness of coronavirus. Children often remain asymptomatic or display very few symptoms, and the research also offers insights into the course of the disease at an important time for families and communities.
A study published in the latest edition of the Journal of Pediatrics finds that the virus and antibodies can coexist in young patients. “With most viruses, when you start to detect antibodies, you won’t detect the virus anymore. But with COVID-19, we’re seeing both,” says Burak Bahar, lead author of the study and director of Laboratory Informatics at Children’s National Hospital in Washington, D.C. “This means children still have the potential to transmit the virus even if antibodies are detected.”
‘Children still have the potential to transmit the virus even if antibodies are detected.’ ”
— Burak Bahar, director of Laboratory Informatics at Children’s National Hospital in Washington, D.C.
The researchers reviewed an analysis of 6,369 children tested for SARS-CoV-2, the virus that causes COVID-19, and 215 patients who underwent antibody testing at Children’s National between March 2020 and June 2020. Out of these 215 young patients, 33 tested positive for both the virus and antibodies during the course of the disease. Nine of those 33 also showed presence of antibodies in their blood while also later testing positive for the virus.
What’s more, researchers found that patients aged 6 years through 15 years old took a longer time (a median time of 32 days) to clear the virus, meaning that it had left their systems, versus patients aged 16 years through 22 years old (a median of 18 days). Females in the 6 to 15 age group also took longer to clear the virus than males: A median of 44 days for females versus 25.5 days for males. “We can’t let our guard down just because a child has antibodies or is no longer showing symptoms,” Bahar said.
The study also found that 25 days was the median time from viral positivity to negativity — the moment when the virus can no longer be detected; it took 18 days to go from viral positivity to seropositivity — or the presence of antibodies in the blood — and it took 36 days to reach adequate levels of neutralizing antibodies. These “neutralizing antibodies” are important in potentially protecting a person from reinfection of the same virus, the researchers wrote.
Four important caveats: Firstly, the study looked at a relatively small number of children. Secondly, the next phase of research will be to test whether coronavirus that is present along with the antibodies for the disease can be transmitted to other people. Thirdly, scientists need to explore whether antibodies correlate with immunity and, fourthly, they need to establish how long antibodies and potential protection from reinfection actually lasts. As such, Bahar reiterates the need for social distancing.
A separate study published this week in JAMA Pediatrics suggests that children can spread SARS-CoV-2, even if they never develop symptoms or even long after symptoms have cleared. It found a significant variation in how long children continued to “shed” the virus through their respiratory tract and, therefore, could potentially remain infectious. The researchers also found that the duration of COVID-19 symptoms also varied widely, from three days to nearly three weeks.
A recent systematic review estimated that 16% of children with a SARS-CoV-2 infection are asymptomatic, but evidence suggests that as many as 45% of pediatric infections are asymptomatic, according to the U. S. Centers for Disease Control and Prevention. The signs and symptoms of COVID-19 in children are similar to other infections and noninfectious processes, including influenza, according to the CDC.
A separate study in JAMA Pediatrics said children may spread SARS-CoV-2, even if they never develop symptoms or even long after symptoms have cleared. ”
Under pressure from the teachers union to delay the start of the school year, New York City Mayor Bill de Blasio announced Tuesday that in-person classes will be pushed back until Sept. 21, 11 days later than planned. Remote learning, also originally slated to start on Sept. 10, will now commence on Sept. 16. Other countries have not fared so well with school reopenings. Israel, which also reopened schools this week, experienced outbreaks when it reopened schools on May 17.
Bahar also advised teachers and students to wear masks. To reduce the risk of spreading COVID-19, it may be preferable to use high-quality cloth or surgical masks that are of a plain design instead of face shields and masks equipped with exhale valves, according to an experiment published Wednesday by Physics of Fluids, a monthly peer-reviewed scientific journal covering fluid dynamics that was first established by the American Institute of Physics in 1958.
As of Sunday, the U.S. still has the world’s highest number of COVID-19 cases (6,262,989), followed by Brazil (4,123,000), India (4,113,811) and Russia (1,022,228), according to data aggregated by Johns Hopkins University. California became the first state in the country to surpass 700,000 confirmed cases. COVID has killed 188,711 people in the U.S. Worldwide, cases are near 27 million.
The Dow Jones Industrial Index DJIA, -0.56%,
the S&P 500 SPX, -0.81%
and the Nasdaq Composite COMP, -1.26%
ended lower Friday. Doubts about traction for further fiscal stimulus from Washington may be one factor discouraging investors who have been betting on Republicans and Democrats striking a deal to offer additional relief to consumers and businesses.
An epic run for technology stocks ended Thursday, as they led a broad decline for the U.S. market. Lists of the day’s worst performing stocks in benchmark indexes are below.
• The Dow Jones Industrial Average US:DJIA
was down 808 points, or 2.8%, for the session, and is down 0.9% for the year so far. (All price changes in this article exclude dividends.)
• The S&P 500 Index US:SPX
fell 3.5% but is still up 6.9% on the year.
• The Nasdaq Composite Index US:COMP
took a 5% dive, slicing into its 27.7% year-to-date gain. David Bahnsen, chief investment officer of the Bahnsen Group in Newport Beach, Calif., wrote in an email that a pullback in technology stocks was appropriate, as “the Nasdaq has advanced violently since March and many names are at absurd valuations.”
The Nasdaq-100 Index US:NDX
(The largest 100 non-financial stocks in the Nasdaq) lost 5.2% on Thursday, though it is still up 34.8% this year so far. Here are its 10 worst-performing components for the day:
Sick of being cramped inside a small apartment where you now not only live, but work and teach your kids, too? You’re far from alone these days.
But buying a home and moving to the suburbs is far from a fool-proof decision from a financial perspective, even in an era of rock-bottom mortgage rates.
Many city dwellers have taken a newfound interest in suburban and rural living as the coronavirus pandemic has transformed our daily lives and living spaces. Sales of new and existing homes have skyrocketed in recent months thanks to a combination of pent-up demand from the spring and city residents entering the market in search of more space.
“We’ve been speculating about increasing interest in the suburbs and rural areas since the start of the pandemic,” Redfin economist Taylor Marr said in a recent report from the real-estate brokerage firm. “Now we’re seeing concrete evidence that rural and suburban neighborhoods are more attractive to homebuyers than the city, partly because working from home means commute times are no longer a major factor for some people.”
Redfin RDFN, +2.12%
found that home prices are up 11.3% year-over-year in rural areas and 9.2% in the suburbs. In urban areas, meanwhile, prices are up just 6.7%.
But the price of the home and the interest rate you can get on a mortgage are just two of the financial factors that buyers need to consider before renting a U-Haul to live the suburban life. Here are five other factors to consider when calculating the cost of such a move:
Buying a home may be cheaper, but property taxes can be higher
Property taxes accounted for more than 30% of all the tax revenue that state and local governments collected from Americans in fiscal year 2017, according to the right-leaning Tax Foundation. Property taxes are the single largest form of state and local tax revenue, the think tank said.
Though property taxes can go as low as a median of $200 in some places, the five counties with the highest median property tax bills are in suburbs surrounding New York City, according to Tax Foundation data. The 2018 median bill in these counties — Bergen and Essex in New Jersey and Nassau, Rockland and Westchester in New York — exceeded $10,000.
It’s important to keep the tax burden in context, said Jared Walczak, the Tax Foundation’s vice president of state projects. “All-in suburban property costs tend to be lower than those in prosperous downtowns, but the property tax itself may be higher. This is certainly true for some of the wealthiest suburbs of cities like New York and Philadelphia, but isn’t necessarily true across the country.”
Still, he added, “even if property taxes are higher, overall taxes are lower in the suburbs. For instance, both New York and Philadelphia impose high municipal income taxes that neighboring jurisdictions lack.”
Median property tax bills in some Illinois counties and Bay Area counties of California can range between $6,000 and $7,000, according to Tax Foundation data.
A bigger living space can mean higher utilities, water and garbage bills
Be ready to potentially pay more in utilities if you are living in the suburbs with more space to heat or cool — especially if you are working from home and running fans, computers, appliances and other electronics during the work day.
Here’s an object lesson from ConEd, ED, +3.70%
a utility provider for New York City and the suburban Westchester County to the north of the city.
A typical New York City customer paid a $94.25 electric bill in July, according to spokesman Allan Drury. Meanwhile, a Westchester customer paid $112.99. That’s not even a $20 difference, but the costs add up. From January to July, the typical Westchester customer paid almost $135 more for electricity alone, the ConEd data show.
It’s not a hard and fast rule that suburbanites will pay more, Drury noted. It comes down to energy usage, and someone in the city could use more power than someone in the suburbs.
There’s also the water bill and other possible expenses like fees for garbage removal. Those may or may not be included in town services. The average monthly water bill in the U.S. is around $70, according to Move.org, a website with tips on moving and listings for moving companies. Trash removal can range from $30 to $50, according to Homeadvisor.com.
City-dwellers need to remember they already pay for these services in a certain way, said Alison Bernstein, president and founder of The Suburban Jungle, a real estate firm that focuses on moves out of cities into suburbs. Client demand is up 500% year-over-year from the second and third quarter of last year compared to this one, she noted.
Water bills and garbage fees might just be wrapped up into the rent and common charges people pay in the city. Prospective buyers eyeing a particular house should ask about monthly utility costs to get a better sense of the incidental costs, Bernstein said.
Owning a home means your responsible for its maintenance and upkeep
The downside of owning your home is you will no longer have a building super or landlord to handle fixing the leaking pipes and chipped paint — or pay for it.
“The amount of money that any homeowner should budget for annual upkeep and maintenance is anywhere between 1% and 4% of the value of the home,” said Dana Menard, founder and CEO of Twin Cities Wealth Strategies, a financial advisory firm based in Maple Grove, Minn.
In other words, for a home worth $320,000, you can expect to pay between $3,200 and $12,800 a year on maintenance, Menard said.
But that can easily go much higher depending on where you live. In more expensive parts of the country, the cost of hiring people to fix your home will naturally be higher. For instance, a 2018 report from real-estate website Zillow ZG, +0.72%
and services marketplace Thumbtack found that homeowners in Portland, Ore., paid $3,800 annually on average for services like house cleaning and appliance repairs. Comparatively, folks in Miami only pay $2,570 on average.
And if you choose to buy a home in a neighborhood with a homeowners’ association, you may face added costs for maintenance services such as lawn care as part of your HOA fees.
Leaving the city can mean relying more on cars and commuting
Between public transit and tightly clustered neighborhoods, you don’t need a car in many major cities. (That’s part of the allure for some who don’t want to deal with parking rules.) But in the more spread-out suburbs, life without a car could be trickier — especially if you’ve got kids in tow.
A move to the suburbs might also mean getting a second vehicle, depending on a particular family’s work schedule and lifestyle needs. People need to figure out what’s best for them, said Bernstein. “Anything can work, you just have to plan ahead and factor that into your life.”
If it means buying a car, people should realize the new and used market isn’t what it was a couple months ago, said Michelle Krebs, executive analyst at Cox Automotive, the parent company of brands including Kelley Blue Book.
“People grabbed those. As inventory has dwindled down, those deals have started to dry up,” Krebs said. In July, a new vehicle cost $38,378, which is up from $37,629 at the same point last year. Between supply chain woes and new social distancing protocols at automotive plants, Krebs thinks inventory will stay low for the rest of the year — and that won’t give dealers a lot of leeway to haggle.
“The normal channel for used cars has also been disrupted,” Krebs said. For example, drivers are not trading in their vehicles and lenders are giving cash-strapped drivers forbearance on loans, which means cars are not being re-possessed.
Earlier in August , the average price of a used car was $20,212, the second consecutive week where the price exceeded $20,000. The average used car price hasn’t broken the $20,000 mark in the years Krebs has been tracking the number.
More space can mean buying more furniture and décor
Owning a bigger house will eventually mean needing furniture to fill the additional rooms. And many first-time homeowners find themselves in a trap where they can’t resist buying that furniture right away.
Doing so could be a huge mistake though, Menard said. “Many people make the mistake of pulling out the credit card to take care of it quickly,” he said. Because many homeowners don’t think to budget for those impulsive purchases, they often don’t have the funds to cover the credit card balance.
Therefore, buying the fixings to spruce up your new abode with credit cards can “ultimately add an additional 25% to 50% of costs,” Menard said, once the interest rate on the credit card is factored in. Currently, the average annual percentage rate for credit cards is 16%, according to CreditCards.com.
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