Norada Real Estate Investments

Archives for October 2023

Mortgage Rates Reach Historic Highs: 8% Marks a 23-Year Record

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Mortgage Rates Are at Their Highest in Over 2 Decades

Americans seeking to secure mortgages for their homes are now grappling with the highest mortgage rates in over two decades. The average interest rate for a standard 30-year fixed-rate home loan has surged to 8% for the first time since 2000. This data comes from Mortgage News Daily, a trusted source for tracking mortgage rates.

The Mortgage News Daily Rate Index has officially hit 8.0%, marking the highest mortgage rates in 23 years. This milestone comes as no surprise, given the prevailing upward trend in rates, with minor fluctuations along the way.

Mortgage Rates Are at Their Highest in Over 2 Decades

While this headline-worthy figure may grab your attention, it's essential to understand the context. The mortgage rates on Oct 18, at 8%, are only a slight increase from Oct 17's 7.92%, which was itself the highest rate in 23 years. The breach of this 23-year ceiling initially occurred in late 2022, with a subsequent challenge in August of 2023.

Since then, we've experienced a series of new long-term highs, with seven such instances in less than a month, notably following the Fed's September 20th announcement. These frequent rate highs might seem disconcerting, but they are indicative of a market adapting to a “higher for longer” interest rate environment.

In such scenarios, market patterns exhibit smaller but more frequent fluctuations between rate highs and lows. So, today's record-high is just another step on the same path.

But what's next? Are we on a trajectory towards 10% mortgage rates? It's too early to predict. While it's unwise to rule out the possibility of rates climbing further, there are several factors at play. If the economy softens as the Fed anticipates and inflation remains stable, the upward rate momentum should gradually subside.

However, one significant variable is fiscal policy and government spending, which has recently raised concerns in the financial markets due to its potential impact on Treasury issuance.

Treasury issuance is crucial, as it sets the tone for most other interest rates in the United States. Higher-than-expected issuance can drive up government costs to attract sufficient demand. This trend typically ripples through to mortgage rates, as mortgage-backed securities tend to move in tandem with Treasuries. Whenever the government announces significant spending initiatives or legislation with implications for lower revenues, the bond market risks breaking another rate ceiling.

The upswing in mortgage rates is a consequence of the Federal Reserve's efforts to combat inflation by raising interest rates. Over the last two weeks, rates have escalated by almost half a percentage point, signifying a swift and significant change.

These rate hikes are part of the standard strategy employed by central banks worldwide to control rising prices. In the United States, higher fuel costs have been a key driver of inflation. The central bank's interest rate increases have been further propelled by strong job growth and increasing expectations for rate hikes.

However, recent market volatility in mortgage rates has been influenced by significant shifts in demand for US government debt, sold in the form of US Treasuries. Political turmoil in Washington, coupled with mounting US debt levels, has raised questions about investor appetite for US debt. As a result, prices of Treasuries have fallen, causing yields to rise. This, in turn, has affected mortgage rates, making them more expensive for borrowers.

Matthew Graham from Mortgage News Daily notes that markets have become increasingly sensitive to events that may impact government borrowing. He suggests that the recent spike in mortgage rates may be linked to expectations of substantial overseas military spending proposed by President Joe Biden.

The impact of these rising mortgage rates is already visible in the US housing market. Just two years ago, mortgage rates were around 3%. Now, sales of existing homes have declined by 15% compared to the previous year.

Prospective buyers are withdrawing from the market, while current homeowners with lower mortgage rates are choosing to stay put, causing a decline in sales according to the National Association of Realtors.

Despite the decline in sales, house prices have not yet fallen. In fact, they were up by nearly 4% in the same month, as the demand still surpasses the supply.

Many analysts believe that the Federal Reserve will not significantly increase interest rates further, citing the substantial slowdown in price increases since last year. The inflation rate, a key metric for measuring the pace of price increases, dropped to 3.7% in September.

However, the financial markets have been rattled by unexpectedly robust economic data in recent days. This has raised concerns that the Federal Reserve might need to take further action to bring inflation back to its 2% target. Consequently, interest rates could remain higher for a more extended period in the coming year.

The Federal Reserve's key rate currently ranges between 5.25% and 5.5%, a substantial increase from the near-zero levels in March 2022. These rates have a direct impact on borrowing costs for mortgages, credit card debt, and other loans.

Florida Housing Market Welcomes Fischer Homes as New Builder

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Florida Housing Market Welcomes Fischer Homes as New Builder

In a significant development for the Florida housing market, Fischer Homes, a well-established builder from Kentucky, is making its mark in the Northwest Florida region with the acquisition of Samuel Taylor Homes. This strategic move not only adds another player to the housing market but also signifies the growing appeal of the Sunshine State as a destination for real estate investment.

Fischer Homes, based in Erlanger, Kentucky, has long been recognized as a key player in the homebuilding industry. Ranked 30th on the prestigious 2023 Builder 100 list, the company has primarily focused its operations in Cincinnati, Louisville, Atlanta, Indianapolis, Columbus, Dayton, and St. Louis. However, with the recent acquisition of Samuel Taylor Homes, they are venturing into the promising Northwest Florida housing market.

According to CEO Tim McMahon, “Florida is a natural expansion for us, given the state's population growth and our presence in the Southeast. In addition to the fantastic team that Samuel Taylor has in place, we are also excited to partner with their trade and development partners—they are a huge part of our planned growth and success in Northwest Florida.”

A Win-Win Partnership: Fischer Homes and Samuel Taylor Homes

The deal, set to close in mid-December, will see Fischer Homes actively selling homes in Northwest Florida by the end of the year. As a private home builder with over 40 years of experience and more than 38,000 homes built since its inception in 1980, Fischer Homes has a strong reputation for quality and customer satisfaction.

Samuel Taylor Homes, founded in 2011 by Matt Brandman and Hunter Collins, has already made a significant mark in the Northwest Florida area by constructing over 800 homes. Known for its quality construction, the company focuses on Bay County communities in Panama City and Panama City Beach.

Matt Brandman, one of the founders of Samuel Taylor Homes, will take on the role of market president of the new Florida Gulf Coast Division for Fischer Homes. Brandman expressed his enthusiasm for the partnership, saying, “Once we met the Fischer Homes team, we knew right away that becoming part of the Fischer Homes family would be a win-win for the Samuel Taylor team and our customers. Both companies are focused on delivering the best total new-home customer solution, have a thriving company culture, and see the enormous potential of this market.”

Growth and Success: Fischer Homes' Impressive Track Record

Fischer Homes' acquisition of Samuel Taylor Homes comes on the heels of its remarkable growth in recent years. The company has doubled its home closings since 2016 and doubled its revenue since 2018. This expansion is not only within its existing markets but also into new regions that align with its portfolio of award-winning home designs and expertise in creating communities with enduring value.

Jay Smith, Fischer Homes' president and chief operating officer, highlighted the support provided to their homebuilding divisions by their corporate teams. He emphasized that now is the right time to bring their companies together to create instant scale in a market experiencing rapid growth, with a solid team already in place.

This strategic move by Fischer Homes demonstrates their commitment to delivering exceptional homes and experiences to customers. By entering the Northwest Florida housing market, they aim to become an integral part of the region's real estate landscape.

Looking Ahead: Fischer Homes in the Florida Housing Market

Fischer Homes' entry into the Northwest Florida housing market brings a fresh perspective and new opportunities for homebuyers and investors. With a history of excellence and a reputation for quality, they are poised to make a significant impact in this dynamic real estate landscape.

As the deal with Samuel Taylor Homes nears completion, the Florida housing market can anticipate a surge in homebuilding activity. Fischer Homes' unique approach and commitment to customer satisfaction will likely set new standards in the industry.

Fischer Homes' acquisition of Samuel Taylor Homes represents a milestone in the Florida housing market. This strategic move not only diversifies the options available to homebuyers but also underscores the attractiveness of Florida as a destination for real estate investment. With their impressive track record and commitment to excellence, Fischer Homes is poised for success in the Sunshine State.

US Home Values Rise as Housing Market Avoids Crash in 2023

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US Home Values Rise as Housing Market Avoids Crash

US home values are on the rise in 2023, avoiding a houing market crash that many economists had predicted. The housing market remained strong throughout the year, despite rising interest rates and inflation. There are a number of factors that contributed to the strength of the housing market in 2023. One factor is the limited supply of homes for sale. This means that buyers are competing for a limited number of homes, which is driving up prices.

The Federal Reserve's interest rate hikes had a smaller impact on the housing market than some economists had expected. While mortgage rates continue to rise in 2023, they remain relatively low by historical standards. This has made it possible for many buyers to still afford to purchase a home.

Market Trends and Dynamics

In the wake of pandemic-induced turbulence, the U.S. housing market has shown remarkable resilience, skirting the edge of a potential crash. While prices and rents experienced a period of volatility, the market has stabilized, presenting a unique set of challenges for both buyers and sellers.

Housing Price Trends

The housing market witnessed a surge in typical home values, propelled by a perfect storm of factors, including heightened demand and historically low mortgage rates. However, as mortgage rates doubled in 2022, demand tempered, causing a slowdown in home value growth. Remarkably, prices didn't plummet, thanks to manageable monthly payments for homeowners who secured long-term mortgages at favorable rates during the pandemic.

New Listings and Sales Volume

Paradoxically, the market's resilience in prices has led to a shortage of new for-sale listings, impeding prospective buyers and sellers. Homeowners with existing affordable mortgage rates are reluctant to uproot and face increased housing costs, resulting in a significant drop in new listings. Sales volume has also been impacted, experiencing a notable decline.

New Housing Construction Alleviating the Shortage

In response to the shortage of available houses, builders are ramping up construction activity. Despite initial sluggishness, recent months have seen a surge in single-family home construction starts. Additionally, a backlog of multi-family homes in construction provides hope for replenishing the housing inventory.

Rental Market Resilience

The rental market has mirrored the resilience of the for-sale sector. While annual changes in rent have gradually decreased, monthly changes have returned to pre-pandemic levels. This deceleration in annual rent changes bodes well for measures of inflation, particularly in the shelter component.

Future Projections and Forecasts of the Housing Market

Looking ahead, projecting the trajectory of the housing market in this unique economic climate poses a challenge. However, the combined influence of factors such as elevated mortgage rates and enduring interest in buying and selling hint at a stabilized market. Forecasts indicate a modest increase in home prices by the end of the year and a gradual stabilization of sales activity by early 2024.

Positive Signs for the Hosuing Market

Despite challenges, data shows a substantial interest among homeowners to sell their homes in the coming years, suggesting a potential uptick in market activity. Demographic shifts, including a rising population in the prime home-buying age group, are expected to further buoy the market, driving a recovery from recent uncertainties.

Challenges Ahead: An In-depth Analysis

While the housing market has shown resilience, it's not without its share of challenges. These challenges could potentially shape the market's course in the near future, presenting both risks and opportunities for stakeholders.

Interest Rate Fluctuations

The fluctuation of interest rates significantly impacts the housing market. With rates on the rise, affordability declines, potentially dampening buyer demand. Striking the right balance is crucial to sustain the market's momentum.

Supply Chain Disruptions

Global supply chain disruptions have affected various industries, including construction. Delays in material availability and rising costs can impede new construction projects, exacerbating the housing deficit and driving up prices.

Government Policies and Regulations

Government interventions and policy changes, aimed at addressing economic stability or housing affordability, can have far-reaching effects on the real estate market. Anticipating and adapting to these shifts is essential for market participants.

Opportunities on the Horizon

Amidst the challenges, opportunities are emerging that could potentially reshape the housing market and drive growth.

Technological Advancements

Technological innovations are revolutionizing the real estate industry. From virtual tours to AI-powered analytics, these advancements enhance the home buying and selling experience, attracting tech-savvy consumers and streamlining processes.

Sustainable Housing Solutions

There's a growing emphasis on sustainable and eco-friendly housing solutions. Buyers and builders are increasingly leaning towards environmentally conscious choices, presenting an opportunity for the market to align with sustainability goals.

Source: Information in this article is based on a report by Zillow.

California Housing Market Navigates Challenges Amid High Interest Rates

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California Housing Market News

California Association of Realtors (C.A.R.) recently published a comprehensive report providing insights into the current state of the California housing market amidst persistently high mortgage rates. The data paints a nuanced picture of the market, presenting both challenges and opportunities for prospective homebuyers and sellers.

California Market Overview:

In September, existing single-family home sales in California totaled 240,940 on a seasonally adjusted annualized rate, reflecting a 5.4 percent decline from August and a notable 21.5 percent drop from the same period last year. Meanwhile, the statewide median home price stood at $843,340, presenting a 1.9 percent decrease from the previous month but a 3.2 percent increase from September 2022.

The California housing market continues to grapple with the ramifications of rising mortgage rates. This has led to a decline in home sales for the fourth consecutive month. However, this trend is counterbalanced by an upward trajectory in median home prices, marking the largest year-over-year gain in 15 months. Housing affordability remains a significant factor impacting the market, especially in the low- and mid-price ranges.

Regional Variations:

Across major regions in California, all areas experienced a decline in sales, with figures dropping more than 20 percent compared to the previous year. The San Francisco Bay Area recorded the most significant decline at 23.7 percent, followed by the Central Valley, the Far North, Southern California, and the Central Coast.

Forty-six of these counties experienced a decline in home sales compared to the same period last year. A significant portion, 43 counties, witnessed a dip of over 10%, with 28 counties facing a substantial decline exceeding 20%.

Among the counties facing notable declines, Siskiyou experienced the steepest drop at 52.4%, closely followed by Mariposa at 46.7% and Lassen at 39.1%. These figures underscore the widespread impact of current market conditions on sales across various regions.

Despite the overall declining trend, a few counties stood out with increased home sales compared to the previous year. Mono County led the way with a remarkable 50% increase, followed by Sutter at 14.5% and Madera at 10.3%. These counties have managed to buck the trend, showcasing resilience in the face of challenging market conditions.

Regional Median Price Variations:

An analysis of major regions in California revealed diverging trends in home prices compared to the previous year. All five major regions saw an increase in median prices. The San Francisco Bay Area led with a substantial 6.6% improvement, marking the region's largest annual gain.

Notably, five out of nine counties within this region recorded a significant annual gain, with Santa Clara registering the highest growth at 9.0%. Other regions, including Southern California (4.7%), the Central Valley (3.4%), Central Coast (3.3%), and the Far North (1.4%), also witnessed moderate annual increases.

While many counties in California experienced an improvement in home prices, 21 counties still grappled with a year-over-year decline in their median prices for September. Lassen County faced the most substantial decline, with a drop of -32.6% from the same month last year, followed by Lake (-23.4%) and Mendocino (-16.3%).

In contrast, 29 counties recorded an annual increase in median price. Mariposa County stood out with the most significant jump at 26.4%, followed by Calaveras (19.4%) and Tulare (14.9%), emphasizing the diversity in price trends across the state.

Housing Supply and Inventory:

The housing supply in California has been shrinking due to elevated mortgage rates, reflected in the unsold inventory index (UII) of 2.8 in September 2023. Active listings have declined consistently on a year-over-year basis for the past six months, with a drop of over 20 percent in many counties. Contra Costa County had the most substantial annual decrease, followed by Sacramento and Alameda.

Market Trends and Expectations:

The California housing market is expected to face continued challenges in the coming months, primarily influenced by the Federal Reserve's decision to maintain higher interest rates. Prospective buyers and sellers should carefully navigate the evolving landscape, keeping a close eye on market trends and adapting strategies accordingly. It's a market where vigilance and adaptability will be key to success.

Housing sentiment took a hit in September as mortgage rates soared to a 23-year high, according to the latest national housing survey by Fannie Mae. The survey found that only 16% of respondents believed it was a good time to buy, marking an all-time low set last year. The steady increase in rates over the past six months, rising by over 50 basis points in the last month alone, contributed to this decline.

With mortgage rates climbing and showing no signs of immediate decline, consumers held a pessimistic view of home-buying conditions. A mere 17% expected mortgage rates to decrease in the next 12 months. Notably, high mortgage rates have now surpassed high home prices as the primary reason why consumers perceive it as a bad time to buy a home.

On the selling side, the sentiment was relatively more positive, with 63% of consumers indicating that it was a good time to sell. However, this still marked a three-percentage point decline compared to the prior month, reflecting the overall impact of the housing market's challenges.

California's housing market remains at a critical juncture, balancing on the edge of a changing landscape. High mortgage rates, shifting sales patterns, and evolving buyer behaviors require a strategic approach for all stakeholders. 

Canada Interest Rate Hikes October 2023: What You Need to Know

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Canada Interest Rate Hikes

If you are a Canadian homeowner, borrower, saver, or investor, you might be wondering what the Bank of Canada (BoC) will do with its policy interest rate in October 2023. The BoC is the central bank of Canada and it sets the target for the overnight rate, which is the interest rate at which major financial institutions borrow and lend one-day funds among themselves.

The overnight rate influences other interest rates in the economy, such as the prime rate, mortgage rates, savings rates, and bond yields. The BoC adjusts the overnight rate on eight fixed dates each year, based on its assessment of the economic outlook and inflation pressures.

The next interest rate announcement is scheduled for Wednesday, October 25, 2023. As of October 2023, the overnight rate is 5.00%, which is the highest level since December 2007. The BoC has raised the overnight rate by 0.25% four times in 2023, most recently on July 12, 2023.

The Prime Rate and Its Impact

The prime rate is the interest rate that commercial banks charge their most creditworthy customers, such as large corporations. The prime rate is usually linked to the overnight rate and it influences other lending rates in the economy, such as variable mortgage rates, lines of credit, and personal loans.

The prime rate also affects the returns on some investment products, such as money market funds and guaranteed investment certificates (GICs). As of October 2023, the prime rate in Canada is 7.2%, which is also the highest level since December 2007.

Economic Indicators and BoC's Response

The BoC has been tightening its monetary policy in response to the strong economic recovery from the COVID-19 pandemic and the rising inflation pressures in Canada and globally.

The Canadian economy grew by an annualized rate of 6.5% in the second quarter of 2023 and by an estimated 5.0% in the third quarter of 2023. The unemployment rate fell to 5.2% in September 2023, which is close to its pre-pandemic level. The inflation rate rose to 4.8% in August 2023, which is well above the BoC's target range of 1% to 3%.

Future Outlook and Analyst Predictions

The BoC has indicated that it will continue to raise the overnight rate gradually until it reaches its neutral level, which is the interest rate that is consistent with a balanced economy and stable inflation.

The BoC estimates that the neutral level of the overnight rate is between 2.5% and 3.5%. However, some analysts expect that the BoC will have to raise the overnight rate above its neutral level to contain inflation and prevent overheating of the economy.

Factors Affecting the Interest Rate Outlook for 2023

The interest rate outlook for 2023 will depend on several factors, such as:

  • The pace and composition of economic growth in Canada and globally, especially in the United States, which is Canada's largest trading partner.
  • The supply and demand conditions in various sectors and markets, such as energy, housing, labor, and commodities.
  • The inflation expectations of consumers, businesses, and financial markets, can influence actual inflation outcomes.
  • The actions and communications of other central banks, especially the U.S. Federal Reserve, can affect global financial conditions and exchange rates.

Based on the current economic data and projections, there is a high probability that the BoC will raise the overnight rate by another 0.25% to 5.25% on October 25, 2023. This would imply that the prime rate would increase to 7.60% and that variable mortgage rates would also rise accordingly.

However, there is also a possibility that the BoC will pause its rate hike cycle or even cut the overnight rate if there are significant downside risks to the economic outlook or inflation outlook.

If you are planning to borrow or invest money in Canada in October 2023 or beyond, you should keep an eye on the BoC's interest rate announcements and monetary policy reports. You should also compare different interest rates and products from various lenders and financial institutions to find the best option for your needs and goals.

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Southwest Florida Builder Offers Affordable Turnkey Homes Amid Housing Crisis

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Southwest Florida Affordable Turnkey Homes

A Ray of Hope in the South Florida Housing Market

In a housing market plagued by rapidly rising prices and interest rates, the dream of owning a home in Southwest Florida seemed increasingly out of reach for many. Recent reports suggest that home prices are poised to surge by an additional 4-5% next year, further complicating the situation for first-time homebuyers. However, one local builder in Southwest Florida is offering a glimmer of hope to those aspiring to own a home.

According to a report by ESPN SWFL, Scott Friga of Friga Tyme Construction has embarked on a mission to make homeownership a reality for more people. Recognizing the challenges in the housing market, he decided to take action.

A Builder's Vision for Affordable Housing

Scott Friga was prompted to act after a conversation with his son, who, despite earning a six-figure income, was only approved for a $300,000 loan. This realization struck a chord with Friga, who saw how even individuals with stable incomes were struggling to afford a decent home for their families.

What sets Friga Tyme Construction apart is their innovative approach. Friga envisioned offering a 1364 square-foot living space with a 3-bed, 2-bath open floor plan, all with a turnkey solution. This comprehensive package includes permits, realtor fees, the lot, and everything needed to make homeownership hassle-free. The best part? The price is set at an incredibly affordable $279,900.

Expanding the Reach

This Southwest Florida builder is on a mission to provide affordable housing options to as many people as possible. As of now, they own 11 lots and have offers on approximately 20 more. Construction is already underway, and the focus has been on acquiring land in areas like Lehigh Acres, where favorable pricing can be secured.

Many of the lots are purchased from individuals who inherited land or people who held onto the property with the intent to sell later. Friga is also considering expanding into Cape Coral, provided he can secure pricing that aligns with his mission to sell homes for $279,900 or less.

Commitment to Affordability

Scott Friga is not merely building homes; he's negotiating with suppliers and partners to bring down construction costs. His commitment to affordability is unwavering. He stated, “If I can save $5,000 on lumber, I'm going to charge $5,000 less for the house.” The primary goal is to help families achieve the American Dream by making homeownership more accessible.

However, one thing that's clear in Friga's plans is his dedication to the cause. He emphasized that his intention is not to sell homes in bulk to investors. When someone approached him with an offer to buy 10 homes, Friga's response was unequivocal: “That's not why I'm doing this.”

A Beacon of Hope in Challenging Times

In a South Florida housing market characterized by soaring prices and financial barriers, Scott Friga and Friga Tyme Construction offer a much-needed solution. Their commitment to providing affordable turnkey homes ensures that more families can achieve their dream of homeownership, even in the face of an impending housing crisis.

The Future of Affordable Housing

As the housing market continues to evolve, the innovative approach taken by Scott Friga and his team may serve as a model for addressing the affordability challenges faced by homebuyers. The impact of their initiative could be far-reaching, making homeownership a reality for a more diverse range of individuals and families.

In a time when the South Florida housing market seems increasingly unattainable for many, Scott Friga and Friga Tyme Construction provide a glimmer of hope. Their turnkey homes priced at $279,900 offer an affordable solution to the housing crisis. As they expand their reach and negotiate for cost savings, their commitment to affordability is unwavering. The aim is clear: to help individuals and families achieve the dream of homeownership. With the housing market facing challenges, this innovative approach shines as a beacon of hope.

Top Reasons to Invest in South Florida Turnkey Homes 

South Florida offers unique opportunities and advantages for real estate investors. Here are some compelling reasons to consider investing in turnkey homes in this region:

1. Strong Rental Market

The South Florida rental market is robust, with a consistent demand for rental properties. The area attracts both long-term and seasonal renters, making it an attractive destination for real estate investors seeking rental income.

2. Appreciating Property Values

South Florida has experienced a steady appreciation in property values over the years. Investing in turnkey homes can provide the potential for long-term capital gains as the real estate market continues to grow.

3. Diverse Investment Options

South Florida offers diverse investment opportunities, including single-family homes, condominiums, and multifamily properties. This variety allows investors to choose properties that align with their investment goals and risk tolerance.

4. Favorable Climate

The year-round pleasant climate in South Florida makes it a popular destination for residents and vacationers. This climate advantage contributes to the region's rental demand and attracts potential tenants.

5. Tourism and Seasonal Rentals

South Florida's tourist attractions and events draw seasonal visitors. Investing in turnkey homes can provide opportunities for short-term vacation rentals, catering to the influx of tourists during peak seasons.

6. Tax Benefits

Florida is known for its tax-friendly environment, including no state income tax. This tax advantage can be particularly appealing to real estate investors, allowing them to keep more of their rental income and profits.

7. Property Management Services

Many turnkey property providers offer comprehensive property management services. This can help investors handle property maintenance, tenant management, and other aspects of real estate investing with ease.

8. Diverse Economic Growth

South Florida boasts a diverse and growing economy, with sectors like technology, finance, healthcare, and hospitality thriving. A strong local economy can lead to job opportunities and attract potential tenants to the area.

9. Stable Real Estate Market

South Florida has historically shown resilience in its real estate market, even during economic downturns. This stability can provide investors with a sense of security and long-term potential for returns on their investments.

10. Lifestyle and Amenities

Investing in South Florida allows access to a vibrant lifestyle with beautiful beaches, cultural attractions, and a range of amenities. This appeals to tenants seeking a high-quality living experience.

Federal Reserve To Extend Interest-Rate Pause: Jerome Powell

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Federal Reserve To Extend Interest-Rate Pause: Jerome Powell

The Federal Reserve, led by Chair Jerome Powell, has sent a clear signal that they could maintain current interest rates at the upcoming policy meeting. The pause in hikes of interest rates can be extended. However, Powell also cautioned that inflation remains persistently high, leaving the door open for potential interest rate increases if the economy remains robust.

According to Powell, “Additional evidence of persistently above-trend growth, or that tightness in the labor market is no longer easing, could put further progress on inflation at risk and could warrant further tightening of monetary policy.” Powell emphasized the need for caution due to uncertainties and risks, hinting that the central bank is unlikely to raise rates at its next meeting in November.

Powell stressed that the Federal Reserve is treading carefully, aiming to strike a balance between being too aggressive and too passive in its monetary policy. He acknowledged that the Fed's rapid rate hikes could still lead to “meaningful tightening” in the near future. Other Fed officials have also urged patience and caution in evaluating economic direction and inflation trends.

He outlined the potential consequences of both doing too little and doing too much. Insufficient action could lead to entrenched above-target inflation, necessitating more drastic monetary policy measures. On the other hand, excessive tightening could harm the economy unnecessarily. The Fed faces a delicate balancing act.

His remarks have set the stage for the upcoming Federal Open Market Committee meeting on November 1. They also come just days before a 10-day period during which Fed officials are prohibited from making public statements. This blackout period adds significance to Powell's words.

Powell highlighted the Federal Reserve's vigilance regarding the recent surge in long-term bond yields, which have increased more than 50 basis points since the last policy meeting in September. Some other Fed officials have suggested that elevated long-term interest rates could reduce the need for further Fed action.

Are There Any Prospects of an Interest Rate Hike?

When asked about the impact of higher yields on the Fed's rate decisions, Powell acknowledged that it could reduce the impetus for rate increases. He clarified that as long as bond yields are rising for reasons other than expectations of Fed rate hikes, it acts as a tightening of financial conditions, aligning with the Fed's objectives.

Powell recognized progress in inflation during the summer but expressed concerns about September's data. Shorter-term measures of core inflation, which exclude volatile food and energy prices, have shown a decline over the most recent three and six months, falling below 3%.

The job market remains strong, but signs of gradual cooling are emerging. Wage growth is declining, approaching levels consistent with 2% inflation over time. The Fed paused its rate hikes last month, but future rate hikes are still on the horizon.

Aside from economic factors, political uncertainty, including conflicts and government shutdowns, can influence the Fed's decisions. Geopolitical tensions are high and pose risks to global economic activity. These factors add to the complexity of the Fed's decision-making process.

Although a rate hike in October seems unlikely, there's still uncertainty about the future. Economists are divided on the possibility of a recession, and the chance of a rate hike at the December meeting remains a topic of discussion.

While the Fed may maintain its current rates in the upcoming meeting, the future remains uncertain. The central bank faces a range of challenges and uncertainties, requiring a cautious and balanced approach to monetary policy.

Why is Investing in Real Estate Good?

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Why is Investing in Real Estate Good?

If you are looking for a way to grow your wealth and generate passive income, you might want to consider investing in real estate. Real estate is one of the oldest and most popular asset classes, and it has many advantages over other types of investments. Here are some of the key reasons why investing in real estate is a good idea.

Why Is Investing in Real Estate Good?

Cash flow

Real estate can provide you with a steady source of income from rent, which can cover your expenses and generate profits. Cash flow can increase over time as you pay down your mortgage and build equity, or as you raise rents in line with market demand. Cash flow can also help you weather economic downturns or market fluctuations, as people always need a place to live or work.

Appreciation

Real estate can appreciate in value over time, as the demand for property exceeds the supply, or as the property is improved or developed. Appreciation can result in capital gains when you sell the property, or increase your net worth while you hold it. Appreciation can also be enhanced by using leverage, which means borrowing money to buy more property than you could with your own cash.

Tax benefits

Real estate investors can enjoy various tax breaks and deductions that can lower their taxable income and save money at tax time. For example, you can deduct the interest on your mortgage, the depreciation of your property, the maintenance and repair costs, the property taxes, the insurance premiums, and more. You can also defer capital gains tax by using a 1031 exchange, which allows you to sell one property and buy another of equal or greater value without paying any tax on the profit.

Diversification

Real estate can diversify your portfolio and reduce your risk exposure to other asset classes, such as stocks or bonds. Real estate has a low or negative correlation with other assets, which means that it tends to move in different directions or remain stable when other assets fluctuate. By adding real estate to your portfolio, you can improve your return per unit of risk and achieve a more balanced and resilient portfolio.

Leverage

Real estate allows you to use leverage, which means borrowing money to buy more property than you could with your own cash. Leverage can amplify your returns by increasing your cash flow and appreciation potential, as well as allowing you to take advantage of low interest rates and tax deductions on your debt. Leverage can also help you build equity faster, as you pay down your mortgage with the income from the property.

Control

Real estate gives you more control over your investment than other assets, such as stocks or bonds. You can make decisions that affect the performance and value of your property, such as choosing the location, the type, the quality, the tenants, the rent, the improvements, the management, and more. You can also influence the market conditions by creating value through development or renovation, or by creating demand through marketing or networking.

Tangibility

Real estate is a tangible asset that you can see, touch, and use. Unlike intangible assets, such as stocks or bonds, real estate does not depend on the performance or reputation of a company or an issuer. Real estate also has intrinsic value that does not disappear or fluctuate with market sentiment. Real estate can also provide you with personal satisfaction and enjoyment, as well as social status and recognition.

Accessibility

Real estate is an accessible asset that anyone can invest in with some research and planning. You do not need a lot of money or expertise to start investing in real estate, as there are many ways to do it depending on your goals and resources. You can buy a single-family home, a multi-family property, a commercial property, a land plot, a REIT (real estate investment trust), a crowdfunding platform, and more. You can also find information and guidance from various sources, such as books, podcasts, blogs, courses, mentors, agents, brokers, lenders, etc.

Challenges and Risks of Investing in Real Estate

As you can see, investing in real estate has many benefits that make it a good idea for anyone who wants to grow their wealth and generate passive income. However, investing in real estate also comes with some challenges and risks that you need to be aware of and prepared for. Some of these include:

Illiquidity

Real estate is an illiquid asset that cannot be easily converted into cash without losing some value. Selling a property can take time and money, depending on the market conditions, the location, the condition, the price, the marketing strategy, etc. You also need to pay commissions and fees to agents, brokers, lawyers, appraisers, inspectors, etc., which can reduce your profit margin.

Volatility

Real estate is subject to market cycles and fluctuations that can affect its value and demand. Real estate prices can rise or fall depending on the supply and demand, the economic conditions, the interest rates, the consumer confidence, the government policies, the environmental factors, etc. Real estate demand can also vary depending on the location, the type, the quality, the amenities, the demographics, etc.

Management

Real estate requires active management and maintenance to keep it in good condition and generate income. You need to deal with tenants, repairs, vacancies, taxes, insurance, legal issues, accounting, etc., which can be time-consuming and costly. You can hire a property manager to handle these tasks for you, but you still need to oversee their work and pay them a fee.

Liability

Real estate exposes you to potential liability and lawsuits from various parties, such as tenants, buyers, sellers, contractors, neighbors, authorities, etc. You can be held responsible for any damages or injuries that occur on your property, or any breaches or disputes that arise from your contracts or transactions. You need to protect yourself and your property with adequate insurance and legal advice.

To sum up, investing in real estate is a good idea if you are looking for a way to grow your wealth and generate passive income. Real estate can provide you with cash flow, appreciation, tax benefits, diversification, leverage, control, tangibility, and accessibility. However, you also need to be aware of and prepared for the challenges and risks that come with real estate investing, such as illiquidity, volatility, management, and liability. You need to do your research and planning before you invest in real estate, and seek professional help when needed.

Advantages of Real Estate: 10 Reasons to Invest in Real Estate

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Advantages of Real Estate: 10 Reasons to Invest in Real Estate

Real estate is a rare investment vehicle. It provides people with a place to live while working as an investment.  What's more, this investment offers a very powerful wealth-building combination of returns. Real estate offers a combination of benefits that are not typically found in other types of investments.

Real estate is a physical asset that can be seen, touched, and used. This makes it a more concrete and tangible investment than something like stocks or bonds, which are essentially just pieces of paper. It can generate income through rent or lease payments, which can provide a steady stream of cash flow for investors.

Real estate can provide diversification of assets in an investment portfolio. Real estate investment gives an investor control over the property, which allows them to make improvements, change tenants or use the property for other purposes. It can appreciate in value over time, providing investors with the potential for significant capital gains.

Advantages of Real Estate: 10 Reasons to Invest in Real Estate

APPRECIATION:

Over the past 80 years, real estate values have continually increased. There have, of course, been some periods where values decreased, but the overall trend has always gone up. Like anything else, the value of the real estate is determined by supply and demand.

So what are the factors that keep real estate in such high demand over the years? One of the main reasons is that shelter is a basic human need. People need a place to live, work, and shop where they are protected from the weather. Additionally, real estate is an investment that benefits from inflation. In periods of high inflation, real estate values go up.

LEVERAGE:

One of the biggest advantages of real estate as an investment over any other asset class such as stocks, mutual funds, commodities, and government financial instruments is leverage. Leverage allows you to purchase and control a large amount of real estate for a relatively small amount of money.

For example, you could easily purchase a $100,000 property with only a 20% ($20,000) down payment. In some cases, you can buy property for as little as 10% or less of the purchase price giving you even more leverage. To illustrate the power of this, consider this example:

Let's say you bought $20,000 worth of gold, stocks, or some other investment. Then over the year, your investment went up 10%. Your investment is now worth $22,000, and your total return on investment (ROI) is 10%. Not bad.

Now let's take that same $20,000 and use it as a down payment on an income property and buy a $100,000 house. Once again, let's say it goes up 10% for the year. Your property is now worth $120,000, and your $20,000 investment has now doubled due to the $20,000 increase in your property's value. You have now made a return on investment of 100%! (This increase does not even consider the equity build-up resulting from the decreasing mortgage principal, cash flow, or tax advantages!)

FINANCING:

Unlike other investments such as stock, bonds, mutual funds, and commodities, you can get financing for the purchase of the real estate. Lenders will loan up to 80% of the market value of your property, and in some cases as much as 90%. Up until a few years ago, lenders were even lending over 100% of the value, thereby giving you 100% leverage and an infinite return on investment.

Some of you may be saying that you can finance the purchase of stock, however, purchasing stock on margin is not the same. You are typically limited to 50% of the principal you start with and if the value goes down you may have to pay those funds back with a broker's margin call.

TAX ADVANTAGES:

With investment property, you are allowed to deduct, as an expense, all of the mortgage interest, property taxes, insurance, maintenance, repairs, inspections, professional fees, and depreciation.

Do not confuse this deduction with that of your residence where you can deduct the mortgage interest on up to two properties. With investment property, you are allowed to deduct these expenses on an unlimited number of income properties.

Depreciation is a tremendous deduction that is often misunderstood and underappreciated. This is a “paper” deduction, which means that you do NOT need to spend any of your cash to get this deduction. The IRS simply allows you to depreciate the structure (not the land) as if it would be worth nothing at the end of 27.5 years! Of course, we all know that the property will be worth much more than what you paid for it in 27.5 years. Nevertheless, on a $100,000 house (assuming, for example, sake, the structure is worth 80% of the total value) we are allowed to write off nearly $2,910 in depreciation alone each year!

CASH FLOW:

A properly purchased income property will provide its owner (you) with a positive cash flow each month and year. Cash flow will vary from property to property and can be affected by many variables such as the size of your down payment, the purchase price, market rent, expenses, etc. However, if you buy a property that makes sense the day you buy it, by following some simple yet prudent guidelines such as those followed by Norada Real Estate Investments, you should have a solid investment right from the beginning and for many years to come.

Typically, it is wise to purchase property with a positive or neutral cash flow. There are only a few exceptions to this rule when carrying a (slightly) negative cash flow would make sense. Otherwise, we do not recommend purchasing property with significant cash flows.

The most common reason for purchasing a property with a (slightly) negative cash flow would be in situations where you are “deferring” a portion of your down payment instead of the negative cash flow. For example, let's say that a property purchased with 20% down would provide you with a decent cash flow. However, you decide to increase the leverage on your investment by purchasing with a smaller 10% down payment thereby keeping the other 10% of the down payment. You have lowered your down payment and doubled your leverage. In a roundabout way, you are paying the “deferred” down payment every month — similar to a payment plan.

YOUR TENANT PAYS YOUR MORTGAGE:

A unique and very attractive feature of owning income property is that your tenants literary buy your investment property for you. Your tenants pay your rent every month which you then use to pay down your mortgage. When you invest in stocks, bonds, or precious metals, you are the one paying for it all.

SOLID ASSET:

Real estate is widely recognized as one of the greatest assets to own. It makes for solid collateral, shows strength on balance sheets, and can be financed easier than most other assets. It is no surprise that most millionaires created their fortunes in real estate, or hold their wealth in real estate.

FREEDOM:

Real estate requires a very small commitment of time. Some management and record are kept each month but that is small compared to some other investments like buying a small business which can turn you into an employee at times. You do not need to follow it daily like stocks. And real estate investing can be done with very little interference from your current job.

RETIREMENT PLANNING

Investing in real estate can be an essential part of your retirement planning. Rental income and property appreciation can help fund your retirement lifestyle and provide financial security in your later years.

PORTFOLIO DIVERSIFICATION

Real estate investments can diversify your investment portfolio, reducing risk by spreading your investments across different asset classes. Diversification is a key strategy for minimizing risk in your investment portfolio. Real estate, as an asset class, has a low correlation with traditional investments like stocks and bonds.

This means that when the value of stocks or bonds fluctuates, real estate values may remain stable or even increase. By including real estate in your portfolio, you can create a more balanced and resilient investment strategy that is less susceptible to market volatility. Additionally, real estate often moves independently of financial markets, providing a valuable hedge against economic downturns, making it a crucial component of a well-rounded investment strategy.

You can see why so many people choose to invest in real estate and why the wealthiest people have become wealthy with it. There are very few if any, investments that can provide you with all the benefits that real estate can. It is truly one of the best investment vehicles available to you today.

As the saying goes, “Don't wait to invest in real estate, invest in real estate and wait.”

30 Secret Websites to Make Money Online in the US 2023

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Making money online has become increasingly popular in recent years. The internet has opened up numerous opportunities for individuals to make money online. Many people are searching for secret ways to make money online, but they are not sure where to start. From freelancing to affiliate marketing, the possibilities are endless.

The rise of the gig economy and online businesses has opened up countless opportunities for people to earn money from the comfort of their own homes. In this article, we will look at some of the best secret websites that you may not have heard of, which can help you make extra money online directly or indirectly.

Secret Websites & Ways to Make Money Online in the United States 2023

If you are a beginner, making money online will become an increasingly popular way to earn some extra cash or even start a full-blown business. However, with so many options available, it can be difficult to know the trusted sites to make money online. Here is the list of the best secret websites to make money online.

1. UserTesting.com – Testing Websites and Apps

UserTesting.com is a website that pays people to test websites and apps. If you sign up for UserTesting.com, you can make money by testing websites and apps and providing feedback. Each test takes about 20 minutes, and you can make up to $10 per test. If you're looking for an easy way to make money online, UserTesting.com is an excellent option.

2. Speechify.com – Transforming Text To Audio

An excellent website for content creators is Speechify.com. Speechify.com is a platform that transforms your texts into audio. It's a great way to produce more content for your podcast, YouTube channel, or any other audio content. You can use it to convert books, articles, and documents into audio files. To get started, sign up for a free account, copy and paste the text you want to convert into audio, and Speechify.com will do the rest.

3. Task Rabbit

Task Rabbit is a platform that connects people who need help with tasks to people who can complete those tasks. You can earn money by completing tasks such as cleaning, moving, and handyman services. You can set your own rates and choose the tasks you want to complete.

4. Starter Story

It is a website that features stories of entrepreneurs who have started and grown successful businesses. It's a great resource for aspiring entrepreneurs who are looking for inspiration and guidance. In addition to being a great resource for entrepreneurs, Starter Story can also be a money-making opportunity.

One way to make money with Starter Story is to become a contributor. Contributors write articles about their own entrepreneurial journeys, and they are paid for their work. Starter Story also offers a variety of other ways to make money, such as:

  • Affiliate marketing: Affiliates promote Starter Story products and services in exchange for a commission on sales.
  • Course creation: Entrepreneurs can create and sell courses on Starter Story about their specific areas of expertise.
  • Consulting: Entrepreneurs can use Starter Story to find clients who are looking for their help.

5. Cliqly

It's an email marketing platform that rewards business owners for sending emails by paying them cash rewards per email opened. When you become a new user of Cliqly, you're immediately granted access to 5,000 free email subscribers to kickstart your email marketing journey.

The process is simple: you're guided to send emails to your list every day, and Cliqly compensates you based on the number of link clicks your emails generate.

If your subscribers click on the affiliate offers embedded in the emails you send, you earn a solid 10 cents per click. One of the most appealing aspects of earning through Cliqly emails is that you don't need to create the emails from scratch.

The platform provides you with pre-written draft emails that you can easily choose from. All you have to do is select a draft, review it, send it to your subscribers, and then watch the commissions roll in. Also, by referring others to join Cliqly under your unique referral link and upgrading their accounts, you receive a 100% commission on their upgrade fee.

6. Teachable.com – Creating Online Courses

Teachable.com is a website where you can create and sell online courses. If you have expertise in a particular area, you can create an online course and sell it on Teachable.com. You can use their drag-and-drop course builder to create your course and add your content. Once your course is ready, you can set a price and start selling it. Teachable.com takes care of everything from payment processing to course delivery.

7. Homestyler.com – Making Money Through 3D Designs

Another website on our list is Homestyler.com. It's a website that allows users to make 3D designs of products and homes for free. Previously, people would pay professionals to create 3D designs for them, but with Homestyler.com, you can do it for free. By signing up for a free account, you can get unlimited 1K rendering, free 2K, and video render using Home Styler points. But how does it help you make money? You can use these designs to sell your services on websites like Fiverr.com. If you type in “3D design” on Fiverr.com, you will find thousands of people offering 3D printing designs and technical engineering drawings.

8. Medium.com – Selling Your Articles

Another website on our list is Medium.com. Medium.com is a platform where people can publish their articles and get more traffic. According to SimilarWeb, Medium.com has about 142 million visits every single month, with an average of almost 2% of readers. You can make money on Medium.com by writing and publishing your stories. You can earn money through reading time and referred membership. To get started, apply and get accepted, publish your stories and earn money through reading or reference, and then get paid every month.

9. Veed.io – Creating Great Videos

If you're a content creator, you'll love veed.io. It's a website where anyone can create a great video using AI. You can create your first video for free, and you can do more than ten minutes of a project using this particular website for free. The reason why Veed.io is so great is that it has fantastic AI that helps you use another person's voice to read your texts. You can use this feature to have a British, American, or any other accent without having to pay for it.

10. Gigwalk

Gigwalk is a platform that pays users to complete small tasks in their local area. These tasks may include taking photos of businesses, testing apps, or verifying addresses. The pay varies depending on the task, but it can be a good way to earn some extra cash on the side.

11. Sweatcoin

Sweatcoin is an app that pays you to exercise. The app tracks your steps and rewards you with Sweatcoins that can be redeemed for products, services, or cash. It's a great way to stay motivated and earn some extra money while staying active.

12. Respondent

Respondent is a platform that pays users for sharing their knowledge and experience. Unlike other similar websites that pay pennies for completing tasks, Respondent pays anywhere from $100 to $750 an hour for participating in studies. Getting started is easy, just sign up using a work email on the website and personalize your skills and interests.

13. Product Tube

Product Tube is a premium video survey app that rewards users for making short videos about everyday products. You can earn money by creating short at-home videos, recording videos at the store, or exploring new product concepts provided by the app using augmented realities. The app claims that you can earn between $50 and $80 per hour by posting these video reviews.

14. BestMark

BestMark is a secret shopping website that you can sign up for to start earning easy money and get free food and services in the process. As a secret shopper, your job is to perform tasks and then provide details about your experience. You can earn as much as $35 per hour depending on the assignment.

15. Side Hustle Database

The Side Hustle Database is a tool that lets you sort through hundreds and eventually even thousands of different side hustles and make money opportunities by using the various filtering options provided. You can find make-money opportunities that will only have the potential to earn you over $100K per year or find fast money or even free money.

16. Wrapify

Wrapify is an app that pays you to professionally wrap your car and drive it as you normally would. The more you drive, the more Wrapify will pay you. You can make between $200 and $400 per month for doing something that you would already be doing anyway.

17. Prolific

Prolific is a research platform that allows you to participate in paid studies. You can earn up to $10 per hour by participating in studies related to a wide range of topics, including social sciences, psychology, and consumer behavior.

18. Amazon Mechanical Turk

Amazon Mechanical Turk is a platform that lets you earn money by completing simple tasks, such as identifying objects in a picture or transcribing audio recordings. While the pay is not very high, it can be a good way to earn some extra cash in your spare time.

19. Swagbucks: Rewards for Surveys and More

Swagbucks is a platform that lets you earn money by completing simple tasks, such as watching videos, taking surveys, and playing games. You can earn Swagbucks that can be redeemed for cash or gift cards. The website has paid out over $500 million in rewards to its members.

20. InboxDollars

InboxDollars is a platform that lets you earn money by completing surveys, reading emails, and playing games. You can earn cash or gift cards by completing

21. Rumble.com

Rumble.com is a video platform that allows creators to monetize their content. It is similar to YouTube, but it offers multiple ways to earn money. Rumble has 44 million users per month, and it partners with companies like MTV, Xbox, and Yahoo to help creators earn money. If your video is approved by one of their partners, you can earn $50. You can also earn an additional $100 if your video makes it to the home page.

22. Fundrise.com

Fundrise.com is a real estate crowdfunding platform. If you want to invest in real estate but don't have the upfront capital, Fundrise allows you to invest as little as $500. You can invest in projects like townhouse complexes and earn returns.

23. CafePress.com

CafePress.com allows you to create and sell customized merchandise. You can create designs for t-shirts, mugs, and other items, and earn money every time someone buys your product.

24. Etsy.com

Etsy.com is an online marketplace that allows you to sell handmade or vintage items. If you are skilled at crafting, this website is an excellent way to earn money.

25. Qmee.com: Paid Search Engine Results

Qmee.com is a website that pays you to search the internet. You can download the Qmee browser extension and earn money by clicking on sponsored search results. You can also earn money by taking surveys and completing offers.

26. Print on Demand (POD) platforms

POD platforms allow you to sell custom-designed products, such as t-shirts, mugs, and posters, without having to worry about inventory management. When a customer places an order, the POD platform prints and ships the product directly to the customer. Some popular POD platforms include Redbubble, Printify, and Teepublic.

Teespring is another POD platform for creating and selling custom apparel. Teespring allows you to create and sell custom t-shirts and other apparel, and earn profits from the sales. However, the amount of money you can make will depend on various factors such as the quality of your designs, your marketing efforts, and the demand for your products. The website provides a variety of customizable products, including t-shirts, hoodies, tank tops, mugs, and more.

27. Virtual Jury Duty

Virtual jury duty is a way to earn money by participating in mock trials online. You are typically paid $10-$20 per hour for your time. To qualify, you need to be a US citizen and at least 18 years old. Some popular virtual jury duty platforms include Jury Duty Solutions and Online Verdict.

28. Google Opinion Rewards

Google Opinion Rewards is a survey app that allows you to take short surveys and earn money doing so. You can take these surveys whenever you have a few free minutes, and the money is sent directly to your PayPal account. While this app won’t replace your day job, it’s an easy way to earn a few extra dollars in your spare time.

29. Enroll 

Enroll is a platform where users can sign up to become testers for various websites, mobile apps, and digital products. As a tester, you will be asked to complete various tasks such as navigating through a website, testing out features on an app, or providing feedback on a digital product.

30. Foap

Foap is a great platform for amateur photographers to monetize their skills and make some extra money. The process is simple: you sign up for a free account, upload your best photos to the platform, and wait for brands and agencies to browse and purchase your photos. Foap charges a commission fee of 50% for each sale, but it's still a decent way to earn some extra cash without investing in expensive gear or equipment.

These are just a few of the many websites that can help you earn money online in 2023. With so many options available, finding the one that best suits your skills, interests, and schedule is important. Remember, making money online requires dedication and effort, but with the right mindset and tools, anyone can earn a significant income online.

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Norada Real Estate Investments 30251 Golden Lantern, Suite E-261 Laguna Niguel, CA 92677

(949) 218-6668
(800) 611-3060
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