Porsche is the most valuable luxury brand according to Brand Finance
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Porsche is the most valuable luxury brand according to Brand Finance

Porsche is the most valuable luxury brand according to Brand Finance

  • Porsche remains the world’s most valuable luxury brand, valued at US$33.7 billion followed by Louis Vuitton ($23.4 billion).
  • Ferrari is the strongest luxury brand in the world with a AAA+ rating while Lamborghini and Aston Martin accelerate their brand strength.
  • The Ritz-Carlton doubles in value and becomes the fastest growing luxury brand in brand value.
  • Estée Lauder enters the top ten of the most valuable and Dior and Dolce & Gabbana display impressive brand value.

Access the full Brand Finance Luxury & Premium 50 2022 report here

Madrid, October 5, 2022.- Porsche remains the most valuable luxury and premium brand in the world, valued at US$33.7 billion according to the latest Luxury & Premium 50 2022 report by Brand Finance , the leading independent valuation consultancy for brands that comply with ISO 10668 and ISO 20671 on the subject, which analyzes the 50 most valuable luxury and premium brands in the world.

Porsche (whose brand value has fallen by 2% to US$33.7 billion) has remained in first place for another year as the most valuable luxury and premium brand in the world. Porsche’s leadership in the luxury and premium segment is good news for the brand, which has just been spun off by its owner, the Volkswagen Group , in an initial public offering on the Frankfurt Stock Exchange.

Each year, leading brand valuation consultancy Brand Finance values ​​5,000 of the world’s biggest brands and publishes over 100 reports ranking brands across all industries and countries. The 50 most valuable and strongest luxury and premium brands are included in the annual Brand Finance Luxury & Premium 50 2022 ranking.

Alex Haigh, Head of Brand Finance , said: “Porsche’s new IPO shows the value of a brand in a very visceral way, much like the Sergio Marchionne-led spin-off of Ferrari years ago. It made a lot of sense to extract value hidden within the Volkswagen group, especially when it comes to an iconic luxury brand like Porsche, which can generate such returns compared to other brands in the portfolio.”

Louis Vuitton is the second most valuable luxury and premium brand, valued at US$23.4 billion

Louis Vuitton (brand value up 58% to $23.4 billion) benefited from increased spending on luxury goods during the pandemic period, especially in China. Covid-19 related restrictions benefited Louis Vuitton as consumers redirected their spending away from travel, hospitality and services towards high-end luxury products.

Louis Vuitton is now trying to manage its brand through strong digital marketing campaigns focused on attracting new customer bases, while maintaining a brand heritage steeped in rich history. On the other hand, the Spanish luxury retailer Loewe, whose brand value has increased by 7%, faces similar challenges, since it has established multiple channels of communication with its customers, online and face-to-face.

Pilar Alonso Ulloa, Managing Director Iberia (Spain, Portugal) and South America commented: “LOEWE has represented Spain in this ranking since 2018. The value of the brand has been growing year after year, however its strength has been diminished in the last two years. . It is one of the top 10 brands most considered by consumers in Spain that highlight the familiarity of the brand compared to others in the sector”.

Ferrari is the strongest luxury and premium brand in the world with a AAA+ rating

In addition to calculating brand equity, Brand Finance also determines the relative strength of brands through a balanced scorecard of metrics that assess marketing spend, brand equity, and business performance (business results). Certified to ISO 20671, Brand Finance’s Stakeholder Value Assessment incorporates original market research data from more than 100,000 respondents in more than 35 countries and across nearly 30 industries.  

Ferrari (whose brand value has fallen by 13% to US$8.0 billion) is one of the world’s most recognizable brands and is the world’s strongest luxury brand, with a score in the Brand Strength Index (BSI) of 90.9 out of 100 and an elite AAA+ rating.

An important attribute of the Ferrari brand is its iconic internal combustion engines. The upcoming migration to electric vehicles therefore represents both a challenge and an opportunity for the brand, which aims to manufacture its first fully electric vehicle by 2025 and expects electric vehicles to account for 40% of its product offering by 2030.

The Ritz-Carlton is the world’s fastest growing luxury and premium brand, doubling in value this year

The Ritz-Carlton (whose brand value has doubled to US$1.1 billion) is the world’s fastest growing luxury hotel brand. Its brand value has increased 112% this year, coinciding with the reopening of travel in much of the world. The rise in brand value can be attributed to their impressive revenue per available room that they have reopened after the pandemic. The Ritz-Carlton, part of the Marriott Group , has built an extremely strong brand, with a brand strength index that has increased from 79.6 to 83.2 out of 100, earning a AAA brand rating.

InterContinental luxury hotel brand value (brand value down 1% to $1.5bn) dipped slightly, with significant concern over potential delays in reopening services in key market of InterContinental, China. Despite going through one of the toughest periods the hospitality industry has ever faced, InterContinental remains focused on delivering on its “True Hospitality for Good” brand promise.

Despite the overall drop in brand value, both Lamborghini (whose brand value is down 4%, to $1.9 billion) and Aston Martin (whose brand value is down 18%, to the US $1.1 trillion) have drawn up new sustainability-focused roadmaps that already appear to be having a positive impact on their brand perception.

Dior and Dolce & Gabbana post impressive brand equity

Dior (brand value up 19% to $9.0bn) saw huge global success with its Sauvage fragrance, and the brand returned to growth after the pandemic-induced disruption. Dolce & Gabbana (brand value up 55% to $1.4 billion) is known for its distinctive personality. The Italian brand is in the process of creating Dolce & Gabbana Beauty , which in January 2023 will assume 100% control of the manufacture, sale and distribution of its fragrance and makeup products.

Estée Lauder manages to enter the top ten in brand value

Estée Lauder (brand value up 39% to $7.9 billion) has grown rapidly this year and has recently benefited from increased sales at airports, among other channels, due to the recovery of the tourism sector worldwide, and seems to have made good use of it. The brand has other significant growth opportunities, including its bid to acquire luxury fashion house Tom Ford for $3bn in what would become the largest acquisition deal to date.

Access the full Brand Finance Luxury & Premium 50 2022 report here

Every year, Brand Finance puts 5,000 of the biggest brands to the test, assessing their strength and quantifying their value, and publishes nearly 100 reports, ranking brands across industries and countries. The 50 most valuable brands in the luxury and premium sector are included in the Brand Finance Luxury & Premium 50 2022 ranking.

The full ranking, additional explanations, charts and infographics, more information on the methodology, as well as definitions of key terms are available in the Brand Finance Luxury & Premium 50 2022 report.

Brand value is understood as the net economic benefit that a brand owner would achieve by licensing the brand on the open market. Brand strength is the effectiveness of a brand’s performance on intangible measures relative to its competitors. See below for a full explanation of our methodology.

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Lockheed Martin Skunk Works®  Top Gun – The Need for Speed
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Lockheed Martin Skunk Works®  Top Gun – The Need for Speed

Top Gun – The Need for Speed

Lockheed Martin Skunk Works® thrives on tackling seemingly impossible work, developing technologies for tomorrow’s challenges before the need is even identified.

From creating radar evading stealth capabilities to X-planes that redefine the sonic boom to many revolutionary technologies in between, Skunk Works has a long tradition of quickly developing enduring innovation for when it’s needed most.

When the Top Gun: Maverick team was looking to push the envelope and stand true to Maverick’s Need for Speed, Skunk Works was their first call. With the Skunk Works expertise in developing the fastest known aircraft combined with a passion and energy for defining the future of aerospace, Darkstar’s capabilities could be more than mere fiction. They could be reality…

www.lockheedmartin.com

 

 

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Meet the 60+ companies exhibiting at our upcoming EU-Startups Summit on May 12-13 in Barcelona!

Meet the 60+ companies exhibiting at our upcoming EU-Startups Summit on May 12-13 in Barcelona!

This year’s EU-Startups Summit is finally going to happen next week in Barcelona! Connecting many of Europe’s most promising founders, exciting startups, top investors and the wider European startup community, we’ll have two days of networking, inspiration and learning carefully curated for you. There will be interesting fireside chats, insightful keynotes, an exciting pitch competition and so much more!

This year’s EU-Startups Summit will also be full of amazing exhibitors. From pet food to banking, these are the 60+ companies you should be looking forward to meeting in our exhibition area at the EU-Startups Summit! So, what are you waiting for? Get your ticket today.

Without further ado, below we’re introducing you to this year’s fantastic exhibitors:

TheGestor® logoThe Gestor: The Gestor is an easy-to-use app for the creation of invoices, receipt of payments, and taxes in real-time. The Gestor App is everything you need as an entrepreneur. The Gestor is based in Madrid & founded in 2019.

NCompass International logoNcompass: Builds bespoke software/products from the ground up! Effectively blending design thinking, great product engineering, customer centricity, and sound analytics. This way you can rapidly grow startups and scale-ups. Ncompass has operations in US, Europe and India & was founded in 2003.

Jetveo logoJetveo: The Jetveo Platform and App Builder combine an intuitive user interface with the power of C# to empower developers to quickly and efficiently provide business solutions to their customers. Jetveo App Builder streamlines everything from idea to launch. Jetveo is based in Brno & founded in 2016.

Kernel Edge: Kernal Edge is a software suite for Modern Fintechs. They’re here to help you accelerate your journey to market and beyond. They’d love to know where you currently are in your journey to see where they can help you advance, whether that be building technology solutions or partnering to invest. Kernel Edge is based in London & founded in 2020.

TeQatlas logoTeQatlas: TeQatlas is the first-on-the-market platform that enables founders and investors to find each other easily, managing capital and networks in one place. TeQatlas is based in Zurich & was founded in 2019.

Treezor logoTreezor: Treezor is an independent provider of outsourcing and white label solutions for electronic payments. Founded in Paris, Treezor owns a European License and is one of the approved suppliers for MasterCard® Prepaid. As an e-money issuer and a payment institution. Treezor is based in Paris & was founded in 2016.

Envite logoEnvite: Envite is an all-in-one powerful web platform that enables individuals to sell & manage any online service at the click of a button. Through their platform, you can launch, manage, and market your skills with ease and effortless professionalism. Envite is based in Tel Aviv & was founded in 2020.

Sastrify logoSastrify: Sastrify is a virtual Software-as-a-Service procurement service, helping finance and tech teams to optimize the management and cost of SaaS tools in digital-first companies. Their team brings transparency to your existing setup, gets rid of underutilized licenses, and negotiates with your suppliers to get the best deals for you. Sastrify is based in Cologne & was founded in 2020.

Grace Denker Gallery: Grace Denker Gallery is a contemporary art gallery featuring authentic artworks and staging exclusive art events in the heart of Hamburg. It was founded in 2015 with the intention of supporting national and international artists. The gallerist is a successful entrepreneur who runs a school and several other projects in Germany.

Tourisfair: Tourisfair is creating something amazing to reactivate the travel industry and to offer travellers a useful tool that will increase your experience when planning, so that the next time you travel, you will really enjoy and visit the trip to the fullest. Tourisfair is based in Saarbrücken & was founded in 2020.

KOOHOO logoKoohoo: KOOHOO is based on matchmaking technology, which brings tailor-made accommodation and recreational offers directly to traveller’s phones. KOOHOO differs from any other travel platform where the traveller has to manually search to find offers. Koohoo is based in Tallinn & was founded in 2020.

Tennders logoTennders: Tennders is a European digital freight platform that simplifies the way shippers, carriers, and brokers connect. With a multicultural team of experts in inland freight transport. They are leveraging their team’s extensive knowledge, supported by their platform to provide an effective and great service to Tennders customers. Tennders is based in Barcelona & was founded in 2021.

Ad Up logoAdUp: AdUp ensures that your checkout will perform better. They do this through their fast checkout, but also a full hosted checkout. AdUp shortens the purchase process from an average of 3-5 minutes to 15 seconds, this results in ease of use and more orders! AdUp is based in Amsterdam & was founded in 2019.

Ipriq: Ipriq secures your brand. The IP law experts help you discover, identify, protect, manage, enforce, develop and leverage intellectual property, including trademarks, designs, patents, copyright, and domain names.

Monicont Technology: Monicont offers hardware and software solutions to its own portfolio of institutions, adding strength to the information sector, and is still moving towards its targets with strong, dynamic, professional, young staff. Monicont is based in Enschede & was founded in 2017.

Skorebee logoSkorebee: Based in Prague, Skorebee helps you explore and improve your social media image based on how you want to use social media and gives you a leaderboard to see where you rank amongst your friends, peers, and other social media users. The company was founded in 2017.

quizdom™ logoQuizdom: Play one against one, battle other players to discover if you are the fastest and smartest! The Athens-based development team has years of experience in mobile game development, and the entire team is dedicated to creating the very best experience in trivia gaming.

Lylu logoLylu: Lylu is improving the lives of millions of people by empowering them with technology. Founded in Darmstadt in 2020, the Lylu Tablet is the easiest and most effortless way for seniors to get online. At their heart is Lylu’s senior-friendly software.

Beyond logoBeyond Pricing: Beyond is the #1 Revenue Management Platform for short-term rental owners and managers to get, grow, and keep revenue. Their easy-to-use platform includes a dynamic, demand-driven pricing tool with extensive market data that pairs with OTA distribution and a best-in-class booking engine. Beyond is based in San Francisco & was founded in 2013.

Decarbonify: Based in Oslo, Decarbonify is an ESG-as-a-Service Data Platform, designed specifically for climate risk reduction and optimizing ESG opportunities. They bridge science-based ESG data and Business through their Decarbonify ESG-as-a-Service Digital Infrastructure.

XMED iQ - International Group logoXMED iQ: XMED iQ aggregates large volumes of medical device orders from hospitals through their fully-integrated sourcing platform, then puts these never-before-seen volumes out to tender across Europe. XMED iQ is based in London & was founded in 2021.

FLEXXI logoFLEXXI Care: The app connects families in need of respite care with safe and affordable caregivers for home care provision at the required time. FLEXXI users don’t need to have long-term obligations or a contract with a caregiving company. FLEXXI Care is based in Munich & was founded in 2020.

iPlena: Based in London, iPlena was born in 2021 with the aim to improve our daily postures. Using mobile body scanning algorithm for tailored osteopathic training, the startup is offering tech that rewires the central nervous system.iPlena is based in London & was founded in 2021.

GlucoActive Sp. z o.o. logoGluco Active: This Warsaw-based company offers a wearable device for non-invasive measurement of blood glucose concentration using spectrophotometric methods. It is intended for diagnostic, prophylactic purposes, in the process of diabetes treatment and control, and for sports applications. Gluco Active is based in Warsaw & was founded in 2019.

MEGI: Founded in Croatia in 2021, Megi is a virtual cardiovascular care assistant that aims to give patients back their confidence, quality of life and peace of mind. The innovative product combines clinical expertise with behavioural science and AI to enhance engagement between doctors and patients, and personalize care.

chartok logoChartok: Chartok, based in Barcelona, is developing a staff collaboration software to enable hotels to transform their internal processes into automated workflows with (RPA) Robot Process Automation. Founded in 2018, Chartok connects all hotel team’s tasks, docs, contacts, handbooks, apps, and suppliers together to be more connected, profitable, and productive through internal collaboration.

Type Studio logoType Studio: Type Studio is an online text-based video&audio editing tool that takes your content creation to a new level of simplicity. The Berlin-based company helps users to spend less time creating beautiful content and has been doing so since 2020.

Goto-Sportwear: Goto makes ecological, regenerated harnesses from marine plastic waste collected from the oceans. In their manufacturing process, Goto uses materials such as regenerated fishing nets and plastic bottles. Goto is currently based in Espoo & was founded in 2020.

CoachHub - The digital coaching platform logoCoachHub: CoachHub is the leading global talent development platform that enables organizations to create a personalized, measurable, and scalable coaching program for the entire workforce, regardless of department and seniority level. The Berlin-based company’s co-founder, Yannis,  will also be joining us to give a talk on how to ensure employees feel valued.

Fish&Burger logoFish&Burger: Fish & Burger works with a network of digital specialists who help customers’ online activities to grow exponentially. The Dutch firm’s approach is aimed at utilizing the growth potential of their customers. Founded in 2021, they do this by taking on the challenge together with the best specialists in the market. Find out about how they scaled BlaBlaCar here.

6Minded logo6minded: Polish firm 6Minded is a team of experts on a mission to fuel your inbound marketing. They believe that inbound marketing is powerful, but it’s not for every company. Founded in 2013, the company establishes inbound marketing strategies specific to different needs.

sun_logo.pngSolea: Solea embodies the tasteful ideals of the Mediterranean in a Hard Seltzer; it is refreshing, all-natural, and effortlessly cool. Solea has it all – the guilt-free alcoholic option, great taste and low calories. It’s bound to be sunny in Barcelona, so why not give it a try?

Futura Vive:  Based in Madrid, Futura Vive is developing and distributing robots for the hospitality, health, restaurant and retail sectors. The company was founded in 2007 and is using AI to develop the assistants of the future. Futura Vive counts global brands like Repsol, Accenture  and Volkswagen as clients.

Economic AcceleratorEconomic Accelerator: The Economic Accelerator is a program of the Institute for Eastern Studies Foundation – the organizer of the Economic Forum, which has been creating the largest business and political conference in Central and Eastern Europe for 30 years. Based in Warsaw, the mission is to build a place of dialogue for representatives of major businesses, experts, government administration and startups. Economic Accelerator will be exhibiting with two projects:

The Małopolska Innovation Rocket:

Score Digital: Founded in 2019, Score Digital supports market challengers by delivering end-to-end digital product development services, helping companies transform powerful ideas into game-changing products.

Medical Simulation Technologies: This Polish startup is an innovative startup developing and implementing medical simulations for teaching medical personnel. The aim is to use tech to advance medical specialism.

Versatilex: Versatilex is a Polish startup in the automation machinery and manufacturing sector. It was founded in 2015.

The Dolnośląskie Innovation Rocket:

Robotivity: Founded in 2018, Robotivity is a team of creative and innovative developers that offer consulting in the area of process improvement and automation.

Nsflow: Offering an all-in-one platform enabling users to design and deploy AR applications, Nsflow was founded in 2018 with the goal to o transform the process of creating AR applications by moving it from the sphere of customized services to DIY zone.

Qualpro: Traveltech startup Qualpro is working to support hospitality businesses with proRMS – an intelligent and intuitive Revenue Management System.

Commit Global logoCommit Global: CGT Commit Global Translations is a leading language services provider founded in 1997. Today, with offices in Europe and the United States, Commit Global helps corporations around the world deliver their products, and services as well as market their brands in the local language. You can find out more about their support in scaling internationally here.

Intergiro logoIntergiro: Whether you are automating your business finances or providing banking services to your customers, Intergiro’s APIs give you the financial toolkit to build, adapt and thrive. Intergrio is a Stockholm-based company, founded in 2014, and growing fast.

Camaloon logoCamaloon: A Barcelona-based company, Camaloon’s vision and ambition are to make possible the customization of any product in any possible technique as well as deliver it in the fastest time and highest quality.

CometChat logoCometchat: CometChat empowers developers to quickly add text, voice, and video chat to their websites and apps. Its customers are in the virtual event, telehealth, EduTech, marketplace, and on-demand industries and use CometChat for it’s secure, scalable, and easy-to-use platform.

Swan logoSwan: Swan is a Paris-based firm that offers an embedded finance platform. Via Swan’s simple APIs, European companies can integrate banking services (accounts, cards, and IBANs) quickly and easily into their own product. Founded in 2019, the innovative company is providing super-smooth user experiences.

Nebeus logoNebeus: Nebeus is a Barcelona-based cryptocurrency app and desktop platform that allows people to secure loans using their digital assets as collateral, as well as exchange, earn and securely hold their crypto in insured cold storage vaults.

Deel logoDeel: Deel is a global payroll solution that helps businesses hire anyone, anywhere. Using a tech-enabled self-serve process, you can now hire independent contractors or full-time employees in over 150 countries, compliantly and in minutes. Today, Deel, based in California, serves 4,500+ customers from SMBs to publicly traded companies.

Safeguard Global logoSafeguard Global: Safeguard Global is a future of work company that helps workers and companies thrive in the global economy. Backed by a data-rich technology platform, local expertise, and industry-leading experience, Safeguard Global provides end-to-end solutions to manage people and scale operations. With Safeguard Global, organizations can recruit, hire, operate and pay anywhere in the world, no matter where they are in their growth journey.

EUSPA - EU Agency for the Space Programme logoEUSPA: The EU Agency for the Space Programme (EUSPA) provides safe and performant space services, enabling synergies, EU innovation, sustainability, and security. EUSPA’s core mission is to implement the EU Space Programme and to provide reliable, safe and secure space-related services, maximising their socio-economic benefits for European society and business.

Amazon Business logoAmazon Business: Founded in 2015, Amazon Business simplifies the purchasing process to make it easier for its customers to get the products they need. They solve for its customers’ unmet and undiscovered needs — continuously expanding their selection and adding relevant new tools and features.

SafetyWing logoSafetyWing: The Californian company SafetyWing is building the first global safety net for remote companies, remote workers, and nomads worldwide. Their products are built and designed by a fully remote team of nomads distributed across three continents.

Freshworks logoFreshworks: Founded in 2010, Freshworks Inc., (NASDAQ: FRSH)  on a mission to empower the people who power business, making it fast and easy for companies to deliver top-notch customer service and have high-ranking levels of employee satisfaction. The company builds tech that works for everyone, making it easy for IT, customer service, sales, marketers and HR to do their job. Find out about the exclusive benefits of the Freshworks for Startups program for EU-Startups members, and also check out John Crossan’s talk during the summit.

Silicon Castles: Silicon Castles is a tech company builder and strategic business accelerator that focuses on “European Diamonds” – tech startups that have a unique business idea solving a real problem, use scalable tech and outstanding intellectual property. The aim is to help European startups make the leap from having great tech and talent to becoming global success stories. The team will also be giving a masterclass on how to go from idea to global success.

Webex: Webex is a leading provider of cloud-based collaboration solutions which includes video meetings, calling, messaging, events, and customer experience solutions like contact center and purpose-built collaboration devices. Webex is based in California & was founded in 1995, the company ahs been paving the way in providing devices that are making the new world of hybrid work, work.

Dassault Systems: Dassault Systems, the 3DEXPERIENCE Company, is a catalyst for human progress. Dassault provides businesses and people with collaborative 3D virtual environments to imagine sustainable innovations. They have worked with hundreds of startups to support their dreams and help them scale-up and launch innovative and disruptive products onto the global market. Fundamentally, Dassault Systemes believes that the only progress is human, and startups are pivotal to driving it forward.

Marketer Hire: Headquartered in California & founded in 2018, the mission is to connect top marketing talent with experience from global brands and hot startups with businesses quickly and seamlessly. Marketer Hire provides the fast, easy way to get access to the world’s best marketers. Its recent launch into Europe means you now have on-demand access to its global network of expert, pre-vetted marketers with zero financial risk and full flexibility.

Nestle Purina: One of the world’s most iconic pet brands, Purina knows that many of us are pet owners, and the people working at Purina are pet owners themselves, that is why they know firsthand how important pets are in people’s lives. They are committed to creating nutritious foods that will keep cats and dogs of all ages happy, healthy, and content. Unleashed, powered by Purina, is the startup accelerator fueling pet tech and pet care innovation – we’ll have a dedicated pet tech session at the summit as well!

Petopy logoPetopy: Petopy is a London based startup that provides stress-free at-home veterinary services and telehealth services to pet owners With Petopy, your veterinarian is always with you – whether you want to make a video call or have your veterinarians visit you at home.

ROCKETO logoRocketo: ROCKETO is a pet food innovator, closely mimicking how a dog might eat in the wild. It is entirely free of toxins and made by using ingredients only in their natural form – as supplied by Mother Nature since the dawn of time. Rocketo is based in London & was founded in 2017.

Doggies in Town logoDoggies in Town: Doggies in Town is an all-in-one app for dog owners to easily find dog-friendly places, dog products, dog services, activities, events, and direct booking to pet services. Doggies in Town is based in Malaga & was founded in 2020, helping pet owners enjoy more recreational activities with their fur babies.

HiPets logoHiPets: For all busy but loving and caring pet parents, Warsaw-based HiPets is creating a mobile and web app that enables instant booking for all pet-related services – starting with a vet and ending up with pet sitting. Founded in 2020, we put them on our list of Polish startups to watch this year.

Animoscope logoAnimoscope: Animoscope is a telehealth service provider for pet owners, specializing in generating and exploiting data. The company empowers pet owners to make the right decision by making complex medical things easy to interpret. Animoscope is based in Paris & was founded in 2019.

Kibus Petcare logoKibus Petcare: Kibus Petcare meets the nutritional needs of pets through technologies that allow a tastier, healthier, and more natural diet. With Kibus, which is based in Barcelona, customers receive a robotic food dispenser and monthly packets of pet food.

Dogo - your dog's favourite app logoDogo: Dogo is a mobile app for dog training. The Berlin-based company wants to make dog training easy, fun, affordable, and social. Since 2016, its app offers daily training that helps you teach your dog new tricks, and skills and spend quality time together.

InterPets logoInterpets: Based in Munich, Interpets is on a mission to help us understand our pets. Founded in 2020, its tech helps us to become better pet parents by improving your understanding of your pet’s emotions, behaviours, and health.

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What is the minimum down payment for a house?

What is the minimum down payment for a house?

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If you’ve been dreaming of becoming a homeowner, one big concern may be weighing on you: coming up with the minimum down payment for a mortgage.

The median existing-home price was $352,800 in September 2021, according to data from the National Association of Realtors, and that number seems poised to jump even higher due to a hot housing market and low inventory in many parts of the country. However, you don’t have to let the asking price scare you away from looking at mortgage rates. Depending on the type of mortgage you choose and your willingness to pay for mortgage insurance, you may be able to buy a home with a small upfront down payment.

Let’s take a look at how much you really need in order to stop renting and start building equity in a home.

What is the minimum down payment for a house?

A down payment is the amount of money you contribute towards the purchase of a home. Think of it as the amount you initially put up as your share of ownership. The higher your down payment, the less you’re asking to borrow — and the lower your monthly payments will be.

Lenders require a down payment for most types of home loans, but there are exceptions for certain types of buyers. Here are the basic down payment requirements for various types of mortgages:

Loan type Minimum down payment
Conventional loan 3%-15% depending on lender and loan
Jumbo loan 20% or more depending on lender
FHA loan 3.5%
VA loan None required
USDA loan None required

Conventional loans follow guidelines set by Fannie Mae and Freddie Mac, but lenders can have their own requirements above those standards, as well. There are conventional loan options that require a down payment of as little as 3 percent, but many lenders impose a 5 percent minimum. If the loan is for a vacation home or a multifamily property, you could be required to put down more, generally 10 percent and 15 percent, respectively.

Jumbo loans, which exceed the loan limits set by Fannie Mae and Freddie Mac, tend to require a higher down payment than other kinds of mortgages. These are larger sums, hence the “jumbo” name. The minimum is usually determined by the individual lender, but it can be 20 percent, 25 percent, 30 percent or more.

FHA loans, backed by the Federal Housing Administration, are available for as little as 3.5 percent down if the borrower has a credit score of at least 580. If the borrower has a lower score (500-579), the minimum down payment is 10 percent. FHA loans have other costs, though, including an upfront mortgage insurance premium and mortgage insurance throughout the life of the loan. One option to note: If you have a low credit score today, you can consider taking out an FHA loan and refinancing into a conventional loan when your credit improves down the road.

VA loans, which are available to active-duty military, veterans and eligible surviving spouses don’t require a down payment. USDA loans also don’t require a down payment, but the borrower needs to be buying in a designated rural location to qualify. There are other fees to consider with these government-backed loans, including a VA funding fee and an upfront fee of 1 percent of the loan amount with USDA-backed mortgages.

Average down payment for a house

Now that you have an understanding of the minimum amount for a down payment, you might be thinking about another question: How much is the average down payment for a house? The most recent data from the National Association of Realtors shows that the average homebuyer makes a down payment of 12 percent. However, to get a closer look at typical down payments, consider what different types of buyers can afford.

First-time homebuyers: 75 percent of first-time homebuyers do not put down 20 percent. In fact, the average first-time homebuyer puts down just 6 percent of the purchase price.

Current homeowners: For those who aren’t new to buying a home, the average down payment is higher: 16 percent of the purchase price.

Cash buyers: Some new homeowners with deep pockets don’t bother putting down a fraction of the purchase price. Instead, they pay for the entire property with an all-cash offer. In September 2021, the National Association of Realtors reported that 23 percent of all home purchases were cash sales.

Debunking the 20 percent down payment myth

You may have heard that 20 percent is the required minimum, but that’s not the case. Twenty percent is simply how much you need in order to avoid having to pay extra for mortgage insurance. The insurance is to protect the lender — since you’re borrowing more money with less down, you pose a bigger risk.

The reality is that as home prices continue to rise, many homebuyers can’t afford to put down 20 percent. In fact, 49 percent of all buyers put down less than 20 percent, according to the most recent data from the National Association of Realtors.

If so many are buying homes with smaller down payments, where did the 20 percent down payment myth come from? It’s most likely based on Fannie Mae and Freddie Mac guidelines. To qualify for a guarantee from either of these entities, a borrower needs to either put 20 percent down or pay mortgage insurance.

Is it worth putting down 20 percent?

So, you don’t have to put down 20 percent, but should you? That answer depends on a number of factors, but the most important is your own bank account. If you are sitting on plenty of cash and putting down 20 percent won’t stress your finances, it’s a good move to avoid costly mortgage insurance payments.  However, if a 20 percent down payment will drain most of your bank account, you’ll want to think twice. Homeownership comes with loads of other expenses, and you need to be prepared for potential emergencies, too. If that means paying mortgage insurance for a while, that’s okay.

Consider some of the pros and cons about hitting the 20 percent threshold:

Down payment less than 20 percent

Pros

  • Stop renting sooner
  • Start building home equity now
  • Maintain more cash in your reserves
  • No mortgage insurance requirement
  • Lower borrowing amount means lower interest total over the life of the loan
  • Potential for lower monthly payments
  • Will qualify for better interest rates

Cons

  • Mortgage insurance payments
  • Potentially higher interest rates
  • Will not be able to buy a more expensive property
  • Larger loan balance means more interest over the life of the loan Cons
  • May drain a large chunk of your savings
  • May need more time to save enough to hit the magic 20 percent marker, which means delaying ownership

Down payment 20 percent or more

Pros

  • No mortgage insurance requirement
  • Lower borrowing amount means lower interest total over the life of the loan
  • Potential for lower monthly payments
  • Will qualify for better interest rates

Cons

  • May drain a large chunk of your savings
  • May need more time to save enough to hit the magic 20 percent marker, which means delaying ownership

What does a 20 percent down payment look like?

If you’re trying to determine what a 20 percent down payment will mean for your finances, the answer depends on where you’re looking to buy. Home values vary across the country, which means that saving up 20 percent of the purchase price in one city will be a lot easier (or harder) than in another area of the country. Consider the differences among these three markets, based on homes values in the middle of 2021:

Cedar Rapids, Iowa

  • Median home value: $188,400
  • 20 percent down payment: $37,680

Phoenix, Arizona

  • Median home value: $408,700
  • 20 percent down payment: $81,740

San Francisco, California

  • Median home value: $1,385,000
  • 20 percent down payment: $277,000

How much should you put down on a house?

It’s important to understand how much the down payment for a house will impact your payments. Consider a $300,000 home and a 30-year fixed mortgage with a 3.2 percent interest rate with different down payments:

Home price Down payment Amount borrowed Monthly mortgage payment (principal and interest)
$300,000 5% ($15,000) $285,000 $1,232
$300,000 20% ($60,000) $240,000 $1,037

The monthly mortgage payment above doesn’t include homeowners insurance, property taxes, and, for the 5 percent down payment scenario, mortgage insurance. That cost will vary, but consider an estimate from Freddie Mac that pegs monthly premiums for the above loan at $274. Making a 20 percent down payment means you won’t have to pay this added cost.

There’s another way to look at things, though. The premiums you have to pay on private mortgage insurance for a conventional loan are cancelled once you build 80 percent equity in the property. So, dealing with that extra cost temporarily can mean the difference between continuing to rent and buying your own place. Paying an extra fee is never fun, but it helps get you in a home of your own much faster.

Another important consideration: A higher down payment can get you a lower interest rate, further saving you money each month. We didn’t account for that in the example here, but it’s one more reason why a larger down payment can be beneficial.

As you think about how much to put down on your house, consider these key factors before settling on an amount:

  • Your emergency savings fund. If a crisis hits the week after you close on your home — say losing your job or receiving an expensive medical bill — will you have enough liquid savings to weather the storm? Additionally, you may have other emergencies related to the home. What if you buy it this fall and the furnace goes out this winter? Can you afford to repair it?
  • Your other monthly bills. What else are you paying for each month? Your car loan, phone service, groceries — none of these will disappear after you buy a home. Compare different down payments to get a sense of how it will impact your monthly mortgage bill and budget appropriately to make sure your income can continue to cover all of the essentials along with it. As a general rule, your monthly housing expenses should be 28 percent or less of your monthly income. For example, if you make $4,000 each month after taxes, you should aim to pay no more than $1,120 for your housing costs.
  • Your closing costs. In addition to a down payment, you’re going to need to cover closing costs, a range of fees associated with your mortgage that typically total 2 percent to 4 percent of your loan principal. Make sure that you have these funds set aside before determining your down payment.

You can use Bankrate’s down payment calculator to understand how different amounts will impact your bottom line. If you can afford a bigger down payment, remember not to stretch yourself too thin. You want to be able to enjoy living in that new house without depleting your entire savings and stressing about your finances.

How to save for a down payment

Regardless of what percentage you’re aiming to hit – 3 percent of the purchase price or 20 percent – you’ll need to put a plan in place to set aside that money. Here are some tips to focus on building up your down payment funds:

  1. Start immediately. Even if you’re still comparing mortgage offers and determining how much you really need, earmark savings specifically for your new home as soon as possible.
  2. Identify what to cut. Analyze your bank statements from the past few months to get a sense of where you can reduce spending and accelerate your savings. What can you cut? Can you eliminate some of your entertainment services?
  3. Open a separate savings account. Keeping your down payment money with your other savings could tempt you to spend it elsewhere, so consider opening a separate account specifically for your home purchase. If you can, set up regular automatic deposits from your paycheck to your savings account so you’re more likely to stick to your savings plan.
  4. Make a timeline. Once you know how much you need, look at how much you’ve already saved, and determine a timeline for when you want to achieve your savings goal. For example, if you want to save $20,000 in five years, you’ll need to save $4,000 per year, or $333 a month. You can also work the other way around and determine how much you can save each month by looking at your budget, and using that information as your timeline. Be sure to remember that home prices will be different in the future, too. They’ve been rising at a record pace recently. So, 10 percent of the median home price today may not hit that mark in three years.
  5. Research assistance programs. You might be able to save less or buy a home sooner if you qualify for down payment assistance. The federal government and local and state governments, as well as nonprofit organizations, offer these types of programs to help make homeownership more affordable. They tend to be directed toward moderate- to low-income buyers who are purchasing their first home, but there are some options for repeat buyers, as well. Some even help public service workers, such as firefighters and teachers, buy a home in the communities they serve.

Down payment FAQs

Still searching for the right answers to decide how much to save for a down payment? These frequently asked questions can point you in the right direction.

How can I avoid PMI without putting 20 percent down?

No one wants to pay extra for mortgage insurance. If you’re putting down less than 20 percent on a conventional loan, there are a couple of options. The first is lender-paid mortgage insurance, which – as it sounds – puts the lender in charge of covering those mortgage insurance premiums. However, you will still pay in the form of a higher interest rate. You’ll need to calculate what’s better for your budget: paying the PMI yourself or finding an LPMI option.

The second option for avoiding PMI is an 80/10/10 loan, which is commonly called a piggyback loan. In this situation, you can put down 10 percent and take out two mortgages. One will cover 80 percent of the purchase price, and the other covers 10 percent. You’ll never see a line item for PMI, but you will be paying back two mortgages with two sets of interest charges. You’ll also pay two sets of closing costs to cover both loans.

What’s more important: Your down payment or mortgage payment?

You might be wondering what matters more – your upfront payment or your monthly financial obligation on a home. The reality is that they are both important, and one impacts the other. The more you can put down, the smaller your monthly payments will be. However, making a small down payment isn’t necessarily a bad move. While you’ll need to spend time saving up for that big down payment, that’s a one-time cost. Your mortgage payments are going to happen every month – perhaps for the next 30 years. So, do the math to make sure you can afford that recurring bill while paying other bills and saving for the future.

Can I use a gift for a down payment?

If you can’t come up with all the money for a down payment on your own, but you have a really great person in your life who wants to help you out, you’re in luck: You can accept a financial present from someone else. However, who can give that money to you depends on the type of loan. For conventional loans, it will need to be a family member. For FHA loans, there is a bit more flexibility to use gift funds from friends, labor unions and even employers. Regardless of your loan, getting a gift isn’t as simple as cashing a check. Be sure to read the rules for using gift funds for your down payment before receiving any money.

Can a lender or seller contribute to the down payment?

One party that cannot be part of a “gift” for a down payment is the seller. They qualify as a person with a vested interest in selling the house, which excludes them from being able to write you a check. They can, however, make concessions or offer credits (typically limited to a fraction of the sales price) at closing in designated amounts to cover specific items such as repairs on the property.

Lenders can play a role in helping certain borrowers – often those who qualify as low- to moderate-income – get to the finish line via down payment grant programs and lender credits that help offset closing costs. Not every lender offers down payment assistance options, so you’ll want to ask about availability as you compare loan programs.

How does down payment affect LTV?

You’ll see a lot of acronyms when you’re trying to buy a house, and one of the most important is LTV, which stands for loan-to-value ratio. Your down payment sets your initial LTV. For example, let’s say you’re planning to put $20,000 down on a house that has an appraised value of $200,000. In this case, your LTV would be 90 percent. You’re borrowing $180,000 – 90 percent of the home’s total value. As you make monthly payments and build equity, your loan-to-value ratio will change. Once your LTV hits 80 percent, it means you have 20 percent equity and the ability to cancel private mortgage insurance on a conventional loan.

Bottom line

Don’t let the 20 percent down payment myth prevent you from becoming a homeowner. Although some loans may charge higher interest rates if you put down less than 20 percent, and you may need to pay mortgage insurance, that extra cost can be worth it to get you on your way to building equity in your own home.

 Written by  David McMillin

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GSMA Celebrates a Vibrant MWC22 Barcelona
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GSMA Celebrates a Vibrant MWC22 Barcelona

GSMA Celebrates a Vibrant MWC22 Barcelona

 

More than 61,000 attendees convened in-person from around the world to discuss the convergence of mobile, the potential of the metaverse and transforming vertical industries

3 March 2022, Barcelona: The GSMA is celebrating a vibrant and dynamic edition of MWC Barcelona and there was no doubt it was the place to do business. The world’s largest and most influential connectivity event hosted over 61,000 attendees from almost 200 countries. It was the centre of discussion and debate, the place where leaders in the mobile ecosystem continued charting the future to achieve the full potential of technology.

GSMA Celebrates a Vibrant MWC22 Barcelona

GSMA Celebrates a Vibrant MWC22 Barcelona

“Nothing beats MWC in person, and it was exciting to bring our community – which is so passionate about connectivity – back together to discuss the opportunities that lie ahead.” John Hoffman, CEO GSMA Ltd. said. “On behalf of the GSMA, I would like to thank all of our attendees, exhibitors, sponsors, and partners who came together to make MWC22 so productive, safe, and successful. I also want to thank Barcelona City Council, Generalitat de Catalunya, the Ministry of Economy and Digital Transformation, Fira de Barcelona, Tourism de Barcelona (the Host City Parties), the L’Hospitalet de Llobregat, Mobile World Capital, and the people of Catalonia and Spain. Your support is unwavering, and your creativity, hospitality, and perseverance continually inspire us.”

Connectivity Unleashed

Over four days, more than 1,900 companies joined MWC22 Barcelona to showcase the role of mobile technology in unleashing connectivity, exploring https://www.mwcbarcelona.com sponsored by Salesforce, https://www.mwcbarcelona.com, https://www.mwcbarcelona.com, CloudNet by Kyndryl, FinTech, and the Tech Horizon.

Thought leadership from entrepreneurs, government ministers, and extraordinary people pushing the boundaries of our imaginations spoke from stages across the event. From traditional industries to award-winning filmmakers speakers challenged and inspired attendees to think about new ways of leveraging technology.

Vertical collaboration, startup innovation, and much more at MWC22

Again this year, the Ministerial Programme at MWC was the centre of global digital policy debate. With more than 160 delegations from countries and international institutions around the world, policymakers, regulators, industry leaders, and the international development community exchanged experiences and views on how to build policies for a digital world, maximise the potential of 5G, close the digital gap, and meet global climate targets. As the world becomes increasingly digital, there was broad agreement that we need more collaboration and cooperation amongst all stakeholders to expand digital inclusion for all. This year, leaders like Jessica Rosenworcel, Chairwoman of the U.S. FCC, and Minister Paula Ingabire of Rwanda not only contributed to the conversation in the Ministerial Programme, but brought their policy priorities to the MWC keynote stage.

All-new for this year’s edition, Industry City, co-delivered with Knowledge Partner Accenture showcased demos from the FinTech, Manufacturing, and Automotive sectors. With a buzz of activity, Industry City was a must-see space at the event. Visitors had the opportunity to experience a range of Summits covering robotics and smart mobility topics through interactive metaverse tours and demonstrations from partners and the GSMA Foundry programme.

Focus on the local entrepreneurial startup community returned with the 4YFN (Four Years from Now) programme – supported by platinum sponsor BStartup Banco Sabadell – as it welcomed over 500 international startups and over 300 speakers to share insights on how to drive the ecosystem forward. Competing for more than €24 billion of investment, 200 startups pitched to leading funds, VCs, and CVCs during the event.

MWC22 by the numbers

  • Over 61,000 unique people attended in person
  • Around 500,000 unique virtual and daily viewers on MWC22 and partner platforms
  • Representation from almost 200 countries and territories
  • Over 1,900 exhibitors, sponsors, and partners
  • Over 1,000 speakers, 97% in person and 36% women
  • More than 50% of attendees were Directors and C-Suite executives, 20% were CEOs and founders, 25% were women
  • Millions tuned into MWC22 Barcelona content via Mobile World Live global syndication and official national and international broadcasters.
  • More than 1,600 international journalists were onsite

Our gratitude

“The momentum leading into MWC22 was palpable, and it delivered,” said Mats Granryd, Director General, GSMA. “In the spirit of our theme ‘Connectivity Unleashed’, we saw how industries were going beyond simple connectivity to deliver meaningful connectivity, deploying technology in ground-breaking ways that will shape industry and society. I thank every person who helped make MWC Barcelona 2022 an unmissable event – and as we move to a ‘digital everything’ world, I look forward to seeing what we achieve next year!”

MWC22 was covered by Mobile World Live, CNBC, Euronews, Financial Times, TIME, The Wall Street Journal Barron’s Group, and more than 1,600 international journalists. Featured Media Partners include C114, Insider Intelligence, Radio + Television Business Report, Technology Record, and TeleSemana. A huge thank you to all our MWC22 partners and sponsors. Your collaboration and support contributed significantly to the buzz and excitement of being together at this time.

Local initiatives like, Meet and Eat and Beat Barcelona showcased the best of the city. A preliminary economic analysis indicated that MWC will have contributed more than €240 million to Barcelona’s economy and created more than 6,700 part-time jobs in 2022. And once again, MWC was a carbon-neutral event.

Looking to the future

Following a successful MWC22 Barcelona, the GSMA is working hard to deliver the full MWC series in 2022. The next event, MWC Shanghai, will take place from 29th June – 1st July, followed by the inaugural MWC Las Vegas from 28th-30th September and rounded off by MWC Africa from 25-27th October – which will return in person to Kigali for the first time since 2019.

As the mobile industry gathered this week at MWC22, our thoughts have been with those suffering hardship and loss. Businesses, governments, and individuals alike are wrestling with meaningful ways to help, even as the conflict continues to escalate. Many of our members are responding by facilitating communication with loved ones and by addressing humanitarian needs.

Find out more about MWC Barcelona: www.mwcbarcelona.com.

About GSMA

The GSMA is a global organisation unifying the mobile ecosystem to discover, develop and deliver innovation foundational to positive business environments and societal change. Our vision is to unlock the full power of connectivity so that people, industry, and society thrive. Representing mobile operators and organisations across the mobile ecosystem and adjacent industries, the GSMA delivers for its members across three broad pillars: Connectivity for Good, Industry Services and Solutions, and Outreach. This activity includes advancing policy, tackling today’s biggest societal challenges, underpinning the technology and interoperability that make mobile work, and providing the world’s largest platform to convene the mobile ecosystem at the MWC and M360 series of events.

We invite you to find out more at gsma.com.

 

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ROLLS-ROYCE MOTOR CARS REPORTS RECORD ANNUAL RESULTS FOR 2021

ROLLS-ROYCE MOTOR CARS REPORTS RECORD ANNUAL RESULTS FOR 2021

  • Rolls-Royce Motor Cars reports record 2021 sales, up 49% on the same period in 2020
  • Highest sales in the marque’s 117-year history
  • All-time records set in most sales regions, including Greater China, the Americas and Asia-Pacific, and in multiple countries across the world
  • High demand for all models, particularly Ghost and Cullinan
  • Rolls-Royce is undisputed leader in the +€250k segment
  • Orders extend into third quarter of 2022; Bespoke commissions also at record levels
  • Record intake for Apprenticeship Programme: 37 apprentices join in September 2022


“2021 was a phenomenal year for Rolls-Royce Motor Cars. We delivered more cars than at any time in the marque’s 117-year history with unprecedented demand for all products in every global market. Our extremely strong product portfolio, an exceptional Bespoke offering, together with the first full year of availability of Ghost, the launch of Black Badge Ghost in October and the continuing record demand for Bespoke personalisation, has contributed meaningfully to our extremely strong performance. This is hugely encouraging as we prepare for the historic launch of Spectre, our first all-electric car. Building on this year’s success, we will continue to evolve as a true luxury brand, beyond the realms of automotive manufacturing.”
Torsten Müller-Ötvös, Chief Executive Officer, Rolls-Royce Motor Cars

In 2021, Rolls-Royce Motor Cars delivered the highest-ever annual sales results in the marque’s 117-year history.

The company delivered 5,586 motor cars to clients around the world, up 49% on the same period in 2020. This overall figure includes all-time record sales in most regions, including Greater China, the Americas and Asia-Pacific, and in multiple countries across the globe.

All Rolls-Royce models performed extremely strongly. Growth has been driven principally by Ghost, with demand surging further, following the launch of Black Badge Ghost in October 2021. This, together with the continuing pre-eminence of Cullinan and the marque’s pinnacle product, Phantom, has ensured order books are full well into the third quarter of 2022. The company’s Provenance (pre-owned) programme also enjoyed exceptional sales results in 2021, achieving an all-time record.

Bespoke commissions remain at record levels, with magnificent individual examples including the spectacular Phantom Oribe co-created with Hermès, alongside the Phantom Tempus, and Black Badge Wraith and Black Badge Dawn Landspeed Collection cars. The company signalled its commitment to leading a new contemporary coachbuilding movement with Rolls‑Royce Coachbuild becoming a permanent fixture in its future portfolio, and with it the unveiling of its latest coachbuilt masterpiece, Boat Tail.

Rolls-Royce also announced its first all-electric car, Spectre, during 2021.  The extraordinary undertaking of bringing Spectre to market by the fourth quarter of 2023 has now begun, and the most punishing testing protocol ever conceived for a Rolls‑Royce is underway. This 2.5‑million-kilometre journey, which extends to all four corners of the world, will simulate more than 400 years of use for a Rolls‑Royce.

While preparations are made for the marque’s all-electric future, Rolls-Royce continues to meet the surge in demand for its current portfolio through a flexible manufacturing process and the dedication of the over 2,000 people who work at the Home of Rolls-Royce in Goodwood, West Sussex and around the world.  The Rolls-Royce factory at Goodwood is currently running at near-maximum capacity, on a two-shift pattern to fulfil orders from clients around the world.

Rolls-Royce will continue to invest in its manufacturing plant in readiness for electrification, and in future talent, with a record 37 new apprentices set to join the company in September 2022.

Reflecting on the results, CEO Torsten Müller-Ötvös said, “This has been a truly historic year for Rolls-Royce Motor Cars. In the past 12 months, we have recorded our highest-ever annual sales, launched the latest addition to our Black Badge family, stunned the world with our coachbuilding capabilities and made huge strides into our all-electric future.

“As always, it has been made possible by the dedication and commitment of the extraordinary people at the Home of Rolls-Royce, our international team and our global dealer network. I wish to extend my thanks and congratulations to each and every one of them: it is my privilege and pleasure to work alongside them every day.”

CO2 EMISSIONS & CONSUMPTION.

Phantom: NEDCcorr (combined) CO2 emission: 329-328 g/km; Fuel consumption: 19.5-19.6 mpg / 14.5-14.4 l/100km. WLTP (combined) CO2 emission: 356-341 g/km; Fuel consumption: 18.0-18.8 mpg / 15.7-15.0 l/100km.

Phantom Extended: NEDCcorr (combined) CO2 emission: 329-328 g/km; Fuel consumption: 19.5-19.6 mpg / 14.5-14.4 l/100km. WLTP (combined) CO2 emission: 356-341 g/km; Fuel consumption: 18.0-18.8 mpg / 15.7-15.0 l/100km.

Ghost: NEDC (combined): CO2 emission: 343 g/km; Fuel consumption: 18.8 mpg / 15.0 l/100km. WLTP (combined): CO2 emission: 347-359 g/km; Fuel consumption: 17.88 – 18.58 mpg / 15.2-15.8 l/100km.

Black Badge Ghost: NEDCcorr (combined) CO2 emission: 359 g/km; Fuel consumption: 15.8 mpg / 18.0 l/100km. WLTP (combined) CO2 emission: 359 g/km; Fuel consumption: 17.9 mpg / 15.8 l/100km.

Black Badge Wraith: NEDCcorr (combined) CO2 emission: 367 g/km; Fuel consumption: 17.5 mpg / 16.1 l/100km. WLTP (combined) CO2 emission: 370-365 g/km; Fuel consumption: 17.2-17.4 mpg / 16.4-16.2 l/100km.

Black Badge Dawn: NEDCcorr (combined) CO2 emission: 371 g/km; Fuel consumption: 17.3 mpg / 16.3 l/100km. WLTP (combined) CO2 emission: 382-380 g/km; Fuel consumption: 16.7-16.9 mpg / 16.9-16.8 l/100km.

Cullinan: NEDCcorr (combined) CO2 emission: 341 g/km; Fuel consumption: 18.8 mpg / 15.0 l/100km. WLTP (combined) CO2 emission: 377-355 g/km; Fuel consumption: 17.0-18.1 mpg / 16.6-15.6 l/100km.

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Kylian Mbappé joins Maison Dior
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Kylian Mbappé joins Maison Dior

Kylian Mbappé joins Maison Dior

FASHION & LEATHER GOODS

Kylian Mbappé, the star striker of French football club Paris Saint-Germain, has been named the new ambassador of Maison Dior. He will lend his image to creations by Kim Jones, Artistic Director for Dior Men’s collections, as well as to the Sauvage fragrance.

Just weeks after the launch of a bespoke wardrobe designed for the Parisian club by Kim Jones, Dior continues its partnership with the world of football, announcing a new collaboration with Kylian Mbappé.

At the age of just 22, the young star is a major force on the French national team, with which he won the World Cup in 2018. The same year he was named best young player by FIFA and also won the KOPA Trophy for best under-21 player worldwide. His most recent exploit was scoring a quartet of goals on November 13 during a qualifying match – the first such feat since 1958 – ensuring France’s ticket to the 2022 World Cup.

Kylian Mbappé joins Maison Dior

Kylian Mbappé joins Maison Dior

The footballer’s accomplishments continue off the pitch as well through his involvement in numerous charity initiatives. Kylian Mbappé sponsors the “Premiers de Cordée” association, which gives hospitalized children a chance to discover and experience sports. In January 2020 he launched his own association, “Inspired by KM”, which motivates 98 children to achieve their objectives and make their dreams come true.

Maison Dior is delighted to welcome Kylian Mbappé, with whom it shares the values of excellence and generosity.

© DR

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“Best Global Brands 2021”: Mercedes-Benz once again world’s most valuable luxury car brand

“Best Global Brands 2021”: Mercedes-Benz once again world’s most valuable luxury car brand

Mercedes-Benz has cemented its top place as the only European brand in the top ten of the “Best Global Brands 2021”. The brand with the three-pointed star stands at number eight in the latest rankings published by renowned US brand consultancy Interbrand – a position it has held since 2018. The brand value has risen three percent since 2020 to 50.866 billion US dollars. It means that Mercedes-Benz retains its position as the world’s most valuable luxury car brand for the sixth year in a row, and the only one in the top ten.


“Our continued ranking in the top ten and the increased brand value are successes that we at team Mercedes-Benz are very proud of. This result validates our strategic direction yet again – as a company but also in terms of our brand positioning. Across all our brands, Mercedes-Benz is transitioning from a traditional understanding of luxury to a modern interpretation that emphasises aspects such as approachability, innovation and individuality, that establishes an awareness of a world of new possibilities and that inspires enthusiasm for sustainable mobility,” says Bettina Fetzer, Vice President Communications and Marketing Mercedes-Benz AG

Mercedes-Benz is preparing itself for becoming all-electric before the end of the decade – wherever market conditions allow. The aim is to “Lead in Electric” and “Lead in Car Software”.
Indicator of the world’s most valuable brands US brand consultancy Interbrand has been conducting the “Best Global Brands” study since 1999.

The carefully researched index lists the top 100 of the most valuable brands worldwide and is widely considered the competitive benchmark and an important indicator used by CEOs around the globe. The renowned ranking system is based on three primary criteria: “The financial performance of the brand’s products or services”, “The role of the brand in the purchasing decision-making process” and “The strength of the brand when it comes to securing future returns for the company”. Certified to ISO 10668, the evaluation methodology was the first to establish a widely accepted standard for the comparison of brands and enables objective classification on a monetary basis. More information on the study and on Interbrand are available at: www.bestglobalbrands.com

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Current Mortgage Rates Drop Back Below 3%

Current Mortgage Rates Drop Back Below 3%

Money; Getty Images

Current mortgage rates moved lower this week with the average rate on a 30-year fixed-rate mortgage settling in at 2.99%, according to Freddie Mac. The average rate for a 15-year fixed-rate mortgage moved down to 2.23%, while the rate for 5/1 adjustable-rate mortgage increased to 2.52%.

Mortgage rates slipped back under 3% this week after decreasing by just 0.02 percentage points from last week. However, rates remain above the 2.86%-2.88% range that had dominated in August and September.

Mortgage interest rates for the week of October 7, 2021

Money

Mortgage rate trends

The average rate for most types of loans trended lower this week:

  • The current rate for a 30-year fixed-rate mortgage is 2.99% with 0.7 points paid, down 0.02 percentage points week-over-week. Last year, the interest rate averaged 2.87%The interest rate during the same week last year was 2.88%.
  • The current rate for a 15-year fixed-rate mortgage is 2.23% with 0.7 points paid, 0.05 percentage points lower than a week ago. A year ago, the 15-year rate was 2.37%.
  • The current rate on a 5/1 adjustable-rate mortgage is 2.52% with 0.3 points paid, up 0.04 percentage points from the previous week. A year ago, the 5/1 ARM rate was 2.89%.

“Mortgage rates continue to hover around three percent again this week due to rising economic and financial market uncertainties,” said Sam Khater, chief economist at Freddie Mac. “Unfortunately, with the expectation that both mortgage rates and home prices will continue to rise, competition remains high and housing affordability is declining.”

With home prices still near record highs, homebuyers are paying an average of $50 more on their mortgage payments over the last six weeks than earlier this year, according to a report from real estate brokerage Redfin.

Today’s mortgage rates and your monthly payment

The rate on your mortgage makes a big difference in how much home you can afford and the size of your monthly payments.

If you bought a $250,000 home and made a 20% down payment — $50,000 — you would end up with a starting loan balance of $200,000. On a $200,000 home loan with a fixed rate for 30 years:

  • At 3% interest rate = $843 in monthly payments (not including taxes, insurance, or HOA fees)
  • At 4% interest rate = $955 in monthly payments (not including taxes, insurance, or HOA fees)
  • At 6% interest rate = $1,199 in monthly payments (not including taxes, insurance, or HOA fees)
  • At 8% interest rate = $1,468 in monthly payments (not including taxes, insurance, or HOA fees)

You can experiment with a mortgage calculator to find out how much a lower rate or other changes could impact what you pay.

Other factors that determine how much you’ll pay each month include:

  • Loan Term: Choosing a 15-year mortgage instead of a 30-year mortgage will increase monthly mortgage payments but reduce the amount of interest paid throughout the life of the loan.
  • Fixed vs. ARM: The mortgage rates on adjustable-rate mortgages reset regularly (after an introductory period) and monthly payments change with it. With a fixed-rate loan payments remain the same throughout the life of the loan.
  • Taxes, HOA Fees, Insurance: Homeowners insurance premiums, property taxes and homeowners association fees are often bundled into your monthly mortgage payment. Check with your real estate agent to get an estimate of these costs.
  • Mortgage Insurance: Mortgage insurance costs up to 1% of your home loan’s value per year. Borrowers with conventional loans can avoid private mortgage insurance by making a 20% down payment or reaching 20% home equity. FHA borrowers pay a mortgage insurance premium throughout the life of the loan.
  • Closing Costs: Some buyers finance their new home’s closing costs into the loan, which adds to the debt and increases monthly payments. Closing costs generally run between 2% and 5% and the sale prices.

The latest information on current mortgage rates

Will current mortgage rates last?

Mortgage rates saw very little movement this week compared to last week, as the 30-year rate decreased by just 0.02 percentage points to 2.99%. Last week, the average rate jumped 0.13 percentage points to 3.01%. It was the first time rates crossed above 3% since June.

Despite today’s decline, there may be more upward pressure on rates over the coming weeks. COVID-19 infections are slowing down and consumer spending was higher than expected in August. If the September jobs report due out on Friday is strong, the Federal Reserve may start tightening monetary policy sooner rather than later, leading to higher rates.

For now, expect mortgage rates to stay relatively low with the strong possibility of increases over the coming weeks unless there is negative news on the economic front.

On Thursday, the yield on the 10-year Treasury note opened at 1.531%. There tends to be a spread of about 1.8 percentage points between the 10-year Treasury and average mortgage rates. This suggests rates could go higher.

How are mortgage rates impacting home sales?

The overall number of mortgage applications decreased by 6.9% for the week ending October 1, according to the Mortgage Bankers Association. The biggest drop occurred in the refinance loan category, which decreased by double digits week-over-week.

  • Purchase applications were down by 2% from the previous week and 13% less than the same week last year.
  • The number of refinance loan applications was down by 10% from the previous week and 16% lower year-over-year. Despite the drop, refinances are still making up most of the mortgage loan activity, representing almost 65% of all loan activity.

“Higher rates are reducing borrowers’ incentive to refinance, as declines were seen across all loan types,” said Joel Kan, MBA’s Associate vice president of economic and industry forecasting. “Purchase activity also fell, driven by a drop in conventional loan applications.”

Current Mortgage Rates Guide

What is a good interest rate on a mortgage?

Today’s mortgage rates are near historic lows. Freddie Mac’s average rates show what a borrower with a 20% down payment and a strong credit score might be able to get if they were to speak to a lender this week. If you are making a smaller down payment, have a lower credit score or are taking out a non-conforming (or jumbo) mortgage, you may see a higher rate. A good mortgage rate is one where you can comfortably afford the monthly payments and where the other loan details (such as the length of the loan, whether the rate is fixed or adjustable and other fees) fit your needs.

How much does the interest rate affect mortgage payments?

In general, the lower the interest rate the lower your monthly payments will be. For example —

  • If you have a $300,000 fixed-rate 30-year mortgage at 4% interest, your monthly payment will be $1,432 (not including property taxes and insurance). You’ll pay a total of $215,608 in interest over the full loan term.
  • The same-sized loan at 3% interest will have a monthly payment of $1,264. You will pay a total of $155,040 in interest — a savings of over $60,000.

You can use a mortgage calculator to determine how different mortgage rates and down payments will affect your monthly payment. Consider steps for improving your credit score in order to qualify for a better rate.

How are mortgage rates set?

Lenders use a number of factors to set prevailing rates each day. Every lender’s formula will be a little different but will take into account things like the current Federal Funds rate (a short-term rate set by the Federal Reserve), competitor rates and even how much staff they have available to underwrite loans.

In general, rates track the yields on the 10-year Treasury notes. Average mortgage rates are usually about 1.8 percentage points higher than the yield on the 10-year note. Yields matter because lenders don’t keep the mortgage they originate on their books for long. Instead, in order to free up money to keep originating more loans, lenders sell their mortgages to entities like Freddie Mac and Fannie Mae. These mortgages are then packaged into what are called mortgage-backed securities and sold to investors. Investors will only buy if they can earn a bit more than they can on the government notes.

Why is my mortgage rate higher than average?

Not all applicants will receive the very best rates when taking out a new mortgage or refinancing. Credit scores, loan term, interest rate types (fixed or adjustable), down payment size, home location and the loan size will all affect mortgage rates offered to individual home shoppers.

Rates also vary between mortgage lenders. It’s estimated that about half of all buyers only look at one lender, primarily because they tend to trust referrals from their real estate agent. Yet this means that they may miss out on a lower rate elsewhere.

Freddie Mac estimates that buyers who got offers from five different lenders averaged 0.17 percentage points lower on their interest rate than those who didn’t get multiple quotes. If you want to find the best rate and term for your loan, it makes sense to shop around first.

Should you refinance your mortgage when interest rates drop?

Determining whether it’s the right time to refinance your home loan or not involves a number of factors. Most experts agree you should consider refinancing if your current mortgage rate exceeds today’s mortgage rates by 0.75 percentage points. It doesn’t make sense to refinance every time rates decline a little bit because mortgage fees would cut into your savings. You also have to consider whether your credit score would qualify you for today’s best refinance rates.

Many online lenders can give you free rate quotes to help you decide whether the money you’d save in interest charges justifies the cost of a new loan. Try to get a quote with a soft credit check which won’t hurt your credit score.

You could enhance interest savings by going with a shorter loan term such as a 15-year mortgage. Your payments may be higher, but you could save in interest charges over time and you’d pay off your house sooner.

Should you buy mortgage points?

Many lenders sell mortgage points (also known as discount points). Buying points means you’d pay more up front to lower your mortgage rate which could save you money long-term. A mortgage discount point normally costs 1% of your loan amount and could shave 0.25 percentage points off your interest rate. (So, with a $200,000 mortgage loan, a point would cost $2,000.) Discount points only pay off if you keep the home long enough. Selling the home or refinancing the mortgage before you break even would short circuit the discount point strategy.

In some cases, it makes more sense to put extra cash toward your down payment instead of discount points If a larger down payment could help you avoid paying PMI premiums, for example.

How to shop for the best mortgage rate

Shopping around for the best mortgage rate can not only help you qualify for a lower rate and but also save money. Borrowers who get a rate quote from one additional lender are able to save $1,500 over the life of the loan, according to Freddie Mac. That number goes up to $3,000 if you get five additional quotes.

The best mortgage lender for you will be the one that can give you the lowest rate and the terms you want. Your local bank or credit union is one place to look. Online lenders have expanded their market share over the past decade and promise to get you pre-approved within minutes.

Shop around to compare rates and terms, and make sure your lender has the loan option you need. Not all lenders write USDA-backed mortgages or VA loans, for example. If you’re not sure about a lender’s credentials, ask for its NMLS number and search for online reviews.

Summary of current mortgage rates

Current mortgage rates are lower today, with the 30-year mortgage rate dropping 0.02 percentage points from last week. The 15-year rate also moved lower.

  • The current rate for a 30-year fixed-rate mortgage is 2.99% with 0.7 points paid, down 0.02 percentage points week-over-week. Last year, the interest rate averaged 2.87%The interest rate during the same week last year was 2.88%.
  • The current rate for a 15-year fixed-rate mortgage is 2.23% with 0.7 points paid, 0.05 percentage points lower than a week ago. A year ago, the 15-year rate was 2.37%.
  • The current rate on a 5/1 adjustable-rate mortgage is 2.52% with 0.3 points paid, up 0.04 percentage points from the previous week. A year ago, the 5/1 ARM rate was 2.89%.

 

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BRAND FINANCE GIFT™ 2021

BRAND FINANCE GIFT™ 2021

Microsoft Overtakes Apple to Become World’s Most Intangible Company

  • With an intangible asset value of nearly $2 trillion, Microsoft becomes world’s most intangible company, overtaking Apple, Saudi Aramco, and Amazon, as Microsoft Teams keeps global economy running through COVID-19 lockdowns.
  • Corporates booming – global intangible value has grown by nearly a quarter over past two years of pandemic, from $61 trillion in 2019 to $74 trillion in 2021
  • Over past 25 years, intangibles have seen astronomical growth – increasing 1145% from estimated $6 trillion in 1996. At this historic rate of change, global intangibles could be worth $1 quadrillion by 2050.
  • Brand Finance and International Valuation Standards Council call for more comprehensive reporting of intangible asset value to facilitate investor understanding and economic recovery post-COVID

Every year, the Brand Finance Global Intangible Finance Tracker (GIFT™) report ranks the world’s largest companies by intangible asset value.

This year’s number one company in terms of total estimated intangible value is Microsoft (US$1.90 trillion), which has jumped from 4th position in 2020 to overtake Apple (US$1.87 trillion), Saudi Aramco (US$1.64 trillion), and Amazon (US$1.47 trillion). Microsoft Teams has become embedded into business life for global organisations, once again proving the value of Microsoft’s ability to innovate and roll-out at scale. Microsoft is investing heavily in its business suite solutions. Although Apple is the more valuable company by approximately $200 billion, Microsoft is estimated to have more intangible value with its portfolio of brands and business operations.

Intangible assets are identifiable, non-monetary assets without physical substance. Intangible assets can be grouped into three broad categories – rights (including leases, agreements, contracts), relationships (including a trained workforce), and intellectual property (including brands, patents, copyrights).

Intangible assets boom during COVID-19 pandemic

Over the past year in particular, global intangible asset value has grown faster than usual, and at $74 trillion it exceeds pre-pandemic levels by nearly a quarter, having increased 23% compared to $61 trillion in 2019. The COVID-19 pandemic has demonstrated even further the importance of people, innovation, reputation, and brand for businesses all around the world. Intangible assets are now unequivocally a boardroom priority.

Increases through the pandemic were primarily fuelled by the growth of the world’s largest organisations which were resilient to investor uncertainty due to their scale and their focus on technologies which we continued to rely on through lockdowns. This year, growth has been driven by China and the USA, with several industries recovering from the downturn in 2020.

In times of crisis, brands – especially those most valuable and strongest in their categories and markets – become a safe haven for capital. Like gold or fine art during past economic downturns, nowadays well-managed, innovative, and reputable brands are what the global economy turns to in the hour of need. There can be no better evidence for why brands matter than the role they have already played and will continue to play in the post-COVID recovery.

David Haigh, Chairman & CEO, Brand Finance

Global intangible value grows by over 1000% in 25 years

25 years ago – when Brand Finance was established – global intangible assets were worth only an estimated $6 trillion, less than a tenth of the same value today. As of September 2021, global intangible assets are worth over $74 trillion. This is a 1145% growth over 25 years – approximately 11% per annum.

It is a pivotal moment in financial reporting for intangibles. Total estimated intangible value has grown by over 1000% in the past 25 years. At the same rate, total global intangible value could stand at over $1 quadrillion by 2050 (that is $1,000,000,000,000,000). As investors grapple with balancing various issues such as Climate Change and ESG over the coming years, it is essential that the data they need to understand these vast sums is readily available.

Annie Brown, Associate, Brand Finance

Internally generated intangibles should be recognised in financial reports

The majority of intangible assets are not recognised, due to the limitations set by the financial reporting rules, which state that internally generated intangible assets such as brands cannot be disclosed in a company balance sheet.

Investors should not be deprived of this critical information. Intangible assets such as strong, valuable brands and innovative technology can be the differentiators that drive a $2 billion company to $2 trillion in 25 years – as witnessed with Apple. This information vacuum for investors is part of the reason why Brand Finance endeavours to estimate the extent of “undisclosed intangible value” in our GIFT™ study each year.

David Haigh, Chairman & CEO, Brand Finance Plc

To truly aid investors and provide them with useful information, we believe management should be allowed and required to:

  1. Identify the key intangibles of the entire business – both internally generated and acquired.
  2. Provide an opinion on the value of those intangibles in the notes to the financial statements.
  3. Provide an opinion of the overall business value at the reporting date, to help investors to understand whether or not their capital is allocated efficiently.

Despite the importance of intangible assets to the capital markets, only a small percentage are recognised on balance sheets, typically via acquisition from a third-party transaction. The pandemic has further exacerbated the disparity between market values and book values for those industries most reliant on brands, technology, and human capital for value creation. The IVSC supports Brand Finance, and all others, that look to make progress on this most critical issue.

Kevin Prall, Technical Director, International Valuation Standards Council (IVSC)

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