In 2005, 23% of all homes sold were investment properties, according to the National Association of Realtors. There's no question that investing in real estate can be lucrative, but it's important to choose your properties carefully to make sure you don't end up getting burned.
Choose the Right Neighborhood
Just like with any other real estate purchase, location is all-important. Whether you're buying an investment property to rent or to renovate for resale, a large part of your success will come down to the neighborhood you buy into. Developing or undervalued neighborhoods are both good prospects for investment buying. The easiest way of getting a feel for good prospects is just to jump in your car and drive around your area. Look for areas with a lot of development going on, or where new housing projects are planned. If you're buying a rental property, bear in mind that if you're going to be doing maintenance and repair work yourself, somewhere relatively close to your own home is a good idea so that you don't have to spend a lot of time traveling to the property.
Don't forget the old rules still apply - buy the worst house in the best street, not the best house in the worst street. You don't want to end up buying a property that's worth significantly more than neighboring houses, as this will mean your investment has no room to appreciate in value because the surrounding properties are dragging its value down.
Foreclosures
Buying foreclosures can be risky, much more so than buying property in the traditional fashion. However, if you're aware of the risks beforehand and take steps to minimize them, you can end up with a great deal. Before you even consider buying in this way, you should be very familiar with foreclosure laws in your state, in addition to knowing as much as possible about the neighborhoods you're interested in.
To find foreclosures, look in your local newspapers for advertisements with key words such as "bank-owned," "foreclosed," or "REO" (real estate owned). Look on lender websites to check for foreclosure listings, and call lenders and ask to speak to someone who handles foreclosures.
As a final caveat - don't buy anything without having it inspected first, no matter how good the property looks on the surface. Property inspection is the best way of ensuring you end up with a profitable deal.
Why Good Credit is Important
When it comes to financing the purchase of rental property, lenders often require larger down payments and higher interest rates. This is because lenders know that owners of rental properties are more likely to default on loan payments than on payments for their personal homes. Simply put, you pay more because rental property is a higher risk investment. To improve your chances of getting a good loan, it's important to have good credit and to reduce your credit card and other consumer debt as much as possible.
It's also important to ensure you have a good-sized cash reserve left over after you've bought your property, to help pay for surprise expenses such as repairs (and periods when the house is vacant, if you've purchased a rental property).
Get to Know the Tax Laws
Owning investment properties can provide big tax benefits. Getting to know your state and federal tax laws is important for maximizing the profits you can make from investing in real estate. For example:
*Depreciation on an investment property is tax-deductible at an annual rate of 3.64% of the home's market value.
* Mortgage interest on investment properties is tax-deductible.
Do your homework, choose your properties carefully and watch your investments grow!
Showing posts with label Real Estate Investment. Show all posts
Showing posts with label Real Estate Investment. Show all posts
Saturday, November 8, 2008
Sunday, August 10, 2008
Real Estate Investor Series: Part 6 of 6!
Checklist for real estate investment property
Homeowners look for a set of criteria when buying - school district, curb appeal, low crime rate, proximity to job, number of bedrooms, right layout, perfect-sized yard. While location is still a primary factor when you invest in real estate, most investors also add these to their checklist:
1. New single-family construction
2. A neighborhood that is mostly a primary-home community (rather than renters)
3. Square footage between 1400 and 1600
4. 3 bedrooms, 2.5 baths with 2-car garage
5. Nice yard but no pool (too much of a liability)
6. Safe neighborhood with little or no graffiti on public structures, fences, etc.
Another factor to consider is close proximity to your own home. Especially when starting out, you may need to visit your rental properties frequently-to pick up a check, make minor repairs, etc. For these reasons, any property more than 45 minutes away becomes less desirable.
It is important to remember you are not purchasing for your own use but to attract a high quality renter. Savvy investors choose properties based on the criteria above rather than their personal preferences. Doing so lets them pick from a wider base of homes and find the better bargain.
If you have more questions on which properties would make the smartest buys for you as a real estate investor, please don't hesitate to call or send an email.
Warm regards,
Homeowners look for a set of criteria when buying - school district, curb appeal, low crime rate, proximity to job, number of bedrooms, right layout, perfect-sized yard. While location is still a primary factor when you invest in real estate, most investors also add these to their checklist:
1. New single-family construction
2. A neighborhood that is mostly a primary-home community (rather than renters)
3. Square footage between 1400 and 1600
4. 3 bedrooms, 2.5 baths with 2-car garage
5. Nice yard but no pool (too much of a liability)
6. Safe neighborhood with little or no graffiti on public structures, fences, etc.
Another factor to consider is close proximity to your own home. Especially when starting out, you may need to visit your rental properties frequently-to pick up a check, make minor repairs, etc. For these reasons, any property more than 45 minutes away becomes less desirable.
It is important to remember you are not purchasing for your own use but to attract a high quality renter. Savvy investors choose properties based on the criteria above rather than their personal preferences. Doing so lets them pick from a wider base of homes and find the better bargain.
If you have more questions on which properties would make the smartest buys for you as a real estate investor, please don't hesitate to call or send an email.
Warm regards,
Real Estate Investor Series: Part 5 of 6!
Building A Real Estate Investment Team 101
While serial investors (who buy additional rental properties without selling their current ones) are likely to invest with only the help of a real estate agent, other investors benefit from having a team of experts.
In addition to a real estate agent (and your tax advisor), some team members for you to consider are:
1. A builder or general contractor who can evaluate the structural integrity of a unit
2. A specialist in leases who is experienced in writing contracts
3. An attorney who practices in real estate law
4. A mortgage professional who can offer you different financing options
Having a team of investors gives you more knowledge as well as more financial resources as well. One word of caution: while friends or family may be interested in joining your real estate investment team, it is best to pick individuals based on the experience they offer.
Warm regards,
While serial investors (who buy additional rental properties without selling their current ones) are likely to invest with only the help of a real estate agent, other investors benefit from having a team of experts.
In addition to a real estate agent (and your tax advisor), some team members for you to consider are:
1. A builder or general contractor who can evaluate the structural integrity of a unit
2. A specialist in leases who is experienced in writing contracts
3. An attorney who practices in real estate law
4. A mortgage professional who can offer you different financing options
Having a team of investors gives you more knowledge as well as more financial resources as well. One word of caution: while friends or family may be interested in joining your real estate investment team, it is best to pick individuals based on the experience they offer.
Warm regards,
Real Estate Investor Series: Part 4 of 6!
Profiting from the Fixer-Upper
Many real estate investors earn a living out of renovating run-down properties and reselling them, or holding onto them for rentals. Commonly known as the fixer-upper, it offers you two paths to real estate investment.
Buy a Fixer-Upper and Sell Again
In addition to offering a handsome profit, fixer-uppers can offer a true sense of satisfaction as you transform a dilapidated property into one with true appeal. But before you take the plunge, ask yourself three questions:
1. Can I buy it far below market value?
2. Can I do much of the work myself (or contract it out at reasonable rates)?
3. Can I get the job done quickly?
Remember, every month you add to the project is costing you in lost rental income, taxes, insurance, utilities and more.
Buy, Raise the Rents, and Sell Again
Quite often the tenants in a rental property are paying below market rates simply because the landlord hasn't raised the rent in years, or perhaps the property is not maintained well.
Both scenarios present you a great opportunity to buy the building, raise the rents (making upgrades if necessary) and resell the apartment building at a higher price. This raises the GPI-the gross potential income-which is the maximum gross income generated from the rent if all the units were occupied.
If you would like more information on these types of investment properties in our area, please don't hesitate to give us a call or send an email.
Warm regards,
Many real estate investors earn a living out of renovating run-down properties and reselling them, or holding onto them for rentals. Commonly known as the fixer-upper, it offers you two paths to real estate investment.
Buy a Fixer-Upper and Sell Again
In addition to offering a handsome profit, fixer-uppers can offer a true sense of satisfaction as you transform a dilapidated property into one with true appeal. But before you take the plunge, ask yourself three questions:
1. Can I buy it far below market value?
2. Can I do much of the work myself (or contract it out at reasonable rates)?
3. Can I get the job done quickly?
Remember, every month you add to the project is costing you in lost rental income, taxes, insurance, utilities and more.
Buy, Raise the Rents, and Sell Again
Quite often the tenants in a rental property are paying below market rates simply because the landlord hasn't raised the rent in years, or perhaps the property is not maintained well.
Both scenarios present you a great opportunity to buy the building, raise the rents (making upgrades if necessary) and resell the apartment building at a higher price. This raises the GPI-the gross potential income-which is the maximum gross income generated from the rent if all the units were occupied.
If you would like more information on these types of investment properties in our area, please don't hesitate to give us a call or send an email.
Warm regards,
Real Estate Investor Series: Part 3 of 6!
6 ways to make a profit in real estate investment
Many homeowners get into real estate investing by buying a home and using this home as a rental when they upgrade to a larger home. Called "serial purchasers", they continue to buy (and hold onto) additional properties.
Other investors prefer to find a quicker path to real estate investment success through one of the following ways.
Buy and Flip
Flipping means selling the property you just bought for a higher price as soon (or in some cases before) you take title on the property. While flipping allows you to make money fast in a hot market (or on a property you purchased well below market value), you may need to pay capital gains (talk to your tax advisor).
Buy and Scrape
Scraping is tearing down an existing home and building a new home. To capitalize on this idea look for areas where home prices are rising, vacant lots are few, and there's an inventory of older homes. While there are many permits you need to obtain, scraping can be a very lucrative process.
Buy and Split
Just as you can buy one lot and split into two, you can also buy one house and subdivide into two homes right down the middle, or buy a larger house and develop each floor into several condominiums. Another variation is to buy a house with a large lot, subdivide the lot, rent out the house, and sell off the land.
Smart real estate investors look at existing properties with new uses in mind (and they check into all building and zoning regulations). We can help you by identifying potential rental properties in the Richmond area. Please call or email with any questions you have.
Warm regards,
Many homeowners get into real estate investing by buying a home and using this home as a rental when they upgrade to a larger home. Called "serial purchasers", they continue to buy (and hold onto) additional properties.
Other investors prefer to find a quicker path to real estate investment success through one of the following ways.
Buy and Flip
Flipping means selling the property you just bought for a higher price as soon (or in some cases before) you take title on the property. While flipping allows you to make money fast in a hot market (or on a property you purchased well below market value), you may need to pay capital gains (talk to your tax advisor).
Buy and Scrape
Scraping is tearing down an existing home and building a new home. To capitalize on this idea look for areas where home prices are rising, vacant lots are few, and there's an inventory of older homes. While there are many permits you need to obtain, scraping can be a very lucrative process.
Buy and Split
Just as you can buy one lot and split into two, you can also buy one house and subdivide into two homes right down the middle, or buy a larger house and develop each floor into several condominiums. Another variation is to buy a house with a large lot, subdivide the lot, rent out the house, and sell off the land.
Smart real estate investors look at existing properties with new uses in mind (and they check into all building and zoning regulations). We can help you by identifying potential rental properties in the Richmond area. Please call or email with any questions you have.
Warm regards,
Real Estate Investor Series: Part 2 of 6!
Market indicators tell you when to invest in real estate
Real estate prices cycle through highs and lows. Tracking the following market indicators will help you decide if it's a good time to invest in real estate in your area.
Job Growth
People go where the jobs are, and home prices follow jobs. A strong local job market is a sure sign of a healthy real estate market. While the Wall Street Journal gives you insight into the nation's overall economy, check the Wenatchee World and other local resources for North Central Washington specifics.
Housing Inventory
The housing inventory is the number of houses for sale at one time in the area. If there are more houses than buyers, prices tend to fall and if there are more buyers than houses, the opposite happens. Also look at the number of months or days it is taking to sell a home. If it's less than 60 days the market is typically considered hot.
Number of Repos on the Market
A repo is a house that has been taken over by the bank because the owner failed to meet the loan payment-in other words, it's a foreclosure. The more foreclosures in your area, the weaker the real estate market.
Number of Multiple Offers on Homes
Multiple offers are when two or more buyers "bid" at the same time for the same house. It's a sure sign of a hot market, usually resulting from a limited inventory creating the need for buyers to compete on price for the same property.
To learn about the local conditions in our market, please don't hesitate to call or send an email. We will be happy to get you the information you need.
Warm regards,
Real estate prices cycle through highs and lows. Tracking the following market indicators will help you decide if it's a good time to invest in real estate in your area.
Job Growth
People go where the jobs are, and home prices follow jobs. A strong local job market is a sure sign of a healthy real estate market. While the Wall Street Journal gives you insight into the nation's overall economy, check the Wenatchee World and other local resources for North Central Washington specifics.
Housing Inventory
The housing inventory is the number of houses for sale at one time in the area. If there are more houses than buyers, prices tend to fall and if there are more buyers than houses, the opposite happens. Also look at the number of months or days it is taking to sell a home. If it's less than 60 days the market is typically considered hot.
Number of Repos on the Market
A repo is a house that has been taken over by the bank because the owner failed to meet the loan payment-in other words, it's a foreclosure. The more foreclosures in your area, the weaker the real estate market.
Number of Multiple Offers on Homes
Multiple offers are when two or more buyers "bid" at the same time for the same house. It's a sure sign of a hot market, usually resulting from a limited inventory creating the need for buyers to compete on price for the same property.
To learn about the local conditions in our market, please don't hesitate to call or send an email. We will be happy to get you the information you need.
Warm regards,
Wednesday, August 6, 2008
Real Estate Investor Series: Part 1 of 6!
5 Reasons To Invest In Real Estate
According to the National Association of Realtors (NAR), second-home sales (for vacation homes and investment homes) accounted for four out of 10 homes sold. While vacation-home buyers purchase primarily for enjoyment, investment-home buyers are looking to generate income in the following five ways.
#1: Appreciation
Returns of 10 percent and more are not uncommon if you select good real estate properties and a solid market. It's a return rate you won't find on bank products or with most stocks.
#2: Cash Flow
More than half of all investment-home buyers rent out their properties. Month in and month out these properties create income from renters AND gain long-term appreciation.
#3: Less volatility
While real estate cycles through periods of highs and lows, it doesn't change dramatically day-to-day like stocks. Investing in real estate is viewed as being less speculative than stocks.
#4 Tax Advantages
Your real estate investments offer you two tax advantages: you can deduct property expenses and depreciation. Plus doing a 1031 exchange lets you avoid paying tax on profits from the sale of rental property if you roll it into another real estate investment property (talk to your tax advisor).
#5 Value-Added Improvements
The saying "buy it low and sell it high" applies to stocks and real estate. The advantage with real estate is you can buy inexpensive property, fix it up, then raise the rent or sell it for more money.
If real estate investing is a path you are interested in pursuing, please feel free to call or email with any questions you have.
Have an outstanding day!
According to the National Association of Realtors (NAR), second-home sales (for vacation homes and investment homes) accounted for four out of 10 homes sold. While vacation-home buyers purchase primarily for enjoyment, investment-home buyers are looking to generate income in the following five ways.
#1: Appreciation
Returns of 10 percent and more are not uncommon if you select good real estate properties and a solid market. It's a return rate you won't find on bank products or with most stocks.
#2: Cash Flow
More than half of all investment-home buyers rent out their properties. Month in and month out these properties create income from renters AND gain long-term appreciation.
#3: Less volatility
While real estate cycles through periods of highs and lows, it doesn't change dramatically day-to-day like stocks. Investing in real estate is viewed as being less speculative than stocks.
#4 Tax Advantages
Your real estate investments offer you two tax advantages: you can deduct property expenses and depreciation. Plus doing a 1031 exchange lets you avoid paying tax on profits from the sale of rental property if you roll it into another real estate investment property (talk to your tax advisor).
#5 Value-Added Improvements
The saying "buy it low and sell it high" applies to stocks and real estate. The advantage with real estate is you can buy inexpensive property, fix it up, then raise the rent or sell it for more money.
If real estate investing is a path you are interested in pursuing, please feel free to call or email with any questions you have.
Have an outstanding day!
Saturday, May 3, 2008
How to Make Money in Real Estate Investing!
Lower Your Taxes
Tax incentives for real estate investors can often make the difference in your tax rates. Deductions for rental property can often be used to offset wage income. Tax breaks can often enable investors to turn a loss into a profit.
For which items can investors get tax breaks? You could claim deductions for actual costs you incur for financing, managing and operating the rental property. This includes mortgage interest payments, real estate taxes, insurance, maintenance, repairs, property management fees, travel, advertising, and utilities (assuming the tenant doesn't pay them). These expenses can be subtracted from your adjusted gross income when determining your personal income taxes. Of course, these deductions cannot exceed the amount of real estate income you receive. In addition to deductions for operating costs, you can also receive breaks for depreciation. Buildings naturally deteriorate over time, and these "losses" can be deducted regardless of the actual market value of the property. Because depreciation is a non-cash expense -- you are not actually spending any money -- the tax code can get a bit tricky. For more information about depreciation and various tax alternatives, ask your tax advisor about Section 1031 of the U.S. Tax Code.
Have a Positive Cash Flow
There are two kinds of positive cash flows: pre-tax and after-tax. A pre-tax positive cash flow occurs when income received is greater than expenses incurred. This sort of situation is difficult to find, but they are usually a strong and safe investment. An after-tax positive cash flow may have expenses that outweigh collected income, but various tax breaks allow for a positive cash flow. This is more common, but it is generally not as strong or safe as a pre-tax positive cash flow.
Regardless of what kind of real estate you choose to invest in, timely collections from your tenants is absolutely necessary. A positive cash flow -- whether it be pre-tax or after-tax -- requires rental income. Be sure to find quality tenants; a thorough credit and employment check is probably a good idea.
Use Leverage
One of the most important factors in determining a solid investment is the amount of equity you are purchasing. Equity is the difference between the actual worth of the property and the balanced owed on the mortgage. In order to increase equity, investors often choose to borrow money. Borrowing money allows you to magnify the return on your investment. Borrowing money to increase equity is known as leverage. Leverage can make the money you invest out of your pocket go a long way.
In order to illustrate the value of leverage, let's take a fictional
example: assume you bought a $200,000 rental property with a 30% down payment; the remaining 70% of the purchasing price is paid for with borrowed money, Let's further assume that after several years the home is worth $270,000. The $70,000 return on your $60,000 investment -- the amount that you paid directly -- is more than 100%. (There is more to calculating the return on investing, but this will keep it simple.) If you bought that same $200,000 property without borrowing, the return on your investment would be 35%. Leverage puts borrowed money to work for you.
Benefit from Growing Equity
While investing in real estate is relatively complex, it is often worth the extra work. When compared to other financial investments, like bonds or CD's, the return on investment for real estate purchases can often be greater.
The key to real estate investing is equity. Determine an amount of equity that you want to achieve. When you reach your goal, it's time to sell or refinance. Determining the proper amount of equity may require the assistance of a real estate professional.
Tax incentives for real estate investors can often make the difference in your tax rates. Deductions for rental property can often be used to offset wage income. Tax breaks can often enable investors to turn a loss into a profit.
For which items can investors get tax breaks? You could claim deductions for actual costs you incur for financing, managing and operating the rental property. This includes mortgage interest payments, real estate taxes, insurance, maintenance, repairs, property management fees, travel, advertising, and utilities (assuming the tenant doesn't pay them). These expenses can be subtracted from your adjusted gross income when determining your personal income taxes. Of course, these deductions cannot exceed the amount of real estate income you receive. In addition to deductions for operating costs, you can also receive breaks for depreciation. Buildings naturally deteriorate over time, and these "losses" can be deducted regardless of the actual market value of the property. Because depreciation is a non-cash expense -- you are not actually spending any money -- the tax code can get a bit tricky. For more information about depreciation and various tax alternatives, ask your tax advisor about Section 1031 of the U.S. Tax Code.
Have a Positive Cash Flow
There are two kinds of positive cash flows: pre-tax and after-tax. A pre-tax positive cash flow occurs when income received is greater than expenses incurred. This sort of situation is difficult to find, but they are usually a strong and safe investment. An after-tax positive cash flow may have expenses that outweigh collected income, but various tax breaks allow for a positive cash flow. This is more common, but it is generally not as strong or safe as a pre-tax positive cash flow.
Regardless of what kind of real estate you choose to invest in, timely collections from your tenants is absolutely necessary. A positive cash flow -- whether it be pre-tax or after-tax -- requires rental income. Be sure to find quality tenants; a thorough credit and employment check is probably a good idea.
Use Leverage
One of the most important factors in determining a solid investment is the amount of equity you are purchasing. Equity is the difference between the actual worth of the property and the balanced owed on the mortgage. In order to increase equity, investors often choose to borrow money. Borrowing money allows you to magnify the return on your investment. Borrowing money to increase equity is known as leverage. Leverage can make the money you invest out of your pocket go a long way.
In order to illustrate the value of leverage, let's take a fictional
example: assume you bought a $200,000 rental property with a 30% down payment; the remaining 70% of the purchasing price is paid for with borrowed money, Let's further assume that after several years the home is worth $270,000. The $70,000 return on your $60,000 investment -- the amount that you paid directly -- is more than 100%. (There is more to calculating the return on investing, but this will keep it simple.) If you bought that same $200,000 property without borrowing, the return on your investment would be 35%. Leverage puts borrowed money to work for you.
Benefit from Growing Equity
While investing in real estate is relatively complex, it is often worth the extra work. When compared to other financial investments, like bonds or CD's, the return on investment for real estate purchases can often be greater.
The key to real estate investing is equity. Determine an amount of equity that you want to achieve. When you reach your goal, it's time to sell or refinance. Determining the proper amount of equity may require the assistance of a real estate professional.
Monday, January 28, 2008
Tips for Buying a Fixer-Upper!
Buying a "fixer-upper" can be a great way to earn sweat equity, but it also can turn into nightmare, end up costing you later on.
What are the rules to follow to find the right property to fix up or flip? Buy a house at least 30% below market value, so that you have profit left over after spending the money to fix it. Location is still very important- no matter how you fix up the interior, you still can't change the location. Go for the more popular 3-4 bedroom home, more buyers are looking for this size. Take your time to find the right property to flip and call me when you're ready to start looking for one!
A recent Realtor Magazine article helps sort out the rules of Fixer-upper.
Mohamed Mekhimar , Realtor®, Accredited Buyers Representative , RE/MAX Commonwealth, mekhimar@remax.net, (804) 243-0605 Cell, (804) 288-5000 Office, (804) 288-8989 Fax, http://www.richmondvahomes4sale.com/, Licensed in the Commonwealth of Virginia
What are the rules to follow to find the right property to fix up or flip? Buy a house at least 30% below market value, so that you have profit left over after spending the money to fix it. Location is still very important- no matter how you fix up the interior, you still can't change the location. Go for the more popular 3-4 bedroom home, more buyers are looking for this size. Take your time to find the right property to flip and call me when you're ready to start looking for one!
A recent Realtor Magazine article helps sort out the rules of Fixer-upper.
Mohamed Mekhimar , Realtor®, Accredited Buyers Representative , RE/MAX Commonwealth, mekhimar@remax.net, (804) 243-0605 Cell, (804) 288-5000 Office, (804) 288-8989 Fax, http://www.richmondvahomes4sale.com/, Licensed in the Commonwealth of Virginia
Sunday, December 30, 2007
How to Cash in on a Fixer-Upper!
It's commonly believed that fixer-upper properties represent easy money that is ripe for the taking - that you can buy it, do a little work on it in your spare time, and then resell quickly for a large profit. Usually, this simply isn't the case. Although, with proper planning and foresight, good profits can be made by buying "distressed" properties at less than market value, making appropriate improvements and repairs, and then reselling. And for many first time buyers who intend to live in the house while working on it, buying a fixer-upper can be the very best option. It's less risky buying a fixer-upper when you can live in the house while fixing it. And of course, by living in the house for at least 24 months you should be able to avoid paying regular income taxes on the profits. The most important thing to know before making a decision on such a purchase is what needs to be fixed.
Be careful that you don't over pay. Especially if you plan to resell quickly, paying too much up front can doom your plans for quick profit. Research the market for reselling and have an exit plan for selling the house in place before making an offer.
CONTACT ME for assistance with RICHMOND REAL ESTATE
Mohamed Mekhimar , Realtor®, Accredited Buyers Representative , RE/MAX Commonwealth, mekhimar@remax.net, (804) 243-0605 Cell, (804) 288-5000 Office, (804) 288-8989 Fax, http://www.richmondvahomes4sale.com/, Licensed in the Commonwealth of Virginia
Be careful that you don't over pay. Especially if you plan to resell quickly, paying too much up front can doom your plans for quick profit. Research the market for reselling and have an exit plan for selling the house in place before making an offer.
CONTACT ME for assistance with RICHMOND REAL ESTATE
Mohamed Mekhimar , Realtor®, Accredited Buyers Representative , RE/MAX Commonwealth, mekhimar@remax.net, (804) 243-0605 Cell, (804) 288-5000 Office, (804) 288-8989 Fax, http://www.richmondvahomes4sale.com/, Licensed in the Commonwealth of Virginia
Saturday, November 10, 2007
Housing in Richmond is a Good Long-Term Investment
Click here to read a new report prepared for the Richmond Association of REALTORS® by the Office of Housing Policy Research at George Mason University. This report provides data and graphs that illustrate the increasing value of homes in the Richmond metro region, the return on investment in a home vs. investing in the stock market, and the difference in wealth accumulation between renters and homeowners.
Please note that because this report studies the "typical" homeownership period, which is nine years in the Richmond area, the data stops with homes bought in 1998 (and thus finishing the nine year period in 2007).
Source: Richmond Association of REALTORS®(11/09/07)
Please note that because this report studies the "typical" homeownership period, which is nine years in the Richmond area, the data stops with homes bought in 1998 (and thus finishing the nine year period in 2007).
Source: Richmond Association of REALTORS®(11/09/07)
Wednesday, August 22, 2007
Americans to Spend More than $232 Billion on Home Remodeling in 2007!
Americans will spend nearly $233 billion on home remodeling this year, according to the National Association of Home Builders’ (NAHB) 2007 industry forecast. That represents a 1.9 percent increase from the record $228 billion spent in 2006, according to estimates from the U.S. Census Bureau.
Driving the remodeling market are the size and characteristics of the housing stock. With an average age of 33 years and rising, older homes require more remodeling - both in terms of upgrading features to compete with new construction as well as maintaining their physical quality. Though remodeling is somewhat cyclical with new construction, homeowners cannot put off a major repair like a leaky roof as they can discretionary upgrades, and that stabilizes the industry during slower housing markets.
(Source: NAHB) Full Story . . .
Driving the remodeling market are the size and characteristics of the housing stock. With an average age of 33 years and rising, older homes require more remodeling - both in terms of upgrading features to compete with new construction as well as maintaining their physical quality. Though remodeling is somewhat cyclical with new construction, homeowners cannot put off a major repair like a leaky roof as they can discretionary upgrades, and that stabilizes the industry during slower housing markets.
(Source: NAHB) Full Story . . .
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