With low interest returns, a somewhat tumultuous and frightening stock market, international turmoil both economically and with uncivil unrest, many investors are turning back to real estate.
With low interest returns, a somewhat tumultuous and frightening stock market, international turmoil both economically and with uncivil unrest, many investors are turning back to real estate. While everyone’s wishes and interests in real estate differ, for real property itself there are generally two patterns: purchase for rental purposes and purchase for resale. In either instance there may be significant repairs required. In addition, there is investing by mortgage lending (see “Lender Beware” on this subject).
Services such as Zillow ™ or Trulia™ may give you insights as to value; however, due to “save our homes” protections to rising prices, the Tax Appraiser’s reports are frequently unreliable. For a purchaser, the best method is either to become very adept at finding the local sales prices for similar property, or hiring a qualified appraiser.
We in Florida revel in bad winters in the Northeast, as we know this will increase our retiring population, and increase the demand for housing. Of recent days, we have seen substantial increases in the purchase price of good real estate, and some increase even of not-so-good properties.
Along with the demand for good housing, there’s an absorption of most of the qualified carpenters, bricklayers, plumbers and other laborers in respect to home-building and repair. Small jobs are the most difficult for which to obtain services, with longer jobs being favored for steady work. If you’re a purchaser seeking an investment property, be aware that it is not easy to find those who can help you repair and improve.
Remember that during the real estate doldrums, many condominium associations and homeowner associations suffered due to abandoned properties. As some of these properties have come onto the market, the next buyer may very well be purchasing a liability for prior unpaid association dues. Be cautious. Remember, title insurance carries with it a price, but also a significant protection.
