Friday, July 31, 2015

When Is It Time to Sell My Rental Property?

As an investor, I understand the stress and reward of having rental properties. They make a great investment, especially for retirement planning, but they also cost money in maintenance. Often I am asked by investor clients, “When is it time to sell my rental property?” Here are some guidelines:

Costs. Being a real estate investor is like being a business owner and you have to know your numbers. What is the rental home actually costing you? If the mortgage is $1,000/month and the renters are paying $1200/month, is that enough to cover taxes, pool maintenance, landscaping, HOA dues and other expenses? If the answer is no, it might be time to raise the rent if the market will allow or sell the home.
 Market Shifts. In the Phoenix market, it is estimated that we will see a shift from a seller’s market to a buyer’s market in 2016. That means prices of homes will go down. If your rental property is paid off or you have a low mortgage compared to current market value, you may be able to remain profitable even with market shifts. It’s important to know where you stand. Are you wondering the ROI of your investment property? Contact me today to receive the Investor ROI Calculator.
Life Change. Many investors purchase homes as part of retirement savings. If you’re experiencing a life change such as retirement or an empty nest, it might be time to cash out your investment properties in favor of another investment. I recommend checking with a real estate professional as well as your financial adviser before making a decision.
Hassle. Dealing with renters can be exhausting. If you’re looking to simplify life and have less stress, that could be a sign for you to consider selling your rental property. Of course, the financial considerations would outweigh hassle; you could hire a rental company to manage your properties until it was the right time to sell.
 Age and Condition. As an investor, I understand the struggle of wanting to keep cash in hand versus making updates on a rental property. Over time the home will deteriorate and could end up costing you more money if you don’t keep up with repairs and maintenance each year. Eventually the kitchen and bathrooms will need updating and you’ve got a decision to make about whether to renovate or sell the rental property. When planning for your investment property be sure to keep a line item for normal maintenance.

Real estate is a great investment in your future and can be something you leave for your children, but make sure when the time comes it will be a good investment you are handing over to your children, not a bunch of problems.

The team at Beery Realty helps investors buy and sell properties and would love to talk to you about your investment needs.

Monday, July 6, 2015

Helping My Clients Reach the American Dream

Since the start of our nation, Americans have worked to own their own land and moreover their own home.  Our nation is only a few in the world that this is possible.  It is a privilege granted to anyone who wants it; not a birthright, and not for only the rich.

 My goal is to help everyone I come in contact with to make this dream a reality.

In the past, it was much easier to attain, but now with the credit and housing crunch there are many hoops you must jump to make it to home ownership.  

As seen below;
There have been some who have voiced doubt as to whether or not the younger generations still consider buying a home as being part of the “American Dream”. A recent study by Merrill Lynch puts that doubt to rest. According to their research, every living generation still maintains that owning a home is in fact important. Here are the numbers:

This should not surprise us as many studies have revealed the benefits enjoyed by the families who own their own home. One such study was done by the Joint Center of Housing Studies at Harvard University that addressed a major financial benefit to owning your own home: forced savings.

The report explains:
“Since many people have trouble saving and have to make a housing payment one way or the other, owning a home can overcome people’s tendency to defer savings to another day.”

The Merrill Lynch study proves this point with the following data on home equity (a form of savings):

Bottom Line
There are many reasons that owning a home makes sense. The financial reasons are powerful.

 As one participant in the Merrill Lynch study put it:
“When I was younger, I always worried about that monthly mortgage payment. Now that I am retired, I have the peace of mind of knowing I own my home free and clear.”

If you know someone thinking of starting the process of buying a home and are not working with a REALTOR—Let them know it doesn’t cost them a thing to have someone on their side to make sure they get the right representation, and I will be in their corner the whole way through to make sure they have taken the right path to lead them to the their dreams down the line.

 I would be so honored if you passed my name to them and I would be happy to guide them through the buying process. 

 special thanks to Keeping current matters