Do You Have One Minute?

I think we would all agree, knowledge is power!  When you have the proper information, the decisions you make can be the right ones.  In my efforts to help educate my clients on the current state of our local real estate market, I have come across a wonderful resource.  Check it out!

The 1 Minute Housing Market

Single-Family Homes for Rent

Single-family homes used for rental property have distinct advantages over other types of investments.

 
An investor can borrow 75-80% at fixed interest rates on appreciating assets with definite tax advantages and reasonable control. The financing alone is attractive compared to some investments that require 50% cash and have floating rates at prime plus for one or two years.

Home prices have adjusted 30-40% around the country, mortgage rates are incredibly low and rents have risen in the past two years due to more demand and shorter supply. Indicators like these point to a strong and sustained rental market.

Consider you bought a $125,000 home for cash that would rent for $1,250 per month. With $15,000 income and allowing for property taxes, insurance and maintenance, it is still reasonable to expect $10,000 net income. You'd have an 8% return on investment without considering tax savings or future appreciation compared with 5-year CDs paying less than 1.5% and a 10-year Treasury yield at 1.65%.

The reasonable control has a lot of appeal to many investors who find the volatility of the stock market unacceptable and don't want the risk associated with some of the alternative investments. Please contact me if you'd like to know more about available opportunities.

Which Value Do YOU Use?

What your home is worth depends on why you ask the question. It could be one value based on a purchase or sale and an entirely different value for insurance purposes.


Fair Market Value is the price a buyer and seller can agree upon assuming both are knowledgeable, willing and unpressured by extraordinary events. This value is generally indicated by the comparable market analysis done by real estate professionals.

Insured Value is determined for the proper insurance coverage. Replacement cost could actually exceed the cost of new construction when additional expenses are incurred for demolition and the added complexities of matching existing construction.

Homeowners are generally more familiar with their home's market value. Since it can be lower than the replacement cost, owners should review the insured value with their property insurance agents periodically. Under-insuring could invoke a co-insurance clause that may limit the settlement and increase your out-of-pocket-expenses. 

Announcing...

Source: Texas Association of REALTORS® 5 New Rights for Property Owners in HOAs Nearly 20% of Texans live in neighborhoods that have homeowners associations (HOAs), and new laws that went into effect earlier this year have provided more rights to those property owners regarding the use of their property. Here are FIVE property-related upgrades or additions that HOAs CAN NO LONGER PREVENT homeowners from doing the following: 1. Installing a solar-energy device on the property. 2. Installing and use of rain-harvesting devices. 3. Displaying certain religious items on the entry of the property. 4. Installing roof shingles that are wind and/or hail resistant, energy efficient,  or solar generating. 5. Flying the U.S., Texas, or a branch of the U.S. armed forces flag. *Each of these rights applies to condos as well. **It's important to note that a homeowners association may place some parameters on these rights. Learn more about these new laws governing homeowners associations in "Taming the HOA" from the May 2012 issue of "Texas REALTOR®."