Observations from a Client’s Perspective…He Who Hesitates Loses
We have been working for a few weeks now trying to determine what type of property to purchase…single family, duplex, home with a guest house…for an investment property. Trying to sort out what is most advantageous for a new investor is not always easy since there are so many things to consider.
What area?
What type of property? A property= high end; B property=middle of the road; or C property= lower end.
What price range?
Who is the audience to whom the rental is targeted?
Laying the appropriate groundwork is paramount to success; understanding the accounting when one owns rental property; understanding the advantages of a 1031 tax deferred exchange; deciding whether to form an LLC, all are important considerations. This means talking with professionals; the accountant, the facilitator for information, and possibly an attorney. Formulating some type of long term plan with short term goals so we are all on the same page regarding the map to success comes next.
But in the meantime, we have been looking at various types of property to familiarize my client with the maket. There seemed to be plenty of potential candidates for purchase on the market a month or so ago, but suddenly, she said, everything she liked has a contract on it.
The real estate market is definitely stirring. Properties priced correctly and which show well are not languishing on the market as they were a few months ago. Second homes and retirement homes are showing signs of life. Adding steam to the market is Tucson’s AARP designation as the number one place to live which is both an affordable and desirable retirement area.
Real estate prices are still low, interest rates remain below 6%, and although requirements for loans have tightened somewhat, money is available. People are putting their homes on the market, there still is an abundance of short sales and foreclosure properties, and savy investors are purchasing properties on the steps of the courthouse.
A good cross section of housing is available and Tucson remains a buyer’s market. It is time to scoop up there bargains because this market will not last. It always boils down to supply and demand.
If you are thinking Tucson, now is the time to act. Use a local lender who knows and understands our market here, and a good Realtor who listens to your needs and wants. Take a look at my web site to garner information which will help you as well as provide the opportunity to input your own criteria and see what is out there, and if you don’t have a Realtor now, contact me. I am always willing to help!
Take the comments of my client seriously…”all the good properties suddenly have contracts on them!”
Lenders:
Lance Dickson – Nova Home Loans – http://www.lancedickson.com
Tom Heath – The Heath Team – http://www.theheathteam.com
Jerry Sundt – VIP Mortgage http://www.sundtmortgage.com
Realtor: Terry Bishop http://www.terrybishop.com