31 Mar 08 Unemployment Rate in Texas Effects the Real Estate Market
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With most of the real estate experts saying that the market is on the right course, it will still be another two years before we see a positive trend. However, the Texas real estate markets have seemed to withstand the slump and in some parts of the state homes are actually increasing in value.
According to a study by First American Loan Performance some cities in Texas such as Austin have defied the downward trend seen by most of the U.S. housing markets. The average home is up 4.94 percent over the prices in February of last. The strength of the Austin market comes from the regions unemployment rate (3.3 percent) which is lower than the national rate of 4.4 percent.
Employers have added about 206,400 jobs in the last 12 months and the job growth rate is holding steady at 2 percent. As one of the few cities in the country with a positive real estate market you can be assured that making an investment in Texas real estate is a great decision.
This information was gathered from NARREIA the National Association of Residential Real Estate Investment Advisors
Tags: austin real estate, first american loan, real estate investment, real estate market, Texas Real Estate, unemployment rate, us housing market
04 Jan 08 Home Buying Guide: Part 1
For most of us, buying a new home is the most expensive and important purchases we will ever make. Homes should always be thought of as an investment, but in most cases, you buy a home to accommodate your living needs and wants. Whether you are buying a home solely as an investment, or buying a home to live in, there are numerous things you should know and consider about the house before you buy it. This post is part one of a two part Home Buying Guide designed to inform the average home buyer about some of the things to consider when purchasing a home.
Housing prices are often determined by location, size, features and the condition of the home. In today’s market, the average home can easily cost a home buyer over two hundred thousand dollars. This is why it is important for the home buyer to think about all aspects of the purchase before buying a property. Very few people can properly assess a home’s condition and value, which is why you should always have a professional appraiser and real estate agent look at the property prior to purchasing it.
Be sure to keep your present and future needs in mind when shopping for a new home. If you are buying a home to live in, will you be living alone? How much home can you afford? Do you plan on increasing the size of your household? If so, is there adequate space for additional rooms? How long do you plan on living in the home? Do you want a new home or a resale home? etc…
Location, location, location. We have all heard that saying before, and as you might have guessed; there is a very good reason for the repetitive phrase. Buying in a good location is important for a multitude of reasons. Some questions you should ask yourself, or perhaps your real estate agent, are: “Is this home in a good neighborhood or a bad neighborhood?” “How far away will I be from work, shopping, and schools?” “Is there convenient access to freeways?” and so on. Make sure the location meets your wants and needs, and is in a neighborhood and area that will be attractive to potential home buyers when you decide to resale your home.
In regards to the actual home, there are several important factors to take into consideration. Do you want a single-family home, custom home or a condo? Does the home builder have a reputation that may negatively affect your chances of reselling the home? Does the home have features and appliances that you’ve always wanted? How does the home look aesthetically? Is the home in good condition? If the home is not exactly what you want, how much money is needed to make necessary repairs and improvements? If a home isn’t initially pleasing in its appearance, can it be? If so, what needs to be done and how much will it cost? Keep in mind that changing the homes architectural style is not easy and can be very expensive.
A home buyer should always think about every aspect of a home before choosing to purchase it. It’s important to ask the advice of real estate experts to ensure that when you do buy a new home; your home not only meets your needs but is also a good investment.
Tags: buyers guide, buying a home, home buying, home buying advice, home inspection, homebuyer, Homes for Sale, housing prices, investing, new homes, Real Estate, real estate investment
20 Dec 07 5 Things You Can Do To Make Money in Real Estate
1. Buy and HOLD – Hold onto your property and over the years it will lose value, gain value, lose value and gain value again. The real estate market is cyclical and traditionally sees a 5-6% average annual increase in value. How’s that for an investment you are making small monthly payments on?
2. Location, Location, Location – Real Estate is local and then even more local. Areas within cities gain more value than other areas within the same city. Research your way to a great real estate investment and refer to surefire tactic #1 after you do purchase a new home or real estate property.
3. Buy When You Are Ready – Being ready doesn’t mean that you want or even need a new home. Buy a home when your credit is good, there are low interest rates and the market is a buyer’s market (like right now). Buy a home when you plan on holding onto the property and try your best to put down a considerable amount of money. Higher down payments coupled with a good credit rating scream lower interest rates and payments.
4. Rent Your Property out and Break Even or Create a Little Cash Flow - Refer to surefire tactic #2 (location) and #3 (buy when you are ready) and rent your low monthly payment investment to a good family with good credit history. Then you will need to refer back to surefire tactic #1 and HOLD. Keep in mind that in some markets today, it is very hard to purchase a new home and breakeven, or to cash flow the property without a large down payment.
5. Buy a Foreclosure or Short Sale Home – A good way to make a little extra cash and boost your equity is to profit off someone else’s misfortune. It’s unfortunate that people lose or cannot afford their homes but you will do yourself a favor by buying a home the bank doesn’t want and the homeowner unfortunately can’t afford. Read over surefire tactic #3 (be ready), #2 (Location), #1 (HOLD) and #4 (if renting is your goal) once again and be sure to research and get professional advice.
Surefire tactic tip #1 - Don’t Listen to The Media! – The media isn’t always right and doesn’t always report what you need to hear. I’m not saying the media lies, I’m just stating that sometimes they paint broad strokes and don’t always consider surefire tactic #2 (Location) and the rest of the surefire tactics to make money in real estate. It’s difficult to analyze data and report on every location throughout the United States so listen to your local experts and let them tell you where and when to buy a new home. You never know, your real estate agent might actually have your best interest in mind!
Surefire tactic tip #2 – Get Off the Fence! - If you are ready to buy a new home, can find a great deal, have researched location and plan on holding – buy a home now. It defies all logic to think that demand will increase or supply will decrease by waiting to buy a new home. If no one buys a new home they won’t be sold. Do us all a favor and buy a new home if it’s right for you.
Surefire tactic tip #3 – Don’t Add to Our Current Dilemma – If you can’t afford a new home and don’t want to ask or do a little research to ensure that you buy a new home that works for you-you should rent. Rent a home or condo until you are ready to buy; when you do buy – don’t get into a loan program that will put you in a bad situation after the interest rate increases as they told you it would.
Tags: federal reserve board, Homes for Sale, interest rates, new homes, rate increases, real estate investment
