Invest Today in Real Estate to Enjoy Financial Rewards for Years to Come

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Time and again we’ve seen real life examples of how slow and steady wins the race. Sure, the famous fable tells the story of the tortoise and hare and it applies to many concepts within life and living – but how does this relate to the business of real estate?

Today’s Marketplace Offers an Ideal Investment Opportunity

When you put money into a property, particularly after putting a sizable down payment on the property, you are starting out with equity in the first place. Over the years, as you collect more equity with years of rental income going into the mortgage – you will build that equity over time. Turning close to 100% of your rental income back into the mortgage is a surefire way to shave off years from the mortgage and it all but guarantees a solid return on your investment at the same time.

Gone Are the Days of Only Flipping Properties to Make a Quick Buck

Despite some of the methods used by some investors that involve purchasing a property, quickly flipping it and expecting a quick return – slow and steady is definitely still a great way to invest. It wasn’t too long ago when billionaire philanthropist Warren Buffett proclaimed his desire to invest in “a couple hundred single-family homes” as an alternative to other investments. He said, holding on to such properties for at least seven or eight years is a very good place to put your money given the volatility of the stock market and uncertainty of our economy.

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If you would like to take a closer look at your investment strategies or work out new strategies in light of the current marketplace, I invite you to contact me today. I look forward to a discussion that will help cement a fruitful future for you in real estate investments!

The Real Estate Market Finds Its Strength

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The real estate market has been down since 2007, but at this point, we’re seeing the market turn. Over the last 18 months there have been dramatic improvements in real estate transactions. Sales are up and interest rates are low. This is a great time to unload properties that you’ve been waiting on the market to turn around. 

Whether you want to sell your home or land the home of your dreams, it’s important to hire a rock star real estate agent who will advise you on every step of the process. Here’s why. 
Align yourself with this person because they are selling your biggest asset, which will impact your bottom line. They will ask you questions, you’ll ask them questions.  Be sure they are listening. An agent can do a personalized walk-through to let you know what you need to do—and not do—to increase your chances of getting top dollar for your biggest investment. Having an expert advisor will ultimately save you time. 

By hiring an expert, you’ll avoid home-buyer mistakes. The agent will also guide you through a series of questions so you get what you want from your biggest investment. How close do you want to be to your job? To shopping? To your place of worship? Would you like to have a garden? What kind of garage do you want? Based on all the information you provide, a knowledgeable agent will help you land your dream home no matter what the inventory situation is.   

Remember, your agent will not only help you find the home of your dreams, but connect you to the right people to make the entire buying process as smooth as possible.  In addition to a real estate agent to represent you, you’ll also need a home inspector, a lender and a real estate attorney. The right agent will connect you to the best in the business.

Keep in mind that mortgage loan rates are still fantastic, which makes buying a home more affordable than ever. A 30-year fixed-rate mortgage hovered at record-low rates during 2012 and is still low into 2013, but the rates won’t last forever, so there’s not a better time to buy than now. If you wait and interest rates rise, you could get locked into spending a few hundred extra dollars a month on your payment.  

Give us a call so we can tell you where to be positioned and how to be successful in the market. Please contact us at (480) 785-6939. We’d be happy to assist you. 

Extended Mortgage Debt Relief Act

 
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Now that we are well into 2013, there will be some changes to our real estate outlook with some familiar programs back in action. With all the talk about the impending Fiscal Cliff, it is no wonder that homeowners everywhere are wondering how the outcome will impact them individually. Here are three recent changes and/or updates to the programs available out there that will have a significant impact on our marketplace this year and moving forward.

Mortgage Debt Forgiveness Act Extended Through 2013

On the minds of many homeowners that have mortgages falling short of the current value of their homes, the Mortgage Debt Forgiveness Relief Act was set to expire on December 31, 2012. Among the many issues discussed within Congress during the last few hours of 2012 was the extension period of this important tax relief for distressed homeowners. Primarily as a means to help consumers faced with hardships overcome their financial difficulties when they incur forgiven debt – the Act serves to waive tax implications on what otherwise would be considered taxable income.

Private Mortgage Insurance Tax Relief Now Applies to Fiscal Years 2012 and 2013

Each year millions of homeowners look forward to the tax relief that comes with being able to write off their private mortgage insurance premiums. By the end of 2012, no one was sure the American Taxpayer Relief Act of 2012 would be extended to include the coming year. Once again, at the final hours of negotiations the Act was extended through fiscal year 2013 to allow homeowners paying private mortgage insurance to deduct that amount when filing their income taxes.

Capital Gains Tax Rates Increased from 15% to 20%

A topic of confusion for many, the capital gains tax increase set for higher income levels is more lenient than most people realize. Though the theory is that this increase in tax impacts individuals and households with higher income levels, the truth is the income and gains cap is relatively high. The capital gains tax increase will only apply to individuals earning an Adjusted Gross Income of $400,000 or more. Furthermore, people in these income brackets will incur the capital gains tax only on income earned above and beyond the cap which is $250,000 or more for individuals and $500,000 or higher for households.

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If you would like to discuss these or any other issues in the real estate marketplace or if you are considering buying or selling a home – contact us today! We would love to help make your real estate dreams become a reality!

The Real Estate Market in Phoenix: Many Bright Spots

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The real estate market is changing quickly.  As your real estate resource center, we’re committed to keeping you up to date on all of these changes—and what they mean to you.  Here’s what happened in Phoenix over the past year compared to the previous year and what low inventory and record-low interest rates do for the market. 

In December 2011 in Phoenix the average sales price was $163,603 with an average of 69 days on the market.  The percent of sales price to list price was 96.2%.  Fast forward one year.  In December 2012 the average house sold for $213,820, which is way up from the previous year.  The average days on the market went down by 16 to 53 days.  Homes are moving fast.  Also, the sales price to list price went up to 97.4%, an increase of 1.2%.  

Right now, there’s a good opportunity in real estate that most people are not aware of—record-setting low interest rates coupled with low inventory.  The last thing you want is to miss out on these amazing rates.  Now you can get a 30-year fixed rate for 3.5% or less with some getting nearly 3% rates recently.  These rates have helped made home-buying affordable.

Keep in mind the interest rate makes a big difference.  Consider buying a $300,000 property with a 3% interest rate, your monthly payment would be $1,264.81.  If you’re on the fence about whether the real estate market is a good idea for you, think about those rates creeping up to say 5% and what that does to the same payment—it would go up by almost $400 a month.  Ouch!     

If you want to get top dollar for your property, you should take advantage of the fact that inventory is low.  Here’s the thing:  supply and demand affect what you’ll get for your home.  When everyone who has been thinking about selling their home puts their home on the market is not the time to dive in—if you want to get the most out of your home.  If you wait until then to sell your home, you’ll have lots of homes to compete with.  And when the supply of homes goes up, the price you’ll get for your home inevitably goes down.  At the end of the day, you have a better chance at success if you decide to sell now, instead of waiting until all the Joneses get in the market.          

We’re certainly starting the year off right with an overall confidence in the real estate market and I expect to see more of the same—sales prices increasing and average days to sell a home decreasing due to low inventory.  2013 looks great! 

If you are interested in buying or selling your home and want to get in on record-setting low interest rates, contact me today at 480.785.6939 or brianyelder@realestateexecutives.com so we can build a strategy to get you the results you want.  I’d be happy to assist you.