Dec 9, 2016
When you see any title here containing the words “Delaware Real Estate Investment,” you won’t be terribly surprised if the gist turns out to be what a good idea! When you’ve had the experience of seeing clients succeed with many real estate investment projects, it’s an unavoidable conclusion. Unfortunately, also pretty yawn-worthy.
That’s why I was pleased to come across Grant Cardone’s piece in Entrepreneur magazine. We all like to see our opinions agreed with—but doubly so when you’re offered specifics that bolster your own conclusions. The article listed reasons why real estate investments are “your smartest investment.” Here are some of them:
Those are four solid advantages of the eight detailed in Cardone’s article. The last reason was less demonstrable but, IMHO, just as real:
If you are an investor who is beginning to look over the year’s performance and thinking about how you want 2017 to look, I hope you’ll do two things. First: take a serious look at whether a Delaware real estate investment might make a smart addition to your current portfolio. Second: call me! Call/Text me Russell Stucki at (302) 228-7871, email me at firstname.lastname@example.org, visit more listings at www.beachrealestatemarket.com.
Dec 9, 2016
If you weren’t among those who were surprised by last week’s election outcome, you were among very few. Opinion leaders in every corner of the media are still scrambling to explain why their prognostications had been so wide of the mark. When your job is to help people understand the fine points of current events, it’s just plain embarrassing when you get the big picture 180 degrees wrong!
For both Delaware homeowners who will be considering putting up a ‘For Sale’ sign within the next year or so—as well as for potential Delaware real estate buyers they will need to attract—any shift in the currents in Washington are very likely to affect the market conditions they’ll encounter. There are three areas that can have profound impacts on the strength or weakness of residential home sales:
Delaware’s real estate activity is always affected by the availability of desirable properties priced to attract—and in that department, we don’t need to speculate about the future: they’re here right now. Call me! Call/Text me Russell Stucki at (302) 228-7871, email me at email@example.com, visit more listings at www.beachrealestatemarket.com.
Dec 9, 2016
Diana Olick is a well-known industry writer. Anyone with an interest in Delaware real estate can usually find something of value when she comes up with a new entry in her CNBC column (the one with the pun-worthy title, “Realty Check”). This month she commented on the rising housing market across the nation and its repercussions in terms of homeowner equity.
The piece points out that in the U.S., home equity has doubled over the last five years!
It’s hardly news that home values have been steadily on the rise—that’s been a trend long seen in the asking prices in Delaware and our Delaware listings. But the idea of homeowner equity actually doubling could be hard to believe.
That’s a claim that sounds a like quite an exaggeration…until you stop to think about what is actually being said. When a Delaware homeowner sees that their home’s “equity” has doubled, what it doesn’t mean is that its value has doubled.
Here’s a simplistic example. Suppose a Delaware homeowner’s vacation cabin was estimated to be valued at $100,000 in 2011. Doubling the owner’s equity doesn’t mean that today the cabin would be worth $200,000. The “equity” in the property is the amount of investment value currently owned: the difference between its market value (in this case, the original $100K) and the amount owed on its mortgage. So if there were a $70,000 mortgage outstanding on the cabin five years ago, its equity at that point would have been the difference: $100,000-$70,000—or $30,000.
Using CNBC’s calculations (actually, they relied on research from CoreLogic), for our example property to match the national average, today its owner’s equity would have had to have doubled to $60,000.
For many Delaware real estate owners, that’s not much of a stretch.
Keep in mind that as time moves on, for all mortgage loans other than interest-only loans, the amount owed is reduced with each payment. If the principal portion of the payments had averaged just $200 a month, the amount owed would now be down to $58,000. For the owner’s equity to have doubled to $60,000, the market value would only have to have risen to $118,000: and that’s a mere 18% rise, which works out to an average of 3.6% per year. That wouldn’t be unusual, considering the steady gains we’ve seen. Long story short: voila—investment equity doubled!
The moral of the story isn’t just that there are many happy Delaware homeowners—but that the investment value of owning a home continues to be what it has been for as long as real estate has been bought and sold: a very canny investment. If you are planning on adding to your own personal Delaware real estate investments, I hope you’ll consider using my services as a key part of your strategy. Do call me! Call/Text me Russell Stucki at (302) 228-7871, email me at firstname.lastname@example.org, visit more listings at www.beachrealestatemarket.com.
Dec 9, 2016
If you were one of the brave Delaware real estate investors who decided a few years back that the real estate meltdown was an awfully good buying opportunity, congratulations on being able to resist any naysayers. The fact that real estate has always lived up to its name (“real”) is easy to forget when prices have hit the basement—especially when the surrounding economic news is dire.
Those were days when Delaware fixer-upper opportunities were available for shockingly low asking prices—and before long, the shockingly low asking prices began to look normal and reasonable. “Bank owned homes” became a hugely popular search term as foreclosure numbers skyrocketed. It’s hard to recall the way it really felt, but any buying into that real estate market seemed like a swashbuckling act of raw courage.
Today the Delaware market still offers opportunities for bargain hunters, but they tend to be of a different kind. When a low asking price stands out in one of today’s Delaware listings, it’s likely to fall into one of two categories:
CATEGORY 1: The home’s location has one or more characteristics that the majority of prospective buyers finds off-putting. There’s not much the seller can do in this case, except wait for the right buyer to appear. In all likelihood, it will be someone for whom the issue isn’t an issue at all. If the school district isn’t up to snuff, for instance, a buyer with no school-age kids (and no chance the need will arise to sell anytime soon) may snap up a real bargain.
CATEGORY 2: It’s a home that needs work: a classical fixer-upper. If the buyer is an investor with a flip in mind, it’s vital to get an accurate read on the amount of time, money and effort it will take to rehabilitate the investment. That may seem like it deserves a “duh!”—but it’s all too tempting to let a fantastic asking price blind you into underestimating how far from saleable a badly maintained residence really is. If the buyers are going to be the ultimate residents, enjoy do-it-yourself projects, and are willing to take the necessary time to nurse a fixer into shape, it’s only necessary to determine that no overwhelming structural issues are beneath the surface. If all is well, it can turn out to be the dream opportunity they were hoping for.
Needless to say, fixer-uppers may not be for everybody—but there’s sure to be something for everybody among today’s Delaware offerings. If you will be in the market anytime soon, give me a call to discuss how far you’ve gotten in creating your wish list: there may be a perfect fit right now waiting for you to appear! Call/Text me Russell Stucki at (302) 228-7871, email me at email@example.com, visit more listings at www.beachrealestatemarket.com.