Apr 8, 2015
Owning a Frankford rental property owes its popularity to the distinctive financial attributes it offers investors. Like a dividend-producing stock, it’s a holding that stands to produce a regular income stream. It’s also a real asset in the truest sense of the word—one with solid collateral value. For adroit Frankford rental property investors, it’s also an asset that can build value over time.
When it comes to quantifying an Frankford rental property’s income-producing potential, after an investor has estimated the projected rental stream, there follows a less sunny exercise: expenses need to be taken into account. If a Frankford professional management service is going to be part of the equation, they will supply reliable budget parameters. If you will be managing the property yourself, doing a thorough job of nailing down this—the management budget—is as crucial to coming up an accurate bottom line as was projecting income.
Unless you are prepared to be at the beck and call of your renters 24/7, it's a good idea to budget funds for a skilled general maintenance person. The ideal candidate can deal with a myriad of issues, from electricity outages to clogged garbage disposals. If the Frankford rental property is an apartment building or set of condos, it’s often a good idea for the maintenance pro to be kept on retainer. For single-property rentals, this handyman (or gal) can usually be hired on a job-by-job basis.
Specifics for every Frankford property differ, but it’s generally considered prudent to reserve between 10%-15% of gross rental income for maintenance and repairs. This part of your budget includes remuneration for your maintenance person. Getting a rental home back to status quo isn't always easy—especially because it’s in both the landlord’s and renters’ interest to place a premium on speedy rehabilitation. That’s not cheap!
There are also two words that belong in any rental property management budget: property insurance. The right formula may include a sizeable deductible number (you’ve already budgeted an ample reserve for lesser emergencies), but it’s also vital to take into account the possibility of any large and unexpected emergencies that you or your maintenance person can't handle alone. It may be common business wisdom, but over large parts of the country, this past harsh winter once again demonstrated the wisdom of the practice. Tenants are encouraged to insure their own property, both inside and outside the rental property, but the landlord’s policy should cover repairs to the entire structure, any small sheds on the property, landscaping damage, and the like.
This is the traditional time of year when many of the most promising investment properties go on the market. If you are looking to the future—a future that includes owning a lucrative Frankford rental property—now is the time to start looking…and to give me a call!
Apr 8, 2015
Since Dewey Beach home interest rates continue to play such a leading role for buyers in today’s real estate market, any relevant news items bear watching. For quite a while, home interest rates in Dewey Beach have cooperated nicely, dwelling at tantalizingly low levels. It’s been helpful to sellers and buyers alike.
Meanwhile, some strange headlines about European home interest rates have been appearing from time to time. They never seemed to make much sense, but it’s Europe, after all—and we have our hands full trying to clarify our own economics right here on this side of the Atlantic.
Yet there are some headlines you just can’t ignore. Late last month, this one appeared in Yahoo Finance:
“NEGATIVE MORTGAGE RATES IN DENMARK”
After pausing to be certain the item wasn’t under an April Fool’s dateline (it wasn’t), further examination didn’t dispel the feeling that someone at Yahoo had spent too much time reading Alice in Wonderland. The article said that bank interest rates had declined so far that home interest rates in at least one country had now fallen below zero.
In other words, through the looking glass.
Now, before leaping to the conclusion that home buyers in Denmark would therefore expect banks to pay them every month, this seemed to be the point at which bringing a little common sense would be called for!
That, according to Yahoo, is exactly what’s going on in Denmark.
Since we’ve all been hoodwinked by silly news items on the web, here is where it was clearly time to check out other authoritative sites. A respected European blogger named Jan Oravec stated in no uncertain terms, “Many economists consider negative interest rates impossible.” But reading further, Oravec admitted that nonetheless they do exist.
Per Market Realist: “In Germany, Switzerland, Ireland, Belgium, and [you guessed it] Denmark, it was about time we saw negative mortgage rates in Europe as well.”
Bloomberg Business quoted Danish Business Minister Henrik Larsen: “There’s a need for us to create clarity over how we can best handle this situation going forward” (that seems to be something of an understatement).
Yahoo got specific: "Nordea Bank’s IT systems need to be reprogrammed as it’s not accustomed to situations where the bank isn’t receiving interest payments on outstanding mortgages.”
According to a Google translation of blogger gjohnsit, banks there “have had to pay interest back instead of charging them.” Reading our minds, he asks, “How is it possible, that someone could go to a bank, take out a mortgage, and expect the bank to give them money every month?”
The answer, according to economists, is Euro deflation (but then again, wasn’t it economists who considered negative interest rates to be impossible?)…
We might be tempted to wish for the same situation for our own Dewey Beach home interest rates, but I don’t know. There is an aura of something-for-nothing hovering over the whole idea. Besides, today’s mortgage rates are already quite reasonable—and a solid reason to give me a call!
Apr 8, 2015
When the first spring day comes along (as opposed to the first day of spring), a goodly proportion of residents feel the annual pull, toward the garden store aisles. Even those who’ve stoutly resisted ordering seeds, gardening tools, or any of the other back yard paraphernalia the catalogs kept hawking all winter can succumb to this particular Call of Nature.
Burpee, Scotts and Miracle-Gro shareholders can relax: spring has sprung.
The North Bethany spring real estate selling season starts stirring, too, pretty much in lockstep with the appearance of the tulips. Whether or not the tulips have succeeded in poking up out of the ground, it’s a cinch that by this time they will have made colorful appearances on store shelves everywhere, just like the Peeps and chocolate bunnies. Unlike the rest of the early spring’s trappings, though, the spring real estate phenomenon doesn’t disappear from sight once Easter Sunday is a memory. In fact, it picks up steam.
There are any number of explanations why spring real estate in North Bethany is always expected to ramp up. Part of the reason is the calendar. For families with children, if a move is going to involve a change in school districts, summer vacation is the least disruptive time of year for it to happen, so spring is the time to start house hunting. Part of the reason is due to the comparative difficulty of selling a home in wintertime: not only can foul weather make it harder to keep a home at its showy best, it also can throw a monkey wrench into property maintenance and the few cosmetic fixes that almost every home could use before it hits the North Bethany listings. The result is a certain amount of bottled-up inventory that bursts onto the scene all at once—and springtime is the single time of the year when that happens.
Then there is the automatic momentum effect. When you sell a North Bethany home, most families need to turn around and buy the next. The National Association of Realtors® tells us that the spring real estate selling season may actually be stronger than the numbers indicate, because many sales that really did begin “in season” don’t actually close until summer begins. Spring real estate as a phenomenon is “real” enough that you can’t blame them for lines like “Spring brings rain and flowers—and possibly extra green in the final sales price of your home.”
The spring real estate selling season is indeed underway, so if you are planning on listing your own North Bethany home anytime soon, now is a great time to give me a call. It’s the best way to take advantage of the traditional boom in prospective buyers!
Apr 8, 2015
When you find yourself poised on the brink of any new real estate venture, there’s no more important initial step than seeking out a great Ocean View Realtor® to round out your team. Without even thinking about it, everyone automatically knows that they want a real estate professional with the technical experience, communication skills, and local knowledge that such serious business requires. It also won’t hurt if your Realtor has bottomless reserves of energy and a positive attitude to match—as well as the sympathetic human traits that makes them a pleasure to work with.
There are lots of conventional channels that make it easy to identify perfectly well-qualified Ocean View Realtors (and we are lucky to have many talented ones here in the area)—but when you’re looking for the one who will sync with you and your ultimate goals, that level of rapport will most likely take an extra proactive step or two to secure.
Positive word-of-mouth is a good way to start, but it’s realistic to remember that the one making the referral may or may not share your priorities in a working relationship. You will be working together for a while, and depending upon each other to make some significant decisions—some of which could be made under pressure. When the team has good chemistry going for it, those decisions will come easier. A few ideas that people have found helpful in finding the right Realtor:
This is a good way to see a Realtor at work. Whether you are buying a Ocean View home or selling your own, dropping in unexpectedly will allow you to listen to what they say and how they interact with prospects. Don’t hesitate to be upfront about your own situation: a great Realtor will be able to help other potential buyers and deal with you without missing a beat!
You can also start conversations with prospective Realtors on social media to gauge how long it takes them to respond, whether or not they can give you detailed answers, and to see how they engage with other members of the public. This is a good way to tell if they use social media skillfully, building their brand while clearly valuing the people who interact with them.
The opinions of contractors, mortgage brokers and repair people can be valuable, too. Professional people have an insider’s view of the Ocean View Realtors who work hard to get the job done efficiently.
Of course, fine-tuning your choice should include doing the conventional legwork, too. Look at the Realtor’s listings, their track records, their accolades, and where they live. The rest is up to you. Needless to say, I hope I make it to your final cut!