Risk Archives | Real Estate & Investment Perspective by Karen Lee Bertiger

2024/08/052024/08/05

JOBS are the Key to a Healthy Economy

AND a healthy real estate market. Along with inventory & interest rates. The FED can’t build homes. They do set interest rates. They will raise interest rates in an attempt to reduce inflation, but they do not control excessive government spending (proximate cause.) We are now facing two pivot points – a large private sector full-time job loss (recession indicator) & explosive inflation that wages cannot keep pace with. The RATE of inflation has come down, but PRICES WILL NOT REVERT. Along with the increase in residential home prices, it now costs more to rebuild a property (which is why insurance costs are exploding.) Increases in values are causing increases in property taxes. Theoretically, if you have an increase in VALUES your property tax rate SHOULD GO DOWN TO PRODUCE THE SAME AMOUNT OF REVENUE. However, if you are not watching your local authorities, they will increase your TAX RATE as well as your ASSESSED VALUE.

2018/07/28

Free Tool Available for Estimating Your Property Improvement Costs

Get a FREE property portal to estimate your job improvement costs in your area BEFORE you contact a contractor. You’ll know in advance what your project should actually cost. This is a FREE service with no recurring costs to you. The portal also includes a property inventory where you can enter serial numbers & an insurance report to determine if you have enough coverage to replace your property. Send a message or email to get your portal.

2018/03/272018/03/27

Rent Burdens by Generation – Millennials Are at 45% of Income!

Between the ages of 22-30 they’ll spend about $90,000 on rent.

2018/02/19

Did You Know?

The average price per unit for multifamily dwellings in Phoenix is $100,000-$149,999 & in West Palm Beach it’s $150,000-$199,000?

2017/03/102017/03/10

Home Flipping Hit a 10-Year High in 2016

“Home flipping was hot in 2016, fueled by low inventory of homes in sellable or rentable condition along with a flood of capital — both foreign and domestic — searching for the returns and stability available with U.S. real estate,” ATTOM senior vice president Daren Blomquist said. “The combination of more home flips and a greater share of financing for flip purchases resulted in a 19% jump in the estimated dollar volume of financing for home flip purchases, up to $12.2 billion for the flips completed in 2016 — a nine-year high.”

“Investors in search of flipping returns are increasingly willing to move to secondary and tertiary housing markets and neighborhoods with older, smaller properties that are available at a deeper discount,” Blomquist continued. “Given that many of these markets are more affordable, we are also seeing a higher share of the flipped homes sold to FHA buyers, with that share reaching a four-year high of 19.6% in 2016.”

“And it’s no wonder more investors are joining the home flipping market. The average home flipped sells at $189,900, a gross profit of $62,624. This is a 49.2% return on investment, an all new high for the report which dates back to 2000”

Source: HousingWire, 2016 Year-End U.S. Home Flipping Report by ATTOM Data Solutions