Thursday, February 7, 2013
OWING A RENTAL PROPERTY MAY BE A GREAT INVESTMENT
SWEET SPOT IN REAL ESTATE. RENTAL INCOME PRODUCING PROPERTIES MAY BE THE WAY TO GO? CLICK HERE TO FIND YOUR INVESTMENT TODAY.
Per Real Estate News
Owning a Rental Property Is 'Sweet Spot' in Market
Daily Real Estate News | Thursday, February 07, 2013
Ultra-low mortgage rates mixed with housing affordability has made investing in a rental property pay off for investors. Many investors have eyed foreclosures, snagging them at rock-bottom prices, and turning them into rentals. Some home owners have also used the downturn in housing to purchase second homes and then rent out their first property, the Associated Press reports.
Demand for rental housing remains strong. "In this market, at this point, it's a sweet spot," says Chris Princis, a senior executive at financial advisory firm Brook-Hollow Financial and owner of two rental properties in Chicago. "You're getting the market where it's just starting to rebound, but still at the bottom, with what's looking to be a great recovery."
In earning a profit on a rental investment, Princis uses a formula: He charges 15 percent above monthly mortgage and maintenance costs. But it’s also important to know what comparable apartments are going for, and to be flexible in case you’re unable to find a tenant for months, experts note.
The best investments for rentals typically prove to be in areas with a strong history of rental demand, such as neighborhoods near universities or homes in residential areas that are near schools to attract families.
Wednesday, February 6, 2013
Loan Demand Increases, Despite Rising Rates per NAR
Loan Demand Increases, Despite Rising Rates per National Association of Realtors
Daily Real Estate News | Wednesday, February 06, 2013
Mortgage applications were on the rise last week even as interest rates continued to climb upward, the Mortgage Bankers Association reports in its weekly mortgage application survey.
Loan requests for home purchases, viewed as a leading indicator of future home sales, climbed 2.2 percent in the week ending Feb. 1. Refinancing applications increased 3.5 percent.
Overall, the MBA index, which includes both loans for purchase and refinancing, ticked up 3.4 percent during the week.
Meanwhile, mortgage rates continued to fall slightly off all-time lows set in previous weeks. The 30-year fixed-rate mortgage averaged 3.73 percent last week, up from 3.67 percent the week before. The 30-year fixed-rate mortgage, the most popular choice among home buyers, has risen seven of the last eight weeks, according to the MBA.
Source: “U.S. Mortgage Applications Rose Last Week Despite Rate Hike,” Reuters (Feb. 6, 2013)
Call a Realtor today to start your home search in Pensacola Florida. CLICK TO SEE ALL HOMES IN PENSACOLA FLORIDA.
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