Posts Tagged ‘Investment properties’

Reasons to Invest in Boston

Monday, January 27th, 2014

One of America’s most historic city, Boston, continues to see its real estate flourish in today’s market.  Boston, home to students and professional alike sees a combination of young and older homebuyers. This city never fails to prosper as it is a key innovator in numerous fields including finance, technology, and medical.

Although “The Beantown” has one of the highest costs of living expenses in the country, it still ranks high on world livability ranking. The high costs may cause caution to some, but it many don’t realize the great investment opportunity the city of Boston presents. Our agents at The Charles Realty have come up with some reasons to invest in Boston, take a look at the list:

  • #10 for predicted housing market in 2014.
  • #6 healthiest market at a Market Health Index of 7.43.
  • #1 metro area where renters should buy.
  • #1 coziest city in America.
  • #1 smartest city in America.

With Boston’s high rankings, “The Town” also provides additional statistics and reasons to invest in Boston including:

  • Universities and hospitals provide as stable influx.
  • Boston vacancy rate is hovering near or under 3%.
  • 3.6% capitalization rate.
  • Boston rents in 2013 increased 5.5%.

Invest in Boston real estate before it’s too late! For more information on why you should invest in Boston, feel free to message us on Facebook or contact us at 617-236-0353.

Sources:

Zillow

MSN Real Estate

Huffington Post

Forbes

WBUR

Thinking of Renting out your Condo Instead of Selling?

Friday, October 14th, 2011

“If I can’t get the price I want for my condo…… I’ll just rent it.”

We can’t tell you how often we have heard this statement over the past few years. With the housing market in Boston in a bit of a holding pattern, many condominium owners feel that the best thing to do right now is rent and wait it out.

There are many advantages to this strategy: the potential of market increase, tax deductions, and many other positive aspects to becoming a landlord. But, experience tells us, it may not be as simple as you think.

As Realtors, it is our job to inform condominium owners of all aspects of all their options. With that in mind, we ask people to consider these Seven Considerations Before You Rent Your Home:

1. Tenant occupied properties tend to sell for less

If you decide to rent your property with the intention of selling next spring or the year after, you need to consider that marketing a property with tenants in place can put you at a disadvantage. Tenanted properties tend to not show as well and create challenges for showing availability.

2. Renting your unit could pose a disadvantage to your condo association

One of the largest obstacles we face in the current mortgage market is owner occupancy. A building with more than 30% of the units rented could lower the value of all condominiums in the association.

3. Damage to the property

Keep in mind that if you have recently renovated or improved your property, having a tenant may place wear and tear on these “new” items. Additionally, despite proper screening and best intentions, a tenant almost never takes as good of care of a home as the owner does.

4. What if you get the Tenant From Hell

Even with a complete, professional screening, there is always a chance your tenant could “go bad”. A landlord needs to think through if they can afford the monthly expense if the tenant does not pay rent, especially in a down economy without the readiness of available new jobs, should your tenant lose theirs. Are the financial advantages worth the potential cost of renovating after a tenant destroys your property or the cost of an eviction?

5. Monthly Nut

The most important first step in deciding to rent your property is to determine the cost of ownership verses the potential rent. Even if the rent can cover your mortgage, taxes and condo fees, you need to consider maintenance, vacancies, building assessments and other potential expenses of ownership.

6. What if the market goes down instead of up?

As Realtors, we are currently very optimistic about the future of our current real estate market. However, we do not have a crystal ball and there is always the chance that over the next year, two years or beyond, the market in Boston will decrease rather than grow. If you rent with the intention of selling for more “next year”, you could end up being a landlord much longer than you planned for.

7. Tenant Issues and Maintenance Problems

Unlike a stock certificate that sits quietly, tenants need things! Are you prepared to get a locksmith at 2am? Do you know good plumbers, electricians? Are you ready to liaise with your condo association if the tenant violates the Rules and Regulations of your association? These are questions any potential landlord needs to ask themselves.

As Real Estate Professionals with a combined 30 years of experience in The Boston Market, we are here to answer your questions, help you weigh your options, and always give you honest advice. Please feel free to contact us anytime for a free real estate consultation or to answer your questions. The knowledge is free! We are here to help and serve.

By, Betsy Herald

691 Massachusetts Avenue

Tuesday, September 27th, 2011

This is just to inform you of a gorgeous new development in the South End at 691 Mass Ave! The finishes are stylish and very high end and the prices are very affordable! There are 1, 1+ and 2 bedroom homes available. Indoor and outdoor parking is also available for purchase. More details can be found at 691MassAve.com. You can also read up on Boston Home’s article about it here.

Saving for a Down Payment

Friday, September 9th, 2011

Piggy backing on the most recent post, I would like to discuss with you the first step to buying, when you do decide that the time is right for you. If you are like most people, you won’t have 10-20% of the price of a home sitting in cash in your savings account, especially when you are a first time home buyer without any substantial equity. So, how do you do it? Of course with an FHA loan, it is possible to only put 3.5% down, but that means that your monthly mortgage payment is substantially higher. In an ideal situation, you have enough saved in order to be able to put 20% down, and then your mortgage payments with a 30-year fixed loan are manageable.

Sounds great, right? It’s certainly easier said than done. So, how do you do it? ZillowBlog has some clear steps and here they are:

1. Figure out how much you need to save

Many websites have calculators that will allow you to figure out how to achieve your ideal monthly payments, how much you need down, what the interest rate would be, and how the money would be broken down. Using a calculator like that, or talking to a finance agent who can walk you through your situation.

2. Seek Expert Advice

Especially if you have a poor credit history, or have had problems in the past with credit or spending problems, seeking the advice of a financial planner is highly recommended.

3. Set up a separate savings account

It’s far too easy, with the advent of online banking, to transfer funds from a savings account to a checking account when they are linked. Setting up a separate savings account that you can transfer money into, but not out of easily, you won’t spend it as much.

4. Set up an allotment or automatic transfer from one account to the other monthly

When the amount going into your account, even when you spend down to zero, is less then you will spend less. When the money is out of sight, it is out of mind.

(Source)

Good luck savers!

Trends and Happenings

Wednesday, March 16th, 2011