As a real estate professional in this economic climate, I have heard my fair share of griping. Yes the economy is in a severe downturn and future prospects "don’t look good", but there is always the need for housing, whether it be rental or owner occupied. The wonderful thing about this particular moment in time ... [Read More]
As a real estate professional in this economic climate, I have heard my fair share of griping. Yes the economy is in a severe downturn and future prospects "don’t look good", but there is always the need for housing, whether it be rental or owner occupied. The wonderful thing about this particular moment in time is that the housing options are more affordable than ever.
I realize investors and potential home buyers are keeping close fisted right now, but I also realize that the safest investment in this volatile economy is real property, be it for rental purposes or other uses. What people do not realize is that now is the time to invest. When the boom in California was happening people were scooping up property like it was going out of style. This is part of the reason we are in the situation we are in right now. Property values were so high and the loans given on these values did not reflect the realistic portrayal of value. Savvy investors know that now is the time to get into the investment market, when prices are low. This makes the debt service on the property much more balanced and achievable.
So, when I hear we are in a "bad market", I scoff. We are actually in a remarkably good market, but we need to educate the investors and potential home buyers to that fact. Yes, the economy is bad, but wouldn’t you like your money in a safe investment, that you can actually have some control over. Think about it, it is all in your perspective.
Buying investment property in Shasta County has always been a challenge. Why?, you may ask. Well, the nitty-gritty of the entire prospect of investing in real estate in Shasta County is that the rents collected can not cover the basic debt service of the investment. In the last year or so that gap is diminishing slowly. ... [Read More]
Buying investment property in Shasta County has always been a challenge. Why?, you may ask. Well, the nitty-gritty of the entire prospect of investing in real estate in Shasta County is that the rents collected can not cover the basic debt service of the investment. In the last year or so that gap is diminishing slowly.
Now when you are looking into investment property in Shasta County you are more likely to find projects that make more sense. When you are looking to invest you need to look at several things that are not generally easy to access on the listing. These items are actual income collected versus market rents, ALL expenses that need to be paid monthly including the mortgage payment, what are you paying "per door", what is the cap rate on the project after all of these numbers are included and most importantly is the project obsolete in the market.
Shasta County has several apartment and townhouse configurations, but many of them are obsolete in this day and age because of their size and condition. Sometimes the "bones" of the project are good, the amenities are in reasonable condition and the land it sits on is prime. If you have enough funds to renovate the project and the patience to wait for it to turn, it could be an excellent investment. Foresight is a vital quality in this situation.
As an investor, the important thing to remember is who will be renting, managing and maintaining your property. Is it worth jumping in head first. Only you are to say, but the opportunities are growing in Shasta County and the need is definitely there.
