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Watch Out For Falling Interest Rates

Thursday, March 19th, 2009

According to an interview on CBS this morning, interest rates should take another turn for the best this next week. As part of the stimulus plan to heal our ailing housing market, dropping the interest rates to all time lows is one of the strategies.

Falling interst Rates in New Bern Nc

I know that this will help me save quite a bit of money in my monthly mortgage therefore it should only make sense that this will help others too. Why not buy something that if kept for a long period of time will benefit you in the long run. What other asset increase in value the way real estate does?

Before Buying an Investment Property in New Bern NC, Make Sure the Numbers Make Sense.

Friday, February 1st, 2008

Christie knows her numbersAs a well versed person in the Real Estate investment market knows numbers mean everything. I have been a real estate investor in the New Bern NC area as well as other areas of the state for many years and have gained great knowledge from this experience. One of the most important steps one needs to take when evaluating a property is whether it “Cashes Out” or not. It means will this be a profitable venture or will it cost me money.

When determining whether or not a property will be a good investment there are several key point to remember.

How much do similar properties Rent for? Compare similar properties using square footage, number of bedrooms and bathrooms, location of property.

  1. What are your expenses? Will you have a rental company handle your property or will you do it yourself. POA or Home Owners Dues? 
  2. Mortgage Interest Rates for Investment properties.  These tend to be higher because of the owner not living in them. Check with your Lender on the best rate for you. Obtain multiple quotes, don’t just go with the first one.
  3.  Insurance issues and Costs. Again have several different agencies give you a quote. Check to see if it is in a flood zone for coastal area.
  4. Tax Rates. Is the property located in the county or city?
  5. Determine Vacancy Cost. Do your home work and find out what the vacancy rate is on similar properties. General rule of thumb would be 8-10%.
  6. Type of Property. Brick vs, Vinyl?, Age, replaced items such as windows and doors, updated or not like does it still have a 1970’s kitchen or that wonderful shag carpet?
  7. Size Does Matter. What is rent-able in your area? Is it 1200sq ft? or 2000 sq feet?   
  8. Location of Property. Do you have a property convenient to shopping, schools, work places, etc? 

After taking these above things into account, run the numbers through a calculator and see if they work for you. Here is a great site that will provide you with the tools that you will need.   

One last note, when determining if this is the right property for you, you will need to look at the appreciation factor. IF it does not cash out now will it in the future? Will the property be worth 50% more 2 years from now than when you bought it? IF you take the time now to do your homework you will be less likely to make a costly mistake in the future.    

   

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