Monday, February 26, 2007
by admin
Unfortunately, Lafayette and West Lafayette are the homes of some poorly maintained rental property. We've all seen them. However, most investors know that they should maintain their property. If you are thinking about investing in property in Lafayette or West Lafayette, here are some things to consider:
If you are the owner of an investment property, maintenance is all on you. So when the tenants need repairs, you will need to have local contractors at the ready to make timely repairs, and in order to maintain a good relationship with these vendors, you will want to pay them the day services are rendered. In other words, you need cash on hand.
First, please buy a home warranty on your property when you purchase, especially if it's an older property that may need costly repairs. The yearly cost of a good home warranty is less than the cost of a furnace. It's less than the cost of a new roof. It's less that the cost of a water heater, etc, etc. Even if your property is new, a home warranty will give you an easy place to call in the case repairs are needed. Believe us; new homes need maintenance too!
Additionally, don't count on your home warranty for everything. You're not going to want to call them for every little thing, so keep a percentage of your income from rents available for repairs. What percentage to set aside will depend on the type of building you're maintaining. Typically, the older the building, the higher the percentage. This is not always the case of course...you need to use common sense.
If you ever have questions about investment real estate in Lafayette or West Lafayette, give us a call or email. We always love talking about the business!
Monday, February 26, 2007
by admin
Many people choose new construction for their home purchase. West Lafayette and Lafayette both have seen quite a bit of new construction in the past few years. In our market, and depending on the price point, new homes typically have a similar sales price compared to existing homes, and buyers also usually realize that a new home will have lower maintenance costs. Builders' warranties on new homes, when combined with a new roof, appliances, and major systems, usually make major repairs unnecessary. A Realtor that is experienced with the process of new construction can help ensure you get the best deal.
Census Bureau Housing Surveys suggests that operating costs are lowest for brand new homes and slightly higher for relatively new existing homes. Operating costs per square foot of living space are consistently higher for progressively older existing homes. Utility costs represent the largest factor in operating costs. Energy consumption per square foot depends on the size of the home, the insulation and quality of the windows, air leakage and the efficiency of the furnace.
New homes require fewer expenditures for routine maintenance. The cost of maintenance first increases with age, then declines, so you will generally spend less maintaining a home built before 1960 than for a home built between 1970 and 1975.
Friday, February 23, 2007
by admin
This home is currently off the market. Beautiful home on south side of town! This ranch home has 3643 square feet 4 bedrooms, 3 full bathrooms, finished basement, whirlpool, vaulted ceilings, sunroom, 2 car garage attached,Must see this home!
Friday, February 23, 2007
by admin
This home is Sold by Cathy Russell Team.
Tri-level home with 2984 square feet and 4 bedrooms and 1.5 bathrooms! Beautiful hardwood floors, Redwood deck off the living room, 2 car garage off side of home.
Thursday, February 15, 2007
by admin
Buying property as an investment in West Lafayette, especially property convenient to Purdue, is an opportunity that draws investors from across the country. One of the most important factors that affect the value of West Lafayette property is obviously location. Wise investment philosophy suggests that you invest in a sound property in a more modest area that will increase in value in the future. Buying into an area that is being gentrified, or that is otherwise coming back, is one way to do this. If you've considered investing in West Lafayette real estate, let us guide you to the areas that fit your needs!
Timing is everything, however! Most investors don't want to risk too much by being a pioneer, but want to get involved early enough so that there is still considerable room for appreciation in value. Being a pioneer is fine if you are a risk-taker with a lot of patience and cash is not the primary issue. Otherwise, it is safer to buy into an area after the restoration trend is unmistakably established.
Neighborhoods that are ripe for restoration have some common characteristics. They are next to a prestigious area or in a good walk-to-work location and have houses that are basically in good condition or "fixer-uppers" with realistic price tags. Also, consider that market appreciation is only one of many ways to make money in real estate. The midwest, and West Lafayette follows suit, is not known for massive appreciation like we've seen in other parts of the country. There are simply other, just as solid ways to make your property cash in for you. And guess what, while many invesment properties are going down in value throughout the country due to this market correction we're experiencing, our beautiful town is still solid!
Thursday, February 15, 2007
by admin
We see many Lafayette homeowners wait until they are ready to put their home on the market before painting, planting flowers, and making other improvements to their homes. After completing these improvements, they may be so delighted with the results that they wish they had done the work on their home sooner in order to enjoy the changes.
Whether you have recently purchased a home or have been settled in your home for several years, you should consider evaluating the condition of your house as if you planned to sell it soon. We are happy to discuss details with you, so you make the type of improvments that will translate into better selling value in our Lafayette market. Maximize your home's curb appeal now, so that you will reap the benefits every time you pull into your driveway. Plant those flowers and bulbs and you will have your fresh flowers on your own dining room table. Add new window treatments to freshen the appearance of the main rooms. If your house needs an upgraded kitchen, go ahead with the renovation. You will enhance your whole neighborhood and experience the pleasure of living in a more beautiful and fully functional home.
Wednesday, February 14, 2007
by admin
Our agents can provide you with information about how the Lafayette market has performed historically, in order to help you work out a strategy for investing in real property.
Historically, Lafayette, West Lafaytte and Purdue real estate properties have been superb long-term investments. Many people have created fortunes on short-term investments in hot markets. Remember that the Lafayette market is not "hot", and it will be influenced by factors beyond your control. Some of the rules are different here, such as how interest rates play into the deal, economic trends, local employment opportunities, and the demand for and availability of rental housing. All of these factors are subject to change, so timing is crucial. A "slow" market can mean real values for buyers. This is part of what brings investors from all over the world to our market. Your real estate agent can't predict the future, but he or she can help you interpret the present. Let us work with you one-on-one to make sure you're finding the best property for your needs. An understanding of how the Lafayette market works is key, and we're here to help!
Wednesday, February 14, 2007
by admin
Did you know that, for no additional cost, you can be represented by a real estate broker in conjunction with purchasing a home from a builder? Lafayette homebuilders are accustomed to working with real estate brokers and often their commission is already covered in their marketing and promotion costs. A broker can provide objectivity and guidance in designing your home and help you select amenities that will lead to a more advantageous resale. He or she can help coordinate the sale of your present home and the closing of the new one. Many brokers offer guaranteed home sale programs so that when your new home is finished, the real estate company will buy your previous home at a pre-agreed price to prevent you from owning two homes at one time; and can usually arrange the occupancy agreeable to all parties. Take advantage of using your real estate broker in conjunction with building your new home at no additional cost. Especially in Lafayette, where an improperly marketed home can sit on the market for several months, this type of help can make or break your deal.
Saturday, February 10, 2007
by admin
Let us help you make the most out of your investment property transaction; don't miss out on your tax breaks! When you buy an investment property in Lafayette, there are two important financial goals to consider. You will want a property capable of producing rental income. When you sell, you hope that the property will have appreciated enough that you will earn a good profit on your investment. If your property has enjoyed a healthy appreciation, you may need to do some careful planning to avoid paying out most of your profits in the form of capital gains taxes.
When selling your primary residence, you may be able to defer your capital gains taxes when you buy your next home. This does not apply, however, to investment property. If you sell one property then purchase another, the taxes will be due for the year the sale occurred. On the other hand, if you arrange to trade one property for another, you may be able to defer the capital gains tax.
It is not as complicated as it sounds! Many real estate agents and attorneys specialize in helping their clients put these kind of transactions together. You don't have to trade buildings with the people buying your property. The property you trade may belong to a third party, and your buyers need only cooperate with the closing attorney to make the transaction work.
Give us a call or email anytime, and we will be happy to discuss details...
Saturday, February 10, 2007
by admin
Are you planning to build your dream home? Once you are pre-approved for a loan and have found a professional real estate agent you trust, you are ready to start looking for the perfect lot. Lafayette and West Lafayette both have many sites available. As of this writing, we have over 100 lots listed for sale, and we can of course always help with anything on the market. Maybe you want something in a subdivision near your favorite school, or maybe you want several acres outside town. We have you covered!
Compare the qualities of several target neighborhoods by looking at schools, shopping, recreation and zoning. Make sure that the zoning regulations allow you to build the size and height of the home you want. Find out if there are use restrictions that would prevent you from developing your property as you intend. A visit to the local planning department will clarify your options for building.
Consider what type of home would best suit your lifestyle. Create a checklist to itemize the "must-have" interior and exterior features of a house that you feel are absolute requirements. Make notations about yard size, paint, roof and window conditions for the exterior, and floor plan, room quality and condition of the appliances for the interior. Bring your lists to your real estate agent. Together you can look over the currently available properties that correspond to your needs.
