Using appreciation as a measure, condominiums in some areas have been as profitable an investment as single family homes in the last five years. And in some markets, condos appreciated even more, according to some experts.
While single family homes have been the preferred investment by home buyers, changing demographics are helping make condos more popular, especially among single home buyers, empty nesters and first-time buyers in high-priced markets.
Also, the condominium community has worked hard in the last few years to overcome image problems brought on by homeowners association and developer disputes as well as all too frequent construction-defect litigation.
Distressed properties or fixer-uppers are everywhere, even in wealthier neighborhoods. Such properties are poorly maintained and have a lower market value than other houses in the neighborhood.
Many experts recommend that buyers find the least desirable house in the best neighborhood and then decide if the expenses needed to bring the value of that property up to its full potential market value are within one's budget. Most experts say inexperienced buyers should avoid run-down houses that need major structural repairs and instead look for properties that only require cosmetic fixes.
Qualified rehabilitated buildings and certified historic structures currently enjoy a 20 percent investment tax credit for qualified rehabilitation expenses. A historic structure is one listed in the National Register of Historic Places or so designated by an appropriate state or local historic district also certified by the government.
The tax code does not allow deductions for the demolition or significant alternation of a historic structure. Check with your accountant or tax professional for any changes that may have occurred.
Resources: * National Trust for Historic Preservation, Washington, D.C.; (202) 588-6000.
If you're getting ready to embark on a home improvement project involving contracting help, "Ready, Set, Build: A Consumer's Guide to Home Improvement Planning Contracts" lays out a road map for selecting the right contractor, obtaining competitive bids up to what to include in a contract. There also is information on consumer rights, liens and financing.
The book is available for $9.95 through Consumer Press and Women's Publications, Inc., Dept. SR01, 13326 Southwest 28th St., Fort Lauderdale, FL 33330-1102; (954) 370-9153.
Resources: * Profiting From Real Estate Rehab, Sandra M. Brassfield, John Wiley & Sons Inc., New York; 1992. * Remodeling magazine's annual "Cost vs. Value Report", available for a nominal fee from the magazine; call (202) 736-3447 to order a copy.
The U.S. Department of Housing and Urban Development's Section 203 (K) rehabilitation loan program is designed to facilitate major structural rehabilitation of houses with one to four units that are more than one year old. Condominiums are not eligible.
The 203(K) loan is usually done as a combination loan to purchase a fixer-upper property "as is" and rehabilitate it, or to refinance a temporary loan to buy the property and do the rehabilitation. It can also be done as a rehabilitation-only loan.
Plans and specifications for the proposed work must be submitted for architectural review and cost estimation. Mortgage proceeds are advanced periodically during the rehabilitation period to finance the construction costs.
For a list of participating lenders, call HUD at (202) 708-2720.
If you are a veteran, loans from the U.S. Department of Veterans Affairs also can be used to buy a home, build a home, improve a home or to refinance an existing loan. VA loans frequently offer lower interest rates than ordinarily available with other kinds of loans. To qualify for a loan, the first step is to apply for a Certificate of Eligibility.
Another program is the Fedeal Housing Administration's Title 1 FHA loan program.
Resources: * "Rehab a Home With HUD's 203(K)" brochure, U.S. Department of Housing and Urban Development, 7th and D streets S.W., Washington, DC 20410.
Remodeling magazine produces an annual "Cost vs. Value Report'' that answers just that question. The most important point to remember is that remodeling a home not only improves its livability for you but its curb appeal with a potential buyer down the road.
Most recently, the highest remodeling paybacks have come from updating kitchens and baths, home-office additions and extra amenities in older homes. While home offices are a relatively new remodeling trend, for example, you could expect to recoup 58 percent of the cost of adding a home office, according to the survey.
You can find distressed properties or fixer-uppers in most communities, even wealthier neighborhoods. A distressed property is one that has been poorly maintained and has a lower market value than other houses in the immediate area.
Ascertaining whether the property you're interested in is a wise investment takes some work. You need to figure what the average house in a given area sells for, as well as what the most desirable houses in that area are like and what they cost.
Some experts suggest that buyers who take this route try to find a "cosmetic fixer" that can be completely refurbished with paint, wallpaper, new floor and window coverings, landscaping and new appliances. You should avoid run-down houses that need major structural repairs. A house price that looks too good to be true probably is. A smart buyer will find out why before buying it.
The basic strategy for a fixer is to find the least desirable house in the most desirable neighborhood, and then decide if the expenses needed to bring the value of that property up to its full potential market value are within one's rehab budget.
So let me ask you as we are all moving closer to celebrating the Hanukkah and Christmas seasons. Are you under the impression that all of the clean-up of storm damaged homes and the rebuilding of the lives of the many families who suffered the devastating effects of hurricanes Ivan, Katrina, Rita, Ike and Gustav is all finished with nothing more for you or anyone else to do to help? Did you think that that the government stepped in and made them whole? Are those poor soles out of your sight and so, out of your thoughts and prayers too?
I live and work in Biloxi Mississippi, so needless to say I am somewhat of an authority on this subject. I am proud to report that we, the residents of the Mississippi Gulf Coast, are a resilient bunch of folks and even though we still have quite a way to go before we are completely recovered from hurricane Katrina, we are still a lot further along that the proud folks of Cameron Louisiana who were hit with hurricane Rita and more recently, hurricane Ike.
I and my friend, The Reverend Jane Bearden, took a truck load of donated household goods, donated by the members of my church, the Episcopal Church of the Redeemer, to that humble Cajun country community on Thursday. A day that I could quite confidently define as the worst possible day of the entire calendar year to make this trip. Believe it or not we were stranded for five and a half hours on Interstate 12 in a snow storm! That's right, a snow storm in the beautiful, usually tropical deep South. So what started out as a six hour round trip journey to help out fellow storm victims turned out to be an all day excursion. By the end of the trip we were both exhausted and speechless. We were tired from driving of course, but also speechless from the devastation that we witnessed there in Cameron. We were also so very incredibility thankful for the opportunity to be able to offer our tiny bit of help to such an incredibly thankful group of people.
So if you're feeling a little stuck this holiday season for a creative way to make a difference in a world that seems to be falling apart around us all, take a moment to consider helping someone less fortunate than yourself. Collect the things that those people need to put their lives together again, and bring it to them. Raise money to help put a roof over a family. Do volunteer work while your taking a few holiday vacation days off. It doesn't have to be help to just hurricane victims either. There are opportunities close to your own home too. Please don't miss the chance to help your fellow man, woman or child.
The official web site for Landmark Properties - Wheeler & Associates, Inc. received a full "make over" today. Stop by and have a look and let us know what you think.
While there please take a little time to check out the properties that we are currently marketing or search the Mississippi Gulf Coast Multiple Listing Service database for residential or investment properties. We offer buyer representation for the properties that you find there and would be happy to hear from you.
Commercial and public building permits logged in the three South Mississippi counties for the week ending Dec. 01, listed by owner.
BAY ST. LOUIS
Hancock County Port and Harbor, 1301 Seaplane Road, Port Bienville, $82,000, metal building.
BILOXI
1726 Beach Blvd., $6 million, new Best Western hotel, AFC, Inc. ABC Child Development Center, 1900 Popp's Ferry Road, $400,000, metal building, Starks Construction Company, Inc..
D'IBERVILLE
Byrd Apartments, 3073 Borries St., $34,000 each, three apartment buildings, T.J. Contractors.
Residential building permits logged in the cities and unincorporated areas of the three South Mississippi counties for the week ending Dec. 01: Bay St. Louis: 4; Biloxi: 2; Diamondhead: 0; D'Iberville: 1; Gautier: 0; Gulfport: 4; Hancock County: 3; Harrison County: 2; Jackson County: 1; Long Beach: 2; Moss Point: 4; Ocean Springs: 4; Pascagoula: 1; Pass Christian: 2; and Waveland: 2.
Disclaimer: ActiveRain Corp. does not necessarily endorse the real estate agents, loan officers and brokers listed on this site. These real estate profiles, blogs and blog entries are provided here as a courtesy to our visitors to help them make an informed decision when buying or selling a house. ActiveRain Corp. takes no responsibility for the content in these profiles, that are written by the members of this community.
;)
;)
