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The Time To Buy Is Now

                                                  

Have you been thinking of making an investment in real estate to diversify you investments towards retirement? You’re probably wondering if it is safe to finally start purchasing property again. We have started off 2015 with some amazing investment programs we haven’t seen in years. These programs are making the process of purchasing investment property easier and more affordable. One of our Lender partners is offering 85% financing and cash out on investment properties or non-owner occupied loans. Over the last 8-9 years investment loan packaging has gone up to as high as 70% loan to value financing or 30% down.

Also, Lenders are offering a program that allows investors to buy fixer-uppers that need extensive updating. You can purchase a rundown property, close on the loan, do the updating in an agreed time frame, and the Lender will pay out the construction costs. In other words you can buy that rundown property, close and then do the work. In the past all repairs had to be made prior to closing on any property, so this just didn't happen. This was always too great of a risk to the Buyer and Seller, unless you paid cash. Now, if you want to be an investor, buy a property in need of fixing up and have built-in equity, this can be done.

In addition, Fannie Mae used to have a cap on how many properties could be bought by an investor. The cap ranges from 5-10 and it has been fixed at 10 for quite a few years. But, we were just introduced to a program by a Lender that will offer above that as high as 15 in some cases.

For income properties in 2014 in Ada County, there were 191 units sold (du/tri/fourplex). The highest sales price $450,000 and average sales price was $255,000. Total sales were down from 2013 of 195 but the average sales price was up from $231,956. Again, this year the market is still interest rate driven, dropping into the mid 3% range, something we thought was long gone.

Sales in real estate existing homes in Ada County dropped slightly in 2014 but the average sales price rose to $246,141 from $233,500. Appreciation across the board was a steady 5.41% with industry average being 4%. The largest increase in property value was in the North end, North East end and Eagle. The availability of listing is at a low, so prices will be moving up.

The rates coupled with the programs available to investors and homebuyers (100% financing) are making this an incredible time to buy. For more detailed information on these programs and how it may pertain to you, give us a call.

02-01-2015
Dorothy Hardee
Real Estate Investments
02-06-2015

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