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Now is Great Time to Own Rental Property

The July 2009 issue of Forbes magazine examines the rental market for several U.S. cities.  Their conclusion is that returns are now better for landlords than those from investing in stocks.  With many stock portfolios, 401K's and IRA accounts declining by over 35% in the last ten years, many people are re-evaluating where to put their money.  While more hands-on than stock investing, returns from rental real estate are now much greater than from the stock market.  Indeed, the Forbes article points out that the cap rate (annual rent minus expenses divided by sales price) on residential rental property is much greater than the current yield in the stock market of 2.4%.  The average cap rate for Atlanta, GA is 8.7%, placing it at number 7 in Forbes list of top 10 cities with the best returns for landlords.

The return on investment, coupled with an abundance of deals resulting from foreclosures, makes now an absolutely fantastic time to buy investment properties.  Furthermore, recent price declines are allowing investors to pick up properties at a fraction of their selling prices from a few years ago.  Call us at 678-524-0833 or click the "Fixer Upper & Rehab Deals" link to the right for a Free list of bargain properties and start increasing your returns today!

Investing Basics

Every intelligent person knows the importance of planning and investing for the future. The tough part is that there are so many difficult and critical decisions to make. Everyone you talk to has his or her favorite and “perfect” investment. So who do you believe? And what is the “perfect” investment??  First off, you need to realize that

THERE IS NO SUCH THING AS THE PERFECT INVESTMENT!

All investments are a trade-off between risk and return. An investment with a high return will have a corresponding high degree of risk. On the other hand, a “safe” investment with low risk will offer a lower return or profit.

Therefore, any investment is a compromise -where each investor must weigh the different levels of risk and return for any given investment. One investor may be willing to take more of a risk in exchange for the potentially large returns, while another is more comfortable with safer, less risky investments. There is no perfect investment for all people.

With that said, let’s talk about the basics of financial planning. Before doing anything else, the first steps are to pay off any high interest consumer debt (i.e. credit cards), fund your retirement accounts, and save up a “safety net” cash reserve.

If you don’t have the money to do these things, you need to start spending less and saving more (what a concept) so that you do. If you don’t take these vital first steps, you will never, ever be wealthy.

Once you have taken the above basic steps, you are ready to invest for your future, invest for growth, and invest to be wealthy!! From this point forward, we are going to assume that you are ready. A moment ago we stated that there is no such thing as the “perfect” investment, and this is true. But one thing is for sure….

REAL ESTATE IS AS CLOSE TO PERFECT AS YOU CAN GET!

Many people want to invest in real estate, but they just don’t know exactly how to get started. There is a lot of bad information out there, and people generally have lots of questions. To cover everything in an organized, logical manner, we'll look at the most common questions- and discuss the answers in future posts.

Our Best Buys - July 14, 2009

Click the MLS number below to see more information on these Best Buys!

MLS #: 2589641 - LOVELY SPLIT LEVEL HOME FEATURES 3 LARGE BEDROOMS, 2.5  BATHS, FORMAL LIVING, FORMAL DINING, SUNKEN FAMILY ROOM.  EASY TO SHOW.  $49,900

MLS #: 2680354- SPACIOUS AND OPEN RANCH WITH GREAT POTENTIAL. OPEN FAMILY ROOM WITH FIREPLACE. DINING AREA. MASTER BEDROOM WITH VAULTED CEILING. NICE YARD. NEEDS SOME COSMETICS.  $49,200

MLS #: 2669559 - NICE SPLIT LEVEL HOME CLOSE TO I-285 - 2 FIREPLACES, NICE YARD AND MORE! SOLD AS-IS, NO TERMITE/DISCLOSURE.  $49,900

Check back each week for more Best Buys or CLICK HERE to be instantly notified of the latest Best Buys!

Builder Bargains Now Available!

New home builder serving Gwinnett, DeKalb, Rockdale and Newton counties just announced a special incentive.  Buyers are asked to bring their best offer.  Any reasonable offer will be considered. Some terms and conditions apply.  Call or email us today to find out more about these beautiful homes.  Most are priced from $130K's - $200K's.  Email us at: Bargains@BuyAtlantaBargains.com.

Obama Extends Mortgage Refinancing Program!

With home prices still falling, administration opens up rescue program to homeowners whose loans are 125% of their home's value. 

 NEW YORK (CNNMoney.com) -- The Obama administration is widening its mortgage refinancing program to allow more borrowers hit hard by falling home prices to take part.

     Borrowers whose loans are now worth up to 125% of their home's value are now eligible to refinance their homes under the Obama foreclosure prevention plan announced in February. Previously, the limit was 105%.

      The move acknowledges that home prices in many areas have fallen so far that many people were shut out of the program. Some 67% of homeowners in Las Vegas -- one of the hardest hit areas and where Housing Secretary Shaun Donovan announced the expansion Wednesday -- owe more than their homes are worth.

      More than one in five borrowers are now underwater, with homes in parts of California and Florida losing more than 50% of their value, according to Zillow.com, a real estate Web site. Some 20 million people own homes worth less than their mortgages.

     "The president's Making Home Affordable plan is already helping far more than any previous foreclosure initiative and with today's announcement we will extend its reach still further," said Donovan.

     Some 20,000 loans have been refinanced so far, according to the Treasury Department.  The initiative waives the requirement that homeowners have at least 20% equity in their home, allowing them to take advantage of today's lower rates. Homeowners must still meet other criteria, including being current on their payments and having loans that are owned or backed by Fannie Mae or Freddie Mac. 

Click Here For More!

 

Article Courtesy of...
Harry Apollon Mortgage Advisor Cell 678.860.9353 harry.apollon@mycovenantmortgage.com

Better Than a Bank Foreclosure!