Buffalo and Rochester, New York and Detroit, Michigan have always been excellent investor driven markets. The dollar exchange rate to the GB Pound is a lucrative incentive alone, even taking into account the weakened GB Pound currently, added with that the low cost investment properties and high yielding net returns ensure these Cities will be popular for years to come.
Navigating the Western New York housing market can be daunting, with many pitfalls for a novice investor looking to benefit from the huge potential there. Unknown realtors can exploit the foreign national investor, and there are some unscrupulous real estate companies that I would NOT advise you work with.
There are bad streets as in any City, but also many areas of higher priced homes in suburban middle class districts that attract renters, negligable void periods and growth.
Sellers can be desperate to sell, as they are foreclosing, have to liquidate, or have properties that are managed poorly. Where this can be of obvious benefit to an investor who will take advantage in these situations, often the properties will not have been maintained, to the detriment of the new owners. Effective liaison with your realtor and professional licensed home inspectors will ensure you have the facts about the condition of the property you are intending to buy, and they will guide you accordingly.
Good Property management companies are hard to find, I have two excellent companies in each City of interest. This is the ultimate key to successful investing, as your investments are thousands of miles away, you need to have total control via your management contacts, who are in constant communication by email and phone, looking after your property with 100% commitment to you, and your money!
Single family properties versus multi family units?
Single family homes are detached properties that normally have one family renting. The benefits of this are....
- Maintenance costs are lower-
As singles only have one set of mechanics and electrics, and are smaller than two family properties, they will require less in service and refurbishment costs over the years.
- The management is easier-
With only one family occupying, the management teams are in a better position of control.
- The resale potential is better-
As you will only be sourcing properties in the best areas of your chosen City, local owner occupiers will be aspiring to move into these desirable areas themselves, thus giving a much better chance of a higher resale, a positive exit stragegy!
Multi family units
Two family investment properties have two sets of tenants under the one roof, and are laid out as apartments with separate entrances and utilities, normally one above the other, sometimes side by side.These properties can yield a higher net return, with two sources of rent income and can be secured at close to the prices of a single family home.
- Higher net returns-
If your investment strategy is pure rental profit, then these will be ideal for you.
Multi family units will however require more maintenance, are more difficult to manage and the resale potential will be limited to other investors and locals who choose to live in one unit and rent the other out to cover their costs. Two family units should be the limit of your expectations. Three/four unit properties have higher void periods, are much more difficult to manage and the costs for maintenance can far outweigh any profits made. Steer clear of more than two units at all costs!
MLS property listings- what to look for?
I will give you knowledge of exactly what to look for when you begin receiving these listings via email. Cut out the work required in a simple easily explained module of relevant information designed to make your choices that much easier to make. It's easy when you know how!
Property investment tools of the trade.
These are tools of the trade to assist you in deciding on the property invetsment for you. Street prices, area and pertinent demographic information on the property you select will be available. Maximise the potential..minimise the risk.
ECONOMIC OUTLOOK FOR THE USA HOUSING MARKETS 2008-2011
The gross domestic product (GDP) rose slightly in the last quarter of 2008, levelled off and dropped slightly in 2009, and has regained strength again as we head into mid 2010. This is a good indicator that the USA is passing through the 'recession' currently being experienced there. The recession started there first, and will end there first.The economy there is more robust and bullish than people think. Remember, real estate only makes up 12% of the overall economy, and in many states the job growth is rising. USA is a huge market and local economic drivers are different specific to each state. Western New York is seeing house price rises, having been the 'poor relation' to many other states over the past few decades, now this area of New York is truly coming into its own. The prices here have gone as low as they can, and will only go UPWARDS in the coming years.
Florida is a huge state in itself, and again each county/area within the state have suffered in different ways to the credit crunch. Leading economists predict a steady rise in house prices into 2010 and improved growth into 2011/12. The population is ever increasing, and is set to overtake New York City in the population rankings of the USA. Prices in many counties there have 'bottomed out' and are now set to continue levelling out and then increasing towards the end of the year, it truly is the best time to buy there. The heralding of a new president marked a new era and with it provide new import/export links not achievable in president Bush's reign. The smart investor is heading for the USA, as it is head and shoulders above any other country in the world at the present time. Its bargain hunting time, and Dollar Property Investment LTD are here to help! There are many economic indicators used to predict the market outlook, and whilst there is no guarantee nor certainty in the future, these indicators are used by leading economists from all over the world to gauge the true performance of any given country.
My Property Clock- UNIQUE to Dollar Property Investments LTD!
Having studied the economic indicators and discussed the short term future of the USA housing markets with leading experts, I have created a unique 'PROPERTY CLOCK' which will show when to buy, when to hold firm, and when to sell depending on whether the investment is purely for rental income or for vacation/leisure purposes. See the link to my property clock here!