It seems like everything is growing like a weed this summer, literally! We’ve had interesting weather ranging from the high 50s to the low 100s swinging back and forth sometimes over only a few days time. These vast temperature swings have created a fertile growing season – for those plants we love as well as the weeds we hate. RMA is busy driving by your properties to check on the condition of the lawns, trees and planter beds. The lawns that were treated with weed and feed in the spring are immediately evident from those that were not. Vastly fluctuating temperatures makes it difficult to maintain the right amount of irrigation. It somehow doesn’t seem fair that the weeds thrive most when conditions create a stressful environment, (either too much water, or not enough). A well fertilized lawn treated to suppress weeds in the early spring, will fare best through the stresses of summer.
If your property has shrubs and/or perennials you may be receiving a note from us suggesting a little extra garden maintenance before these plants get out of control. Your tenant’s lease agreement requires them to keep small shrubs and simple landscaping weed free and tidy, but some more mature landscaping is growing beyond the ability for many tenants to maintain.
In Need Of Services?
Last month I discussed the topic of when to buy, sell or hold. For those of you who are looking to add to your portfolio, interest rates are in your favor! Remember, RMA is pleased to connect you with our trusted referral partners. If you are looking for services from real estate agents, home inspectors, HOA management, home appraisal or title and escrow services, reach out to us. We would be pleased to pass along the names of experienced professionals servicing the investment and residential real estate industry. We also sometimes hear of investment properties available at wholesale, so if you are looking, be sure to get on our list of people to notify when a deal shows up.
Record Low Interest Rates Offer Options
Guest contributor: Blair Snell. 208 957-3189 firstname.lastname@example.org
With interest rates at an all time low, there couldn’t be a better time to take care of any deferred maintenance you may have been procrastinating on. Investment property kept in good condition will pay back in dividends when it comes time to sell. And a rental in good repair attracts quality tenants who will pay maximum market rent for a quality home. If you haven’t had the cash to take care of those pesky repairs pulling some cash out through refinancing could be an excellent solution.
Alternatively, a refinance could increase your monthly cash flow or perhaps fund a new investment property.
Here are some examples of what you may be able to achieve with a refinance:
- Qualify for a lower interest rate, which will lower your monthly payments
- Convert your adjustable-rate mortgage (ARM) to a fixed-rate loan, which will keep your payments safe from possible interest rate increases
- Shorten your loan’s term to save even more money
- Combine a first and second lien to a single loan for simplicity and savings; when the 1st and 2nd lien are combined into a single loan, this must be structured as a cash-out, if the 2nd lien was not a purchase money mortgage.
- Tap into your home’s equity with a cash-out refinance and use the cash to fund home improvements, college tuition, investment properties or other major expenses.
Vacancy Stats Are In!Check out NARPMs second quarter vacancy stats here.
What’s Happening in our Local Real Estate Market?
- In June 2016, the median sales price for new and existing homes combined reached $253,000 in Ada County, a new high surpassing the previous record set in July 2006.
- Pending sales for existing homes in June were up 19.6% over last year, while inventory was down 22.7%.
- In contrast, the median sales price for newly constructed homes in Ada County saw a decrease of 7.7% from June 2015, settling at $304,500 in June 2016. This drop in price is not from a lack in demand, but rather, more lower-priced new construction becoming available and then selling, pulling down the median sales price for the segment overall. Looking at June 2015 vs. June 2016, sales of new homes priced under $300,000 jumped by nearly 71.0%.
- Comparisons to 2006 home prices beg the question of whether or not we are in another housing bubble. Today’s lending environment is so much more regulated than it was back then, and the national and local economy is much stronger. Economists discount the bubble fear claiming what is really behind the consumer demand is population growth, both in the number of people moving to the Boise region, and the huge number of Millennials—the largest generation in history—aging into homeownership nationwide.
Source: Boise Regional REALTORS® (BRR)
What Are You Interested In?
This newsletter is intended as a resource and communication platform for you. If there is a topic, relevant to the management of your investment property, that you would like me to write on, please let me know!