The Lake Havasu Real Estate Market Has Strange Ups And Downs

Lake Havasu City, AZ is one of the more unique retirement and vacation locations in the United States. The city has grown significantly since its humble beginnings in the early sixties, but although there has been a progression and regression in housing in Lake Havasu that has loosely followed the national market, there have also been several anomalies that have improved real estate values in Lake Havasu, and they might surprise you.

Robert Paxton McCulloch was an entrepreneur and real estate developer who founded Lake Havasu City in 1963. He had made a large amount of money in the chainsaw business under a brand that bore his name, and had diversified this business into several others, one of which was the development of land and communities. When McCulloch founded it, he realized that the remote location would provide several challenges to attracting tourists, as there was really not much reason to visit except to relax on the Colorado River and enjoy the obvious water sports and boating that accompany a close proximity to lakes and rivers. McCulloch purchased the London Bridge and reconstructed it to span the river, completing the project in 1971 and creating an instant tourist attraction that began bringing both tourism and revenues to the community. What started as an Army rest stop in 1958 had become a retirement and vacationing community, complete with a world class tourist attraction.

The booms of Lake Havasu tourism came later, when it became one of the leading spring break destinations for college students to enjoy their spring vacations from school. Spring break destinations are generally a viral concept, with popularity being generated by “where are all of the other students going” sorts of questions. The actual location of spring break activities is less relevant to students than where the majority of their friends are going to be. Lake Havasu became an affordable alternative for University Of Arizona students to enjoy their break, being more accessible and less costly than other destinations in Florida or Jamaica. As more students came to the area during their break to have fun and enjoy the festivities on the Channel, word spread and eventually it became one of the most popular spring break destinations in the country. An entire industry catering to spring breakers was born, and injected millions into the local economy.

The biggest boost in tourist attractions to the area came when a movie called “Piranha 3D” was filmed in Lake Havasu. Portraying spring breakers being terrorized by killer fish in the river may have been ludicrous, but it did spread the word to students worldwide that Lake Havasu was the place to be during that time of the year. While the initial surge of spring breakers to the area has dropped off over time, the realization that Lake Havasu will be the place to find other college students in March of every year is well known, and the real estate in the area benefits from that knowledge.

Landlords and property owners in the area realize that there are several distinct times when their rental prices can increase dramatically. One time of year is when the “snow birds” vacation in Lake Havasu. These are middle aged people who come to the area during late December to late February in order to relax in the warm temperatures that are not going to be seen in their home states until summer. The other time is during March, when demand for short-term rentals for spring breakers drives prices through the roof. Many landlords will literal charge the same prices for a one-month stay in their properties than they would for a three month stay at any other time of the year. It is common for “snow birds” to purchase vacation property and rent it out for the periods that they are not there, paying for their mortgage and getting a free rental in a beautiful boating community for a few months out of the year.

Lake Havasu has always been a destination for relaxation, retirement and vacationing activities. With the new influx of large amounts of spring break money, the community is changing from exclusively “retirement based” to being more of a diversified population. More young people are being attracted to the area as jobs are created, and the face of Lake Havasu is changing as a result.

Stages Of A Real Estate Market

The stages of a real estate market are most often recognized only after the fact. Even when all the historical data confirms that a downturn is in progress, most speculators won’t stop gambling. Real estate speculators call themselves investors because they believe they are taking calculated and controllable risks when purchasing homes.

In the mid to late 1990’s real estate investing was virgin territory because it was easy to use formulas of 60% to 70% of Fair Market Value minus repair costs to determine an offering price for a seller. The “chant” was “Get as many properties under contract because they can only go higher!” In the earlier years, buying properties cheaply enough allowed them to be rented and they supported themselves while the investor simply collected checks. In only three years, a groundswell of speculation led to frenzied buying. Families looking for a home to live in got caught up in the buying panic because of the scarcity of homes for sale. The market quickly and efficiently climbed with the help of lending institutions who were offering low interest rates, 100% financing, with no proof of the buyer’s income. Almost no other speculative opportunity in history caught on as fast because of real estate investors needing little or no money down and ease of loan qualification for “retail buyers”.

Even when many of the potential borrowers had credit issues and minimal down payments, the lenders created more lenient loan requirements. The number of single family homes that were owned by investors rose from 2.5% in 1995 to almost 29% by the end of 2006. Effectively, these investors took away at least 26.5% of available single family homes with the intent of selling them at higher prices to retail home buyers.

Here is a summary of the stages of a real estate cycle:

Stage #1 This is where supply closely equals demand and home prices fluctuate between +/- 3% per year and prices are basically stable over a five year period.

Stage #2 Here demand out-strips supply, or a “sellers’ market” develops because of fewer homes on the market. This can be created by investor speculation.

Stage #3 – Here demand far out-strips supply with resulting large annual price increases. Homes now offer new speculators more attractive yields than stocks and money market instruments. More so called “investors” begin buying multiple properties with expectations of selling for huge profits because of the low down payments required for mortgages or using creative financing. The market begins to feed on itself as homeowners begin to rush to take profits.

Stage #4 As home prices become unaffordable, interest rates increase making financing costs too expensive for homeowners to purchase, and investors have inventory that can’t be sold. Seemingly everyone tries to sell and the market readjusts to former market conditions by pulling back as much as 30% to 60% of peak values as the market begins to stabilize for 3 8 years.

Summary – Based on the current market conditions and continuing available data, the real estate market is well into Stage #4. There is no way to determine how long this swing will last but historically they have lasted for 6 to 15 years. This stage offers huge opportunities for real estate investors and homeowners alike that want to purchase homes either for living in for 5 years+ for homeowners, or for “flipping” for investors. Both homeowners and investors looking to buy a property need to be very selective about how much they pay for a property, the amount of costs to rehab it, how they will be financing it, how long they intend to stay in it, the carrying costs, other properties currently listed on the MLS, and neighborhood conditions. Unfortunately, retail buyers who wait to get the lowest possible price often wind up paying higher mortgage rates which offsets the cost savings by waiting, especially when you include their cost to rent, and the interest tax-deduction that they lose by not owning. Investors will have to buy low and sell low, while the retail buyer has become “king of the mountain” in picking the best possible home for the lowest price.

Istanbul’s Real Estate Market and Why One Should Invest in It

Istanbul is one of the oldest inhabited places on planet earth. With its history dating back to an almost 650BC when it was first established as a Greek village, the settlement soon developed to become one of the most historically significant metropolises in Eurasia and the Mediterranean.

With the city being the seat of power for the Eastern Roman Empire, later the Byzantine Empire, that was a medieval expansion of the former regime and later on a Turkish metropolis, the city has exchanged several peoples and changes in governments and kingdoms for almost twenty centuries! The history of Istanbul is in itself a history of two millennia of civilizations that have ruled it.

Considering that, it might suggest to you that Istanbul is definitely a place to visit. However, it’s more than just a tourist destination. It’s an economic powerhouse and a huge metropolis with several cultures already existing under it. Of course, not to forget the blue waves of the Bosporus that add such dynamic color to the whole horizon. Climatically, the city remains laid back and cool with some chilly winters and warm summers. Tourists not just come here to visit, they also come here to invest!

That’s right. Istanbul is also home to some of the most expansive real estate projects being underway when you consider Eurasia and areas adjoining Turkey in the north of what is now the Balkans. Being a metropolis, nowhere to be seen elsewhere in the surrounding areas, Istanbul boasts off districts like the Levant that are its economic powerhouses. Some of the largest skyscrapers in Turkey are located here with some of the biggest offices. Not just that, Istanbul real estate market also consists of residential apartments and commercial centers nowhere to be seen in the adjoining areas. Invest in properties and apartments in the Beylikduzu district; with a fee of $60,000, you get an ultra luxurious apartment complete with quality furnishings, beds, dining tables and more. Go a notch higher and invest in the apartments to get a nice blend of greenery and comfortable family apartments. You name it all, Istanbul has everything to offer!

Not just the financial factor, Istanbul offers investments that are at par with global standards of financial regulation and security to investing parties. When you buy a residential apartment or rent it out for someone, you’ll get a full time guarantee in the form of government and authorities’ issued documents and certificates that are fully secure and authentic. Istanbul property market is thus a jewel for those willing to stay here and invest in real estate. We welcome you to Istanbul!

Kurt OZ is an author of Q Real Estate Center, provides consultancy for your Istanbul real estate for sale needs. If you are looking to buy a property in Istanbul (apartments, residences, villas, lands), our professional team will be glad to help you.

Real Estate Market in Montgomery County MD

Montgomery County offers neighborhoods radiating from Washington DC. The homes are newer and more affordable as they venture from the Capital Beltway. With newer construction. Close-in communities have the priciest homes, but also the best commuter locations. New communities along the I-270 corridor offer a range of modern styles and sizes. Along the crest of the county, there are sprawling farms and horse properties.

If you plan on selling a home fast, realtors suggest the following information about selling a home. Paint rooms, having colors that may not be appealing to everyone, a more neutral pallet. Painting is a relatively inexpensive preparation. Store clutter and depersonalize the home. Do some inexpensive landscaping and paint the door to improve the outside appeal.

Statistics show a 20 percent increase in homes sold in May of this year over May of last in Montgomery County. The inventory currently available is 20 percent less than this time last year. Last May, $412,000 was the median sales price of homes sold in Montgomery County. This year, the median sale price was $420,000. That is an $8000 or two percent increase over last year. The median price is a price in the middle of the statistics. There are an equal number of properties that sold below or above the median.

Relocation is the most common reason people need to sell a home. The average length of time people stay in their homes is 11 years. A new job offer is a common occurrence that makes relocation a necessity. Selling a home is often a big obstacle when accepting a new job.

The options in the pursuit of selling a home fast are selling the home yourself, employing a real estate agent, or selling to a real estate investor. Investors need knowledge of any new laws that pertain to real estate investment. The real estate market is full of complexities, and new laws are likely to contain intricacies. If selling a high-end residential property, it is advisable to go through a real estate agency or have a lawyer draft a contract for the sale of a home. The lawyer reviews all documents necessary for the settlement transaction.

Take the effort and time required to sell a home yourself into consideration. Classes are available with a cost somewhere between $100 to $200 that teach how to sell your home. Choosing this option mean there is marketing cost.

How to Identify Emerging Real Estate Markets

If you are interested in making a career out of real estate investment, it is important to have the ability to spot emerging markets before they reach their full potential. This allows you to get in early and support the growth of the market, while also ensuring that you are in a position to make as much money as possible form your initial investment.

Of course, that sounds far easier than it actually is, as it is not always easy to see where the next market is going to emerge and it can often be difficult to get all of the pieces of the puzzle to align so that you can take advantage of it.

Here we will look at a few tips that will serve you well when you are considering your investments.

Take Away Personal Taste

If you are looking to invest in property, the first thing that you need to do is take away your own personal tastes. After all, the property isn’t intended for your own use, so what you think about it is actually not all that much of an issue.

Instead, try to consider how the property fits into the surrounding area and if there is going to be a demand for what it has to offer. Cheap apartments, for example, may not be to your personal taste but they may well serve a purpose to the area in which they are being built. Put your business head on and try to see the big picture in terms of how the market looks in a particular area.

Get In Early

The term “emerging” is important to consider here, as your investment will be worth less if you jump on a bandwagon that is already well-established. Keep your eyes open for news of potential investments and try to get on board at the earliest possible stage, so that you can reap the largest rewards at a later date.

Of course, this doesn’t just mean that you should invest in everything that is just starting up. Consider the reputations of the people behind the project and their previous successes. Be sure to meet with them to discuss their plans and the research they have put into the project, and be very wary of anybody who is not willing to speak to you directly but still wants you to invest in their venture.

Know The Local Market

The property market is extremely complex, with national cycles not always matching up to the way that the market is going in various localities. As such it is extremely important that you do the research into any area that you are looking to invest in and, just as importantly, you keep on top of the changes in that market that are always bound to happen.

Simply put, you are not going to make any money if you invest in a project where there is no demand. Find out if the area is a renter’s market, or a comfortable place for people to purchase a first home and look for upcoming projects that will satisfy that demand.

Hiring A Top Real Estate Agent The Key To A Good Sell

So you’ve decided to sell. Or buy. Either way, purchasing a new home is without doubt an important milestone in your life. If you are going to take this step, why not be smart about it and contact the top real estate agents available in your area? Selling or buying on your own is not out of fashion, but quite a risky and unwise process, from several points of view. A top real estate agent will, undoubtedly, guide you to make a good decision.

There are more ways to determine whether the expert you’ve chosen to help you is indeed a top real estate agent or not. You should probably inspect his negotiation skills before thinking of his other qualities. He needs to be a pro at whatever can get you a better price and better features for your transaction. The top real estate agents will be masters in the art of compromise and won’t even blink when they are all caught up in a battle” for their clients. Dedication and honesty towards you, the client, are also crucial.

In case you’re selling your home, you definitely need to begin seeing things from the perspective of the buyer. The top real estate agents will help you do this. You need to figure out what would motivate people to move into that house or that particular neighborhood, if there are any special facilities closely related to the area your house is located in and what kind of people would be interested in it. There are dozens of factors to think about when selling and tempting a certain targeted clientele, but as said, a top real estate agent can assist you in getting the best price for your property.

You also need to remember that getting your house evaluated is an essential stage in the selling process. You do, of course, need to test those which you consider to be the top real estate agents in the area by studying their offers and deciding which one of them charges less, but is also fit for the job. Be very careful with small details. A top real estate agent will most likely be punctual or at least come up with a valid reason for being otherwise. Keep in mind that you have to impress your house has to be tidy and looking squeaky clean before your agent even arrives. Think of him as a potential buyer you need him as interested as possible in what you have to offer in order for him to be enthusiastic with future buyers.

Needless to mention, information is the key. Before even taking any action, you definitely need to know everything about the procedure itself, plus the other prices offered for similar property in your area and so on and so forth. Use the Internet to your advantage not only regarding the real estate market, but regarding your agent as well – especially the services he is ready to offer. You need to be inquiring about the experience he’s had so far and if he’s got a team of experts ready to make the transactions as smooth as possible.

Finally, you have to be looking out for those few special touches that can greatly increase what people are ready to pay for your house. They’re likely to prefer a home with major improvements, rather than buy a basic one and take care of everything by themselves. The improvements have to be made professionally to save the clients a lot of time and effort spent for fixing things up. So try to take advantage and exploit these tips in your favor as much as you possibly can. If you really do have a top real estate agent, he will know how to sell your house if you have a patio or a well maintained garage. He will underline the qualities your property has in order to attract as many buyers as possible and sell for a high price.

Fiis Raise Stake In Real Estate Stocks

The booming real estate market has caught the fancy of foreign investors and they have raised their stake in a majority of realty firms listed on the bourses. However, some analysts believe these stocks are among the most expensive in the world.
An analysis of the holding pattern of foreign institutional investors (FIIs) in 22 major realty firms shows a majority of them raised stake in the April-June quarter compared with their stake in the previous three-month period.
FIIs increased their stake in 15 companies, including Unitech, Ansal Housing, DS Kulkarni and Indiabulls Real Estate. However, they decreased their holding in seven companies DLF, Atlanta, Era Construction, Lok Housing, Mahindra Gesco, Madhucon Projects and Unity Infrastructure.
The real estate sector in India has witnessed a boom in recent times led by an increase in purchasing power of people, relaxed lending norms by banks and housing finance companies and the growth in retail and IT sectors.
The buying of shares by FIIs in these companies comes at a time when a few analysts believe the country’s realty stocks are among the costliest in the world.
Global investment services firm Standard & Poor’s has said real estate stocks in India are the most expensive and give lower returns than most emerging and developed markets such as China, Singapore, Hong Kong and Australia.
A comparison of price to earnings (P/E) ratio of stocks from various countries showed that valuation of property stocks from the US and the UK moved lower, while those from emerging markets such as India continued to grow.
The P/E ratio is considered a valuation benchmark of a stock, where a higher ratio indicates an expensive stock, while a lower P/E ratio signifies a cheaper stock.
FIIs consolidated their stake by an average of 1-2 per cent, except Indiabulls Real Estate, in which their holding jumped 6 per cent to 44.96 per cent as on June 30 from 37.34 per cent at the end of the previous quarter.