A parklike setting with 3 acres is the setting for this beautiful 4bedroom, 2.5 bath home
Friday, February 12, 2016
Wednesday, February 10, 2016
Increasing Interest Rates and Real Estate Investing
Posted: 08 Feb 2016 07:35 AM PST
In December, the Federal Reserve announced that it will be raising the short-term interest rate for the first time in almost a decade. It has held that interest rate at near zero as a method of stimulating the economy. The initial increase will be mild at an announced rate increase of between 0.25 and 0.5 percent. However, the announcement also indicated that more rate increases are coming if the US economy continues its slow growth or accelerates. However, the world economy remains constrained and that will influence US financial policy as well.
Increasing interest rates will certainly affect the real estate investment business. If you are borrowing money as a mortgage to become a landlord, your business costs will increase but rents are also likely to increase. If you are borrowing money to rehab and flip houses, your cost of interest will increase but it is still a seller’s market with selling prices on the increase.
While the federal interest rate remains extremely low and bank mortgages are around four percent, private lenders are earning between eight and twelve percent. Of course, with that comes a higher degree of risk. Earning the higher interest rate means lending to higher risk borrowers. However, investing retirement funds in a first mortgage provides a high level of security when it is secured by the house or other property. Security can be further increased by loaning no more than 70 percent of the property value and requiring the property buyer to invest the other 30 percent. Of course, the lower your risk, the lower interest rate you’ll be able to charge.
There are very specific rules that you must follow when making alternative investments. One of the most important is that you can’t invest in a company that you personally own or operate nor businesses owned and operated by direct family members. That’s where a self-directed IRA administer comes in. You can place your retirement funds in a trust with the administrator and direct them how you want your money invested. Unlike a financial adviser, they won’t give you investment advice. You have to specifically tell them where you want to invest. Just like a traditional IRA, you don’t financially benefit until you reach retirement age. But upon retirement, you can sell your assets and begin drawing your retirement pay.
Please leave a comment if this article was helpful or if you have a question.
Author bio: Brian Kline has been investing in real estate for more than 35 years and writing about real estate investing for seven years
Increasing interest rates will certainly affect the real estate investment business. If you are borrowing money as a mortgage to become a landlord, your business costs will increase but rents are also likely to increase. If you are borrowing money to rehab and flip houses, your cost of interest will increase but it is still a seller’s market with selling prices on the increase.
Lending Money Is Where the Money Is At
As always, there is risk when it comes to any kind of investing, including real estate investing. One way of minimizing that risk while increasing earnings is by becoming the lender as interest rates rise. A great sources of funds for this are IRAs, 401ks, and other retirement accounts. The secondary lending market (alternative to bank loans) has become much stronger over the past seven or eight years.While the federal interest rate remains extremely low and bank mortgages are around four percent, private lenders are earning between eight and twelve percent. Of course, with that comes a higher degree of risk. Earning the higher interest rate means lending to higher risk borrowers. However, investing retirement funds in a first mortgage provides a high level of security when it is secured by the house or other property. Security can be further increased by loaning no more than 70 percent of the property value and requiring the property buyer to invest the other 30 percent. Of course, the lower your risk, the lower interest rate you’ll be able to charge.
Alternative Retirement Investing
Investing retirement funds is not limited to Wall Street stocks, bonds, and mutual funds. There are many alternatives. One is a self-directed IRA that can be administered by a third party such as PENSCO (there are other self-directed IRA administrators). These types of accounts allow you to invest your retirement funds in alternative investments such as real estate. You can either directly purchase the real estate or loan money secured by real estate. You can also buy stocks in private companies and have many other investment opportunities.There are very specific rules that you must follow when making alternative investments. One of the most important is that you can’t invest in a company that you personally own or operate nor businesses owned and operated by direct family members. That’s where a self-directed IRA administer comes in. You can place your retirement funds in a trust with the administrator and direct them how you want your money invested. Unlike a financial adviser, they won’t give you investment advice. You have to specifically tell them where you want to invest. Just like a traditional IRA, you don’t financially benefit until you reach retirement age. But upon retirement, you can sell your assets and begin drawing your retirement pay.
Please leave a comment if this article was helpful or if you have a question.
Author bio: Brian Kline has been investing in real estate for more than 35 years and writing about real estate investing for seven years
Tuesday, February 9, 2016
Office Battle ends with only one CHAMP
Thanks to the many attendees/judges (62) and for the participants (11 crocks to choose from)for our annual Chili-Cookoff. What a fun day eating and networking. It is amazing how many versions of chilis there are and varieties of tastes.
Congrats to the this years winners. Heidi Buchberger earned herself a $75 gift certificate to the restraunt of her choice for 1st place. Stacey Kruth Guzanick was a very close second, followed by Theresa Olsen Urbanchek and Kelly Savelkoul.
Thank you also to Debby Porter of AT& T Entertainment Services for your presence. We look forward to creating a successful relationship!
We love hosting these events and have more coming.
I am still soooooo full!
Congrats to the this years winners. Heidi Buchberger earned herself a $75 gift certificate to the restraunt of her choice for 1st place. Stacey Kruth Guzanick was a very close second, followed by Theresa Olsen Urbanchek and Kelly Savelkoul.
Thank you also to Debby Porter of AT& T Entertainment Services for your presence. We look forward to creating a successful relationship!
We love hosting these events and have more coming.
I am still soooooo full!
Understanding How Interest Rates Affect the Housing Market
Posted: 08 Feb 2016 03:49 AM PST
Interest rates strongly affect the housing market as most real estate is purchased through borrowed money. The cost of borrowing money through mortgages is directly tied to interest rates. The main ways that money is borrowed through mortgages are fixed rate and adjustable rate mortgages.
Why and How do Interest Rates Affect Real Estate Values?
Higher interest rates cause the monthly payment needed for housing to increase. Since many individuals look to see what their monthly payment will be when making an asset purchase, less people will be able to afford a higher monthly payment, and the demand for housing will decrease. This decrease in demand will cause a decrease in housing market values as higher interest rates make real estate purchases less affordable.
Lower interest rates are thought to be indicative of a more efficient real estate market as they cause a reduction in borrowing costs. A reduction in borrowing costs will lead to an increase in housing market values. Another example of how efficiency can reduce cost is through property management software. Property management software has helped reduce the cost to manage real estate. If the cost to manage property is less, housing market values will rise because it is a less difficult to own the asset.
Another secondary factor that affects the housing market is that higher interest rates will cause a stronger United States dollar that will reduce the demand from foreign sources of real estate in the United States. This reduction in foreign demand will also cause a decrease in housing market values. Foreign demand for housing has been responsible for some of the high real estate price growth in coastal areas of the United States.
Current Thoughts on How Interest Rates Are Affecting the Housing Market?
Interest rates have been kept at historically low levels since the Housing Bubble of 2007-2009, many economists believe that asset values have been inflated by extremely low interest rates. Housing market values and stock market asset values have increased both by around 50% over the last seven years and many believe the cause is interest rates and leverage.
Interest rates are a very important factor in the value of assets in the housing market. Since the values of the housing market are tied to interest rates, interest rates are a crucial factor in determining how strong the real estate market is.
Higher interest rates cause the monthly payment needed for housing to increase. Since many individuals look to see what their monthly payment will be when making an asset purchase, less people will be able to afford a higher monthly payment, and the demand for housing will decrease. This decrease in demand will cause a decrease in housing market values as higher interest rates make real estate purchases less affordable.
Lower interest rates are thought to be indicative of a more efficient real estate market as they cause a reduction in borrowing costs. A reduction in borrowing costs will lead to an increase in housing market values. Another example of how efficiency can reduce cost is through property management software. Property management software has helped reduce the cost to manage real estate. If the cost to manage property is less, housing market values will rise because it is a less difficult to own the asset.
Another secondary factor that affects the housing market is that higher interest rates will cause a stronger United States dollar that will reduce the demand from foreign sources of real estate in the United States. This reduction in foreign demand will also cause a decrease in housing market values. Foreign demand for housing has been responsible for some of the high real estate price growth in coastal areas of the United States.
Current Thoughts on How Interest Rates Are Affecting the Housing Market?
Interest rates have been kept at historically low levels since the Housing Bubble of 2007-2009, many economists believe that asset values have been inflated by extremely low interest rates. Housing market values and stock market asset values have increased both by around 50% over the last seven years and many believe the cause is interest rates and leverage.
Interest rates are a very important factor in the value of assets in the housing market. Since the values of the housing market are tied to interest rates, interest rates are a crucial factor in determining how strong the real estate market is.
About the Author: Lizzie Weakley is a freelance writer from Columbus, Ohio
Monday, February 8, 2016
2015 RE/MAX Realty Center Awards
Hard work and dedication pays off! 2015 "Sales" numbers are in and counted.
Congratulations to the following REMAX Realty Center, Real Estate in Wisconsin agents for a great year. Each of you are off to a great start this year too!
Kudo's to Chris Berkel, Jennifer Schuster-Yanke, Reid Brueser, Jan Husak, Kristin Johnston, Heidi Buchberger, Glenn Shong, Amber Castonguay, Larry Stanul.
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