Listing Courtesy of JACK LINGO REHOBOTH
It’s a good thing that the human body is constructed the way it is, which is to make it difficult to do any real damage by kicking yourself. Particularly after many of us recall quite clearly how incredibly low Dewey Beach prices dived during the last decade’s real estate meltdown. When you see the bounce back the intervening years have brought, if you are at all investment-minded, you want to at least smack your forehead…
The good news isn’t just that the rebound looks to be progressing still, but that in the realm of Dewey Beach rental investments, the wished-for growth in underlying value of any investment property may be only half the goal. There is also the ongoing cash-generation to consider.
If you were to set out to search for a property to become one of the Dewey Beach rental investment income producers, one place to start out is to think about a two-part qualifying question:
Part 1: will you be actively managing the rental investment property? Realistically, do you have the time and inclination to do so? As a true investment rather than a sideline avocation, the answer to that question should take into account what your time is worth elsewhere. Whether you are a fully-engaged professional or a massively-overstressed soccer mom (or, heaven forbid, both!), the cost of hiring a professional management firm might be the better choice. Zillow notes a starting point for estimating management services at around 6%-8% of the rent number (which may or may not include services like re-leasing services).
The answer to that Part 1 consideration will give you a firm basis for estimating the answer to Part 2: What is the price range of the properties you should consider. Managing the rental yourself will increase the bottom line, but that’s only one of your rental’s operating expenses. The complete operating budget will include maintenance (generally ballparked at 1% per year of the property’s value), insurance, taxes, and any HOA and gardening fees.
The next step is to investigate what the income stream is likely to be. The local classifieds will show what comparable Dewey Beach rentals are going for. There are also a number of online information sources like Rentometer, craigslist, Zillow and Trulia that should supply a good approximation of today’s market. Once you find where those rates stand, you’ll be able to pencil out the cash-generating potential of candidate property.
At every step of the way—from first looks at the many promising Dewey Beach rental investment properties, to introductions to the kind of reliable local tradespeople who make a landlord’s life easier—I offer my clients fully-engaged service and advice. Give me a call! Call/Text me Russell Stucki at (302) 228-7871, email me at firstname.lastname@example.org, visit more listings at www.beachrealestatemarket.com.
For Sussex County homeowners, the news was a long time coming. The bounce back from last decade’s dizzying plummet in the nation’s residential housing values has been underway for quite a while now—but those values hadn’t quite returned to their former heights.
Until last month!
The Wall Street Journal was early to break the long-awaited headline, “Existing-Home Prices Hit Record: $236,400.” Using just-released June sales numbers, the Journal reported that the nation’s average housing prices now topped the previous high water mark set in 2006. It meant that a lot of paper losses have been obliterated—and the return of full nights’ sleep for many U.S. homeowners who have long been underwater.
Another aspect of June’s housing report card could also ease nerves on a wider scale. USA Today led with it: “Existing homes were sold at the fastest pace in eight years…” It quoted the NAR’s Lawrence Yun as pronouncing this year’s spring buying season “the strongest since the economic turndown.”
That’s where the current housing market profile seems to differ in kind from the previous peak of $230,400, registered in July 2006. That mark was reached after sales volume had started to fall. Prices then followed, starting with a slow decline that continued until the spring of 2008, when the slump became a nosedive—unleashing the subprime mortgage crisis. The “bubble” of unsupported high prices had burst.
There was more glad tidings in last week’s news, as well. U.S. home builder confidence levels hit its highest mark in “nearly a decade” (WSJ). A rise in demand for apartment housing caused a jump of 9.8% in housing starts.
But the biggest news was the existing-home price rise, reported as having “rocketed” 35% since 2011, “benefiting current homeowners by giving them an opportunity to trade up to better homes or sell and cash out.” That’s the kind of spur that can stimulate the entire housing market.
With one economist (Andrew Hunter of Capital Economics) quoted as saying “the housing recovery has shifted into a higher gear,” it wasn’t surprising that other analysts were in agreement. “Don’t Laugh” read one headline from international observer Quartz.com; “the U.S. housing market is the best story in the global economy right now.” Reuters agreed about the implications. Their headline: “Strong U.S. housing data boosts dollar.”
Sussex County residents don’t have to be global investors to take advantage of this summer’s values. A simple call to my office is all it takes to get things started! Call/Text me Russell Stucki at (302) 228-7871, email me at email@example.com, visit more listings at www.beachrealestatemarket.com.