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How to Avoid a $20,000 Housing Error
Don't assume that all houses (including yours) are good investments — because, frankly, many houses are not. Tell me if one of these thoughts has ever crossed your mind:
- "I'll live in this house for a few years, then rent it out, and then maybe sell it when it rises in value."
- "I'm going to remodel big-time before I sell; I bet I'll get top-dollar."
- "Renting is just throwing money away."
Not so fast. Before you start throwing a massive chunk of your income toward an untested assumption, read on. The following could save you tens of thousands in unnecessary costs.
Myth No. 1: There's No Difference Between Your Personal Home and a Great Investment Home.
Myth No. 2: All Remodels Are Profitable.
Myth No. 3: Buying is Always Better Than Renting.
For the truth on these three myths, please read: How to Avoid a $20,000 Housing Error
Paula Pant owns five houses — yes, five. No, she's not rich, but she's a real estate investor who built a portfolio of rental properties that cover her entire cost-of-living. She's 30 years old, and she invites you to check out all the details about her real estate purchases — including the numbers — on her blog, Afford Anything.
For current Portland Real Estate advice, sales and purchases, please call or write.
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Cary Perkins,Windermere Top ProducerFun With Real EstateCurrent Portland Oregon Real Estate Information,Highlights of Portland Oregon, House IdeasPortland Oregon Homes
Portland Real Estate, Portland Oregon Top Producer, Windermere Top Producer, Portland Realtor, Portland Homes for Sale
Godzillow!
I heard an interesting story yesterday about Chinese real estate purchases in the USA. Sure, I had talked about it recently at a friend's house over dinner with a business partner who mentioned his Chinese clients were dropping a million on a house every time they came to the US. But I hadn't really focused on the extent of this movement until I heard an article on NPR yesterday.
The news? Zillow has begun publishing its entire U.S. real estate property database in Mandarin on the biggest real estate Web site in China. This means Chinese buyers can use Zillow to find properties near family and friends in their price range. “The fact that Zillow is going there is huge,” says Hall Willkie, president of New York real estate firm Brown Harris Stevens Residential Sales. “The Chinese may just overwhelm the United States with purchases.”
The Chinese are on the move. In 2014, a record number of Chinese, 100 million, are expected to travel abroad, an army roughly as big as Mexico’s population. They have money in their wallets, an appetite for the good life and ants in their pants.
You can’t blame them for feeling unsettled at home. Beijing’s aggressive anti-corruption sweep has netted thousands of big fish, and more confiscations are on the way. Pollution has created an asthma epidemic, food safety scares are commonplace, and China’s economic pace ebbs. There is still no true dissent or freedom of expression allowed. So the country’s wealthiest are on the move and want a better life for themselves or their children.
Some 9.3 million Chinese have immigrated in recent years, and 64 percent of the country’s remaining rich households — a category that includes a few million people — want to leave or are in the process of doing so.
The United States is their preferred destination, and American real estate is becoming their new T-bills, a safe-haven asset. Like bullion, it’s an asset class denominated in U.S. dollars, safe from confiscation and, when necessary, bought anonymously to hide wealth from governments or creditors or ex-partners. But unlike bullion, U.S. real estate can earn income, provide a roof and help obtain a visa.
This month, U.S. real estate Web site Zillow begins publishing its entire U.S. real estate property database in Mandarin on the biggest real estate Web site in China. This means Chinese buyers can surf the Net to find properties near family and friends in their price range. “The fact that Zillow is going there is huge,” says Hall Willkie, president of New York real estate firm Brown Harris Stevens Residential Sales. “The Chinese may just overwhelm the United States with purchases.”
A buyout is already underway. In 2013, Chinese buyers snapped up $11 billion worth of properties in the United States, capturing second place (at 12 percent of all foreign buying) behind Canadians for the first time, according to the National Association of Realtors’ Profile of International Home Buying Activity.
Willkie notes a spike in terms of interest in the past 18 months: “In New York, we’ve noticed Chinese buying very large, very expensive apartments, homes. But there are also many buying smaller apartments, $1.5 to $3 million, for their children going to school here. The parents are buying them.”
In 2013, for instance, a Hong Kong woman paid $6.5 million for a two-bedroom in the tallest residence in New York, One57, for her daughter so she’ll have somewhere to live when she gets into Columbia, Harvard or NYU, she told her agent. The daughter, currently, is 2 years old. Another Chinese woman bought four $20 million units there for family members.
The desire to get money out of China for whatever reason, added to Zillow’s foray into China’s living rooms, will only enhance enthusiasm. China’s biggest exports to the United States may end up being capital and people. Look out for its biggest winners in a neighborhood near you.
Of course, your property listings with me are already advertised on Zillow, so no worries about having Portland representation on China's computer screens. When talking with a client, Brian, last night, we decided it's the new GODZILLOW!
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Cary Perkins,Windermere Top ProducerFun With Real EstateCurrent Portland Oregon Real Estate Information,Highlights of Portland Oregon, House IdeasPortland Oregon Homes
Portland Real Estate, Portland Oregon Top Producer, Windermere Top Producer, Portland Realtor, Portland Homes for Sale
Portland’s Pittock Mansion Turns 100 Years Old
One of Portland's prettiest landmarks turns 100 this year. They started off her celebration earlier this year with free admission – so those who hadn't already been there had a free pass to the party.
The fun continues on July 13th, when the city will celebrate the centennial anniversary with a 100 Candles Birthday Party, featuring free cake on the lawn, music on the terrace, and even a vintage car show in the driveway. Bring your camera – it sounds like a picture perfect Portland day!
Later this summer, on August 14th, there will be another event – a benefit – with music, food & drinks.
Happy Birthday, Beautiful!
Please see the story on Portland Monthly Magazine. Photos courtesy of Portland Monthly Magazine.
NW Portland Walking Tours
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Once spring arrives, Portland starts looking its prettiest!Our native rhododendron, azaleas, camillias, quince, magnolias, apple and cherry blossoms seem to brighten every path, street and yard. It's a beautiful time for a walking tour. Even if it drizzles a little bit, there are plenty of places to pop into for a local coffee or libation.
Mike's History Tours are an option for those who aren't from Portland and aren't sure where to start. For only $20 you can learn from a native, and visit sites that many Portlanders don't know the history of – and certainly you'll enjoy springing these facts on your friends! If you're a local, what a fun diversion and a chance to learn about virtually every building in the neighborhood.Portlanders, here's a challenge for you:MIKE'S HISTORY FUN QUIZ #1The Ringside Steakhouse building on West Burnside
was once the home of . . .A. A Piggly Wiggly Grocery StoreB. An Auto Body ShopC. A Boxing ArenaD. A Computer Repair ShopThe Besaw's Restaurant building at NW 23rd and
Savier was once the home of . . .
A. A Barber Shop
B. A Grocery Store
C. A Drug Store
D. A LaundromatThe north side of the Uptown Shopping Center
was once . . .
A. A Horse Stable
B. A Hospital
C. A Circus Grounds
D. A BreweryThe Montgomery Park building at NW 27th and
Vaughn Street was once . . .
A. The Vaughn Street Ball Park
B. A Sears, Roebuck & Company Catalog Sales
Outlet & Retail Store.
C. A Montgomery Ward & Company Catalog Sales
Outlet & Retail Store.
D. A Meier & Frank Company Warehouse & Toyland.The site of Meriwether's Restaurant on NW Vaughn
was once . . .
A. The entrance to the 1925 Meriwether Lewis
Worlds Fair.
B. The entrance to the 1939 Lewis & Clark Worlds
Fair.
C. The entrance to the 1936 Summer Olympics.
D. The entrance to the 1905 Lewis & Clark
Centennial Exposition.
(The correct answers are found on Mike's home page)I'd love to take you on a real estate tour, visiting some of our neighborhood's prettiest homes for sale. Your first stop will be the former Mills residence at 733 NW 20th Avenue, our beautiful, historic office.
If you're ready to move to NW Portland, just call!
Cary Perkins,Windermere Top ProducerFun With Real EstateCurrent Portland Oregon Real Estate Information,Highlights of Portland Oregon, House IdeasPortland Oregon HomesPortland Real Estate, Portland Oregon Top Producer, Windermere Top Producer, Portland Realtor, Portland Homes for Sale
What’s new in kitchens in 2014?
I recently had the opportunity to view a presentation by Jonathan Hopp of Neil Kelly. He spoke to the new and exciting changes in the world of kitchens – remodeling and new construction. My favorite reference from the talk was about the fact that "backsplashes are the jewelry of the kitchen." It's true! You can have a totally neutral look and then jazz it up with a backsplash, which is often easily changable if you're ready for a new look. Read on and hear what else Jonathan has to say……
What we are seeing increasingly in kitchens is a move toward quartz materials for countertops. The advantage of quartz is that it comes in a variety of colors and patterns. Technology has advanced to create finishes that more closely resemble limestone and marble – which are two materials I would hesitate to use in a heavily used kitchen. Quartz has all the inherent advantages of granite, in that it doesn’t scratch easily, is heat resistant and comes in large slabs. The pricing is similar to granite depending on the manufacturer, but you can expect that this popular product will be on the higher end of materials and well worth the price in durability and longevity.
The back splash is the jewelry of the kitchen. Most commonly the counter material is more neutral in tone, and frequently is chosen to compliment the flooring material or blend with the cabinetry finishes. The back splash, however, is where designers are having fun. With literally hundreds of new products on the market, the selection is greater than ever. Manufacturing techniques have resulted in designs that weren’t available only a few short years ago. I think the backsplash is one of the most important elements in determining a kitchens overall look and appearance. In rooms where everything else is neutral, the backsplash is that final item that determines a kitchen’s look. I say, have fun with the backsplash. There generally isn’t a large quantity, so the cost is not extreme. When you look at kitchens you will notice how much it draws the eye. And, unlike cabinets, or counter tops, it is an easy way to add style without spending a fortune.
My favorite product recently is the advancement in porcelain tiles. Resembling everything from limestone to hardwood flooring, this material expands the options for durability to an entirely new level. As with other materials, the advancements in printing and fabrication have allowed porcelain tiles to achieve a new level of design. Sculptured surfaces and graining are just a start. The printing and transfer techniques now add a new realism to the material like never before. Porcelain tiles are inherently durable and can stand up to wear and tear like nothing else. The latest trend is newer sizes such as 12 x24, 24 x24 as well as smaller mosaic blends. No longer are we stuck with the ubiquitous 12” square tile.
If you'd like advice for your kitchen, please call Jonathan for a private consultation!
http://www.neilkelly.com/personal-pages/jonathan-hopp/
Portland Real Estate, Portland Oregon Top Producer, Windermere Top Producer, Portland Realtor, Portland Homes for Sale
Is there a new real estate bubble?
Portland is currently a very hot area for real estate. In fact, it is not unusual in several neighborhoods for there to be more than 5-10 or more offers for the same property, driving the price up 10% or more above asking price.
People have asked whether this is an indicator of another bubble waiting to explode all over the area’s real estate market. The last time home prices ticked up like this was just before the market correction. So is this an inflated market or just the sign of a market continuing to find its new normal?
According to the Case Shiller Home Price Index released last month (February 25) showed that through the end of December, in the United States, home prices were up 11.3% overall which was the best year since 2005 according to the Chairman of the S&P Dow Jones Index Committee, David M. Blitzer. Some standout markets in 2013 included:
Several of those markets were hit very hard in the downturn and the numbers listed above reflect a rebound (such as Detroit, Las Vegas, Miami, Phoenix, and Tampa), but what about Atlanta, Los Angeles, Portland, San Diego, San Francisco and Seattle?
Several of these markets are driven by pent-up demand and the loosening of credit. However, it is important to take a closer look at these markets, and any other market that is seeing high demand, to determine where the demand is coming from and if that demand is sustainable.
For example, in looking at Portland, there are several factors at work:
- Migration to Oregon from other states is very high. In fact, Portland has one of the highest migration totals in the country in 2013.
- Foreign and domestic investors are investing in the Portland housing market and the surrounding areas due to the potential for higher rents in these areas.
When demand occurs for more than one reason, it is a sign that a market is healthy, not spiraling out of control.
We must also take into account that credit is loosening up from recent years, but it is nowhere near as loose as it was in the years leading up to the market correction. New guidelines have been set in motion to prevent the kind of collapse we have had in the past. Credit score requirements are on the way down for loans. In fact, as reported by the LA Times last week, lenders are reducing the required credit scores for FHA loans and are allowing some with credit scores of 600 to receive mortgage funding. Lenders are also raising the debt-to-income ratio limit.
I don't believe this is a bubble. This is a direct result of pent-up demand from buyers who have been waiting almost three years to buy. Buyers who were getting ready to buy a year ago chose to wait because of issues the country was having with the debt ceiling and there was a lack of confidence in the market. Consumers are feeling more confident now and they show that confidence in buying real estate. In some markets there just isn’t enough inventory to go around. The increased consumer confidence along with the lack of new construction inventory has created a storm of demand.
Low Housing Inventory requires Creative Thinking
The Spring housing market is off to a bit of a slow start, thanks to an extremely low inventory of homes for sale. Listings are starting to trickle onto the market, but some Realtors are struggling to find homes for their ready, willing, and able buyers.
One way to make a match in this tough market is to have an open mind about what you hope to live in -vs- what is currently on the market.
If you need an amazing contractor to help transform an ordinary home in the extraordinary home of your dreams, I can help you with that. My book of names includes talented architects, builders and designers.
Open your mind to the possibilities……let's see what we can find.
photo credit unknown – found via Pinterest
A Portland Real Estate Year in Review
Thank you for your business and all your referrals… what a wondeful year it was.
Micro Housing – coming soon to a city near you?
MICRO HOUSING – A micro-apartment, also known as an apodment or microflat, is a one-room, self-contained living space, usually purpose built, designed to accommodate a sitting space, sleeping space, bathroom and kitchenette within around 150–350 square feet.
“Micro housing” is fast becoming a reality in markets all across the country. For those who haven’t heard much about it, micro housing is fully functional living space in a very small square footage blueprint (under 600 square feet).
Japan has been building micro housing units for years. It is now a very important part of urban markets everywhere. New York, Boston, Washington D.C., San Francisco, Chicago, Seattle and even Cleveland have micro housing product. Micro housing is also huge in Canadian markets such as Vancouver and Toronto where it is a much-needed segment of the market.
Micro housing is not only a solution for buyers who can’t afford larger space. In fact, in some markets micro housing is the preferred high-demand product type for a certain segment of the population. Micro housing is generational and lifestyle-driven by Baby Boomers wanting to have a small space in urban communities and young professionals wanting to be close to work and to the urban hub. Additionally, consider that a large part of our population is single. Back in the 1950s, the United States’ adult population was about 10% single. Today that number is closer to 40%. Single people require smaller living spaces than their coupled counterparts. With younger people choosing to get married later in life with higher rates of divorce coupled with Baby Boomers wanting spaces in urban areas along with young professionals – this all adds up to a much greater demand for micro housing.
Urban areas are beginning to recognize the need for micro housing in their urban centers. While in the past, a larger living area was required, in many cities across the country, planning and development departments are beginning to regulate micro housing as a separate entity. This is a clear indication that they are beginning to see the reality of its long-term place in the market and eyeing it as a solution for high-demand areas close to commerce as it also lessens the demand on mass transit the closer to work people live.
Mark my words – micro housing will become the buzz word in real estate in the next two years, just like “short sales” was when the market tumbled. Watch for many more micro housing developments to spring up in urban areas all around the country in years to come.
Should I take my house off the market over the holidays?
This question comes up every year around this time. Things are slowing down a bit, you're thinking about family and celebrations, and yet you want to get your house sold.
Many sellers feel that the spring is the best time to place their home on the market as buyer demand increases at that time of year. However, the fall and winter have their own advantages. Here are five reasons to sell now.
Only Serious Buyers Are Out
At this time of year, only those purchasers who are serious about buying a home will be in the marketplace. You and your family will not be bothered and inconvenienced by mere 'lookers'. The lookers are at the mall or shopping on NW 23rd!
There Is Far Less Competition
Housing supply always shrinks dramatically at this time of year. The choices for buyers will be limited. Don't wait until the spring when all the other potential sellers in your market will put their homes up for sale.
The Process Will Be Quicker
One of the biggest challenges of the 2013 housing market has been the length of time it takes from contract to closing. Banks have been inundated with both purchase and refinancing loan requests. Both of these will slow in the winter cutting timelines and the frustration these delays cause both buyers and sellers.
There Will Never Be a Better Time to Move-Up
If you are moving up to a larger, more expensive home, consider doing it now. Prices are projected to appreciate by over 25% from now to 2018. If you are moving to a higher priced home, it will wind-up costing you more in raw dollars (both in down payment and mortgage payment) if you wait. You can also lock-in your 30 year housing expense with historically low interest rates right now. There is no guarantee rates will remain at these levels in years to come.
It's Time to Move On with Your Life
Look at the reason you decided to sell in the first place and decide whether it is worth waiting. Is money more important than having the freedom to go on with your life the way you planned? Will taking your house off the market now make this go any easier in the spring?
You already know the answers to the questions we just asked. You have the power to take back control of the situation by pricing your home to guarantee it sells before the end of the year .
