Real Estate Investment Tip #29

Watch The Outskirts - When the properties in a major city or town go up in price to the point where they are overpriced (think Sellwood), the areas on the outer fringes most likely will soon be in demand. Areas in close proximity to major bus and rail transportation are even more desirable. Nearly any area that is about to install a major train stop or a new major bus route will see its proverbial stock go up in value.

To find out what’s planned, you can check with the local railroad or bus company to see if they will be expanding service in the area. The local town hall or planning department will also have this information.

– Geoffrey Pohl, your expert on Portland Real Estate and Portland

Real Estate Myth #2

Real Estate Myth #2: Even when the housing market recovers, home price growth will be only 4 to 6 percent per year — much less than historical average returns for the stock market.

Lawrence Yun, Chief Economist of the National Association of realtors addresses this myth and helps to debunk it. Most buyers put less than 20 percent of their own money into a home purchase; this borrowing power can translate to a greater rate of return. This is how Yun explains it: Home price appreciation historically has been about 1 to 2 percentage points higher than consumer price inflation, which translates into about 4 to 6 percent per year. But this growth rate cannot be viewed as a rate of return like the stock market. The reason is that most people do not buy a home for all cash, instead making a cash down payment and borrowing the rest. The leverage this borrowing creates can magnify returns — and losses. If price growth returns to historic norms, the price growth of 4 percent can easily turn into 20 to 30 percent rate of return if the home buyer makes a down payment of 10 or 20 percent. Conclusion: make sure you understand your real return on your what you are investing (your monthly mortgage), factoring in tax advantages as well.

  • Geoffrey Pohl, expert on Portland real estate and Portland

How much is your home worth?

How much has the price of your home changed in today’s market? How much are other homes in your area SuccessSignselling for?

There are many reasons why you might want to find out the value of your home and we at Pohl Real Estate would love to help you with an update. Even if it is not yet time to sell, knowing the value of your home can bring peace of mind and help you understand one of the most important pieces in your financial portfolio.

Take advantage of this free service by calling 503-488-5848 or e-mail geoffrey@pohlrealestate.com.

Geoffrey Pohl, offering expertise on Portland real estate and Portland

Image courtesy of scottchan at FreeDigitalPhotos.net

Want to Add Value to Your Home?

The Portland real estate market is appreciating so here are ten ways to increase the value of your home. Some will be easy and some more complicated but use your budget accordingly to gain the highest dollar value sale.

1. Clean and Declutter. Increase your homes inside square footage … visually that is. You would be surprised at how often this is overlooked. I  always tell my clients to pack first and commit to the sale. Removing the wall of family photos, the collections of horses or pigs or cows, and the extra furniture will go along ways towards giving it a larger cleaner look and feel.

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Has the Portland Real Estate Market Stabilized?

Being a Realtor in Portland, Oregon  sure feels like the real estate market is stabilizing.  Every month there are more and more areas and suburbs of Portland that are appreciating in value when compared to a year ago and more and more areas the Average Sales Price Percent Change are also moving into positive territory at a rapid pace. The inventory in Portland has dropped from January to July every single month and the time on market has decreased significantly as well.  All indication is yes the market is stabilized and poised for some long term steadiness rather than the sharp falls and rises that we have been accustomed to since 2008.

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