I am amazed at how many "Investors" have purchased Charlotte Real Estate and have over paid for investment property. Many Charlotte Real Estate Investors purchased homes purely on speculation that the values were going to increase. They based their analysis (assuming they did one) on the facts that from 2005 and early 2007 the prices were very strong. What contributed to the rise in housing prices? Hurricanes.
The Hurricanes in the Florida and the Gulf created an exodus from those regions. In addition the higher costs of taxes, insurance and HOA fees further strained this declining market (more people leaving than moving in). Florida was poised to make huge gains over the next decade as baby boomers retired. 2005 changed this and now the baby boomers relocated to the Carolinas.
As real buyers entered our market the panicked Florida investors also jumped in as did others since the Carolinas were the new "Florida". There was a problem with this investment strategy: we did not have the rental population for investors! Charlotte still has a lot of room to grow and housing is relatively inexpensive. The new housing continued to place downward pressure on housing prices and rental prices.
Charlotte Property Investors purchased homes where they paid for people to stay in their homes (the portion of the mortgage that the rental market would not support). Purchasing rental property with negative cash flow is very high risk. Also this is Charlotte. Your renter is typically one of two types of people: one that relocated and WILL leave your home in a year and the other is a career renter and has selected your place for a reason. This is likely not the person you had hoped to attract.
Scenario one has you paying the relocation renter a portion of your mortgage every month in hopes that other investors did not watch the same national TV shows as you and the property values are going to increase in a year so you continue donating money to your tenant and eating at least another mortgage payment every year when the person purchases their own home.
The other scenario is a life long renter and the care that he does not concern himself with with your home. You are the rich guy with 2 homes in their mind.
Ultimately, the TV shows created many investors and these investors jumped in. They are losing a huge fortune with this strategy.
For now on, only purchase a rental home if there is enough cash to pay the mortgage. This payment must cover all of the expenses related to the rental property. Do not feel you are the only one that watched those shows. Purchase Charlotte NC Homes for Sale for your personal new home and you will be delighted that you have.
Sunday, July 26, 2009
Friday, July 03, 2009
Tega Cay Homes for Sale
Many people visit Charlotte and leave without finding a home or an area they like. The first thing to understand about Charlotte Real Estate is that Charlotte is very diverse and has a wide variety of of homes and locations. How about Tega Cay Homes for Sale?
Tega Cay Real Estate provides a variety of housing options. The "older section" of Tega Cay was built in the 1970's. These homes are constructed on a peninsula of Lake Wylie and built around a 27 hole golf course. The community has one way in and one way out. You pass the police station on the way in and on the way out. If you are seeking a "safe" place to call home, Tega Cay is your destination.
Tega Cay definitely has a resort feel to it. As you enter you will notice the park like feel with the trees along the road, the golf course to your right and left along with walking paths. Tega Cay Homes have a unique charm modeled after the Polynesian Islands. The community has a marina, parks, tennis courts and the golf course.
The newest section of Tega Cay is Lake Shore. Lake Shore is a new Tega Cay subdivision that was built by multiple builders. Each builder has a neighborhood within the neighborhood. You will definitely find Lake Shore to have a new community feel.
Tega Cay SC Homes are located in York County SC. Tega Cay attends the Fort Mill schools which maintain a record for superior academics. You will be pleased that you purchased Tega Cay property.
Come visit Tega Cay SC Homes for Sale; you will not be disappointed. Tega Cay Real Estate is very unique and offers something different for your new home.
Tega Cay Real Estate provides a variety of housing options. The "older section" of Tega Cay was built in the 1970's. These homes are constructed on a peninsula of Lake Wylie and built around a 27 hole golf course. The community has one way in and one way out. You pass the police station on the way in and on the way out. If you are seeking a "safe" place to call home, Tega Cay is your destination.
Tega Cay definitely has a resort feel to it. As you enter you will notice the park like feel with the trees along the road, the golf course to your right and left along with walking paths. Tega Cay Homes have a unique charm modeled after the Polynesian Islands. The community has a marina, parks, tennis courts and the golf course.
The newest section of Tega Cay is Lake Shore. Lake Shore is a new Tega Cay subdivision that was built by multiple builders. Each builder has a neighborhood within the neighborhood. You will definitely find Lake Shore to have a new community feel.
Tega Cay SC Homes are located in York County SC. Tega Cay attends the Fort Mill schools which maintain a record for superior academics. You will be pleased that you purchased Tega Cay property.
Come visit Tega Cay SC Homes for Sale; you will not be disappointed. Tega Cay Real Estate is very unique and offers something different for your new home.
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