This year, investment in the stock market is making many downright jittery. Though overall the stock market does seem to be hovering around the 10,000 mark, many investors are plagued with uncertainty about short and long term investments in the stock market. Will stocks go up or down this week? Is now to time to keep money in the market? Or take money out of the stock market?
As a real estate professional, I always advise people to continue to invest in property. With so many bank owned properties flooding many different markets, real estate investors are actively purchasing homes and investment properties and obtaining some great deals right now.
John Starke, an Investment Advisor and Financial Principle with American Beacon Partners, says that many investors have grown tired of the risk involved in purchasing equities, mutual funds, and other types of investments. Prior to the sharp downturn in the market in 2008, investors’ goals were to accrue money through appreciation. “Rather than nervously watch their portfolios go up and down, investors want a more stable income,” noted Starke. He sees a rise in interest in Real Estate Investment Trusts (REITs), Tax Free and Corporate Bonds, and even some Corporate CDs. “Many investors are pulling their money from equities and mutual funds and opting for investments that pay a decent, regular return on their money,” said Starke.
In my everyday real estate transactions, I see investors pulling large sums of money from the stock market and putting it into the purchase of homes and properties in Virginia. I have taken the time to ask real estate investors their opinion about stock market investments. Many have decided that the stock market is not for them right now. One investor, J. D., purchased a property in King William County, Virginia that was in foreclosure for $90,000. She will spend approximately $4,000 to prepare the property for the rental market and be able to collect a monthly income of $1,000 from her investment. J.D. told me “I feel the time is right to start investing in real estate again. I stopped four years ago when property prices got out of hand. I intend to do even more real estate investment now.”
Another client, who plans to retire in a few years, is selling one commercial property investment in order to purchase a strip mall in the Western Virginia town where he plans to retire. He will pay the purchase price and invest approximately $40,000 into the strip mall to prepare it for the commercial rental market. He told me, “I am tired of having a business that I have to work at everyday. I want to have an investment that will work for me as I am planning to retire in about two years.” His upcoming shift in lifestyle is motivation for his new commercial property investment. Note that he’s not selling one business and putting the money into the market. This may have been the trend for a retiree five years ago – but not in the new economy.
Finally, H.G. in Hampton, Virginia made a wise move with money he once had in the stock market. He purchased a condominium for $50,000, invested $2,500 in the property renovations, and is now receiving $850 per month in rental income for the unit. HG said, “I am making more of a return from my property investment than I would in the stock market, and I also receive a tax deduction to boot.”
There are of course risks in real estate investments. A tenant could default on the rental agreement, or a property could remain vacant for months on end. That is why it is imperative that real estate investors hire experienced and knowledgeable property managers to maximize their investment. All of the property investors mentioned in this article are using my property management services for their real estate investments. Other risks include unforeseen maintenance and repair issues. This is why it is important for property investors to put a portion of their profits aside to reinvest in the home, condominium or townhouse they purchase.
Where property investment is concerned, even these risks, when anticipated and well-planned for, are small compared to the uncertainty of stock investments.
Shawn Tully, Senior Editor at Large for Fortune magazine, published “2010's Coming Stock Market Crash: 1987 all Over Again” in May 2010. He states that stocks are still overpriced. He predicts a low return on investment (or a loss) as an inevitable outcome of this scenario. Tully bolsters his opinion with these astute observations: “Here's how I see the odds. The chances are about one in three that we suffer a huge, wrenching correction in the next year or two similar to the one in 1987. That possibility is so high because stocks are so startlingly expensive. Another high probability event is that markets go on a long sideways grind, with smaller drops along the way. What's extremely unlikely is that the market rises substantially from current levels and stays there for any extended period.”
Experts within the financial industry may be reluctant to put forth the strong opinion that Tully articulates. Still, there is no denying that investors have undergone a major shift in perspective since the financial crisis of late 2008 culminated in a recession, took hold of the United States and spread to other countries.
People will always need a place to live. With more and more families sadly experiencing foreclosure and dislocation, renting will be their most likely option. More rental properties will be necessary to fulfill housing demands. Investors need to take a serious look at property investment in their areas, and take steps to purchase viable homes even if they are in need of some repair or upgrades.
Visit http://VonCannonRealEstate.com to view potential investment property listings in Virginia in Williamsburg, Hampton, Newport News, Yorktown, Richmond and Northern Neck areas such as Matthews, Northumberland and King and Queen Counties.
Wednesday, November 24, 2010
Thursday, October 22, 2009
Saturday, August 22, 2009
York County Virginia: A Great Place for Military Personnel and Families to Live
York County Virginia: A Great Place for Military Personnel and Families to Live
By Elaine VonCannon, ABR, SRES, REALTOR, RE/MAX Hall of Fame, Property Manager
Military personnel stationed at the Coast Guard Base in Yorktown, Camp Perry in Williamsburg, Yorktown Naval Weapons Station, Fort Eustis in Newport News, Downtown Newport News Naval Barracks or Langley Air Force Base, will want to consider purchasing a home in nearby York County VA.
York County: An Excellent Place for Active Duty Military and Families
Why is York County a great choice for military personnel and families? Because York County is situated close enough to the above mentioned military posts so that the commute to work is not a major headache. For some commutes, transiting Interstate 64 is not even necessary, as alternate routes can be selected. Housing prices in York County are comparable to James City County, Williamsburg and Newport News. There are plenty of choices for entertainment, shopping, and dining nearby, so there is no reason to travel too far for any of these activities. York County is halfway between Richmond and Norfolk, so both International Airports can be accessed. The Newport News Airport is convenient to all of York County - another plus when traveling near or far.
York County Public Schools
Families will be pleased to send their children to York County Public Schools -- rated one of the best school systems in Virginia. When York County residents were surveyed about the reason why they chose to live in the county, nearly 35% commented on the high quality of the school system there.
Historic York County VA
Yorktown Battlefields is a National Park Service site. It is the place where the English surrendered during the Revolutionary War and also the site of some pivotal Civil War battles. The historic Early American city of Yorktown is within county boundaries and all are well preserved. Because York County is home to a national park and a major historic site, Lee Hall, there are numerous opportunities for educational and cultural enrichment.
York County is Close to Williamsburg VA
York County is less than a half hour drive to historic Williamsburg, where there are ample choices for entertainment and learning. Colonial Williamsburg is easily accessible from the Colonial Parkway, which intersects York County near the Yorktown Battlefields. Busch Gardens, Water Country USA and other amusements are within a short drive from York County and provide hours of enjoyment for many individuals and families. Many York County residents take a scenic drive on the Colonial Parkway on the weekends, where they find places to picnic, fish, or sunbathe near the rivers and inlets.
York County VA: Close to the Chesapeake Bay
York County Virginia is bordered by the York River to the Northeast and Southeast, where many residents and visitors swim, boat, fish, crab, or sunbathe. There is a public beach right next to the bridge to Gloucester, which crosses the York River to the Northern Neck. The tidal York River feeds into the Chesapeake Bay, so there is plenty of space for the public to enjoy and a wide variety of recreational choices. Because it is located so close to the Chesapeake Bay and one of its major tributaries, York County residents are fond of water related activities such as waterskiing, boating, and fishing. Bikers, walkers and joggers also enjoy the Colonial Parkway, Yorktown National Battlefields and Jamestown Island as a regular place for outdoor physical activities.
In addition to a high quality school system, ample choices for recreation, and proximity to major cities such as Norfolk and Richmond, military residents of York County have commented that the rural nature of the county is appealing to them. York County living is characterized by some of the desirable qualities of country living such as peace and tranquility, friendly neighbors, and low traffic volumes. Yet York County still offers the benefits of living near urban areas where entertainment, culture, dining, shopping and transportation are easily accessible.
By Elaine VonCannon, ABR, SRES, REALTOR, RE/MAX Hall of Fame, Property Manager
Military personnel stationed at the Coast Guard Base in Yorktown, Camp Perry in Williamsburg, Yorktown Naval Weapons Station, Fort Eustis in Newport News, Downtown Newport News Naval Barracks or Langley Air Force Base, will want to consider purchasing a home in nearby York County VA.
York County: An Excellent Place for Active Duty Military and Families
Why is York County a great choice for military personnel and families? Because York County is situated close enough to the above mentioned military posts so that the commute to work is not a major headache. For some commutes, transiting Interstate 64 is not even necessary, as alternate routes can be selected. Housing prices in York County are comparable to James City County, Williamsburg and Newport News. There are plenty of choices for entertainment, shopping, and dining nearby, so there is no reason to travel too far for any of these activities. York County is halfway between Richmond and Norfolk, so both International Airports can be accessed. The Newport News Airport is convenient to all of York County - another plus when traveling near or far.
York County Public Schools
Families will be pleased to send their children to York County Public Schools -- rated one of the best school systems in Virginia. When York County residents were surveyed about the reason why they chose to live in the county, nearly 35% commented on the high quality of the school system there.
Historic York County VA
Yorktown Battlefields is a National Park Service site. It is the place where the English surrendered during the Revolutionary War and also the site of some pivotal Civil War battles. The historic Early American city of Yorktown is within county boundaries and all are well preserved. Because York County is home to a national park and a major historic site, Lee Hall, there are numerous opportunities for educational and cultural enrichment.
York County is Close to Williamsburg VA
York County is less than a half hour drive to historic Williamsburg, where there are ample choices for entertainment and learning. Colonial Williamsburg is easily accessible from the Colonial Parkway, which intersects York County near the Yorktown Battlefields. Busch Gardens, Water Country USA and other amusements are within a short drive from York County and provide hours of enjoyment for many individuals and families. Many York County residents take a scenic drive on the Colonial Parkway on the weekends, where they find places to picnic, fish, or sunbathe near the rivers and inlets.
York County VA: Close to the Chesapeake Bay
York County Virginia is bordered by the York River to the Northeast and Southeast, where many residents and visitors swim, boat, fish, crab, or sunbathe. There is a public beach right next to the bridge to Gloucester, which crosses the York River to the Northern Neck. The tidal York River feeds into the Chesapeake Bay, so there is plenty of space for the public to enjoy and a wide variety of recreational choices. Because it is located so close to the Chesapeake Bay and one of its major tributaries, York County residents are fond of water related activities such as waterskiing, boating, and fishing. Bikers, walkers and joggers also enjoy the Colonial Parkway, Yorktown National Battlefields and Jamestown Island as a regular place for outdoor physical activities.
In addition to a high quality school system, ample choices for recreation, and proximity to major cities such as Norfolk and Richmond, military residents of York County have commented that the rural nature of the county is appealing to them. York County living is characterized by some of the desirable qualities of country living such as peace and tranquility, friendly neighbors, and low traffic volumes. Yet York County still offers the benefits of living near urban areas where entertainment, culture, dining, shopping and transportation are easily accessible.
Location, Resale and Staycation: Three New Buzzwords for Real Estate
Location, Resale and Staycation: Three New Buzzwords for Real Estate
By Elaine VonCannon, ABR, SRES, REALTOR, RE/MAX Hal of Fame, Property Manager
For those who are buying a home right now, there are several important details on locating the best property that are being ignored and must be considered. Many homebuyers are looking for a primary residence. First time homebuyers are searching for a home to live in this year in order to take advantage of the $8,000 tax credit.
As I take homebuyers out in search of a residence, I have noted a pattern of behavior that is becoming more and more common. Homebuyers are looking for the deal of the century. They are basing their buying decisions solely on price. Yet as they focus on the best price that can possibly be negotiated, (which does matter) they lose sight of other parameters that need to be applied to the purchase of a home.
Purchasing a home in the right location for a person's chosen lifestyle, and eventual resale value, should be paramount in the homebuyer's mind. Yet price continues to be the main focus in buying property.
Short Sales and Foreclosures: Property Pricing Realities
It is true that pricing has been reduced on homes, especially in some of the larger markets, such as California, Florida, and urban markets -- where values have fallen dramatically. According to an article published by Les Christie on Money.com, "nearly 20% of the nation's home sales in 2008 were of bank-repossessed properties. Another 11% were short sales, in which homeowners owed more in mortgage debt than their homes were worth."
Between foreclosures and short sales there are good home buying deals to be had, but home buyers must remember that on these types of purchases banks will generally not go below 20-25% of appraised values.
In the case of purchasing foreclosed properties, homebuyers should be cautious about the condition of the home. If a homebuyer is purchasing a foreclosed property, it is wise to enter into the deal with capital for improvements, because these homes have been neglected due to lack of money. Some foreclosed properties have been intentionally damaged by angry homeowners who have had to abandon their homes under stressful financial circumstances.
With regard to short sales on homes, banks may take up to six months to approve a short sale. Some lenders are folding in the middle of the process, which adds more time to complete a short sale, because negotiations must begin again with the new lender.
Short sales and foreclosures do factor into property pricing. When a home in a neighborhood is sold for less than it is worth, pricing drops in that neighborhood.
So, with pricing in many markets at a three to five year low, why do home buyers continue to focus only on a great deal? Why have the cardinal rules of real estate purchases been pushed to the side? Location, resale values and lifestyle, which I refer here to as staycation, are just as important as price.
I will give an example of some of the major markets where I sell real estate, James City County, Williamsburg and Norfolk, and give a brief overview of how the rules of real estate purchase apply in these markets.
Williamsburg and James City County
For the avid golfer or person entering retirement, or even the family looking to raise children in a good school district, Williamsburg and James City County offer a wonderful lifestyle. There are numerous golf courses, dining, entertainment and continuing education opportunities. In addition Williamsburg and James City County offer one of the top school districts in Southeastern Virginia. In my experience over the long-term selling real estate in this market, resale values remain strong in well-established neighborhoods. In an age where the staycation, or staying at home during scheduled vacations, is becoming more common, Williamsburg has plenty of choices for quality entertainment. These include Busch Gardens and Water Country USA, Jamestown Settlement, the Colonial Williamsburg Foundation, and numerous outdoor festivals and events that are free and open to the public. All of these factors should inform the purchase of a home in the Williamsburg and James City County real estate market.
Economic, Commercial and Residential Development in Norfolk, VA
In Norfolk, Virginia, where I have closed several residential property deals recently, the opening of a light rail system with stations in Ghent, downtown, and South Norfolk, has created tremendous real estate opportunities in both the residential and commercial sectors. In neighborhoods where light rail train stations will be located, resale values on properties purchased are sure to rise eventually. There are several reasons for this upswing in value. Urban professionals and families are embracing this state-of-the-art transportation system, and public and private organizations and investors are preparing for the influx of new traffic by updating existing properties and committing to building new projects. Taking light rail will cut down on time spent in traffic jams, and leave more time for recreation and spending time with loved ones - a desirable lifestyle for many. With access to Chesapeake Bay Beaches, the Elizabeth and Lafayette Rivers, boating, swimming and recreating on or near the water are widely enjoyed in Norfolk, a world-class port city. Waterside is a main staging area for national and international festivals, and new light rail stations will be located nearby. Norfolk is an excellent place for a staycation. All of these factors should inform the purchase of a new home in this location.
In summary, location, resale, and lifestyle need to come to the forefront once again when individuals are deciding on where to purchase a home. Price will always be an important factor in the purchase of a home, but it should not be the only deciding point
As I take homebuyers out in search of a residence, I have noted a pattern of behavior that is becoming more and more common. Homebuyers are looking for the deal of the century. They are basing their buying decisions solely on price. Yet as they focus on the best price that can possibly be negotiated, (which does matter) they lose sight of other parameters that need to be applied to the purchase of a home.
Purchasing a home in the right location for a person's chosen lifestyle, and eventual resale value, should be paramount in the homebuyer's mind. Yet price continues to be the main focus in buying property.
Short Sales and Foreclosures: Property Pricing Realities
It is true that pricing has been reduced on homes, especially in some of the larger markets, such as California, Florida, and urban markets -- where values have fallen dramatically. According to an article published by Les Christie on Money.com, "nearly 20% of the nation's home sales in 2008 were of bank-repossessed properties. Another 11% were short sales, in which homeowners owed more in mortgage debt than their homes were worth."
Between foreclosures and short sales there are good home buying deals to be had, but home buyers must remember that on these types of purchases banks will generally not go below 20-25% of appraised values.
In the case of purchasing foreclosed properties, homebuyers should be cautious about the condition of the home. If a homebuyer is purchasing a foreclosed property, it is wise to enter into the deal with capital for improvements, because these homes have been neglected due to lack of money. Some foreclosed properties have been intentionally damaged by angry homeowners who have had to abandon their homes under stressful financial circumstances.
With regard to short sales on homes, banks may take up to six months to approve a short sale. Some lenders are folding in the middle of the process, which adds more time to complete a short sale, because negotiations must begin again with the new lender.
Short sales and foreclosures do factor into property pricing. When a home in a neighborhood is sold for less than it is worth, pricing drops in that neighborhood.
So, with pricing in many markets at a three to five year low, why do home buyers continue to focus only on a great deal? Why have the cardinal rules of real estate purchases been pushed to the side? Location, resale values and lifestyle, which I refer here to as staycation, are just as important as price.
I will give an example of some of the major markets where I sell real estate, James City County, Williamsburg and Norfolk, and give a brief overview of how the rules of real estate purchase apply in these markets.
Williamsburg and James City County
For the avid golfer or person entering retirement, or even the family looking to raise children in a good school district, Williamsburg and James City County offer a wonderful lifestyle. There are numerous golf courses, dining, entertainment and continuing education opportunities. In addition Williamsburg and James City County offer one of the top school districts in Southeastern Virginia. In my experience over the long-term selling real estate in this market, resale values remain strong in well-established neighborhoods. In an age where the staycation, or staying at home during scheduled vacations, is becoming more common, Williamsburg has plenty of choices for quality entertainment. These include Busch Gardens and Water Country USA, Jamestown Settlement, the Colonial Williamsburg Foundation, and numerous outdoor festivals and events that are free and open to the public. All of these factors should inform the purchase of a home in the Williamsburg and James City County real estate market.
Economic, Commercial and Residential Development in Norfolk, VA
In Norfolk, Virginia, where I have closed several residential property deals recently, the opening of a light rail system with stations in Ghent, downtown, and South Norfolk, has created tremendous real estate opportunities in both the residential and commercial sectors. In neighborhoods where light rail train stations will be located, resale values on properties purchased are sure to rise eventually. There are several reasons for this upswing in value. Urban professionals and families are embracing this state-of-the-art transportation system, and public and private organizations and investors are preparing for the influx of new traffic by updating existing properties and committing to building new projects. Taking light rail will cut down on time spent in traffic jams, and leave more time for recreation and spending time with loved ones - a desirable lifestyle for many. With access to Chesapeake Bay Beaches, the Elizabeth and Lafayette Rivers, boating, swimming and recreating on or near the water are widely enjoyed in Norfolk, a world-class port city. Waterside is a main staging area for national and international festivals, and new light rail stations will be located nearby. Norfolk is an excellent place for a staycation. All of these factors should inform the purchase of a new home in this location.
In summary, location, resale, and lifestyle need to come to the forefront once again when individuals are deciding on where to purchase a home. Price will always be an important factor in the purchase of a home, but it should not be the only deciding point
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