Real Estate Market is BACK (Philadelphia, Scranton: section 8, for sale, rentals)

[versaron]

Check out this article from Realtor magazine
Realtor Magazine - "The Age of Multifamily" - Parasole Properties
It says that the multi family real estate sectors sales numbers are back to pre-financial collapse days! (you'd think you'd hear about in the news but I guess where's the drama in that!)
I've been preaching to my investors to buy nothing but multi-families here in Scranton and Wilkes-Barre. I'm a property manager and think this area is one of the best places in the country to replace your stock portfolio with a real estate one. Anybody out there in the business see the multi-family sector of the market move in their area? Would you risk your $ in the market or in tenants? How nice would it be if they abolish the School property taxes? That would be a relief to us property owners.

[Mr Yuk]

I wish there would be a moratorium on creating more "multi-family" housing unless the owner plans on living in one of the units. Rentals are killing this area. Too many slumlords not caring who they rent to as long as they're raking in Section 8 checks.

[auntieannie68]

Originally Posted by Mr Yuk

I wish there would be a moratorium on creating more "multi-family" housing unless the owner plans on living in one of the units. Rentals are killing this area. Too many slumlords not caring who they rent to as long as they're raking in Section 8 checks.

ditto 4 me!

[jtab4994]

Just had an appraiser in for my latest re-fi. I'll left you know if the real estate market is really back when I compare this year's figure with the 2009 figure from my last re-fi.

[scrantonluna]

Multi units are selling because many people who would be buying homes can not get banks to lend to them, so they have to rent. Those who already have rentals are seeing full occupancy and want to expand, and also others who have had some cash are looking for a safe investment. Eventually things will even out and those who are renting will buy single family homes and will no longer be renters. Personally I would like to see much stiffer zoning and code enforcement on multi family homes and the really ratty ones should get the privledge of meeting a wrecking ball. I'd much rather see them replaced by subsidized "katrina homes" for the elderly and under employed.

[jimazee]

Originally Posted by versaron

It says that the multi family real estate sectors sales numbers are back to pre-financial collapse days!

Multi unit rental properties are popular investments as the economy and job market continue to erode. Besides out of town investors, some older buildings are inherited by non-tenant family members, and the financials of retaining and renting them are appealing to those who can endure the challenges of land-lording when compared to selling.

People with savings or earnings are tiring of 1% returns on investments when the cost of college, energy, cars, and taxes continue to rise. The stock market is a crap shoot in this political and economic climate. Many small businesses are struggling. Given the trends, investing in cheap housing, hiring local construction guys who are not busy or doing it yourself, and renting it to a guaranteed tenant is appealing to some.

It is especially appealing where the local economy is weaker than nearby regional and national economies. This creates an opportunity to exploit those fleeing higher priced markets (near NEPA this includes NYC, DC, and Philadelphia). Those who pay taxes help to support this phenomena.

If no jobs are created, the neighborhood/area continues to erode until the wrecking ball becomes the best option. This takes years....

Single family housing and new construction sales are not improving meaningfully, except to realtors, builders, and politicians who try to pump activity by trumpeting the 'improving' market. Even the slowly creeping reduction in homes for sale ('supply') sometimes looks hopeful, but in many cases homes are withdrawn from the market or turned into rentals. Weak new construction of homes and condos is not supplying new inventory, so 'supply' reduces.

Owning a home is no longer the appealing thought it once was for many. Sure the market will improve some (as year to year stats are compared to lousy near record previous years) but it will take a long time unless the economy really improves regionally, nationally and for NEPA.

How can the real estate market really improve while the economy and jobs are lousy? ... but if you have the stomach for it and some spare money, buying and renting may be for you.

[Cpt.Trips]

Originally Posted by versaron

Check out this article from Realtor magazine
Realtor Magazine - "The Age of Multifamily" - Parasole Properties
It says that the multi family real estate sectors sales numbers are back to pre-financial collapse days! (you'd think you'd hear about in the news but I guess where's the drama in that!)
I've been preaching to my investors to buy nothing but multi-families here in Scranton and Wilkes-Barre. I'm a property manager and think this area is one of the best places in the country to replace your stock portfolio with a real estate one. Anybody out there in the business see the multi-family sector of the market move in their area? Would you risk your $ in the market or in tenants? How nice would it be if they abolish the School property taxes? That would be a relief to us property owners.

This ladies and gentlemen is just about the most irresponsible, mis-quoted and mis-guided post I've seen in a long time. No where does it state sales are back to pre-financial collapse days. It clearly said the "Cap-Rate" is back to prior levels. Plus, using a cap rate as a guide to help an investor is almost criminal. Let me explain.Many real estate investors determine the value of an income property by using the capitalization rate, aka cap rate. It is probably the one most misused concept in real estate investing. What the cap rate represents is merely the projected return for one year as if the property were bought with all cash. Not many of us buy property for all cash, so we have to break the deal down, usually by trial and error, to find the cash on cash return on our actual investment using leverage. Furthermore, any financial planner worth a spit will tell you for the long term investor a well balanced portfolio of blue chip's, bonds and maybe some gold will always out preform all other investments. Also, real estate never leads an economy out of a recession. Without solid job creation and low unemployment, all else is lost. And to answer the question, I'll put my money in the market, Wall St. will not call me and tell me my dividends will be late because it lost it's job. Finally, this is why I lump real estate agents in the same boat as insurance and used car salesmen.

[sp2007]

Originally Posted by versaron

Check out this article from Realtor magazine
Realtor Magazine - "The Age of Multifamily" - Parasole Properties
It says that the multi family real estate sectors sales numbers are back to pre-financial collapse days! (you'd think you'd hear about in the news but I guess where's the drama in that!)
I've been preaching to my investors to buy nothing but multi-families here in Scranton and Wilkes-Barre. I'm a property manager and think this area is one of the best places in the country to replace your stock portfolio with a real estate one. Anybody out there in the business see the multi-family sector of the market move in their area? Would you risk your $ in the market or in tenants? How nice would it be if they abolish the School property taxes? That would be a relief to us property owners.

This post is brought to you by your local real estate agent!

[sheena12]

Originally Posted by scrantonluna

Multi units are selling because many people who would be buying homes can not get banks to lend to them, so they have to rent. Those who already have rentals are seeing full occupancy and want to expand, and also others who have had some cash are looking for a safe investment. Eventually things will even out and those who are renting will buy single family homes and will no longer be renters. Personally I would like to see much stiffer zoning and code enforcement on multi family homes and the really ratty ones should get the privledge of meeting a wrecking ball. I'd much rather see them replaced by subsidized "katrina homes" for the elderly and under employed.

I think this is adorable! I love the idea behind it and it seems like a great pathway to home ownership and financial stability.

I agree with all that you have said.

[Pa Dutch]

It's back? Really?

We just bought a 2 bedroom cabin on a quarter acre, with a view of the lake for 50k, and it had been on the market for a year.
My wife has an SUV that cost nearly that much.