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Thursday, July 22, 2010
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10 comments:
Does anyone have a favored website or other information source on beach rentals?
I ask here because not much is turning up in my online searches. Granted, I find many resources, but it's like trying to drink from a fire hose.
I am interested in North Carolina Beach rentals, generally from Top Sail South to ~Kure~. But really just want a place for a week in the last two weeks of August to go hang out. Pet Friendly is a hard requirement. Actually, it's the dog(s) idea. They emailed me this morning.
Thanks in advance for any suggestions...
TN-
There are several companies that are used for rental services. For the outerbanks Twiddy is the largest one. You may be able to get a slightly better deal and more negotiating room about pets if you use craigslist (although there is more risk of the place not being nice, because no one has really vetted it)
I find this chart very interesting. It shows the inverse correlation between inventory and prices. It is national, I assume the same relationship holds for DC. Either way the pace of sales has fallen dramatically since the 8k went away. So far the inventory has also been rising, so I expect our MOI to increase dramatically over the next couple months. It will be interesting to see how well the relationship holds going forward. I expect there may be more of a lag than in the past, because as a whole people are slightly less worried about the housing market now than they were in 2008.
Looking for a bit of advice on an investing decision...
I am comparing a 1BR condo in Fairfax (Fair Lakes 22033) to a 2BR condo/TH in Sterling (south of Rt 7, 20164) as a buy and hold property.
*both in good condition, only minor fix-ups
*Very similar rentability (1200-1350/mo)
*around the same price ($160); But tax assessments vary greatly: Fairfax 1BR assessed at $177; Sterling 2BR assessed at $136.
Question is...what about long term? Fairfax seems stable, however the market for 1BR is not great for resale. The Sterling condo is an immaculate design and condition and in a great subdivision, but surrounded by a less than desirable area, BUT the metro will soon extend and cause house prices to maybe stabilize?
I'm still new to the area, so any advice or comments are GREATLY appreciated!
Lisa-
Have you checked comps for both of them. I know you said they are both listed for a price that is reasonable compared to comps. If you need help finding comps you can either give us the address or use a site like franklymls.com to look them up.
Tax assessments aren't always that accurate, which is why I ask about this. Assuming both are being sold at the correct price I would probably go with the 2 bedroom condo in Sterling because as you said it easier to sell in the future and Sterling should have should benefit from the metro as you said.
Lisa, hb,
I agree, Sterling has upside potential due to the growing tech corridor and metro expansion. Plus, I see a 2 bedroom TH shape condo as inherently more desirable to live in for both tenants and eventual buyers.
From the patterns after Boston's condo bubble/bust and looking at (of all places) the prices in Burke during this bubble, appreciation happens last to the least desirable properties. TH's don't bubble until SFHs have been priced out of reach, condo/TH's don't bubble until real TH's are unaffordable, and condo's don't really bubble until the whole thing's about to topple. (This only applies in suburbia, in downtown areas people chose to live in condos so they appreciate and bubble sooner)
So, if you're looking for a long term rental now and the ability to participate in the next bubble when it happens, or really to just get any noticeable appreciation over inflation, pick the place more people would actively want to buy and live in.
But I don't know, maybe Va_investor will chime in and say that no, no, no the 1 bedrooms are the cash-cows! Go for those. She'd know infinitely better than I.
Va_Investor said
Investors could have kept properties as rentals (as I have done, for the most part), but I believe it's better for communities to have owner-occupants. And I truly believe in the forced saving aspect of ownership.
Why is it better for the community? I can point you to many communities in our area (particularly in Arlington and DC) where the majority of people probably are renters. I think you would find many of these to be pretty nice neighborhoods with no crime problems.
What is wrong with Clarendon for example? Or Crystal City? I am pretty sure a majority of the homes in both areas are apartments + rented out condos.
---
I think there are a lot of reasons why people should own that benefit themselves. Eliminating most of your housing costs by the time you pay off the mortgage. Over 30 years your mortgage stays flat while rents will likely have doubled, tripled, quadrupled, etc. Do what you want with the home.
But I see fewer effects on the community. There are plenty of bad neighborhoods where most people own. In part because the high crime rate or bad schools make buying a home dirt cheap.
Lisa,
I think you should just go with whichever home you think would make you happier. But since you note a few things I'll reply to those:
How long is your time frame? How long are you looking to hold it? You probably know this but the second half of the Silver Line is not scheduled to open until 2016. That easily can become 2017. And rezoning, renovating, etc the area could take many years. Heck, people are still redoing the areas around the original Metro stops.
If Metro excites you keep in mind if they extend the Orange Line there will be a stop near Fair Lakes/Fair Oaks/Fairfax Government Center. I think it will happen but probably will be 2020-25 before it opens given how long the Silver Line took.
HB Says :
"I find this chart very interesting. It shows the inverse correlation between inventory and prices. It is national, I assume the same relationship holds for DC. "
remember HB some people say it's 'Different here'.
personally i think there is enough inventory and shadow inventory to give you some time to hunt for good deals.
as people give up delusions of massive appreciation, we will see what the opportunities allow.
The trick to me is never buy a property that you can't later rent out for a decent cash flow.
Pat-
I agree for the most part about renting, other than if you are buying a higher end property. It is generally very difficult to find people who want to rent high end properties so historically these properties have never cash flowed very well. For those of us trying to by properties that are more average I think your advice is a good way to make sure you have a backstop in case the house value continues to fall.
In respect to my chart I assume DC is somewhat different. The chart shows the average is 6 months on inventory and prices only fall when inventory is above this level. In DC I think the average MOI is closer to 4-5 so I think price will fall with 7-8 MOI while it may take 8-9 MOI for prices to fall nationally.
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