Are Downtowns Becoming Cool Again? A Landlord's Perspective

Since 2008, downtown office vacancies nationwide have increased to 12.4% while suburban office vacancies are at a huge 16.6%.

What’s going on? One theory is that the post-WWII migration toward the suburbs is reversing itself. Ask any college graduate under 30 where they want to live. Most will respond they want to live in a more urban environment – and many want a location that won’t require them to own a car! 

From a landlord’s perspective, this means three things:

Rental properties near downtown areas will command higher rents, increasing their values. On the flipside, suburban properties will probably become less valuable over the coming decade as it becomes ‘cool’ to live downtown again’.  The further a property is from a downtown area, the more pronounced this will be. Finally, it means that one of the most important factors in purchasing new rental units is going to be their convenience to a downtown area.

A commercial property with easy access to a local traffic corridor is going to be easier to lease.  Now consider that historically, people follow businesses, but it takes them several years (sometimes a decade or slightly longer) to catch up. During that time, however, people are still working and often playing downtown, but living in the suburbs.

If you’re a property manager, in the short-term you should invest in properties near the corridors and promote them as “easy access to downtown. Longer-term,  invest in territory in a downtown core, and plan to spend as much as you can upgrading. Downtown vacancies are most likely going to get snapped up, and as they fill up, rates (and property values) are going to start rising. It may take several years to get there, but if you’re determined to make a long-term living out of investing in real estate, it’s a solid move.

0 replies

Obtain An Experienced Short Sale Specialist

My First Short Sale

Hello and welcome to our blog. We are Kevin Kauffman and Fred Weaver, Arizona’s leading short sale specialists. Thank you for taking time out of your day to check out our blog. We would just like to let you know that we have successfully completed hundreds of short sale transactions at a 90% achievement rate over the last few years. However, this website is not about us. It is about you, the property owner.

It is exceedingly important that you have an specialist on your side that is dealing with your bank who doesn’t just agree with the lender and everything they say. The short sale can be a little bit traumatic to you as a home owner, so we want to provide you some perspective as to why you want a good short sale specialist on your side.

Here is a simple illustration. We have a short sale that has an offer for $50,500 and the lender has a value on the property of $49,500. Observe that the value of the home is in fact less than the offer. So, this transaction should very easily be accepted. The value of the residence comes from a BPO, a brokers price opinion. When you work a short sale, the lender hires an private business to acquire a value for the residence. The lender uses this value to decide whether or not they should employ the short sale or foreclose on the property.

In this specific instance, the bank declined the proposal because the offer was not sufficient. Basically, the bank worker making this choice does not understand the idea of loss mitigation.

Unless you have a real estate specialist on your side that is willing to aggressively pursue the agreement, you may have trouble closing a short sale. In the end, if we did not keep fighting, this residence would have gone to foreclosure.

In general, 20-40% of short sales close successfully. With a 90% achievement rate, we feel like we can be your greatest friend in this situation. We obtain better results than the majority.

We encourage you to come back to the website and contact us. We look forward to dealing with you soon.

Short sale FAQs and more.

Get more information on selling your home from Kevin and Fred at My First Short Sale by the Short Sale Specialists of Arizona

A Glance At Short Sale And Real Estate Data

Short Sale Shift

Statistics are essential in the real estate industry because they can give you an accurate picture of the present real estate market. Even with the negative things in the news daily, it’s hard to recognize precisely what is happening in your area.

The data are critical so that we, as real estate specialists, can tell the purchasers and sellers that we deal with what could potentialy occur in the real estate market. Minneapolis statistics are actually very similar to nationwide figures. As in most markets, the tax credit that just expired has radically impacted the real estate market. The week that the tax credit expired, our local market saw around 1500 houses sold with the weeks prior to that averaging around 1200 homes sold. To put that number into perspective, over time the average properties sold in the Minneapolis market per week is approximately 1000. Yet, with the tax credit now expired, weekly numbers have dipped to approximately 650 properties sold per week.

As the purchasers are lessening each week and fresh listings continue to come on the market, things will almost certainly get tougher for sellers. We think that it is a excellent time to acquire a property. While there are a lot of worries with the market right now, interest rates are at an all-time low and house prices are lower than they have been in decades. The affordability index in the Minneapolis vicinity is currently at 200%. That means, based on the median income in the Minneapolis neighborhood and current property prices, most people can afford to acquire two houses!

We are very much in support of buying in this market. The homes per buyer last year at this time was 5 to 1. Basically, for each buyer looking for a house, there were five homes on the market. This year, currently, that ration is 8 to 1.

Regardless of your position, be proactive approximately this process. Waiting to sell your home will only extend the problem and waiting to buy a house could cost you more money in the future.

Minnesota Short Sale Shift can answer your questions. We are Minnesota’s Foreclosure Avoidance and Short Sale Specialists.

Get more help from short sale Realtors, Josh and Sarah, at Short Sale Shift presented by the Short Sale Specialists of Minnesota

Selling A Dwelling Can Be A Very Difficult System At The Best Of Times What Is Required And What Is Essential In A Sale? Top Tips For A Quick Dwelling Sale

Selling your home can be a very difficult process especially if it is your first time. However do not worry you have plenty options that allow you to be as involved in the process as much as you need. Before you choose the best option you will need to decide what is required and what is essential in a Quick house sale. Is it more essential to get a greater price or to Sell property fast as possible. How much expense can you actually afford to pay to find a buyer for a Fast house sale?

There is a choice of reasons why home owners may require a brisk sale of their home. They may have just located their dream home and need to move fast before another buyer puts in an offer. The home they have left is wasting away any spare cash and time they have. Locating a buyer is hard and you do not really need to bother with all hassles. Their boss may have decided that they must move to another area and so it’s either live out of a suitcase or make a Quick house sale to purchase another. They may be separating with their partner and need the equity from the current property to purchase another. They may be a landlord and their tenants have left and they cannot deal with looking for another tenant. Another reason could be that property repairs are getting the better of them and they just cannot keep up with them all. They may have bought a second home when their income was great, nonetheless with the current downsizing in their niche they can no longer afford it. Or it may be that the 100% home loan that their building society was so generous in providing has also kept them from acquiring any equity in their home.

Do any of these circumstances sound familiar to you? If so then it is time to follow through on your choice to make a Fast house sale. First of all take a step back and look at your dwelling from a possible buyers’ perspective. What do you see and is it alluring? Would you have bought this dwelling if it looked like this when you were looking to buy? Walk across the street and look at your dwelling from a different angle. Does it look attractive to you? Will possible buyers race to set an appointment to see the dwelling or will they just run away from it? Here are some top hints to aid you Sell property fast.

1. Remove clutter if you need your dwelling to appear as spacious as possible.

2. Organize your closets in such a way that they appear roomy by limiting the volume of clothing that is on the hanging rails.

3. Tidy the garage so that it looks like what it is supposed to be utilized for.

4. Make your whole garden or yard a pleasant scene and clear any clutter.

5. Make sure your dwelling is clean and organized before each time you show it to potential buyers. Organize to have the whole property expertly cleaned and at the very least have the carpets steam cleaned.

6. Repair broken items so that they do not become unappealing to your probable buyers and will prevent you to Sell property fast.

7. Remove any personal items from walls and tables as this will block purchasers from seeing your dwelling as their future home.

8. Make sure that all the children’s rooms are kept clean and tidy and remove posters from the walls. Keep the beds made, closets cleaned, put clothing in the drawers and keep the floor clear with nothing lying around.

9. During a viewing, it may be best if your children are not in the dwelling as this could be a very stressful time for them as they see strangers looking through their private space.

10. Make sure there is a clean smell when you enter the home. The sense of smell is a surprisingly powerful persuader and it can be used to your benefit with food, candles, flowers, and maybe a potpourri pot just before a showing.

11. During a showing keep your pets away from the dwelling if at all possible as you do not need more hair to clean up on sofas, carpets and stairs.

12. Make sure that your pet is not intimidating to your purchasers as a barking dog may prevent your purchasers from enjoying the beautiful back yard setting.

In order for a Quick house sale the idea is to create an atmosphere where your possible buyers can easily envisage themselves living in your home. Your house is your largest investment so show it off to its best advantage and you will reap the greatest financial reward and make a Fast house sale.