Real estate and other stuff

And if only the Cowboys were playing, my joy would be complete:

http://news.bbc.co.uk/sport2/hi/other_sports/american_football/7062729.stm

I predicted to my (British) husband that Miami would have a tougher time with the conditions, i.e., damp and chilly, than the Giants. And so far, that seems to be the case.

At the final two-minute warning, I found myself really hoping Miami could pull a rabbit out of a hat. Jesse Chatman has been a blast to watch, and I think his place on the team is now assured. But the Giants wisely ran out the clock, to the disgust of the spectators who didn't expect that anticlimactic ending.

This is my first sports-related post ever and thus a bit off-topic. To try to relate it to real estate, I'll just mention that although I was unable to afford any real estate in London when I lived there, I did purchase a home in Horsham and a rental property in Worthing in 2001. It took me six months of research, since most estate agents don't list properties on their websites, if they had one, and there is no MLS. I'm very familiar with the process throughout most of the UK, which is very different from in the US (the system in Scotland closely resembles the American one). Since housing prices went crazy through most of Britain and Ireland 3-4 years sooner than they did in parts of the US, the US must be looking good for investment and second/vacation homes. And the exchange rate is awesome/horrifying, depending on which side of the water you're on.

It's my hope that British investors will consider investing in a variety of Texas properties rather than the usual condo in Orlando.

Thanks for a great game, guys!

And cheers, mates!

Robin

Once again, the slow-down in new-home sales in San Antonio is being blamed on those mean old investors who are dumping properties on the market (from the San Antonio Express-News, October 12, 2007):

"The Texas economy is outpacing the national economy, and the biggest problem in San Antonio real estate was an invasion of out-of-town investors in 2005 and 2006, most of whom have since left the market. Those investor-buyers helped fuel a run-up in building, then backed out of contracts when it was clear San Antonio wasn't the kind of market where double-digit returns can be had."

But real estate agents who will sell an investor anything-whatever the age or price range-should share some of the blame. Then the home sits on the market vacant, finally being rented at well below "market rent" after several months.

If you're relying on the advice and experience of an agent to help you find a good investment property, here are some questions to ask:

1. Have you ever rented before, preferably a house?
2. Have you ever been a landlord/landlady?
3. Have you ever done property management?
4. Have you showed or leased rental properties?

Naturally, I have the right answers to these questions! :)

1. I have been a tenant of innumerable apartments and four single-family homes. By the way, I always got my security deposit back and a good reference.
2. I have been a landlady in Hawaii, Texas, and in England. I currently own and manage three rental properties in Texas.
3. I have managed several properties, both single- and multi-family, and still manage one property for clients.
4. When I first started out in real estate, I showed rental properties "for practice." I currently specialize in selling as well as marketing, but not managing, rental properties for lease.

Here's a tougher question: What's the most important aspect of a good rental property?

Answer: The tenants you'll get for it.

Just like the tenants I market rental properties to, I wanted more than just shelter. I wanted a neighborhood that seemed safe and quiet, and was not too far from work or school. I wanted enough room for my furniture plus some storage space. I wanted a nice yard to look at and relax in, because I was tired of living in an apartment. I wanted to be able to park my car close to the front door. I wanted a feeling of privacy-again, something you don't always get in an apartment. I wanted a comfortable, clean home that didn't gross me out thinking of the people who had lived there before me. It didn't have to be new, just nice and clean. Fresh paint, unstained carpet, no smells, no bugs.

The same holds true to some extent for duplexes and fourplexes, but I have never liked them much. They are a compromise between apartments and homes in the size, storage, and privacy features. Accordingly, they should rent out for a rate between an apartment and a single-family home, and should be priced that way, too (but they often aren't). The good ones at least offer a fenced, private yard and a garage.

I had a certain amount of money to spend on rent every month, and I wanted as much as possible for my money-especially since I was going to have to commit to living somewhere for a whole year. So if the home had a bonus room (fourth bedroom, study, or game room), nice kitchen, fireplace, garden tub, or covered patio, it would be at the top of my list-and I might even be able to come up with another $25 or $50 for something really fabulous.

Do you want tenants who will trash your property and/or not pay their rent on time? Offer them a home in a neighborhood where there are mattresses out on the sidewalk and trash blowing on the streets. Or one where the flooring is different in every room and the walls have not been painted in years. Or one with no grass in the yard. Or one that is just plain dirty. You have to give to get.

Real estate is a people business, not just a numbers game. Somebody has to actually want to live in the property, whether a tenant or a buyer, for you to make money.

So buy a home that somebody wants to live in.