While the only things guaranteed in life are death and taxes, that doesn’t mean tax laws are unchanging. For 2014, many tax laws that people have counted on for good tax breaks are expiring — and not all of them are certain to be renewed. Not only that, but both representatives of the White House and Congress are calling for major tax reform that could have some other major changes in store.
In this day and age, security is a major concern for a lot of people. Unfortunately, the days of leaving your home unlocked without worry are behind us. Burglars and other intruders are a very real concern for your tenants. A deadbolt lock on the exterior doors may help with peace of mind, but it could be that you’re thinking about investing in a home security system for your real estate investment property.
In the above subject line there are two assumptions that are generally misconstrued to the average real estate investor. For perspective, I’m an underwriter at a community bank that makes portfolio loans and other types of real estate investment loans.
More Older Properties On The Market...Good Trend For Smart Real Estate Investors
Companies like Lowe's and The Home Depot may be really good bets right now if you are looking for a new stock for 2014. Why? Because America's housing stock is getting older and more and more homeowners as well as investors are buying fixer-uppers as well as choosing to update existing properties rather than buy new ones. On a national level housing stock is aging quickly and that can be a very good thing not only for home stores, but also for homeowners.
One other trend that is starting to show is that institutional investors have noticeably stayed away from older housing stock over the past 12 months in many locations. Older housing requires updating, which takes funds. They have the funds, but older houses are not part of their long-term plan. They want newer and bigger in many cases, which leave the older housing stock for individual investors and home owners. According to RealtyTrac’s Aging Home Analysis, more than 70 percent of the housing stock in the U.S. was built prior to 1990. An even bigger statistic though is the fact that over 60% of home sales last year were on properties built pre-1990.
To quote the wise William Shakespeare, “To invest in real estate, or to not invest in real estate, that is the question. Whether ‘tis nobler in the mind to suffer the slings and arrows of outrageous fortune…”
There are plenty of rewarding things about managing your own rental properties. Some landlords are thrilled by the prospect of finding the perfect tenants for their properties and building lasting relationships with them. They find the experience of managing and maintaining a property to be very rewarding — and it certainly can be!
You may not be all that excited about the start of 2014. A new year can bring new stresses, new worries and the complications of the unknown. It could be that you were good and comfortable with 2013, but 2014? You might not be ready to make friends with 2014, let alone embrace it.