Are Home Values Dropping?

The Future of Real Estate

With the current uncertainty about the economy, some people are waiting to purchase their first home or move-up to their dream house because they think or hope home prices will drop over the next few years. However, the experts disagree with this perspective.

Here is a table showing the predicted levels of appreciation from six major housing sources:

Real Estate Experts 

Every source believes that home prices will continue to appreciate (albeit at lower levels than we have seen over the last several years). But, not one source is calling for residential real estate values to depreciate....

Top 3 Real Estate Myths 

Understanding Real Estate

It seems you can’t find a headline with the term “housing affordability” without the word “crisis” attached to it. That’s because some only consider the fact that residential real estate prices have continued to appreciate. However, we must realize it’s not just the price of a home that matters, but the price relative to a purchaser’s buying power.

Homes, in most cases, are purchased with a mortgage. The current mortgage rate is a major component of the affordability equation. Mortgage rates have fallen by over a full percentage point since December 2018. Another major piece of the affordability equation is a buyer’s income. The median family income has risen by 3.5% over the last year.

Let’s...

Building Wealth with Real Estate

Real Estate is one of the fastest and most secure ways to build wealth. 83% of wealth comes from real estate equity at retirement. There has been a lot of focus on real estate appreciation over the last couple of years. Today, expert projections still forecast continued growth, just at a slower pace. One of the often-overlooked benefits of rising home prices is the positive impact they have on home equity. Let’s break down three ways this is a win for homeowners.

#1 - Real Estate Move-Up Opportunity

The opportunity in the market is the move-up buyer. With the rise in prices, homeowners naturally experience an increase in home equity. Many homeowners can sell in...

What HGTV Won't Tell You

Real Estate and Reality Shows

If you're like most of the US, you have been watching reality shows causing us to dream of a fixer upper. It is so easy to fall in love with designing homes with shows like “Property Brothers,” “Fixer Upper,” and “Love It or List It,” all in one sitting from the comfort of our couches. 

When you’re in the middle of your real estate-themed TV show marathon, you might start to think everything you see on the screen must be how it works in real life. However, you may need a reality check.

Reality TV Show Myths vs. Real Life:

Myth #1: Buyers look at 3 homes and decide to purchase one of them.

Truth: There may be buyers who fall in love and buy...

10 Tips to Save Money on your Insurance Costs

Insurance is a vital part of property investment. This is considered to be a big part of it which is somehow overlooked by some investors.It is important that you are investing with proper insurance. However, you want to make sure that the amount you pay in insurance costs will not lead to financial hardship. Whether you already own a home or you're still looking for a home, it's important to know the insurance costs .

Here are some helpful tips on how you can save money on your  insurance costs:

1. The newer the home, the lower the premium.

2. Concrete construction...

Real Estate Advice You Should Ignore

Buying or selling your home is a big decision. It’s natural to have questions, but how can you tell if the information and advice you receive is accurate to your situation? Not only can you find bad information online but it might come from unexpected sources, like your friends, your family and even your agent.

Here are a few of the costly real estate advice that you should ignore each and every time.

1. You’ll save money if you don’t work with an agent – Both buyers and sellers fall into this trap, but bottom line, a good agent will save both parties money through their market knowledge and negotiation skills.

2. Determining your price by online estimates – Online home value estimates, such as Zillow’s Zestimates, are...

A recent study by the National Association of Home Builders (NAHB) show that a $1,000 increase in the cost of a median-priced newly built home, pushes 127,560 buyers out of the market. This means that the increasing prices are impacting affordability and the ability for potential buyers to purchase a home. 

So, what does this mean? This study illustrated how even a relatively small increase in price or interest rate can dramatically impact housing affordability, according to NAHB Chariman Randy Noel. Housing affordability is currently a serious problem in communities across the country including South and Central Florida. On top of rising prices, the concern over interest rates is on the mind...

What is a 1031 Exchange?

One of the most common real estate investment transactions is the 1031 Exchange. Simply put, a 1031 Exchange (also called a “like-kind” exchange) is the swap of one investment asset for another which defers capital gains taxes on profits. 

A like-kind asset refers to selling one class of investment for a similar type of asset. For example, an investor currently holds several multi-family properties, such as duplexes, and wishes to sell them all in order to purchase a larger multi-family property, such as an apartment complex. This would qualify as a like-kind exchange. 

There are specific IRS rules which must be carefully adhered...