Boise Meridian Eagle Idaho Real Estate - Homes Sales and Boise Investment Properties

Michael Hon, CEO, The Iron Eagle Realty Team Assoc. Broker, Silvercreek RG The Iron Eagle Realty Team is a Full Service Real Estate Company. Our mission is to assist our clients in the successful acquisition and sale of their personal homes and/or investment properties in the Boise Idaho Real Estate Market. We have successfully helped our clients with short sales, investment properties and foreclosed / bank owned properties in the Boise Idaho Real Estate Market.

Showing posts with label investment property. Show all posts

Sunday, March 01, 2015

Fewer homes for sale pushes up US house prices in December

U.S. home prices rose in December at a faster pace than the previous month, likely because of a much smaller number of homes for sale.

The Standard & Poor's/Case-Shiller 20-city home price index, released Tuesday, increased 4.5 percent in December compared with 12 months earlier. That is up from 4.3 percent in November and the same as October's annual increase. The small gain comes after price increases had slowed for 12 straight months.

Americans are listing fewer homes for sale, pushing up prices and keeping many houses out of reach for would-be buyers. Home prices are rising faster than most Americans' wages, slowing sales even as hiring strengthens, consumer confidence grows and mortgages stay low.

Still, the smaller price gains are more sustainable and less harmful for potential buyers than last year's double-digit increases.

The Case-Shiller index covers roughly half of U.S. homes. The index measures prices compared with those in January 2000 and creates a three-month moving average. The December figures are the latest available.

The number of homes for sale in December was equal to just 4.4 months of sales, the lowest level in nearly two years. Six months of supply is typical for a healthy housing market.

"The housing recovery is faltering," said David Blitzer, chairman of the S&P's index committee. "While prices and sales of existing homes are close to normal, construction and new home sales remain weak."

All 20 cities reported higher prices than a year earlier. The biggest gains were in San Francisco, where prices rose 9.3 percent, and Miami, where they jumped 8.4 percent. Chicago reported the smallest gain, at 1.3 percent.

December's price rise is far ahead of wage gains. Average hourly wages rose at a faster pace in January compared with the previous month, but were just 2.2 percent higher than a year ago. Pay gains have been stuck largely at that level for most of the five years since the recession.

Sales of existing homes fell last year after two years of steady recovery. That has led many economists to forecast a rebound in sales in 2015, but so far there are few signs of it.

In January, existing home sales tumbled 4.9 percent to a seasonally adjusted annual rate of 4.82 million, the slowest pace in nine months, the National Association of Realtors said Monday.

And the construction of new homes fell 2 percent in January, the Commerce Department said last week.

Lower mortgage rates and strong job growth may yet spur more sales later this year. The average 30-year fixed mortgage rate was 3.76 percent last week, according to the mortgage giant Freddie Mac. That has ticked up in recent weeks, but is far below the 4.33 percent average from a year ago.

Employers have ramped up hiring, encouraged by strong growth last spring and summer. The U.S. economy added more than 1 million jobs from November through January, the fastest three-month pace in 17 years. More Americans earning paychecks should eventually push home sales higher.

By CHRISTOPHER S. RUGABER, Associated Press

The Iron Eagle Realty Team's mission is to assist you, our client, in the sale and acquisition of real estate properties in the state of Idaho, specifically the Boise Idaho Real Estate Market. Whether you are buying or selling a home, whether it is a foreclosure, short sale or equity property, we handle our customers and clients with empathy and honest truths so they can make informed decisions as they advance in the process of buying and selling real estate that meet specific needs.

PS: We've Helped More Buyers and Sellers than 99.8% of any Local Realtor
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Regards, Michael Hon, REALTOR®CEO, The Iron Eagle Realty Team
Associate Broker, Silvercreek Realty Group
Certified Short Sale Specialist®
Investment Property Consultant
Direct: 208.919.0458 Office: 208.939.9033 Fax: 208.514.1422
www.IronEagleRE.com Michael.Hon@IronEagleRE.com

Sunday, February 08, 2015

With Tax Law Changes, Foreign Investment Could Take Off

With Tax Law Changes, Foreign Investment Could Take Off
Changes to FIRPTA could open up the floodgates for cross-border capital

By Les Shaver, www.multifamilyexecutive.com

The American apartment market has seen a dramatic rise in the influx of foreign capital over the past decade. But the panelists on the “Across the Universe - Where Is the Capital Coming From?” panel at National Multifamily Housing Council’s Apartment Strategies Conference expect an even bigger infusion if policymakers address tax law.

The Foreign Investment in Real Property Tax Act of 1980 (FIRPTA), which imposes income tax on foreign persons disposing of United States real estate, basically penalizes foreign investors for spending money in the United States.

If there is a change in that law, David Schwartz, CEO of Waterton Associates, thinks international capital flows could dramatically increase.

“If FIRPTA goes away, I think it opens the floodgates of capital even if you're just planting seeds today [of investment with potential foreign investors],” he said. “If there's no FIRPTA in two to three years. that money could be coming here.”

Land of Opportunity
The opportunity with foreign investors is real because of volatility in many other areas of the world, according to Schwartz. “The U.S is a safe haven,” he said. But just because foreign investors are interested in investing in American multifamily doesn’t mean they don’t hold some reservations. Clyde Holland, chairman and CEO, Holland Partner Group, claimed that reporting and communication can help assuage these fears.

Holland said that most of the foreign investors he has worked with prefer longer hold times so it’s important to develop a long-term strategic plan.

To help these investors gain a comfort level, Schwartz claimed it’s important to visit with them and educate them on their turf. “You need a much larger educational component to familiarize investors,” he said.

That education is important because, in some cases, the apartments that investors will be putting their money into can vary greatly from the multifamily they’re accustomed to in their home countries. For instance, in Canada rental apartments are often older concrete structures from the 60’s and 70’s.

“In Canada, the for-rent market is different,” said Janice Lin, director of the Canada Pension Plan Investment Board. “Class A here [in the U.S.] is condo there.”

But, on the flipside, if a country has a vibrant apartment market, it can make the sales job easier. “The Chinese really want to come to the U.S.,” Schwartz says. “They love it. They are really familiar with the concept of apartment housing.”

The Iron Eagle Realty Team's mission is to assist you, our client, in the sale and acquisition of real estate properties in the state of Idaho, specifically the Boise Idaho Real Estate Market. Whether you are buying or selling a home, whether it is a foreclosure, short sale or equity property, we handle our customers and clients with empathy and honest truths so they can make informed decisions as they advance in the process of buying and selling real estate that meet specific needs.

Thursday, November 27, 2014

Boise home prices return to 2008 levels

Boise home prices return to 2008 levels

Median housing prices nationwide – and in Boise – are at the highest rate since 2008, according to statistics released by RealtyTrac, a leading housing data source.

Ada County’s average home price for 2014 is $209,900, a 6 percent increase over last year, according to the Ada County Association of Realtors.

RealtyTrac pegs the national median sales price for October at $183,000, up 16 percent from a year ago to the highest level since September 2008.

“I think around 200,000, 205,000, 210,000 is the right place for us to be right now,” said Marc Lebowitz, executive director of the Ada County Association of Realtors.

Ada County bottomed out at $146,000 in 2011.

Combining Ada and Canyon Counties, RealtyTrac placed Treasure Valley among 21 cities deemed to have “lost steam” with home price appreciation from October 2013 to October 2014. Home appreciation in Boise-Nampa stumbled from 23 to 0 percent in the last year, the lowest among all the “losing steam” cities that include nine California metros and Phoenix.

Lebowitz, however, sees a half-full glass with home price appreciation.

“We are ahead of the timeline,” he said. “Our prices increased ahead of theirs, ours fell sooner than theirs and our recovery is starting sooner than theirs.”

Lebowitz believes home appreciation in Boise is starting an upward trajectory while other “losing steam cities may still see drops in home appreciation rates.”

Boise, however, is ahead of the nation on foreclosures. It is seeing half the foreclosure rates of the country as a whole. Foreclosures among outstanding Boise mortgages in September were at .8 percent, down from 1.47 percent in September 2013, according to real estate data provider CoreLogic.

The national foreclosure rate was 1.6 percent, CoreLogic reported.

The Iron Eagle Realty Team's mission is to assist you, our client, in the sale and acquisition of real estate properties in the state of Idaho, specifically the Boise Idaho Real Estate Market. Whether you are buying or selling a home, whether it is a foreclosure, short sale or equity property, we handle our customers and clients with empathy and honest truths so they can make informed decisions as they advance in the process of buying and selling real estate that meet specific needs.

Monday, November 17, 2014

Kennedy Wilson Acquires 324-Unit Apartment Community in Boise

Kennedy Wilson Acquires 324-Unit Apartment Community in Boise

YTD acquisitions for Company and its equity partners exceed $3 billion as global multifamily portfolio tops 20,000 units

BEVERLY HILLS, Calif., Nov 13, 2014 (BUSINESS WIRE) -- Global real estate investment and services firm Kennedy Wilson (NYSE: KW) today announced that the Company purchased Reflections at River’s Edge, a 324-unit apartment community located in Boise, Idaho for $29.75 million investing $15.3 million of equity in the transaction (including closing costs). The Company also assumed debt of $15.2 million through Fannie Mae at a fixed rate of 5.3% with 5-years of interest only remaining.

“We are extremely excited to begin our presence in the Boise market with the acquisition of Reflections at River’s Edge,” said Kurt Zech, President of Kennedy Wilson Multifamily. “Boise is a strong, stable market with unemployment well below the national average. Employment and population growth has been very strong and have outpaced the national growth rate over the past decade.”

Reflections is located in the West End neighborhood of Boise. The property sits on a picturesque lake and is located 1.5 miles from downtown Boise. The adjacent greenbelt bike path provides tenants with easy access to Downtown and Boise State University. Immediately north of Reflections, a large parcel will soon be developed into a multi-use regional park. The Esther Simplot Park is a 55-acre property that includes 17 acres of ponds and will include fishing ponds, picnic areas, green spaces, public amphitheater and a whitewater park.

Kennedy Wilson’s global multifamily portfolio now totals 20,007 units. Real estate related acquisitions by the company and its equity partners year-to-date total more than $3.0 billion, which includes approximately $2.3 billion acquired by Kennedy Wilson Europe Real Estate plc.

About Kennedy Wilson

Founded in 1977, Kennedy Wilson is a vertically integrated global real estate investment and services company headquartered in Beverly Hills, CA, with 25 offices in the U.S., U.K., Ireland, Spain, Jersey and Japan. The company, on its own or with partners, invests opportunistically in a variety of real estate related investments, including commercial, multifamily, loan purchases and originations, residential, and hotels. Kennedy Wilson offers a comprehensive array of real estate services including investment management, property services, auction, conventional sales, brokerage and research. For further information on Kennedy Wilson, please visit www.kennedywilson.com.

SOURCE: Kennedy Wilson

Kennedy Wilson
Christina Cha, 310-887-6217
VP of Corporate Communication
ir@kennedywilson.com
www.kennedywilson.com

Copyright Business Wire 2014

The Iron Eagle Realty Team's mission is to assist you, our client, in the sale and acquisition of real estate properties in the state of Idaho, specifically the Boise Idaho Real Estate Market. Whether you are buying or selling a home, whether it is a foreclosure, short sale or equity property, we handle our customers and clients with empathy and honest truths so they can make informed decisions as they advance in the process of buying and selling real estate that meet specific needs.

Friday, November 14, 2014

Multifamily Holding Strong!

Multifamily Holding Strong!

The national apartment market strength is not slowing down though many predicted it would. As national effective rent growth reached a 35 month high in September, occupancy remained above 95 %.

September’s effective rent growth of 4.3%, the strongest since the 4.4% of October 2011, is a 22-basis-point (bps) increase from August 2014's 4.1% and a 131-bps difference from September 2013's 3.0%.

Year-to-date (YTD) effective rent growth decreased by 2 bps to 5.5% in September, which is not surprising given the trends of the recovery period. YTD rent growth has peaked in August or September during the past four years and then declined somewhat before the end of the year.

Meanwhile, YTD effective rent growth was stronger than any other post-recession year for the sixth straight month and is still stronger than the 5.2% recorded for the first nine months of 2010 and 2011.

National occupancy declined by 10 basis points from August’s 95.2% to 95.1%, the second highest rate since Axiometrics started reporting on a monthly basis in April 2008.

Historically, occupancy peaks in August or September, so the market appears to be following its seasonal pattern, but at a higher level.

This apartment cycle – which began in 2010 – is already longer than the last one (2004 -2008), and the market continues to perform strongly. The apartment sector’s strength is surprising to many analysts, especially so deep into the current cycle.

The main factors driving this cycle’s second peak include the growing number of prime renters, those between 20-34 years old, and the fact that these renters are unwilling or unable to purchase homes.

The population in the prime renter cohort is larger than in the last cycle. Also, the home ownership rate has decreased from the last cycle. The prime renter age group is either not willing to or not able to purchase a home.

Ten years ago, the prime renter age group population (red bars in the chart below) was smaller. This cohort was also more interested in owning homes.

Another reason for the spike in rent growth at the beginning of the current cycle is that supply and demand were misaligned. Rent growth really started to pick up when the economic recovery began and job growth accelerated. Meanwhile, little, if any, new apartment supply was being delivered. Now that new units are being delivered, job growth and rent growth are more in balance.

-Axiometrics Inc.

The Iron Eagle Realty Team's mission is to assist you, our client, in the sale and acquisition of real estate properties in the state of Idaho, specifically the Boise Idaho Real Estate Market. Whether you are buying or selling a home, whether it is a foreclosure, short sale or equity property, we handle our customers and clients with empathy and honest truths so they can make informed decisions as they advance in the process of buying and selling real estate that meet specific needs.

Friday, February 14, 2014

Millionaires See Real Estate as Top Investment for 2014

Found this great article on Bloomberg Personal Finance

Millionaires See Real Estate as Top Investment for 2014
By Margaret Collins and David M. Levitt Feb 6, 2014 2:45 PM MT

U.S. millionaires see real estate as the top alternative-asset class to own this year, according to Morgan Stanley. (MS)

About 77 percent of investors with at least $1 million in assets own real estate, according to a survey released today by the New York-based investment bank’s wealth-management unit. Direct ownership of residential and commercial properties was the No. 1 alternative-investment pick for 2014, with a third of millionaires surveyed saying they plan to buy this year. Twenty-three percent said they expect to invest in real estate investment trusts, the second-most popular choice.

Wealthy investors are turning to a rebounding real estate market as fixed-income yields remain historically low and equities surge. U.S. commercial-property values rose 8 percent in the 12 months ended Jan. 31, and have jumped 71 percent since hitting their post-recession bottom in 2009, research firm Green Street Advisors Inc. reported today. The S&P/Case-Shiller index of home prices in 20 cities is up 24 percent from its 2012 low.

“After a year where the Standard & Poor’s Index rose 30 percent, some millionaires are moving money out of traditional, long-only strategies to find outperformance, and turning toward alternatives such as real estate and private equity,” said Gary Kaminsky, a vice chairman at Morgan Stanley Wealth Management in New York. “Sophisticated, high-net-worth investors are much more concerned about losses.”

The One57 residential building stands while under construction in New York.
Collectibles ranked as the third-most-popular alternative-investment choice this year, with 20 percent of millionaires saying they planned to buy, followed by private equity at 19 percent and precious metals at 16 percent.

Interest Rates

Wealthy investors see stocks getting expensive and interest rates staying stable or even declining over the next couple of years, Kaminsky said in an interview at a conference for Tiger 21 investors last week in Scottsdale, Arizona. That’s why they are looking more closely at alternatives including real estate for returns and income, he said.

Tiger 21 members, who have at least $10 million in investable assets, increased their average allocation to real estate last year to 21 percent as of the fourth quarter from 19 percent in the first three months of 2013, according to a separate study released by the New York-based group last month.

Will Ade, a Tiger 21 member, said real estate is a particularly attractive investment as stocks show vulnerability in 2014. The S&P 500 has fallen more than 4 percent this year, while developing-country stocks have tumbled on concern that the outlook for economies is worsening.

‘Lame’ Bull

“We had a great bull run last year,” Ade, a 60-year-old geologist, said in an interview today. “I don’t know if the bull is dead, but it certainly is lame right now.”

This year may be the tail-end of attractive investments in property before interest rates rise, said Ade, who has made his money finding oil companies and private investors to fund the drilling of wells. He said he is trying to purchase residential real estate in Miami right now.

“The really good real estate deals are getting harder and harder to find,” Ade said. “Once interest rates start to go up, whether it’s farmland or single-family dwellings there’s going to be huge downward pressure on real estate.”

Foreign Buyers

The Manhattan high-rise condominium buildings One57 and 432 Park Ave., where units have gone under contract for more than $90 million, are evidence of the faith that the very wealthy have in real estate, said Mitchell Roschelle, real estate advisory leader at PricewaterhouseCoopers LLP. Such properties have also attracted international buyers.

Wealthy foreigners have bought high-end U.S. properties for their safety and because they’re denominated in dollars, the world’s reserve currency, he said. This helps domestic millionaires maintain the value of their property investments.

“It creates competition, which drives the price up for everybody,” he said. “The sellers have multiple channels to sell into. That gives you more liquidity.”

Self-storage properties are among commercial real estate investments wealthy individuals are buying, Kaminsky of Morgan Stanley said. Retail shopping centers are seen as less attractive as more consumers shop online through companies such as Amazon.com Inc., he said.

Chilean Fund

Morgan Stanley Wealth Management surveyed 1,004 U.S. investors ages 25 to 75, with least $100,000 in assets, during the fourth quarter of last year. A third of them had more than $1 million.

BigSur Partners, a Miami-based wealth-management firm, has been helping some of its wealthy clients, who usually have at least $50 million, work with institutional investors such as a Chilean pension fund to invest in commercial real estate, said Chief Executive Officer Ignacio Pakciarz. Deals include an office building in Princeton, New Jersey, he said.

“We don’t feel there’s a lot of value in emerging-market bonds, high-yield bonds and highly rated fixed income,” Pakciarz said.

Owning the real estate is attractive because of the expected appreciation of property value and stream of rental income, as well as better control and supervision over the investments, he said. The firm has also bought office properties in Pittsburgh and Boston, multifamily residences in Texas and some industrial buildings for clients, and is looking for more opportunities this year in real estate purchases or lending, he said.

The Iron Eagle Realty Team's mission is to assist you, our client, in the sale and acquisition of real estate properties in the state of Idaho, specifically the Boise Idaho Real Estate Market. Whether you are buying or selling a home, whether it is a foreclosure, short sale or equity property, we handle our customers and clients with empathy and honest truths so they can make informed decisions as they advance in the process of buying and selling real estate that meet specific needs.

Tuesday, January 14, 2014

3 things to know about interest rates in 2014

Found a great article on Interest Rates for 2014 on housingwire.com. This definitely pertains to investment properties in Boise ID.

3 things to know about interest rates in 2014
Whether they rise or not, things are going to change

By Trey Garrison January 10, 2014 5:07PM

Interest rates will go up. Or they will stay the same. One of those two things will definitely happen in 2014, economists say, and some lenders and investors may have trouble adjusting to the change.

"We think rates are generally headed up. We have a growing economy both here and aboard,” said Mike Fratantoni, chief economist for the Mortgage Bankers Association (MBA). "We’re going to get some differing data like today’s jobs report which was off, but the next jobs report may see employment up. We are anticipating the job market is going to grow in 2014 and the recovery will continue."

Further, he said, a longer-term factor will be that a growing federal deficit will put upward pressure on rates. And third, the Federal Reserve has already made it clear that if U-3 unemployment goes below 6.5%, it will let rates rise.

"We expect that in the third quarter the Fed will stop buying MBS and Treasurys, and start raising interest rates," Frantantoni said.

MBA is projecting interest rates on the 10-year Treasury yield to go from 3% in the first quarter of 2014 to 3.3% by fourth quarter of 2014, averaging 3.2% for the year, and then creeping up to 3.5% by the last two quarters 2015, averaging 3.4% for 2015.

MBA projects that 30-year fixed mortgage rates will go from 4.7% in the first quarter 2014 to 5.1% by the end of the year, and continuing a slow rise to 5.3% by the end of 2015.

Conversely, economists at international macro-economic research firm Capital Economics say they don’t expect interest rates to rise and that the Fed will keep a tight, tight leash on rates through 2014.

"The world economy has entered 2014 with a lot more momentum than it had a year ago. Business and consumer confidence have improved and unemployment is falling rapidly in several countries. However, while this should eventually prompt central bankers to raise interest rates, we do not expect significant hikes this year," the firm states in its Global Central Bank Watch report. "Instead, the Fed and Bank of England are likely to leave rates unchanged even after unemployment falls below their current thresholds, while both the ECB and the Bank of Japan look set to announce additional policy stimulus."

"The acceleration in growth over the past twelve months or so has been particularly strong in advanced economies In principle, this should pave the way for policy- makers to raise official rates from their current exceptionally low levels, particularly given that some central banks – notably the Fed and Bank of England – have explicitly linked future hikes to progress in reducing unemployment," the Capital Economics report states. "In practice, though, the four major central banks in advanced economies are likely to continue to tread very carefully in withdrawing stimulus, let alone actually tightening policy."

One big concern outside the housing and mortgage universe is that if interest rates rise too high, it could essentially bankrupt the U.S. treasury. The Fed is now printing 29 cents for every dollar the U.S. government spends, and servicing the national $17.3 trillion debt is costly even with low interest rates.

A study last fall by the bipartisan Committee for a Responsible Federal Budget said total interest payments on the federal debt in 2013 were approximately $255 billion. That’s based on the Treasury paying 0.01% on three-month bills and 2.98% on 10-year notes, as opposed to the historical average of 3.3% and 5.2 % respectively.

Frantantoni said typically the Fed has made it clear to the Treasury that it will focus on price stability rather than financing the debt, although he acknowledges there is a concern that interest payments on outstanding federal debt could be an issue. Economic growth concurrent with rising interest rates would serve to ameliorate these concerns through increased tax revenues and stronger job growth.

"We’ve had a couple of unusual years, and a lot of folks in the Fed would like to get back to the role of just minding monetary policy,” he said.

The Iron Eagle Realty Team's mission is to assist you, our client, in the sale and acquisition of real estate properties in the state of Idaho, specifically the Boise Idaho Real Estate Market. Whether you are buying or selling a home, whether it is a foreclosure, short sale or equity property, we handle our customers and clients with empathy and honest truths so they can make informed decisions as they advance in the process of buying and selling real estate that meet specific needs.

Friday, May 03, 2013

How do property taxes affect my Investment Property in Boise Idaho?

Property taxes vary form state to state. In Idaho, property taxes are based on assessed property values and levy rates. Property assessed values change from year to year; property values are re-assessed every Jan. 1st.

There are two pieces of the puzzle in regards to property taxes in the Boise Idaho Real Estate market. Each county has a tax assessor and treasury dept. The tax assessor determines the property value; this is done on a yearly basis on Jan 1st. The treasurer determines the levy rate based on the county budget. We have two major counties that encompass most of the Boise valley, Ada and Canyon. Ada is comprised of Boise, Meridian Eagle, Kuna and Star. The bulk of the population in our area lives in Ada County. Taxes in Ada County can vary from slightly less than 1% to 1.9% of assessed values. Assessed values in general are lower than current fair market values. If you want more info on assessed values, visit the Ada County Assessor Website. Taxes in Canyon County can vary from 2% to 2.5% of assessed values in investment properties.

It is important to know the history of assessed values and to project them forward to get an understanding of how this will affect future cash flow. Please call us at 208 939 9033 for any additional information.

The Iron Eagle Realty Team's mission is to assist you, our client, in the sale and acquisition of real estate properties in the state of Idaho, specifically the Boise Idaho Real Estate Market. Whether you are buying or selling a home, whether it is a foreclosure, short sale or equity property, we handle our customers and clients with empathy and honest truths so they can make informed decisions as they advance in the process of buying and selling real estate that meet specific needs.

Wednesday, April 24, 2013

Boise Idaho Investment Property - Fourplex within a Mile of Downtown Boise and Boise State University

Activity level has jumped again in the fourplex market in Boise so I thought you might like some information about a fourplex The Iron Eagle Realty Team just listed that is JUST ONE MILE (WALKING DISTANCE) of downtown Boise and Boise State University.

This is a fully leased fourplex (built in 1994) just south of Downtown Boise. You can literally walk to downtown as well as the BSU campus within minutes. All the units are 2 bedroom with 2 baths; clean as a whistle and perfect for roomates. The owner has NEVER had an issue renting these.

In fact, all of the utilities can be paid by the tenants and the rents are slightly under market. With an increase in rents and utilities paid by the tenants, this property produces an almost a 10% cash on cash return with a 6.8% cap rate. Not only that, this block is sandwiched by city blocks that have already been re-developed with new apartments and condos. This is an excellent income producing property and a long term hold for re-development opportunities.

If you are interest in a proforma, please click on the link below or call me at 208 939 9033.

PS: Click here to go to our Facebook Page, Boise Investment Real Estate and Like Us!

Like NEW FULLY LEASED Fourplex - Asking $315,000

Walking Distance from DOWNTOWN Boise ID

and Boise State University

2 Bedroom and 2 Bath Units

3856 SF, Built in 1994

If you are interested in this property please...

Click here to download listing info, map and proforma

CLICK HERE FOR GOOGLE MAP

Or Call 208 939 9033 for more info

Tuesday, April 09, 2013

Investor frenzy over housing has peaked

Here's an interesting article from CNNMoney.com about investors pulling back from the real estate market.

By Nin-Hai Tseng, Writer April 5, 2013: 5:00 AM ET

Signs that the big money has retreated from the foreclosure boom may be good for the housing market overall.

FORTUNE – When the U.S. housing market crashed in 2007, millions lost their homes to foreclosure. With their finances in shambles, they picked up the pieces by renting rather than buying. Big institutional investors quickly caught on, snapping up foreclosed properties on the cheap and renting them out.

All this has helped drive the recovery we're seeing today: Investors effectively absorbed the excess inventory of homes for sale, which in turn has helped push home prices higher. Prices for rentals have also risen rapidly, as families who either lost their homes or put off buying found rentals to live in.

While this has gone on for some time, the investor frenzy might have peaked. Rents for single-family homes have essentially flattened -- rising just 0.1% in March from a year earlier, according to a report released Thursday by real estate listing website Trulia. What's more, in some cities where investors had the biggest appetite for properties on the cheap, rents have fallen: Take Los Angeles, where rents fell 1.9%; rents in Orange County slipped down 0.7%; Las Vegas saw a 1.9% drop. And in two other key investor markets -- Atlanta and Phoenix -- single-family home rents remained flat, rising less than 1%.

Meanwhile, rents for apartments have continued to rise, climbing 2.9% in March from a year earlier.

MORE: Why higher mortgage rates will help the housing market

The change suggests good news. It hints that the broader housing market is normalizing, as the role of big investors in the recovery wanes. They bought so many properties that the supply of single-family homes for rent has met demand. Nationally, there were nearly 4 million more homes for rent in 2012 since the housing market last peaked in 2005. With rents softening, investors may start selling off their properties, adding to the tight supply of homes for sale, says Jed Kolko, Trulia's economist.

Of course, there's risk that this could dampen momentum of the recovery. Some have argued that once big investors stopped buying, home sales and subsequently home prices could start flattening then falling again.

There's more to it, however. While institutional investors have played a big role in reversing the housing market, their part isn't as big as some might think. Investors fall under two categories: There's the big corporate kind. And then there's the individual investor: High earners who buy multiple homes.

As The Wall Street Journal highlighted recently, small investors accounted for a good chunk of home sales in areas where the Blackstones (BX) of the world also drove sales. In Phoenix, small investors who bought more than five homes accounted for 26% of home sales at the end of 2012; Atlanta, 24% and Las Vegas, 22%.

It might not make financial sense for institutional investors to keep buying if the payoff continues to soften, but it could be different for small investors. They may very well still be willing to buy, analysts say.

"If all the big funds went out of business today, we'd still be talking about investors," says a housing analyst quoted in the Journal.

And as for renters in search of single-family homes, they might enjoy cheaper rent.

Wednesday, April 03, 2013

Like New Duplex Close to Boise State University - Justed Listed

We just listed this Like New Immaculate Duplex in Southeast Boise Idaho. This property is minutes away from Boise State University, Boise Downtown and Boise Greenbelt. Please click here for more information about this and other Investment Properties in the Boise Idaho Real Estate Market.

Monday, March 04, 2013

6%+ Cap Rate Fourplex - Fully Leased in Meridian ID

Cash Flow Fourplex - Fully Leased

Dream Home | Market Analysis | Available Listings | Visit Website

View This Listing Online!

Like NEW Fourplex in Meridian, ID. Fully Leased with on site managment. Turnkey investment. Centrally located near business parks, movie theatre/restaurant complex, largest regional medical center in SW Idaho and freeway. Development has clubhouse, pool and weight room. Great location within the development, along the back row away from Overland Rd. BTVA

$315,000.00
City: Meridian
Bedrooms: N/A
Bathrooms: N/A
Garage: 1
Sq Ft: 3668 sq. ft.
Lot Size: Small Lot 5999 SF
MLS No: 98514273

The Iron Eagle Realty Team
208 939 9033

Silvercreek Realty Group
Eagle, ID 83616

REALTOR

REALTOR Websites by Tour Real Estate Inc

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The Iron Eagle Realty Team's mission is to assist you, our client, in the sale and acquisition of real estate properties in the state of Idaho, specifically the Boise Idaho Real Estate Market. Whether you are buying or selling a home, whether it is a foreclosure, short sale or equity property, we handle our customers and clients with empathy and honest truths so they can make informed decisions as they advance in the process of buying and selling real estate that meet specific needs.

Monday, February 18, 2013

Cap Rates Explained - Boise ID Investment Properties

What is a cap rate? Whenever searching for an investment such as a stock, currency, commodity, real estate, or any other type of investment, typically an important factor is what is my return on investment? If you’re new to the investment real estate game or trying to learn more you probably have not heard of a cap rate or have, but don’t quite understand what it means. This article will discuss what a cap rate is and what a bad cap rate is and what a good cap rate is.

To start, simply put, a cap rate is just a return on investment. It applies to any real estate investment you may be considering and the cap rate will help you determine if the investment is worthwhile. To calculate the return you must take the net operating income and divide it by the price you pay for the property, and then multiply it by one hundred. That will give you the percentage of return for the investment property.

The next question, how do I know what a good return is? Well, the answer to that question is it depends on certain variables. The most important concern for any deal should be that the return is greater than the interest rate of your mortgage. For example, if you have a property that has an 8% return and you are looking at mortgages for the property. It is best to have a mortgage below 8%, ideally the lower the better of course. The reason for this is that if the interest rate exceeds the return, then you are essentially paying for every percentage point past your return on that mortgage. It means you lose money, typically a lot.

Thus, it is best to always have a return that is much higher than the interest, not always possible, but best to aim for it. You probably now can figure out what a bad cap rate is based on what I have just discussed, but I would like to add one thing. We now have established what a good cap rate is and what is bad. This does not mean go and buy any investment property that is less than the return. You must make sure that there is a reasonable safety net, for example an interest rate of 5.8% and a return of 8%.

In the investment real estate business you must realize there is a possibility of vacancies, there are unexpected costs, and more. If any of your costs end up exceeding expectations or you have a vacancy, the property will quickly result in a negative cash flow. Thus, you will be spending money to keep your property a float. In some cases it may be best to work with a partner so there is more cash involved in the deal to reduce risk of losing money in a deal.

The Iron Eagle Realty Team's mission is to assist you, our client, in the sale and acquisition of real estate properties in the state of Idaho, specifically the Boise Idaho Real Estate Market. Whether you are buying or selling a home, whether it is a foreclosure, short sale or equity property, we handle our customers and clients with empathy and honest truths so they can make informed decisions as they advance in the process of buying and selling real estate that meet specific needs.

Thursday, February 14, 2013

BOISE AMONG WORST PLACES TO BUY A FORECLOSED HOME

Here's great article from the Idaho Business Review by Brad Iverson-Long
Published: February 5,2013

The Boise metro area is one of the worst places to buy a foreclosed home, according to national real estate data company RealtyTrac.

The data company based its finding on measures including the supply of foreclosed homes and the average savings of foreclosures. Local real estate agents say that distinction is a sign that the market is improving, though there are still good deals to be found.

“If we’re the worst foreclosure spot, then we should be rated as the best place and on the rise,” said Craig Zuber, president of Zuber Group Real Estate.

Zuber said the Boise market improved in 2012, with traditional home sales now making up most of the market, rather than foreclosures and distressed sales. That’s also leading to more construction of new homes in the area.

“If you’re in a distressed market, you don’t see sticks in the air,” Zuber said of the new construction apparent in the Treasure Valley. “We do.”

RealtyTrac’s 2012 metro foreclosure report said foreclosures make up nearly one in every six home sales. Foreclosure activity in the Boise area in 2012 was down 28 percent from 2011 and down 55 percent from 2010. Foreclosures were up in a majority of the top 212 metro areas in the nation. Boise was seventh on RealtyTrac’s list of worst places to buy a foreclosure, behind Salt Lake City; Las Vegas; Ogden, Utah; and cities in Arkansas and Texas.

Boise ranked just 40th on foreclosure activity for all of 2012, based on the percentage of housing units with a foreclosure filing. For December, Canyon and Ada counties led the state in foreclosure activity, both in total number of foreclosures and as a ratio of foreclosures to total housing units.

Florida had eight metro areas in the top 20 nationally in foreclosure rates and places six cities among the 20 best places to buy a foreclosed home.

While the supply and discount of foreclosures may be low, Tim Bassett with West USA Realty in Garden City said foreclosures can still be good for homebuyers.

“A foreclosure property is still your best value, next to a short sale,” he said, though he acknowledged that there aren’t many to buy in the area right now. Bassett said the availability of foreclosure kept prices for conventional homes down, but now home prices are on the rise.

The low supply isn’t unique to foreclosed homes. The Ada County Association of Realtors reports that the inventory of all homes in its market area is at a 12-year low.

The Iron Eagle Realty Team's mission is to assist you, our client, in the sale and acquisition of real estate properties in the state of Idaho, specifically the Boise Idaho Real Estate Market. Whether you are buying or selling a home, whether it is a foreclosure, short sale or equity property, we handle our customers and clients with empathy and honest truths so they can make informed decisions as they advance in the process of buying and selling real estate that meet specific needs.

Boise Meridian Eagle Idaho Real Estate - Homes Sales and Boise Investment Properties

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Cap Rates Explained - Boise ID Investment Properties

Thursday, February 14, 2013

BOISE AMONG WORST PLACES TO BUY A FORECLOSED HOME

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