First Time Home Buyer: Part 1 of 8

Why Buy Instead of Rent?

When you're thinking about buying your first home, it's essential for you to be confident in your decision to buy instead of rent. However, you may not know about the many great reasons to buy a home! Here are just a few of them:

Smart investment

When you invest in a home, it offers the possibility for appreciation in value. The equity becomes yours when you're still paying off your mortgage. You even get to live in it while your investment matures.

Tax advantages

Since both mortgage interest and property taxes are tax deductible, homeownership can save you significant amounts of money every year.

Planned housing costs

You decide how much you spend on your home, including repairs and improvements. Unlike renters, homeowners with a fixed-rate loan can lock in their monthly housing costs.

Improvements to your taste

You can choose which improvements to make your own property, such as a deck, kitchen remodel, or new paint, instead of needing permission from your landlord.

If you have more questions about making the decision to buy a home, please feel free to call (509-293-2214) or email (info@wenatcheehouses.com) The Davidson Team today!

Warm regards,

The Davidson Team

Featured Listing: 110 Spring Hill, East Wenatchee, WA 98802

You can find this week's featured listing at:

http://www.wenatcheehouses.com/address.php?property_ID=10

Beautiful single family rambler built in 2006. 3 bedrooms, 2 bathrooms plus den & office! Vaulted ceilings, Brazilian cherrywood floors, big lawn that is beautifully landscaped and fully fenced backyard. Outstanding family or retirement friendly neighborhood. A must see!

Warm regards,

The Davidson Team

23.5% Rise In Home Prices

Last week, the Seattle PI shared that Wenatchee boasted a 23.5% raise in home prices for the second quarter. Click on the link below to read the article:

http://seattlepi.nwsource.com/local/329732_housing31.html

Warm regards,

The Davidson Team

Featured Local Business of the Week: Comcast Spotlight

This week The Davidson Team is featuring Gary Taylor from Comcast Spotlight. If you're a business who wants to develop a Web or television presense, Gary is your man. From targetted geographic and content driven TV campaigns, to features online with the many Comcast partners, Gary can help create a campaigns specific to your businesses needs. Gary's contact information:

Gary Taylor - Senior Account Executive
Comcast Spotlight
509-667-4421
gary_taylor3@cable.comcast.com

Have a wonderful day!

The Davidson Team

Real Estate Investor Series: Part 6 of 6

Checklist for real estate investment property

Homeowners look for a set of criteria when buying - school district, curb appeal, low crime rate, proximity to job, number of bedrooms, right layout, perfect-sized yard. While location is still a primary factor when you invest in real estate, most investors also add these to their checklist:

1. New single-family construction
2. A neighborhood that is mostly a primary-home community (rather than renters)
3. Square footage between 1400 and 1600
4. 3 bedrooms, 2.5 baths with 2-car garage
5. Nice yard but no pool (too much of a liability)
6. Safe neighborhood with little or no graffiti on public structures, fences, etc.

Another factor to consider is close proximity to your own home. Especially when starting out, you may need to visit your rental properties frequently-to pick up a check, make minor repairs, etc. For these reasons, any property more than 45 minutes away becomes less desirable.

It is important to remember you are not purchasing for your own use but to attract a high quality renter. Savvy investors choose properties based on the criteria above rather than their personal preferences. Doing so lets them pick from a wider base of homes and find the better bargain.

If you have more questions on which properties would make the smartest buys for you as a real estate investor, please don't hesitate to call or send an email.

Warm regards,

The Davidson Team

Real Estate Investor Series: Part 5 of 6

Building A Real Estate Investment Team 101

While serial investors (who buy additional rental properties without selling their current ones) are likely to invest with only the help of a real estate agent, other investors benefit from having a team of experts.

In addition to a real estate agent (and your tax advisor), some team members for you to consider are:

1. A builder or general contractor who can evaluate the structural integrity of a unit
2. A specialist in leases who is experienced in writing contracts
3. An attorney who practices in real estate law
4. A mortgage professional who can offer you different financing options

Having a team of investors gives you more knowledge as well as more financial resources as well. One word of caution: while friends or family may be interested in joining your real estate investment team, it is best to pick individuals based on the experience they offer.

Warm regards,

The Davidson Team

Real Estate Investor Series: Part 4 of 6

Profiting from the Fixer-Upper

Many real estate investors earn a living out of renovating run-down properties and reselling them, or holding onto them for rentals. Commonly known as the fixer-upper, it offers you two paths to real estate investment.

Buy a Fixer-Upper and Sell Again

In addition to offering a handsome profit, fixer-uppers can offer a true sense of satisfaction as you transform a dilapidated property into one with true appeal. But before you take the plunge, ask yourself three questions:

1. Can I buy it far below market value?
2. Can I do much of the work myself (or contract it out at reasonable rates)?
3. Can I get the job done quickly?

Remember, every month you add to the project is costing you in lost rental income, taxes, insurance, utilities and more.

Buy, Raise the Rents, and Sell Again

Quite often the tenants in a rental property are paying below market rates simply because the landlord hasn't raised the rent in years, or perhaps the property is not maintained well.
Both scenarios present you a great opportunity to buy the building, raise the rents (making upgrades if necessary) and resell the apartment building at a higher price. This raises the GPI-the gross potential income-which is the maximum gross income generated from the rent if all the units were occupied.

If you would like more information on these types of investment properties in our area, please don't hesitate to give us a call or send an email.

Warm regards,

The Davidson Team