Raleigh Real Estate is Back to the Future

Where were you 30 years ago?  I bet you have seen a lot of changes over the past 30 years and we have also seen a lot of changes in Raleigh real estate.  Today, I thought I would take you back in time to 1981 and then fast forward you to the future of 2011 so you can see the shocking value changes in the affordability and cost of residential real estate.   They say- “all things get better with age”, well Raleigh area real estate is no different.  Fasten your seat belt we are going back in time 30 years.

 

30 YEARS BACK TO THE FUTURE                               1981                                      2011

AVERAGE HOME PRICE                                                  $82,500                                 $242,300

AVERAGE MORTGAGE INTEREST RATE                   16.63%                                         4%

AVERAGE MONTHLY PAYMENT (P&I)                    $1,147                                          $1093

AVERAGE MONTHLY RENT PAYMENT                     $315                                          $1,356

 

What does this 30 year comparison tell you?   Are you shocked by the drastic change or at least a little surprised at how well long term real estate investing has paid off?   If anything, these numbers should peak a little more interest into real estate as a viable option for expanding your investment portfolio.

Home Mortgage Payments Lower Now Than 30 Years Ago

Raleigh, Cary and Durham, NC have always been in the top best places in the USA to live, work and buy stable real estate.  Everyone is talking about what an unbelievably great time it is to invest in Triangle area real estate.  Now looking at the numbers, can you see why?  Your monthly mortgage payment is actually lower today than it was 30 years ago and rental rates have quadrupled!

Immediate Cash Flow

In addition, you can buy homes for investment to rent that will give you immediate positive cash flow.  In these hard economic times having extra monthly income is always a positive choice.

The future for investing in real estate is bright because rents are on their way up and are

expected to rise more over the next 5 years.  What a great way to add gains that double, triple or quadruple to your income too.

IRA & 401K used to Tax Deferred Real Estate Investments

Did you know that many investors are buying real estate in an IRA or 401k because of the high performance they are gaining in real estate?  In many cases their real estate investments are significantly out performing their returns on the stocks and bond market the current IRA is invested in.

There are many ways to purchase real estate today so open your eyes to the future.  If you bought investment real estate now in the greater Raleigh – Triangle area will where your portfolio be in 30 years?

To learn more about investing in real estate in the greater Raleigh area contact our office at 919-235-0007.

Raleigh NC Rated #2 for Nation’s Hotspots

Raleigh has been rated the second fastest growing city in the nation, according to CNNMoney. A combination of low costs, technical and scientific jobs, and its proximity to three major universities has boosted Raleigh’s population to 884,891 – a 63.4% increase!

It’s not hard to see why the city of Raleigh, NC has become such a sought after location. If you’re moving to the area or in the market for a Raleigh home, check out what the City of Oaks has to offer.

Things To Do in Raleigh, NC

There are plenty of attractions in Raleigh, NC for all kinds of people.

If you’re an outdoors person, the great variety of parks in Raleigh, NC is sure to please. The NC State University Raulston Arboretum and WRAL Azalea Gardens are beautiful to visit during the spring when the flowers are in bloom. The William B. Umstead State Park is also a wonderful place to go if you enjoy hiking or canoeing.

Shoppers won’t be disappointed by Raleigh’s malls and shopping centers. With ten major shopping plazas to pick from, visitors are sure to find their favorite store or boutique.

The Raleigh, NC farmer’s market, just five minutes from NC State University, offers seasonal, local produce, potted plants and baked goods.

The PNC Arena and Progress Energy Center for the Performing Arts have a wide variety of entertainment including shows, plays and concerts throughout the year.

Raleigh’s Family Friendly Environment

Families new to the area are sure to be impressed by the excellent private, public and magnet schools around the city. Raleigh neighborhoods provide families the luxury of living in comfort without having to travel too far for amenities, education and fun.

If you’re looking into new homes in the Triangle area, let us know. Contact us if you would like to set up an appointment to view available houses or townhomes in Raleigh NC!

Buying is Buying Even in a Raleigh Area New Home Sale

Buying Something New

We’ve all had the experience of going to purchase an item at a store without having much knowledge about the product itself.

In these cases we rely on the sales person to be honest with us, give us the best recommendation, and tell us the truth about the product.

Do You Trust The Salesperson?

The problem with this is that the salesperson is getting paid by the store. They get paid to sell you a product in their store, and in many cases they are paid commission based on the price of the product they sell.

These transactions happen very fast. You may end up purchasing something you didn’t really need because the sales person was that convincing and the store’s ambiance was that alluring.

Where’s Your Representation?

In these cases, you have no representation. After all, not only is the salesperson representing the store they work for but you lack the product knowledge to effectively represent yourself.

It can be very easy to get taken advantage of in these situations. And the same holds true for Triangle area new construction purchases when you’re not working with an experirenced Raleigh, NC area REALTOR.

At Linda Craft & Team, REALTORS, you are our responsibility. You are our star. You are our client. We represent you and you alone. Contact us so we can represent you for your new construction home purchase.

Finding New Construction Homes on Your Own Can Cost You

Buyer’s Agent vs. Builder’s Agent

If you’re searching for a new home around Raleigh, NC, you might have wondered if you need someone to represent you. Is it really worth it? If you think you want to go it alone, here’s what could happen:

Let’s say you decide to check out a model house in a Raleigh community with newly constructed homes. Of course, model homes are going to look amazing. They’re set up that way to get your attention. You probably won’t find one that isn’t impeccably clean and clutter-free. Sometimes refreshments are available, and music is often played in the background to put you at ease.

The agent who represents the builder will walk you through the model home and show you all the updated features. He or she will provide you with the knowledge you need concerning this particular Raleigh community. You’ll also find out about the builder and, most importantly, information about the cost.

If you’re convinced that this is the right home for you and decide to make a move on it, things might not go as smoothly as you think.

In these scenarios, the agent who represents the builder is obviously going to put the builder before you. He or she will still assist you with the contract, though. But once you sign it, there’s no going back.

As you go through the contract, the agent might try to pressure you to buy things you don’t want – upgrades or extras that only make the price go higher.

And if you think you’re going to get the same attention from the agent during closing, you’re in for a surprise. You’ll be facing the builder’s attorney and the builder’s agent. Basically you’re stuck on your own at a time when representation is vital.

Don’t let your Raleigh area home search end like this. If you want someone who will represent your interests, be sure to contact us.

Visit our new construction page to learn more about new construction in the Greater Raleigh area.

Buyer Representation for New Construction

Top 10 Reasons To Choose Linda Craft & Team

If you’re looking into the Raleigh area real estate market, you shouldn’t go it alone. Our free Buyer’s Agents will make sure you find the home that’s right for you – at the right price. Here are a few ways we can make that happen.

1. Free Representation – The Buyer Agent shares a fee with the listing agent that represents the builder. Which means all the information your agent will provide won’t cost you a thing!

2. Knowing the Real Estate Market – Builders often boost prices with new phases in the community. Your Buyer’s Agent will put in the time to compare closing sales and concessions offered in the neighborhood so you can make a well-informed offer.

3. Meeting Your Interests – Our agents are dedicated to meeting your interests so you can make the right choice. We want to ensure you have a solid understanding of your resale value and have the best home buying experience possible. That said, your Buyer’s Agent is concerned with making a quality relationship and would love to serve you in the future.

4. Pros and Cons –We have 100% fiduciary responsibility to clients, which means you’ll be given the good and bad that comes with your purchase. Your Buyer’s Agent will keep you informed about communities that may be of interest to you in your home search as well.

5. Lot Premiums and Resale Values – Developments are bound to have some houses that won’t sell as easily as others. For instance, some homes might be built in an undesirable area, like a flood zone. These homes are often enhanced with more upgrades than houses built on better lots. Your Buyer’s Agent will inform you about the resale value of these lot premiums.

6. Risk Awareness – Whether you’re buying early or toward the end of construction, your Buyer’s Agent will let you know if you’re paying too much in a certain neighborhood or phase.

7. Understanding the Upgrade – Just because the house has a lot of upgrades doesn’t mean you’re getting your money’s worth. Some upgrades can be marked 100% to 400% above their real value! To find out which upgrades will provide you a good return, your Buyer’s Agent will be sure to tell you which ones are worth your while.

8. Clarifying the Contract – Builders may have contracts with terms that put the buyer at a disadvantage. It’s important to keep an eye out for the following items:

  • Non-refundable money from the buyer
  • No refund of deposits if builder breeches contract
  • Daily financial penalties if a buyer misses a closing date but, no penalties if the seller fails to deliver the home for months
  • Testing for radon only allowed after closing www.epa.gov/radon

9. The Right Time to Close – You never want to close with an incomplete house. A Buyer’s Agent will encourage you to close only when the house is officially complete.

10. The Importance of Home Inspections – While the builder might tell you otherwise, your Buyer’s Agent knows that a home inspection is absolutely imperative. Even if the house seems perfect, you don’t want to find out it’s not when it’s too late. Mistakes are made during construction, and only an inspection can ensure you peace of mind.

Be sure to let us know if you’re planning on starting your home search soon!

Visit our new construction page to learn more about buyer representation and new construction in the Greater Raleigh area.