Why Should You Buy Investment Real Estate In College Towns?

Now seems to be the best time to invest in properties in college towns where housing demand is high due to a soaring rental market according to the New rules of real estate by Business 2.0 Magazine. With home prices still out of home buyer’s range, and homeowners selling their homes due to rising interest rates, rents are expected to increase nationwide. This makes buying investment property in rental markets such as college towns an attractive option, one that is already being pursued by investors. Rents are expected to rise by 5 % by the end of this year according to the National Association of Realtors (NAR), and investors are looking at college towns with increased interest.

There are two major reasons why it is prudent to buy investment property in college towns now. When compared with other rental markets, the rentals in apartment buildings in college towns are much stronger and hence more profitable. This has been augmented by the fact that apartment buildings in college towns are fewer in number. This demand for apartment buildings has also increased due to the rising admissions in colleges mostly from the Gen Y or the echo boomers, which has further increased the asking rates in the college town rental markets. These properties have a low vacancy rate, especially in buildings located near the campuses. Investors in commercial apartment buildings also get to increase their rent with the mounting demand making such investment a highly profitable venture.

So if you are a prospective landlord who has decided to encash this favorable situation, then you can start with choosing the college town that has the lowest ratio of university-owned beds to the student population. As Michael Zaransky, co-founder of Prime Property Investors in Chicago says, prospective investors would do well to pick the college towns that have the ratio of university-owned beds to students at 30 % or lower. One should also look into colleges that propose to expand their student ranks by 2 or 3 % every year.

Investors should also need to take into consideration the disadvantages involved in owning commercial apartment buildings in college towns. The business could be trying sometimes, and involves risks with college policies liable to changes and the difficulty involved in predicting volatile student demand. However, considering the high rate of returns that the investment has to offer, the pros seem to far outnumber the cons making buying investment property in college towns a smart option.

Can U.S. Luxury Real Estate Markets Sustain Home Prices?

Top 10 Luxury Home Markets To Watch for Price Increases or Reductions

The Unique Homes Magazine has listed 25 luxury home markets to watch in 2007 in its January issue. According to the Unique Homes report the 25 luxury markets will indicate where the luxury real estate market is heading to. These markets along with features that make them stand out from the rest are worth watching out for.

The following is a brief report on the top 10 luxury home markets to watch for price increases or reductions in 2007.

1. Annapolis, Maryland. The waterfront city located on Chesapeake Bay offers excellent boating and affordable prices compared to Washington’s luxury enclaves. With Washington and Baltimore within reasonable commute, this city is highly desirable.

2. Asheville, North Carolina. An eclectic ambiance and low-key lifestyle attracts people to Asheville which continues to remain one of the hottest places for luxury home buyers.

3. Aspen, Colorado. From a ski enclave this luxury market has grown into a platinum location. With its four-season appeal and restrictive zoning policies, Aspen is still a highly-sought after destination.

4. Atlanta, Georgia. The city offers several new upscale communities, numerous lifestyle amenities, retreats and much sought after waterfront luxury homes.

5. Austin, Texas. A strong real estate market that saw record gains in 2006, the reputable University of Texas, the scenic lakes and the great music attracts buyers to this hill country.

6. Bellevue/Medina, Washington. With prices going up at 28 percent, the market has still not peaked and several upscale neighborhoods are available at a lower price range when compared to other markets.

7. Beverly Hills, California. One of the top ranked luxury markets that is perpetually in demand, Beverly Hills continues to be untarnished and idolized as the Mecca for luxury. Hollywood Hills is currently a hot market for buyers.

8. Idaho. The growing resort markets in the state garner attention for the state that is making its presence felt in the luxury home market.

9. Jupiter, Florida. The boom has arrived here after Tiger Woods’ purchase of a 10-acre estate for m. The market continues to surge on this exclusive island.

10. Manhattan Uptown, downtown, midtown. The luxury market is upbeat with record sales of more than m in 2006 accelerated by Wall Streeters. Co-ops and town houses are favorites among buyers here.

If you are interested in buying or selling a home, condo or any other type of real estate in any of these markets, be sure to seek out the services of a real estate agent to advise you about current local market conditions.

Feng Shui in Real Estate – the Location and Lot

What do you know about Feng Shui? If you’re like most people, you probably are not even sure if I spelled it right just now. Maybe you picture an old man doing the world’s slowest kung fu at dawn (that’s Tai Chi, totally different.) Feng shui is a sorta guidebook about the placement and architecture of a house to allow good flow of energy. And it’s not just placement of the bed and couch. The placement of the actual house and landscaping will affect the ch’i (energy) of the house in a big way. Let’s start with a few tips to bear in mind when looking examining the location for your dream home.

1. First and most important, research the history of a property. Find out what happened with the previous tenants, and the ones before them. And even the ones before them. Ask neighbors, or selling agent. If all the previous inhabitants have had money problems, family problems, etc., chances are there’s bad feng shui going on. Best to move on and look for another house.

2. Pay attention to the road placement. The road in front of your house should not be pointing directly into your home. If a house is sitting at a dead end, in a T-intersection, or in the center of cul-de-sac, then energy is constantly flowing straight down that road into the house, then building up and stagnating there. This is not good; the ch’i must continue to flow, like air. If it gets stuck in your home, it can go bad.

3. Pay attention to what’s around the house. Examine the terrain closely. Ideally, the property should have a dark turtle in the back (a mountain or hill, another house, a row of trees, a fence, etc.), a dragon (a house, a tree) to the left, a white tiger (a smaller house or tree) to the right, and a phoenix (open ground, a circular flowerbed, a meandering river or road) in front. All those exotic names are just a fun way to state the obvious —a house by itself is not ideal, since there is nothing to slow the flow of ch’i. Most houses will have all of these things around them already, but it doesn’t hurt to think about it your first time seeing a place. Other things to think about are “poison arrows,” like telephone poles, flagpoles, or the corner of a house pointing your way. They can hinder the energy flow to the house. Even a hospital can be a source of bad energy.

4. Something that probably doesn’t automatically spring to mind is the shape of the property; but that can be very important as well. Always go for something symmetrical, like a square or a rectangle. If your real estate is pretty close to square, use hedges to fill in the spots that make it irregular. Triangle-shaped properties can create disharmony. If you just love a place and absolutely have to have a it but it’s on a triangle-shaped lot, it’s better for the wide side to be in the back; the other way indicates an inability to save money.

When you visit a property, notice the shapes of the things around. I know it sounds strange, but kind of squint your eyes and see what you see, like you used to do as a kid, when you were looking at the clouds in the sky. If anything looks like something hostile, then be careful. That could be an indication of some anti-ch’i. You want enough stuff to slow the energy down to capture it but allow it to also flow.