As the baby boomers gather into retirement, a significant portion doesn’t have savings to carry them through their elder years. Many will rely on investments that provide a safe but paltry income of 3-5%, or a risky but enticing income of 10-15%. The bottom line is: to get a decent return on your investment, you sacrifice safety. There is a very attractive alternative: the multi-family investment.
Maine has one of the oldest housing stocks in the country, and this poses special problems for owners of older homes, where taking advantage of cutting edge technology is far more difficult than buying or building a home with the technology embedded. As the chasm widens between cost-effective energy-efficient homes and budget-busting older homes, there may be an approaching tipping point that will push the green revolution into hyper-drive.
Real estate is the most powerful investment vehicle that exists. There are three huge benefits afforded to real estate investments that typically don’t occur in other investments: 1) Leverage, 2) Depreciation and, 3) Loan Interest Deduction. These accomplish very powerful results for income sheltering and equity appreciation. The compounding of these produces returns that dwarf stocks and bonds. Running a successful business would be the only way to beat it, but that is accompanied by greater risk and a lot of work.
Most people expected a downturn in Maine’s real estate when the pandemic hit in March. There was a pause as buyers and sellers alike decided to wait until there was a clear direction in the economy. That direction is not yet clear, and remain cloudy for some time. However, real estate prices have held firm, and in some cases, buyers are paying premiums over asking price.
When a buyer goes under contract on a home or commercial building, the due diligence period begins. Now it is the buyer’s chance to unearth anything that needs repair or replacement. An attorney or title company will look for defects in the title, encroaching lot lines, hidden easements, etc. Most of the time it’s a material defect that needs attention, and this can only be revealed by a knowledgeable inspector. Sometimes, even an experienced inspector can get lazy and make a mistake.
If you’re planning to sell your home, there are many online tips to get it sold quickly and for the most money. What follows here are the best of those suggestions, and some of my own.
If you want to brave the “for sale by owner” maze, Dirty Harry might say “you’ve got to ask yourself one question: ‘Do I feel lucky?’” If you do, also ask: