Category: (2)

Thinking of a Rental Home as an Investment?

by char-maccallum-real-estate-group-inc

As many of our clients know, we work with a lot of families on renting homes as well as our investors who are wanting to purchase homes to rent in Olathe, Kansas.  Single-family homes used for rental property have distinct advantages over other types of investments.

Home prices have adjusted 30-40% around the country (as well as our Kansas City area), mortgage rates are incredibly low and rents have risen in the past two years due to more demand and shorter supply. Indicators like these point to a strong and sustained rental market. A great reason savvy investors are spending their money on Kansas City Real Estate with the Char MacCallum Team.An typical investor in Olathe Kansas can borrow 75-80% at fixed interest rates on appreciating assets with definite tax advantages and reasonable control. The financing alone is attractive compared to some investments that require 50% cash and have floating rates at prime plus for one or two years.

Consider you bought a $125,000 home for cash that would rent for $1,250 per month. With $15,000 income and allowing for property taxes, insurance and maintenance, it is still reasonable to expect $10,000 net income. You’d have an 8% return on investment without considering tax savings or future appreciation compared with 5-year CDs paying less than 1.5% and a 10-year Treasury yield at 1.65%.  Want to runYOUR investment numbers?

The reasonable control has a lot of appeal to many investors who find the volatility of the stock market unacceptable and don’t want the risk associated with some of the alternative investments.  We know that our Kansas City and Olathe, Kansas investors are smart with their real estate investments!  Helping our friends, past clients and investors is what we love to do – if you have questions, contact us at the office 913-782-8857

Please contact me if you’d like to know more about available opportunities to purchase rental homes in our Olathe and surrounding Kansas City areas.  You can use our free search here http://www.findkansascityrealestate.com/

Wondering about the “Value” of your Olathe KS Home?

by char-maccallum-real-estate-group-inc

Here in Olathe Kansas, we get a lot of questions like “What’s my home worth?”.  What your home is worth depends on why you ask the question. It could be one value based on a purchase or sale and an entirely different value for insurance purposes.

Fair market value is the price a buyer and seller can agree upon assuming both are knowledgeable, willing and unpressured by extraordinary events. This value is generally indicated by the comparable market analysis done by real estate professionals, such as a Char MacCallum Team Member.

Insured value is determined for the proper insurance coverage. Replacement cost could actually exceed the cost of new construction when additional expenses are incurred for demolition and the added complexities of matching existing construction.

Homeowners are generally more familiar with their home’s market value. You know your Olathe, Kansas neighborhoods and surrounding areas – we’re going to ask when we come to visit, “what do you think your home is worth?”.  Since it can be lower than the replacement cost, owners should review the insured value with their property insurance agents periodically. Under-insuring could invoke a co-insurance clause that may limit the settlement and increase your out of pocket expenses.

Did we get you thinking about the value of your home?  Feel free to contact us at the office for any questions or search some of the homes listed to see how they compare to yours!  Of course, you can justclick on this link to have us look up what the market value of your home could be here in Olathe, Kansas!