Category Archives: Investment Properties

Housing Shortage Fix

PDX Metro Housing Problem? Well, there isn’t a problem if you are living in a home you own and plan to stay in, or if you own rental properties. Both are reaping the benefits of an approximate 11.4% increase in appreciation over the past 12 months. (Check out my  Audio Market Action Report  for these and other market stats)

Portland area landlords are enjoying an annual yearly increase in rental rates of approximately 9%. In the past six months alone, rents have raised 7% which suggest an increase rate of 14% for this year! (Here is a link to a recent Oregonian article regarding these numbers)

Unfortunately, buyers and renters are struggling with the higher costs and lack of choices. That is a problem. Thankfully, loan interest rates still remain low. It is still possible for first-timers to buy. However, sacrifices in location, age or condition may need to be made. Renters should contact a local preferred lender and find out if they can qualify. If they can’t qualify now, ask the lender what steps to take to make it happen in the future.

So what’s the fix? Oregon and Portland metro have been discovered. We are now known to be one of the best places in the world to live. Those of us that live here are fortunate, regardless of whether we rent or own. That said, we need to solve the housing problem. It seems obvious that we need to build a wall and have California, Nevada, Idaho and Washington pay for it!  Just kidding of course… we may need to pay for it ourselves.   🙂   Have a safe & spooky Halloween!

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Kevin G.                                                                                 KevinGormanSells.com

 

 

 

 

 

Questions about the market?  Give me a call  503-367-4869

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Filed under Buying a Home, Investment Properties, Oregon Real Estate, Portland Real Estate, Uncategorized

Fantastic Rental Market For Portland Landlords

As licensed Realtors, we are required to complete continuing education requirements. The subject of the class I attended yesterday was about property management here in Portland. Here are some interesting facts (Portland area) that I learned from the class instructor, Troy Rappold from Rappold Property Management, LLC:

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  • Rents increased 6% in 2013 and so far, another 6.5%  in 2014.
  • 78% of leases that ended in 2013 and 2014 were renewed
  • 75% of all lease renewals in 2013 and 2014 had a rent increase
  • There were an average of five applications per vacancy
  • Portland is #5 in the country for rental occupancy at 97.8%
  • In 2013 (Portland) 16% of incoming residents were foreclosure victims
  • State-wide in 2013, 60% of foreclosed homes became rental properties.

Wow…if you are a property owner, I suppose now is a good time to raise the rent (if you haven’t already).

If you are considering buying a rental property, now is a great time. There are still good deals on homes to be found in Portland Metro. Mortgage rates are low and there are loans that will allow the borrower to finance repairs and improvements to the home at the time of purchase. Most importantly, owning a rental property is a long term investment and the real estate market is cyclical. Plan to hold on to your property 10 or more years and you should be very glad you did!

Call me and let’s get started on your investment property today. 503-367-4869

Kevin@KevinGormanSells.com

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Filed under Investment Properties, Portland Real Estate