Archive for the 'Real Estate Investing' Category

Like other Asheville cabin owners, I have mixed feelings when I see that Asheville has made another top ten list.  While I am reassured by these lists that I have indeed chosen to live in one of the best places on Earth, I fear that more and more people will discover what those of us who live here already know.   The Asheville area is a very special place.

Andie MacDowell, Asheville Neighbor

The most recent top ten listing comes from Barron’s, the weekly business publication, and highlights the top ten places for second homes in the U.S. The article cites one real estate expert as noting that in addition to a good R&R site, investors are now on the prowl for solid investments as well.  The article points out that the decline in prices of luxury homes, in these second home markets, seems to have bottomed out.

Asheville came in at #9 on the list, trailing Maui, Kiawah Island, SC, and The Hamptons which finished 1,2,3 respectively.   Barron used as its criteria “gorgeous homes, spectacular views, world-class fishing and skiing, fine dining and great shopping.”  It also cautions that the rankings are somewhat subjective as are house styles, and that a return on investment in buying one of these homes may take a while. For Asheville, they list the median luxury home at $700,000, representing a 38% decline from peak pricing.   As a bonus, the article also notes the most famous movie star who could be your potential neighbor.  In the instance of Asheville, it is actress Andie MacDowell.  If you are a Barron’s subscriber, you can read the full article.  If you want to look for your own luxury home in a top ten setting, please contact Greybeard Realty.

From an early age, my father taught me that if you can’t say something nice then don’t say anything.  This is my first article in a while.  In the last 12 months there hasn’t been much nice to say about the Black Mountain real estate market.  Statistics from the Multiple Listing Service (MLS) indicate that the real estate market in our area may be ready to move forward. (more…)

While Black Mountain may have been one of the last markets hit by the economic downturn, we believe it is one of the first markets to begin recovering.  While sales in Black Mountain and Buncombe County are down from the previous year by an average of 30%, statistics from the Western North Carolina Regional MLS show that we have may have reached the bottom and are beginning to rebound.

For the first time since March 2008, home sales (# of units) in Black Mountain have exceeded the sales from the same month in the previous year, and currently, 22 homes are under contract. And while the average cost of homes significantly dropped from last year, we are finally seeing an upswing — the median price of homes in Black Mountain has increased by 2% year-to-date.

The good news continues for August.  In August 2008, there were 3 homes sold in Black Mountain.  As of the date of this posting (August 29, 2009), there have been 7 closed sales this month.

If you are a first time homebuyer, now is the time to invest. Real estate prices are down, interest rates are low, and the $8,000 tax credit that can help you make a down payment or simply reduce home-buying expenses is still available until November 30th.

The American Recovery and Reinvestment Act of 2009 has helped many people– this year– purchase their first home, and The National Association of Realtors estimates that 350,000 first-time buyers will own homes thanks to the tax credit. Additionally, North Carolina homebuyers, who meet income requirements, may be eligible for a Mortgage Credit Certificate (MCC). An MCC allows you to claim 20% of the interest you pay on your mortgage as a federal income tax credit and has the potential to save you up to $2,000 a year on your federal taxes. An MCC can be combined with the $8,000 federal tax credit, but qualified buyers need to move quickly to take advantage of this opportunity because the November 30th deadline quickly approaches.

The knowledgeable staff at GreyBeard Realty wants to help you take advantage of this first-time buyers’ market. Let us help you find your new home. Buyers are advised to consult with a tax professional regarding tax credits and mortgage credit certificates.

The American Recovery and Reinvestment Act, signed into law on Feb. 17, 2009, provides many buyers with a tax credit of up to $8,000 if they purchase a home between January 1 and November 31, 2009.  Most news outlets have referred to this credit as available only to first-time homebuyers, but that is not entirely accurate.

The Act does specify that this incentive is for first-time buyers, but it is important to understand how the law defines first-time buyers.  In this case, a first-time homebuyer is someone who had no interest in a principal residence in the prior 3 years.  Clearly, this opens up the tax credit to more than just true first-timers. (more…)

In the past several months, I have written articles on long-term rental properties and the vacation/second home trends, and this month, I would like to address a very special niche in the real estate market—vacation rental properties.

In Buncombe County we have a large number of vacation rental homes, although it is difficult to track specific numbers.  While concrete numbers are not available county-wide, as an example, there are 650 homes in Montreat, and I would guess there are about 150 vacation rentals in Montreat alone.  That makes the rental market, particularly short term rentals (i.e. vacation rentals), very important to our community as a whole. (more…)

This month, I want to highlight the second home market, specifically those houses purchased for vacation homes or for future retirement homes.  In the next article I will address homes bought for use as investment properties strictly for rental use, which involves an entirely different set of issues. (more…)

People often look at the Black Mountain area for investing in vacation rental property, a topic I will discuss at length at another time, but another part of the real estate market is long term rentals. Investors often look for this property, but it can be very difficult to judge the quality of their investment. (more…)