Hi all,
I am looking into buying a Single Family Home. I am interested in following areas because they are close and seem a good place to invest in:
- Sacramento, CA
- Las Vegas, NV
- East side of SF Bay Area, CA
I want your opinion if this is the right move. I want to know if a person rents the place, can he still get tax credit towards financing. I am just begining to look into it and need input from home owners and real estate agents. Any advice or contacts from you guys will be much appreciated.
Saqib
Re: Real Estate on West Coast (USA)
vegas has been booming, california has seen a lot of appreciation and u wonder how much higher can it go. or will it sow down.
as far as tax credits for interets paid, it does not matter if its your own home or if it is an investment property.
buying a single family home for investment puposeshas its challenges though. the rental market for single family homes is tougher than rentals in condos and townhouses. reason is fairly simple... u need to charge enough to be able to make your mortgage payments, now unless your down payment is so high that u need to make payments that are significantly lesser than what someone would have to pay if they are getting a mortgage themselves then it will work.
why would someone want to rent a single family home? why would they not purchase one too? this sub segment of the rental market is small, ppl in temporary assignments in a city, expats etc.
The challenge it poses for u is what if u cant rent the place or when a renter leaves there is a huge gap in finding the next renter.
the rate og growth of condos and townhouses may be lesser than single family homes, but they are a safer bet for investment purposes.
Re: Real Estate on West Coast (USA)
Saqib,
Sorry can't be of much help regarding this since I don't know zilch about this....but...hmmm....you should talk to some older Muslim people from the MCA masjid though on this topic, maybe they can guide you? I'm sure that would be useful.
Anyways, good luck and congrats :)
Re: Real Estate on West Coast (USA)
I have heard of studio apartments in vegas going for 400k. They are under contruction yet and will be worth 600k buy the time they r built! Or what it 600k and 800k??? A friend of a friend owns an apartment in vegas and makes $8000.00 a month!
What a lot of people are doing is making deposits on new contructions which appreciate between 50 to 100k minimum by the time they are built. Again you have to be in a state that allows flipping of real estate or u might have to bear the mortgage costs for a period of time.
Re: Real Estate on West Coast (USA)
vegas developers are getting very tough on flipping. the problem is that they dont want to be competing with resellers as well, it is an issue for them.
many of the condo and town house developments now limit the number of rental properties that can be there.
forget studio apartments in vegas, go for condos in the burbs, vegas downtown is due for a slowdown.