By Kelly Quigley, REALTOR® Magazine
Are You Missing the Real Estate Boom? By David Lereah (Currency/Doubleday, 2005)
As a real estate professional, it may be reassuring to know that one of the country’s top housing economists predicts the real estate market will continue to expand at a healthy clip well into the next decade. In his new book, David Lereah, chief economist for the NATIONAL ASSOCIATION OF REALTORS®, makes that exact forecast, saying that a host of demographic and economic reasons have created a “phenomenon that takes place only once every other generation.” While you may not need convincing that it’s still prime time to invest in real estate, it’s a message that your customers and clients may benefit from hearing. Use this book to get tips on locating a smart investment and learn why it may make sense to tap into the second-home and rental-property markets.
Tips From the Book:
- Trade up. Trading up is one of the ways to increase your investment in real estate. Evaluate your neighborhood, and if you see that your home is one of the higher-priced homes in the area, it may be time to move. The highest-priced home in the neighborhood is usually held down a bit by the lower-priced homes with regard to future value.
- Renovate to increase value. If you’ve owned a home for a while but you don’t have the resources or the desire to move to a larger home, make home improvements as a way to further participate in the real estate boom. But steer clear of home improvements that don’t add value to your home—such as a hot tub on your deck. Focus on projects in the kitchen and bathroom, or on second-story additions, which offer the greatest return on investment.
- Buy a vacation home. If you can afford a second home, vacation properties provide a great opportunity to take advantage of the real estate boom. They offer potential for considerable price appreciation over the long term—perhaps more than any other property type. However, they’re also expensive to buy and maintain. The payoff could be significant in the end, but the costs of getting there are not small.
- Indirectly invest in real estate. If you are still skittish about investing in real estate beyond your primary residence, you may want to consider cashing in on the boom through “indirect real estate investing.” Depending on the amount of money you have to invest, you can purchase shares in real estate investment trusts (REITs), real estate mutual funds, real estate limited partnerships, or equity shares of real estate and real estate-related companies. You also can buy mortgage-backed securities issued by Fannie Mae, Freddie Mac, or Ginnie Mae.
For more on this topic, read REALTOR® Magazine’s interview with David Lereah, in which he discusses his new book and the importance of real estate investment in today’s market.
By Kelly Quigley, REALTOR® Magazine
The Getaway Home By Dale Mulfinger (The Taunton Press, 2004)
Buy this book from Amazon.com
If you have ever dreamed of building a vacation home to escape from your daily routine and spend time with loved ones, you can get plenty of inspiration just by paging through this book, which is packed with hundreds of vibrant photographs of getaway homes located in four outdoor settings—along the coast, in the mountains, on the plains and hills, and by the lake. Geared toward architecture home-design enthusiasts, The Getaway Home takes you on a tour of the country to unearth the most spectacular, relaxing, and scenic retreats. Featured homes range from an Adobe-style getaway in New Mexico to a compact New England farmhouse with ocean views. The book includes great tips for making the most of limited space and living in harmony with the environment. If you never dreamed of having a getaway house, you will after reading this book.
Tips From the Book:
- Make your kitchen guest-friendly. Open cabinets in a vacation home make it easier for guests to find their way around the kitchen when you’re not there to guide them. But if you want to have cabinet doors to hide the clutter, try frosted glass doors that will give guests a limited view of what’s inside.
- Big isn’t always better. Some of the best getaway homes are small and simple, providing a cozy and easy-to-maintain retreat. To make the most of limited space, remove walls that interrupt the space of the common areas. Use lots of big windows to make the interior light and airy, and to bring the outdoors in. Porches and outdoor living areas also expand the usable space.
- Communal spaces take precedence. A getaway should be a comfortable space that’s a break from your everyday home—a gathering place to enjoy the company of family and friends. A communal spirit affects every room in the house. Getaways tend to have modest kitchens where there is lots of shared cooking and eating, while living rooms, porches, and other areas become sleeping areas at night.
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