Note: Originally published on May 21, 2010, I’m republishing it now because it’s important information for any young person wondering how to make money in real estate in the coming years. The Dayton OH real estate market has created some once-in-a-lifetime opportunities to make money even today. From the mid-90s to 2007, home buyers were able to look at a single-family home as an investment, but when the market crashed in 2007-2008, that no longer was a given. What we have now is a new opportunity to create wealth. Not huge, double-your-investment wealth, but, as a real estate investment advisor called it, “plain vanilla” wealth- modest and steady
income that can help you move from one dream to another. Memphis Realtor Joe Spake wrote about this below, and his advice is something to consider. Call me, Theresa Lussier, THE HOME GROUP REALTY, 937-478-7781, if you’d like to discuss your options for taking advantage of the new real estate opportunities in Dayton Ohio.
I’m connected to Realtors all over the country and in a variety of real estate specialties. Many of them are like me- they use their websites to share valuable and updated real estate information with their readers. Today I’m sharing information from Memphis Tennessee Realtor, Joe Spake. His post on 4 Reasons First-time Home Buyers Should Consider a Duplex is pertinent to the Dayton real estate market, and first-time home buyers in Dayton Ohio.
I don’t generally even mention duplexes to the first-time home buyers I work with. First-time buyers usually have a dream home in mind – the first nest – and that’s what we search for. But, with most coming out of dorm living, apartment living, or living in a room at the parents’ house, it seems logical to defer the dream home for a bit and move to the somewhat similar situation of a shared building.
Here are some things to consider about owner-occupied duplexes:
Price – In this market, per-square-foot prices for duplexes are about half the prices for single family homes. This is due to a number of factors including demand and commercial (income based) valuations. (*Note: Joe is referring to the Memphis TN market, for details about duplexes in Dayton Ohio, contact Teri Lussier, 937-478-7781. -TL)
Mortgage – Owner-occupied duplexes are eligible for FHA and conventional mortgages. With FHA the buyer can get into a home for a 5% down payment. Conventional loans require a higher down payment, but both types of loans allow the seller to contribute limited amounts to buyer’s closing costs.
Income – Find a good tenant and get half of your house note paid via rent, while enjoying the tax benefits of home ownership and the rental portion of your property. [Note: I am not an accountant or attorney- you will need to contact the appropriate professional for tax and legal questions]
Investment – So, it’s time to move on to your second home. Chances are your financial condition will be much better after your stay at the duplex. After all, you have been saving half your house note. When you are ready to move up, why not keep the duplex as an investment property and enjoy extra income for years to come?
I’d like to add another reason to consider a duplex which I mentioned briefly in a comment on Joe’s blog, Memphis Real Estate Buzz: Foreclosures have forced many people out of home ownership and into rental status. People are looking for good rentals, and often these are people who have had years of home ownership. They understand how to care for a home and want to create a “home” environment and continue to maintain the roots they’ve laid down in terms of a neighborhood school or community activities. Joe’s response to that: “I think people are going to be looking at home ownership quite differently in the coming years. I am thinking a duplex would be a nice retirement purchase also.” Realtors across the country, as well as Dayton Ohio, are seeing a large number of people combining households- this is a growing trend and a duplex would be a nice way to allow parents and children to live together, without too much togetherness.
If you are looking for your options to home ownership in the Dayton Ohio area: Single family homes, duplexes, 4-unit investment property, contact Dayton real estate agent Theresa Lussier, THE HOME GROUP REALTY, 937-478-7781.