Know Your Finances

The first thing that you need to be aware of before you decide to buy a beach house for sale is your personal financial situation. Can you really afford to have the beach house if there are no tenants for a period of time. Depending on how you file your taxes losses on a rental property may be tax deductible, but a tax refund in April won’t help you pay your mortgage in December. Also make sure that you don’t forget about all the other costs that you will incur by renting the property out. These costs include, but aren’t limited to, management, maintenance, and cleaning fees, insurance premiums, and property taxes. Also always give yourself enough room so that if something goes wrong with the home you’ll have the resources to fix it.

One important expense, and one many people forget to take into account is the expense of traveling to take care of the property. Most people try to find rentals within a hour to 45 minutes of their home because of this, but if its not possible for you, travel expenses to your rental property can be a significant part of your budget as well.

Know the Local Market

Before you buy a property that you want to turn into a rental home, you should also know the local market. You can find out about it from a trusted local real estate agent or by doing some research online. You should know what property prices have done in the past few years and how much you could stand to make both optimistically and conservatively. Keep the future in mind as well. Are there any infrastructure improvements going in that could cause more tourists to come or go elsewhere?

Only you can know if it’s the right time for you to get a beachfront rental property along Oregon’s coast. Before you buy you should have your personal finances to the point where the property won’t be a burden to you and you should also know whatever you can about the local market. Doing this will allow you to make an educated buy and grab a property that will give you a revenue stream for years to come.

Employment in trade, transportation, and utilities accounts for one in five jobs in Oregon, but you may also want to consider that the hot housing market between 2005 and 2007 made construction start booming as well. With all of the investment in the housing market and public highways construction experienced a twenty five percent growth giving it the ninth fastest construction growth rate in the United States. This growth has also provided a lot of other opportunities for people in other job fields.

The top ten employment industries include: Food services and drinking places, Administrative and Support services, Specialty Trade Contractors, Construction, Ambulatory health care services, Hospitals, Computer and electronic product manufacturing, Food and beverage stores, nursing and residential care facilities, General merchandise stores, and Merchant wholesalers, durable goods. With all of these excellent opportunities a person should not have a problem gaining employment that is sure to last.
If you have given thought to purchasing some real estate in Oregon so that you could take advantage of all of the natural resources and enjoy all of the wonderful attractions of this magnificent state, now is the perfect time to do it. There is a lot of information available to help you know about some other things that you can look forward to when you decide to make the move.

In some areas of the country, this is the time to shop around and pick up some deals. Where do you go to find those deals? Just like any other type of bargain shopping you may do, you have to look around and see what’s available. Not just for the house itself, but also for the area that the home is located. What is the condition of employment in the area? How are the income of the jobs that are there? Is the crime rate below the national average? Are the foreclosure rate higher than the national average? There are other issue involved also when looking to invest in real estate.

One area that I look at is central Oregon. Deschutes county is the one that I’ve been seeing for sometime growing at a good pace. People are still flocking to the area for many different reasons. A recent report came out that Deschutes Country is on pace to out pace the state of Oregon. Jobs are stable in the area, the crime rate is below the national average and as for foreclosures, that too is below the average.

I find that central Oregon real estate is favorable when compared to the rest of the country. Their economy is growing at a rate that beats the most of the other states. The property values have come down, but not as much as others areas of the United States.  Once this national crisis is behind us, you will see that central Oregon will be a leader in real estate investments. Now might be a time to get in on it.

In central Oregon the price have come down, but nowhere near of most areas of the country. The hardest hit area was in Bend Oregon, where the average price dropped 16%. In Prineville, the loss was only 1.4%. Take into consideration that with the correction in Bend, the average price is still 5% higher than it was in 2006 and nearly 50% from where it was in 2003. If you invested in a median priced home in bend Oregon with the price of 195,000 in 2003 and rented it out for that time you would have collected $58,000 in rent (clearly enough to cover the monthly mortgage payment with 20% down. On top of that, the value of your property would have increased almost 97,000. I’m not going to go through all the math here in this post, but you get the picture.

Central Oregon has become an ideal area to live for a lot of Californians who are wanting to re-locate away from the “too big of a city” life. Places like Florida are falling out of flavor with the baby boomers and Oregon is the place that offers a lot to do for the active retiree in an area that pretty much has a better climate all year long. Bend is in the heart of central Oregon, it’s only 3-1/2 hours east of Portland and the coast. It’s also only 16 miles outside of Redmond International Airport. Business’ are moving to Oregon too and with communities that are being built on a regular basis (even during this correction), right now just might be the time to think of investing in central Oregon real estate.

Depending on what type of improvements you want to make, when you go and sell your house there is only so much that you will get as a return on your investment (ROI). The price for the materials to do the project has gone up, the return on those projects have gone down In the last five years (2003-2007). The return on a core project in 2003 would be 82.5% (nationwide), but as of 2007 the estimate ROI is only 70%. A steady roll downward for the last 5 years except in 2005 where it spiked to 86.7%.

These statistics are based on nationwide reports and surveys. One project done in two different climates will yield different returns. Most commonly affected is pools. The pool will have a better return in States like Florida and California than it would in the northeast (New England) area.

A site that I found lists the projects as well as their return on investment. The site is Remodeling magazine.com. According to them the best ROI project is a (wood) deck addition with a return of 85.4%. Following behind that is siding replacement (83.2), minor kitchen remodeling (83%) and to finish out the top five would be window replacement (wood 81.3%) and (vinyl 79.3%).

The site also added some upscale projects estimates, as a deck built with new composite materials which have a long life than the wood decks.

If you’re someone who is looking for a good deal on a house (I know there’s a few), This list can help you in more ways than one. The list can give you a starting point in your negotiations. If you’re like me, you’ll know how to shop for better pricing than the list. Play your cards right and you can save a bundle.

If you’re considering purchasing Central Oregon Real Estate, you might enjoy some fun trivia about your new home.

Oregon was admitted to Statehood on February 14th, 1859 as the 33rd state.

It’s bordered by Washington to the north, Idaho to the east, Nevada and California to the south and the Pacific Ocean to the west.

The state flower is the “Oregon Grape”.

It’s nickname is “Beaver State”.

Oregon’s state flag pictures a beaver on its reverse side. It is the only state flag to carry two separate designs.

Oregon has more ghost towns than any other state.

Crater Lake is the deepest lake in the United States and is formed in the remains of an ancient volcano.

Eugene was the first city to have one-way streets.

The hazelnut is Oregon’s official state nut. Oregon is the only state that has an official state nut.

Oregon’s state birthday is on February 14, Valentine’s Day.

Navy blue and gold are Oregon’s official state colors.

The Chinook salmon is Oregon’s official state fish.

Crater Lake is the deepest lake in the United States at 1,943 feet maximum depth.

Oregon has one city named Sisters and another called Brothers.