HCH Management

Real Estate Investment News

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Good news, and then better news. Well at least for rental property owners.

Posted by hchmanagement on March 21, 2011

My last post dealt with the fact that your money could work harder if invested in rental properties versus leaving it in a CD. No sooner had I hit submit when I pulled out the Realtor magazine that we get every month when I read a very interesting tid bit. Conventional wisdom has always told us that if we rent as opposed to owning a home we are throwing money away. Certainly an overactive real estate market seemed to suggest that was true, and now as prices drop it seems like it is a no brainer. Now comes a report that this might not be as true as we once thought.

The report talks about a company that has come up with a ratio of real estate prices vs rental rates and turns that into a number. If the number is below 15 than it is indeed better to rent than own, yet if that number is above 20 you are better off renting. Most of the country enjoys a ratio below 15 but here in the Golden State there are only two major cities that are below 15 and the rest are above 20. Los Angeles and Sacramento enjoy the buyer friendly ratio of under or close to 15, while most other areas including Orange County an San Diego.

I digested that short article and smiled after all I am a Broker for a property management company so I like the fact that rental properties are good investments. I then pulled out my iPad and read an article in USA Today that talked about how home ownership isn’t for everyone. Booooo. The article talks about how the return on real estate investments doesn’t compare to investing in the stock market. The article focuses on buying and then selling real estate and ignores the cash flow benefits that come from owning rental properties.

I disagree with the USA Today article, and feel that real estate is still a good investment, even better if you plan on renting your property.

Posted in General, Real Estate | Leave a Comment »

Strike while the Iron is Hot?

Posted by hchmanagement on March 17, 2011

You know the saying “Strike while the iron is hot” has never made much sense to me. I mean that seems like¬† a great way to get burned. The real estate market is a prime example of this. You want to buy when the market is at its coldest, and that is now. It is definitely a buyers market. Yet while housing prices drop rental rates rise. This makes for a perfect time to jump into the Real Estate Investment world.

The average interest rate you could get from a CD is just over 2%. Now this is a five-year CD so once you put your money, let’s say 100,000 into a 3 year CD with an APY of 2.5% your return would be just under $8,000. However is you were to take that same money and buy a home you could get a rate of return much higher. For instance I know a couple that purchased a home for $170,000 and the home brought in $1000 after taxes and expenses (which is a conservative estimate) the rate of return is around 7%. Plus that $12000 a year is pure cash flow as opposed to a CD where your money is tied up for the length of the CD.

Now very few of us have enough money lying around to buy a home, but if the right home can be obtained for the right price, it is possible to get enough income to pay the mortgage and maybe even have some left over. So while building equity, you are also getting an infusion of cash.

The right property management company can even increase the amount of return you get, by maximizing the operating income of your investment.  This is where HCH Management comes in. Our number one goal is to get you the highest return out of your property.

Now with all investments there are some risks, just ask those that bought when the market was at its height. You never want to invest money you can’t afford to lose, and always consult a Real Estate or Financial Expert before you take the leap.

Posted in General, Real Estate | Leave a Comment »

Welcome to the NEW HCH Management Site

Posted by hchmanagement on March 11, 2011

You have probably noticed some changes here lately. Not really bog changes just some subtle additions. A new logo and a new focus are the most noticeable changes here at Heather Carroll Homes. The old site is being re-branded with the new logo.HCH LogoThe new site is in a soft launch, that is it is live now but not all the content is complete. Some of the new additions are designed to assist both the tenant and the renter. Our new “Maintenance Request” form is designed to get all repairs tended to quickly. This helps the tenant because it gets them back to their comfortable lives, and it keeps a small problem from becoming a major (read expensive) problem thus helping owners as well.

Our news/blog section is also getting a face lift. Now we will be sharing some interesting tid bits for renters and investors, as well as going over latest trends and news in the real estate market.

We hope you enjoy the new site, and if you have any questions or comments feel free to leave them.

Posted in Commercial Management, General, Marketing, Property Management, Real Estate, Residential Management | Leave a Comment »