Ann Arbor real estate expert Kathy Toth recently shared her market insights with Real Estate Investor's Beat, an online publication serving residential and commercial property investors.
Ann Arbor real estate expert Kathy Toth recently shared her market insights with Real Estate Investor's Beat, an online publication serving residential and commercial property investors. In the January 24 article entitled, "2014 Property Predictions" Toth described the direction of the Michigan real estate market for Ann Arbor investors.
"Ann Arbor experienced a 32% decline in home values since 2005," Toth reported. "But the decline is being reversed by improving trends in employment, as well as limited home inventories and low mortgage interest rates. With these drivers in place, Michigan as a whole will see a gradual rise in property values during 2014."
As a high-producing REALTOR® with over 24 years of experience, Kathy Toth has witnessed both market opportunities and challenges for real estate investors. "It starts with understanding your investment style and risk tolerance," Toth explains. "If you are a buy-and-hold investor looking for monthly cash flow, you have a different focus than someone who rehabs homes and resells them quickly."
Toth suggests that investors consider apartment buildings and multi-unit properties located near the University of Michigan. "Campus housing is in short supply, and demand for student housing is on the rise. Plus, the neighborhoods around campus appeal to anyone who wants a walkable community with plenty of amenities."
Location is a primary concern for both house flippers and long-term owners. When it comes to buying single-family homes for investment purposes, Toth offers this advice: "Minimize the cost of ownership. Avoid single-family homes in areas that have a high tax millage. Look at properties located just outside of town that have their own wells and septic systems. You'll have lower utility and housing inspector costs."
Finally, Toth reminds investors that inventories are limited, and the best properties go fast. "Working with a REALTOR® who understands your objectives is critical," Toth says. "Having a local market expert on your side is the fastest way to get the information you need."