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Desoto County Mississippi Real Estate
Hernando, Olive Branch, Southaven, Nesbit & Walls in Desoto County
Mississippi
| Q: | How do you choose between condos and single-family homes? |
| A: |
Using
appreciation as a measure, condominiums in some areas
have been as profitable an investment as single-family
homes in the last five years. And in some markets,
condos appreciated even more, according to some experts.
While single-family homes have been the preferred investment by home buyers, changing demographics are helping make condos more popular, especially among single home buyers, empty nesters and first-time buyers in high-priced markets. Also, the condominium community has worked hard in the last few years to overcome image problems brought on by homeowners association and developer disputes as well as all too frequent construction-defect litigation. |
| Q: | Are condominiums risky to buy? |
| A: |
While condos
never had the kind of appreciation experienced by
single-family homes in the go-go 1980s, most ultimately
have not lost value, say some experts. And with high
prices in many urban markets and more single home buyers
in the market than ever before, the market for condos is
strong.
As with any home purchase, you should do your homework about the neighborhood or development before you buy. In the case of condominiums, it is important to read the past six months of homeowners association minutes to see how effective the board is and to learn about any possibly detracting issues (such as protracted litigation with the developer). The condominium community has worked hard in the last few years to overcome image problems brought on by disputes and lawsuits. Associations are becoming more sophisticated about property management and taking steps to prevent legal problems and disputes. Other resources: |
| Q: | What do you think of a vacation home as an investment? |
| A: |
You can buy a
vacation home today for investment purposes as well as
enjoyment. And yes, there are tax benefits.
Some people buy a vacation home to use as a permanent retirement home later, which allows them to get ahead on their payments. Another benefit is that the interest and property taxes on a vacation home are tax-deductible. Some real estate experts predict that vacation homes will appreciate in value due to rising demand from the aging Baby Boom generation. You also can depreciate the property if you live in the house less than 14 days a year. You also need to consider whether you can afford to carry two mortgages, pay for the extra utilities and maintenance costs, and how this investment fits into your total personal finance picture. |
| Q: | What do you think of get-rich-quick real estate schemes? |
| A: |
Most real
estate experts say there is no such thing as getting
rich quick in real estate. But there are no end of
get-rich-quick programs presented to the public as
alternative methods of buying real estate.
Some are reputable while others depend on your financial circumstances to work. A handful are simply scams. Many get-rich-on-real-estate programs offer advice on how to buy government foreclosure properties and participate in other government programs. Most of this information can be obtained by calling the government offices involved directly. Anyone interested in real estate investments would be wise to explore a variety of sources. Most investors view real estate as a long-term investment. Deals that sound too good to be true often are. |
| Q: | Do condos have to be made accessible to the disabled? |
| A: |
The 1990
Americans with Disabilities Act does not require
strictly residential apartments and single-family homes
to be made accessible. But all new construction of
public accommodations or commercial projects (such as a
government building or a shopping mall) must be
accessible. New multi-family construction also falls
into this category.
In all states, the Federal Fair Housing Act provides protection against discrimination for people with physical or mental disabilities. Discrimination includes the refusal to make reasonable modifications to buildings that aren't accessible to the disabled. Two educational brochures, "Housing Rights" and "Discrimination is Against the Law," are available through the Department of Fair Employment and Housing by calling (800) 884-1684. |
| Q: | Can condos ban smoking? |
| A: |
A homeowners
association's board of directors can restrict smoking if
it applies to indoor common spaces such as hallways or
recreation rooms. Outdoor spaces are a different story,
say legal experts. Any restriction would probably hinge
on local laws (i.e. if a city banned smoking outdoors, a
homeowners association probably could restrict smoking
in its outdoor spaces).
Typical covenants, codes and restrictions (CC&Rs),
which govern condo associations, give the board
authority to make and enforce reasonable rules for the
use of common property. But that would not apply to
interior spaces owned by smokers themselves. |
| Q: | Are condos a good investment? |
| A: |
Condominiums
have held their value as an investment despite economic
downturns and problems with some associations. In fact,
condos have appreciated more in the last few years than
when they first came on the scene in the late 1970s and
early 1980s, experts say.
While there are lots of reports about homeowners association disputes and construction-defect problems, the industry has worked hard to turn its image around. Elected volunteers who serve on association boards are better trained at handling complex budget and legal issues, for example, while many boards go to great lengths to avoid the kind of protracted and expensive litigation that has hurt resale value in the past. Meanwhile, changing demographics are making condominiums more attractive investments for single home buyers, empty nesters and first-time buyers in expensive markets. |
| Q: | How do I project rents on a rental? |
| A: |
If you are
buying a rental income property and applying for a loan
to do so, the lender will require an area rent survey by
a certified appraiser. The amount a landlord can expect
to receive in monthly rent largely depends on what the
property has rented for in the past, the condition of
the building, its location and the current housing
market.
Lenders also look at other cash-flow considerations. They want to know if you have enough reserves on hand to cover predictable and unforeseen expenses, such as property insurance, taxes, regular maintenance and repairs. |
| Q: | Are one-bedroom condominiums a good investment? |
| A: | One-bedroom condominiums historically have not been considered as good an investment as condos with two bedrooms or more. But in high-cost markets, such as Manhattan or the San Francisco Bay Area, one-bedroom condos have proven to be equally good investments. Helping that along are changing demographic trends. With more single home buyers in the market today than at any time in history, there is more demand for one-bedroom condos. |
| Q: | How do I figure out the homeowners association? |
| A: |
Learn
everything you can about the homeowners association
before you buy into a development governed by one. The
association's financial, political and legal conditions
are very important to your investment and quality of
life.
When run properly, homeowners associations maintain the common grounds and keep civility in the complex. If you follow the rules, the association should not intrude on your privacy or cost you too much in association dues. Poorly managed associations can drag down property values and make living there difficult for residents. Start by studying the association?s covenants, codes and restrictions, or CC&Rs, and find out if you can live by them. For example, if the rules prohibit loud music after a certain hour and you like to play your CDs late at night, this may not be the place for you. Don't move in thinking you can get away with violating the rules or change them later because you may find yourself in turmoil with determined neighbors firmly in control of the association board. Find out all you can about the association's finances. Beyond reviewing the budget, talk to the association treasurer and find out if dues are expected to increase and if any special assessments are planned. Ask if special inspections have revealed problems with roofs or plumbing that may cause a dues hike or special assessment later on. Call and meet with the association president. If you are the type of person who despises intrusions into your private life and the president seems more interested in gossip about the residents than maintaining the property, this may not be the right condo complex for you. Speak with residents to get their views on the association's finances, its property manager, how it operates and any politics. Associations are volunteer organizations with elected boards, like a mini-government, so politics can enter the picture and spoil a good thing. Lastly, take some time to understand how homeowners associations are organized and how they conduct business. Like all real estate investments, the more you know the better off you are. |
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Cara O'Bryant Realtor Associate Licensed in Mississippi & Tennessee 901-212-0047
Bob Leigh & Associates Realtors,
LLC |
