Bellingham & Whatcom County Real Estate Statistics

The ongoing economic scenario has had a negative impact on the real estate sector as well. Although the situation may not be as bad as the rest of the sectors, it is definitely not the best of times for the real estate sector.

With the average real estate sales plummeting in the later half of 2008 in both Bellingham and Whatcom County, the worst fears of industry analysts have come true. In fact, the number of real estate transactions went down by about 40%. Along with this, the average price of the property was also hit badly. While the average home in Bellingham selling for 14% more than a year ago; the average home sale in Lynden dropped by almost 20%.

The median price in Bellingham increased 0.2%. For Whatcom County as a whole, average home prices were up 4.1%, while the median sales price dropped by 3.3%. Overall inventory levels are remaining stable, with 684 single family homes available for sale in Bellingham in mid August of this year compared to 679 in the same period last year.

As far as the sellers market is concerned, the situation is not very good, but not very bad either. According to a rough estimate, around one third of homes sold in the Bellingham real estate market stay in the market for as long as a month, or less than that. This is a slightly higher ratio than that of last year. These houses sold at around 2% less than the list price, as compared to around .5% less than the list price last year.

So, unlike last year, when real estate investors were buying any thing, the situation today is somewhat different. Therefore, if you are selling your property, then you need to see to it, that your house must offer the best location, the best condition and the best value for the dollar. In case you do not satisfy any of the condition, then in that case, you will have to make adjustments in the price of the house.

As far as the buyers market is concerned, it is actually brilliant. The current scenario has not only put a brake on the rapidly increasing prices of real estate, it also means shopping time for real estate investors. So, if you had missed the bus earlier, then this is the right time for you. However, since it is shopping time, therefore, you would not be alone and so, it is better to stay away from dilemma. Therefore, you may lose a great deal, if you do not take quick decision. Apart from that, good interest rates, you also has really good offers that you had not seen in a long time.

As it is, statistics definitely suggest, that it is indeed a buyers market. One must therefore, lose no opportunity, to buy properties at really low rates.

French Leaseback Property

When it comes to offering a real estate property for rental you will find a number of options. A very popular option is that of a guaranteed property rental. A guaranteed rental scheme is a relatively new concept, where a landlord enters an agreement, with a rental property management, firm, which offers a fixed guaranteed rental on a regular basis. The fixed guaranteed rental, which is offered to you, depends upon a number of factors, such as location of the property, condition of the property, extent of use etc.

The French Leaseback Property option is a very important option in the long list of guaranteed rental options. Introduced by the French Government as loue meuble non-professionel, or LMNP, the French lease option, has become quite popular for those seeking a guaranteed rental option.

If you are a rental property holder, with lack of time and seek to avail a guaranteed rental scheme for your property, then French Leaseback property option may just be the right thing to do. The procedure is rather simple.

First, an investor of rental properties, purchases a property. He/she then offers it as “Lease back” to a property management company for a predetermined time period, which is usually around ten years. However, this term can be increased as well. The property management firm offers to pay the owner of the rental property, a fixed guaranteed annual amount, which is usually between two to six percent of the value of the property.

This amount can be paid in different modes and the amount of payment depends on many factors, such as location of the property, condition of the property, extent of usage of the property etc. Now, the property management firm rents the property on its behalf and collects the rentals there from; out of which, it pays the guaranteed amount to the owner of the rental property. The rest is profit for the firm.

This way, the property management firm earns a few bucks, whereas the owner of the rental property is saved from the efforts of finding a tenant, as well as from the risks associated with it.

French leaseback property agreements have a number of advantages. As it is, you get tax benefits on it as well. However, despite all its advantages, a very sad aspect is the presence of fraudulent property management firms. It would therefore be in your best interest, to check the credentials of the property management firm, to avoid falling into a trap.

You can always check the credentials of the firm, by way of internet, from your own friends and relatives etc. The best way, would be however, to get a list of existing clients of the property management firm and contact these clients. Check out, how much they are satisfied with the services of the firm.

Content Insurance for Landlords

Most landlords tend to forget about content insurance, when they are letting out their property to a tenant. Many of them tend to be under the assumption, that, their tenants are responsible for insuring contents. Now, it is to be mentioned here that, tenants are responsible to take out cover only for the contents that belong to them. Due to this reason, it becomes the responsibility of the landlord, to get the contents insured.

Now, a major question, which may arise in your mind is, as to why do you need content insurance. The simplest answer would be, to save yourself from losses. Now, even if you are letting out a relatively unfurnished property, even then, you may have a few valuable items, such as bath tubs, carpets, curtains, window panes, luxury fittings and so on. In fact, at times, the cost of some of these items may be considerably high and therefore, any damage to them, may lead to a big hole in your pocket.  It therefore becomes, important, that you have some sort of cover to save you from losses arising out of damage done to these items.

Now, while you are looking forward to getting the contents of your rental property insured, it is always better, to take some efforts, to find the best content insurance plan, which is available to you. The following are some of the ways, by which you can get the best content insurance cover, which is available in the market:

1. The first thing, that you need to do, is to check your existing policies. This is because, sometimes, property insurance policies may cover some internal items as well. You should therefore, have a fair deal of idea, as to what articles are covered by the existing insurance policy.
2. Secondly, you should get to go for an inventory evaluation of the internal article of the rental property. This way, you would know exactly how much cover, you should opt for. this is because, the higher the cover, the higher would be the premium payable. This way, you do not have to pay for unnecessary premium.
3. You can use the internet, to your advantage, to get information in regard to the best content insurance, which is available in the market. This way, you would be able to find detailed information in regard to the various content insurance plans, which are available in the market. You can compare these plans and select a plan, which is able to suit your needs the best.
4. An insurance broker can be another person, who can prove to be very beneficial to you, in terms of finding the best insurance cover for the content of your property. A major advantage of approaching an insurance broker is that of customized service, which he would provide you. A broker would not only serve you with a number of options, along with their advantages and disadvantages, but would also, help you in selecting the best option, in accordance with your needs.

With the help of the above points, you will be able to get a content insurance plan, which suits your needs the best.

DSS Tenants - The Way to Rent out Your Property

By DSS we mean the Department of Social Security. As it is, a DSS tenant is a tenant, who receives benefits from the government via the local council, for managing their expenses. Typically, a DSS tenant would be someone, who is unable to take care of his expenses and so, receives support from the government bodies.

Now, while you are looking forward to renting out your property, a DSS tenant may not exactly be what you are looking for. In fact, nowadays, most people avoid letting out their properties to DSS tenants. There may be a volley of reasons for that. Firstly, most people are simply pissed off by the paperwork involved.  Delay in receiving rent and some other factors add to the growing disparity against renting out properties to DSS tenants.

However, with the number of rental properties, rising everyday, renting out your property to a DSS tenant, would be a considerable option. This is because; more and more people are now investing their money in rental properties. This has led to a mismatch in demand and supply of rental properties. Due to this reason, it is always advisable, to keep your options open.

Apart from that, DSS tenants are usually needy people, such as a single mother, an unemployed youth, or a person who is classed as homeless and looking to get back on his feet etc. By providing shelter to them, you would be able to do invaluable service to the society, the nation, as well as the entire mankind. Apart from that, DSS tenants are easy to find and hence, you will be saved form a lot of search. Along with that, you will not have to shell a dime to the rental agent. However, an agent can prove to be extremely useful in taking care of the paperwork. Also, the tenants are referred by the council and receiving benefit and if there are problems this can be taken up with the council directly with the help of the letting agent. As a landlord, you are entitled to receive your rental payments, particularly if the tenant is in receipt of the full housing benefit entitlement.

Renting out your property to a DSS tenant will usually involve a different process, than that of a private rental. First of all, if the tenant likes and wishes to opt for the property then a Pre Tenancy Determination form needs to be filled in with the agent’s details or landlord details, along with details, such as the rental value of the property, number of rooms and other details about the property. The tenant completes their details into the form and then presents this to their housing officer. Thereafter, the council will calculate the value of the house and the condition of the person requiring the rent and make a rental offer. After this, a tenancy agreement is arrived at and the parties involved enter into a legally binding contract.

Renting out a property to a DSS tenant has its own advantages and disadvantages; and in light of the recent economic slowdown, it does not at all seem to be such a bad idea, to rent out your property to a DSS tenant.