Opportunity Zone: Investments in Columbia, PA

Looking to take advantage of some local opportunity zone investments?

Columbia is experiencing gentrification with many signs of growth. Local census tracts have been designated as opportunity zones, which increases the return.

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Focus on quality lifestyles have drawn attention here as well. With a large riverfront park and bike trail, local festivals, antique malls and new restaurants cropping up, many people have been drawn to the area. Easy commutes to both York and Lancaster make it a logical location for access to work.

All of these increasing signs of growth make it the perfect time to work on redevelopment projects in the area, while also taking advantage of tax saving with opportunity zones.

Here is a list of properties that could be high in potential.

  • 239 Poplar Street, Columbia:

A multi-use brick building with 7,500 SF and prominent location. Asking $424,900. High Density Residential.

 

  • 28 N. 2nd St, Columbia:

Three story multi-purpose building with 5,970 SF. Close to river and main shopping area. Asking $302,500. High Density Residential.

 

  • 360 Chestnut Street, Columbia:

Classic Victorian property, formerly a Bed and Breakfast. Approximately 5,000 SF, asking $350,000. Medium Density Residential, Light Business.

 

  • 411-413 Locust & 13 N 4th Street, Columbia:

Mixed uses with Warehouse, Retail and Residential units, 13, 225 SF. Asking                         $412,500. Downtown Commercial.

 

  • 401-417 N 3rd Street, Columbia:

Commercial and Residential mixed use, currently housing Antique Business with 13,500 SF. Asking $450,000. Downtown Commercial.

 

  • 185 N Front Street, Columbia:

Large development site right across from river and next to Olde 462 bridge. Asking $650,0000. Riverfront Commercial.

 

  • 309-315 Locust St, Columbia:

Formerly Hotel and Restaurant, Mixed Retail and Residential use. Building is in need of complete rehab, 23,000 SF. Asking $225,000. Downtown Commercial.

Not sure how the Opportunity zone works?

The summary is that there are tax savings that are offered to the investor who does a re-development project in one of these zones.

  • Much like a 1031 Exchange, the capital gain from current investment may be rolled into a new project. If left in for 7 years or longer, 15% of the original capital investment is excluded from tax. (The other 85% must still be paid)
  • If held for 10 years, there is no tax on the capital gain of the new investment. Your basis is ‘stepped up’ one time to current market value.
  • Investments must be in a ‘Fund’ that then develops and holds the real estate.
  • The property purchased must be ‘Improved’ by 50% or more of building value. (Land is excluded.)

As an Investment Realtor in this local market, contact us for detailed information on these properties, and information on opportunity zones. Naomi Brown 717-819-2825

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Comparing CAP rates in Central PA

As investors, we are always looking to make a smart purchase. You have heard the saying: ‘The money is made when you buy, not when you sell’.

Weighting the CAP rates on an investment is an art. As the ‘Artist’ for your painting, the decision of what CAP rate to apply takes into account the factors of the area around it. Considering the CAP rates of the different Counties in Central PA is a useful tool to use as you paint your future.

Here is a look at the prevailing economics for Multi-Family Investments.

Dauphin County

-Currently at 8.16% average. The 10 year range is 8.99%.

Cumberland County

-Currently at 7.70% average. The 10 year range is 7.83%.

York County

-Currently at 10.04% average. The 10 year range is 11.04%.

Lancaster County

-Currently at 9.60% average. The 10 Year range is 10.48%.

Interesting to note, both York and Lancaster County are at the lowest point of their 10 year average range. This reflects the rising prices in the market and improving economy.

All counties show a lower than average CAP rate, which means that the deals are harder to find and in higher demand than ever before.

If you are looking to maximize your profit and find better than average returns, call for a consultation. Together we can create a masterpiece for your future.

Naomi Brown 717-819-2825

Hit me: Investments 101

Just starting out as an investor?  Have no fear, it is simple.

Why choose real estate as your investment? Here are a couple reasons:

  • -It is inflation protected, and grows in value as the inflation rate increases.
  • -Once a loan is paid off, you enjoy ongoing cash flow for years to come.
  • -Costs to operate and own the real estate are all deductible.
  • -‘Passive Income’ from investments are subject to less tax.

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So you are ready to go find a property? Here a a few things to know first:

  • -Loans will require a 25-30% down payment, plus closing costs, and funds needed to fix the home up when needed. If you have cash, a discount can be expected.

 

  • -It is a wise idea to have your property in an LLC, so plan ahead. They are easy to create, but it will take a little time.

 

  • -Consider your strategy first: will you manage it yourself? Hire a property manager? If you will manage yourself, being close by makes it much easier.

 

  • -Research what rental rates are, so you know how much you will make on your investment.

 

  • -Learn to figure a CAP rate. This is a simple calculation where the money made after expenses is divided by the sale price. The ratio is your CAP rate. Rates vary in this area from 6-12%.

Make THIS YEAR the time you take action to ensure your future financial freedom.

Call or text with questions and get started making money!

 

Love Parades? Come see the Home Parade this weekend!

Love to see decked out model homes?

Come see a ‘Parade’ of them all over York County this weekend!

The Parade of Homes is a weekend event where many model homes from all the local builders are open for extended hours. Many offer prize entries, and staff is on hand to answer all your questions.

The Parade Main Page can be found here:  https://yorkbuilders.com/events/parade-of-homes/

September 15th & 16th, 10 A.M. to 5 P.M.

The Carr, Cleaver and Pendergast Team represent:

Jeff Henry Builders: https://yorkbuilders.com/home/jeffreylhenry2018-entry/

Dombach Builders: https://yorkbuilders.com/home/dombach2018-entry/

Come join us at these locations to see how easy building your dream home can be!

 

When the call comes

“I need your help”

My friend’s words came through the phone with a high level of anxiety.  “My husband just had a stroke, and we need to move. I can’t bring him home because we have all these stairs.”

My heart goes out to them, and I go immediately to help. But now, their lives have been stressed to the breaking point, trying to move while he is recovering from a stroke.

I have encountered this as a Realtor more times than I want to count. Every time, seeing the struggle I wish we could prevent this from happening again.

If you are in a place where you wonder, “Is now a good time for me to make a move, before we are in a stressful situation?”  I can answer yes, please take action now to prevent the anxiety and stress later.

As a Realtor intimately familiar with the market, we can save you many hours of time by matching you with the best options for your needs and budget. Call for a no obligation consultation to make an easy move, before it becomes a call for help.

New Home: Development Options and Choices

This is part 3 of a series: New Home: Part 1, Luxury, Part 2, On Your Own Land,

Part 3, Development options and choices.

Many builders offer homes in developments where they are the exclusive builder.

A new home in a matter of months! Yes it is possible. Here is what you need to know.

  • Pricing: When looking through options, it may seem some builders have much better prices. The real question to ask is: What is included? ‘Pricing strategy’ varies from builder to builder.

Some will have very low ‘Base’ prices, but practically everything is an ‘Upgrade’ which adds $100,000 to the price.

Other builders will offer a higher ‘base price’, but include features that may the home attractive and comfortable even with no ‘upgrades’.

To compare apples to apples, ask them to price the same features in the same size home, so you can compare the bottom line.

Many communities have ‘Lot Premiums’ for the best lots, so make sure you select a lot you like before asking for a price.

  • Incentive: An incentive may be offered to entice you to buy. Sales strategy makes them ‘Limited time offers’ to get you to buy sooner rather than later. These may be reasonable, or it could be a bate and switch. Having a Realtor who knows the builders and their pricing strategy is helpful to ensure you get the best deal possible.

Many builders employ new home salespeople to sit in the model homes and sell. These folks are not Realtors, just salespeople for the builder. Keep this in mind before disclosing information that may hurt your negotiation.

Many Builders tie any incentive to using their preferred title company and lender. This can be fine for a buyer, but compare interest rate and terms with preferred lenders before committing to ensure you are getting a reasonable rate and terms.

  • Locations: When looking for a new home, you may be set on a certain school district or area.

Think about your taxes and resale value before settling on a location. Having a local Realtor pro can ensure you know all your options within your target area. We may be able to suggest options you may not have entertained on your own.

On a new home, taxes have not been established, so make sure you know what property taxes will reasonably be, before committing to a mortgage.

  • Quality: Not every home is created equal!

No one wants to buy an inferior home. Do you know what features to look for in a new home? Many higher standards can be easily achieved by minimal costs. Selecting a builder who gives a higher level of quality will be well worth it in the end.

  • Resale value and stability: Protect your investment!

Make sure the builder you are purchasing from is established and has a history of satisfied customers. Nothing can be worse than buying a new home, only to see the builder slide into bankruptcy or chaos. Financial stability is essential to honor the new home warranty you will receive and provide a quality product.

  • Time: If you are not familiar with the market, you can spend many hours figuring out all the above items. Our new home experts know the market, know the lots, and know how to match you with the best options based on your needs. The best part? It does not cost you anything. As a buyer, the compensation your Realtor receives comes from the seller, but their duty is to represent your interest and serve you.

If you want to get started on the fast track to your new home- contact us today for a free consultation. Save time and fast track to your dream home!

 

New Home: On Your Own Lot

This is part two of a three part series: New Home, what you need to know. Click here for part one.

Want to buy land and build a home? How hard can it be?

If you have looked into this option, you may know there are many details of which you need to be informed. Have no fear, your new home experts are here to help.

Building on your own land does not need to be scary and hairy, but should be approached with an understanding of the details involved. Here are key details to fit your plan.

Understand that the cost is more than House + Land.   In our day of regulation, complying with the details of constructing a new building has become increasingly burdensome.  A builder with experience will understand how to break down these cost for you. They include:

  • Costs for Well and septic if applicable.
  • Costs and availability to connect to public utilities if available
  • The requirements for a ‘Storm Water Mitigation Plan’. Every new home must have a way to control water runoff during a storm.
  • Driveway requirements: if on a hill, state road or other limiting factors, a driveway permit may not be granted, which can shut you down before you get started. The length of driveway may also have a huge impact on your budget.
  • Costs to remove trees, rocks and prepare the site. These can be staggering if you have not prepared for them.
  • Heat source: is natural gas available? If not, will you bury a propane tank or use a high efficiency heat pump?

Given all these questions, costs and requirements how do you proceed?

Do not buy land without doing your homework! Many regrets have formed from this mistake.

Our new construction experts can help you through the process to arrive at your dream home on your own land.

Not every builder will build on your own property. You will want and need a builder who builds many homes ‘On your own lot’ and is intimately familiar with costs and requirements to do so.

Working with many of the local builders, we can match you with a builder who shares your vision and can make it a reality WITHIN your budget and time frame.

Call us for a free no-obligation consultation  to start the process of taking your dream home from a dream to a reality!