November 2006
In This Issue
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A word from Ken

Depending on whom you ask, you will hear a variety of differing opinions on the future of the housing market. Although most of it is negative, there has been a recent stream of encouraging data that has some forecasters changing their tune. Realistically, it looks like it will be a while before the market returns to normal.

Do not let the current market conditions discourage you from selling or buying your home. Rose Realty has over 20 years of experience, including the tightening market of the early 90's. We know that we are in a unique position to offer services to you that will be invaluable during this current market transition.

See the articles below on this month's investment opportunity INVESTING in STUDENT HOUSING

According to a recent on-line article by MSNBC about 80 million 'echo boomers' will turn eighteen over the next ten years and will head off to college in record numbers. Many schools after funding enrollment, research and hiring more professors, will not have enough money left to build additional housing. This is why many schools continue to rely on the private sector to supply off-campus housing.

This investment opportunity is especially appealing for parents of college bound students. In some cases purchasing a condo for their child to live in while attending school, could cost roughly the same as a dorm or renting an apartment. Another consideration is that there is never a shortage of potential roommates to help cover the monthly expenses. The real bonus is with normal appreciation, the property could easily turn into a money maker by the time your child gratuates.
  1. Proximity to the school, if the property is within walking distance it is more desirable
  2. Avoid areas where rental properties are already abundant
  3. Look for a school with growth potential, southeastern and southwestern states draw the most kids,while the northeastern schools are more likely to institute enrollment caps
  4. Find out the school's ratio of university owned beds to enrollment, 30% is the average anything below that indicates investing potential
If you are the parent of a full time student, FHA has made it easier for you to help your son or daughter purchase a new home. It is also a great way for young adults to get started buying their first home by using the FHA "Kiddie Condo" Loan Program. This type of mortgage allows a person to co-borrow with a blood relative (e.g.. parent, grandparent, sibling, etc.) who helps qualify for the loan using their income or assets. Both borrowers take title to the property and sign for the loan. Instead of paying rent on an apartment, a full time student would be eligible to purchase an FHA eligible property (single family residence, townhouse, condo, etc.) with the assistance of his or her parent(s).

There are three big advantages to using this type of loan.
  1. A low down payment (as little as 3% of the purchase price)
  2. A lower, owner-occupied interest rate on the mortgage vs the higher investment property interest rate.
  3. Helps the new borrower establish a solid credit rating.

With a Kiddie Condo loan program, at least one borrower must occupy the property as his/her primary residence, but extra bedrooms could be rented out to help cover the cost of the mortgage payments. This is a perfect way for a college student, recent graduate, or anyone unable to obtain a loan on his/her own to buy a condo or townhouse or single family home with the help of a family member.
The national average for university owned beds to enrollment is 30%, at Arizona State University it is only 11%. The school depends on the private market to meet the school's housing needs.

We have a listing of 40 properties within minutes of ASU, all under $175,000. This list includes recent condo conversions, which could be an easy turn-key rental.

We are specialists that work as a team to serve your better. Our boutique is niche oriented; we deal with hassle free sales of luxury homes and provide the highest level of service that our discerning clients expect. We not only work in these communities; we live here as well, making the Rose Realty Team your A to Z community resource. Whether you are relocating to Scottsdale, AZ, the southwest's finest luxury destination or to our nation's capitals most sought after suburb of Potomac, MD, Rose Realty will be there with the expertise and experience necessary to guide you safely and wisely. Call us today and find out just what a difference a specialist can make. You not only have my word but you have my name on it!

Sincerely,
Kenneth Rose
Rose Realty

phone: 480-607-ROSE

This email was sent to chrisbengel@cox.net, by kenrose@roserealty.com
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