Tri-State Real Estate Blog

NCC Market Analysis + Charts,Tables, MSI, DOM, Price Trends

To View the Latest New Castle County Market Analysis either click on the charts below to enlarge or use the Download links to view the files:

Download NCC Month Supply Inventory Analysis Oct 2008

Download NCC Home Price Analysis Oct 2008

Download NCC Supply and Demand Analysis Oct 2008

To discuss home buying or selling related to these statistics, contact John Luca 302-740-5872

   

 

 

 

Mortgage Rate Drop:

5.625%    30 year fixed……zero points

Contact Jason for details - Jason@JohnLuca.com 

(302) 999-6940 (302) 999-0578

What makes a good investment?

The Key to a good investment is the Rate of Return, otherwise known as ROI for Return on Investment.  The historical ROI on real estate has been approximately 11%. 

Statistics will prove, if a person:

1. buys a rental property,
2. rents it out at a break even from a cash flow standpoint - {which means the monthly income (rent) equals the monthly expenses (principal and interest payment + taxes + insurance + maintenance)}
3. purchases with a 20% down initial investment and a 15 year mortgage,
4. and has no appreciation on the rental property over the 15 year period,
5. the ROI would equal approximately 11%. 

How can this be?

Let's use the following example:

A person buys a $100,000 investment property with a 15 year mortgage.  15 years later the home is sold for $100,000.  The net return is $80,000 for a $20,000 initial investment.  The ROI is 10.78%. 

Appreciation and a positive monthly cash flow, are "icing on the cake". 

The bottom line is, you can still have a large ROI without appreciation or a positive cash flow.  

For an in-depth discussion on investmenting in real estate, contact John Luca - John@TriStateTeam.com 302-999-6966