Jason Howard

As our nation's economy continues to sputter along, many people find themselves wondering where to park their cash. Savings accounts are practically paying consumers to take their cash out of the bank and government bonds seem to be closer to default as each day passes by. Large corporations are continously hit hard from the likes of Bernie Madoff and the like. It just seems like an investor has no safe haven to turn these days.

I am here to argue that real estate can be one of the best investments an investor can make. For those that can place a large amount of money down or pay off the home completely, real estate offers a security that few other investments have. People will ALWAYS need a place to live. When you own the keys to a piece of real estate you have an asset that you can always market to others to generate cash flow. Granted there are carrying costs such as HOA fees and property taxes, but with effective property management and rental pricing, you will be able to guarantee a positive return on your investment year in and year out.

Lets take an example of picking up a decent foreclosure in one of Frisco's great neighborhoods, Hidden Cove. This neighborhood has several opportunities priced below $150,000 with two active listings below $110,000 that are virtually move in ready. HOA dues for the year are roughly $390 per year and property taxes last year were just about $3,400. Add in $600 for insurance and $500 for miscellaneous repairs and you can safely plan on annual carrying costs of about $4,900 or so. Recent rent prices in this neighborhood indicate that the owner should be easily able to get $1,000 a month if not $1,100 for rent. That equates out to $12,000 a year in collected rent thereby giving the owner approximately $7,000 in cash flow after paying taxes, insurance, etc. That equals just over 6.3% return on your initial investment if you paid full listing price.

As years pass, inflation will generate increased rental prices and appreciation on your investment home itself. I always recommend real estates as a long term investment when the economy is unstable as it is now. Granted there will be some years where the home will need significant repairs, but good home warranties and insurance policies will help mitigate these costs. Longer leases and fewer tenant turnovers helps to increase profits as well. Last, but not least, if you are not liking the idea of renting to tenants, you can offer someone owner financing where you can demand a higher price off the bat as well as dictate a slightly higher interest rate than what the current market is offering.

Real estate can be one of the safest, best investments you make. Simply take the time to analyze the market, inspect the property, and DO NOT OVER FINANCE the investments. When compared to the uncertainities of other current investments, I think you will be pleased with your choice in real estate!!!

As we venture towards the halfway mark of September and the first Sunday of NFL football, I thought I would take a moment to reflect back on homes sales in Frisco, Texas over the last 24 months. Using the North Texas Regional MLS, I was able to put together the chart below depicting the number of sales each month in the city of Frisco.

As you can see there is definitely an ebb and flow to the cycle of home sales. Looking at this graph there are a few conclusions I would like to share:

First, is the total number of home sales from January 1^st to August 31^st in 2010 was 1,618 and in 2011 it was 1,595. With a difference of only 23 homes, Frisco has maintained a very high rate of sales at nearly 200 homes per month over those time periods. However, what is very interesting to me is that in 2010, the first time homebuyer’s credit was very active and helped to inflate those numbers. This year, the homebuyer credit only applied to a very select few and we were still able to nearly match last year’s numbers. This helps back the notion that Frisco is a very desirable place to live.

The next ideas I would like to consider come to the timing of when you should buy or sell. As you can clearly see, some months have a higher rate of sales than others. March through July have a significant higher number of sales than October through February. From a seller’s standpoint, you are going to have more potential homebuyers if you put your home on the market in March than if you start selling in December. However, you are also going to have a lot more competition, as more homes are available.

As a buyer you should begin your home search as far out as possible. With the depleted inventory in the winter months, you may be able to get a much better deal as many of the available homes are distressed sellers who either cannot wait for summer to sell or tried to sell throughout the summer and were unable to find a buyer. In either of those scenarios, you may be able to strike a deal that makes buying earlier or later than you expected more profitable. Feel free to begin your search by clicking here and remember to book mark the page as it updates several times a day to reflect only active listings.

These are just some quick introductory thoughts and ideas. I will continue to look at home sales in Frisco, Texas and provide my thoughts as I go. In the mean time enjoy this exciting weekend of NFL football and please take a moment to remember and reflect on the terrible tradegy that affected all of our lives ten years ago today.

Townhomes of District A is a terrific little community within Addison Circle with its residents enjoying many great benefits. One of the largest benefits is the sense of community and togetherness residents maintain. With community functions taking place year round, it is very easy to get to know your neighbors and others living near by. During the summer it is not uncommon for there to be small festivals on Saturdays with Salsa dancing or other terrific get togethers. In September residents enjoy Oktoberfest where nearly 50,000 people come to enjoy the festivities. At any given time one can go for a walk through Addison Circle and find residents out walking dogs enjoying the beautiful weather or stopping into one of the many nearby restaurants or shops. Within a few blocks, you can enjoy pizza, sushi, a bakery, or one of the local pubs which really provide a great social nightlife for Addison Circle's residents.

A quick snapshot of available townhomes provides some very interesting opportunities. There are currently eight homes for sale ranging from $225,000 to $299,000 with an average price $245,700 This includes seven wonderful two bedroom opportunities as well as a single three bedroom townhome. In the last six months three townhomes have sold with an average price of $236,000 which equates to an average of $121.13 per square foot. Over the same six month time period in 2010, five townhomes sold at an average of $263,600 equating to $129.61 per square foot. This demonstrates the current inventory of homes are being sold at a discount as home sales have been up nearly 18% in the North Texas area. Nearly all of the available homes have hardwood floors, granite countertops, and surround sound pre-wired throughout the living areas. One home actually has a small fenced yard perfect for a small pet. Click here to see! Browse through the current inventory at Townhomes of District A today. Call or e-mail for any questions or to schedule any showings.

If you are looking for a large neighborhood with over 100 acres of naturally sculpted scenic views, then Grayhawk is exactly what you are looking for! From the walking trails throughout the subdivision , 2 community pool areas, a playground, and gazebos for community gathering, this subdivision has it all!

Grayhawk is located in Denton County off of Eldorado, between FM423 and Teel, which allows for easy access in and out of the community. There are currently 49 listings ranging in price from $175,000.00 to $361,900, with homes constructed from 2002 to 2011. HOA fees for Grayhawk subdivision were reported as being $500 annually according to several of the current listings.

In the past 6 months 70 homes have sold in this subdivision, and in the month of July 2010, 8 homes were sold. According to the recent tax data, homes in Grayhawk have an unexempt tax rate of 2.12% of the assessed value of the home. Residents are in the Frisco ISD, which includes Billy Gene Phillips Elementary, Stafford Middle School, and Lonestar High School.

Come check out the Grayhawk subdivision and all of its terrific amenities today!

Autumn Park is a great little subdivision tucked away in the city of Frisco, Texas. Located just off of Preston and Wade, residents can find many opportunities within minutes of their home. Additionally, Sam Rayburn Highway (121) is just minutes away providing immediate access to the entire Metroplex. Autumn Park currently has no HOA fees and the property taxes were at 2.18% at the time this was published.

This Collin County subdivision currently has 2 active listings with a price range from $180,000 to $212,000 with construction of the homes taking place during 1999. Children of Autumn Park attend Shawnee Elementary, Clark Middle School, and Centennial High School. Additionally, the community features many near by parks as well as baseball fields.

Some of the recent statistical data demonstrates some interesting trends. There have been four homes sold in the last 6 months with the prices ranging from $55 to $78 per square foot. During June of 2010, 1 home sold in Autumn Park. For a complete snapshot of sales data and listing information, please call or e-mail today and we would be happy to go into further details about this or one of the many other great subdivisions of Frisco.