Make Real Estate Part of Your Retirement Plan

401K’s, Roth Ira’s, Stocks, bonds and annuities get plenty of attention when it comes to retirement planning but real estate may be one of the strongest vehicles you have to reach your goals. The obvious returns on real estate are appreciation, equity through debt reduction and tax credits but consider the following unique properties of real estate investment:

You can use other people’s money to invest. Unlike securities, investors can use someone else’s money to buy property. Why is that? Real estate has a more stable value than paper investments.
You use other people’s money to service debt. Yes, there is debt to pay for the money you borrowed and it is paid for by someone else- your tenant!
Profit from your total purchase, not just the amount you put down. The average increase in property value is only 5% in Tulsa so is that what you should expect as a return, right? NO! The beauty of borrowing money for real estate is that a $100,000 property purchased with 10% of your own money ($10,000) which appreciates in value to only $105,000 in one year produces a return of $5,000 on a small $10,000 investment. That’s a 50% return!

Real estate does have downsides. The beauty of downsides is that you can profit from someone else’s failure to plan for them. Expecting to always have income or failing to plan for maintenance and repairs will put an unskilled real estate investor behind the 8-ball. That seems to be the most common mistake; getting used to rent checks showing up and spending the money as it accumulates. The most powerful investors are not counting on 100% occupancy for the success of their building. Additionally, a savvy investor understands that as the economy changes, their income will decline or increase. Therefore, a bit of planning and research will make the difference between success and failure.

It is obvious why a strong investment analysis includes real estate. Visit www.tulsahousehunter.com for a look at all properties listed for sale in the Tulsa metro area and don’t overlook the power of borrowed money and how you can use it to reach your investment goals. Consult a seasoned real estate professional who fully understands your needs as an investor and begin accumulating retirement wealth today.

Chicago
October, 2006

Tulsa is represented at the annual luxury Real Estate Conference held this year in Chicago, Illinois by Tulsa real estate broker, Darryl Baskin. The Annual Luxury Real Estate Conference focuses on the latest developments in luxury real estate across the globe. In addition to the United States, other representatives attended from Canada, Greece, the Bahamas and Thailand.

The story seemed repetitive, Baskin says, “There has been a noticeable slowdown among luxury real estate brokers in most parts of the country. This is much of what we hear in Tulsa when national news reports ‘the real estate bubble’ and a ‘slowdown in housing’. It is refreshing to report Tulsa’s status as solid, consistent and less affected by national trends. While we don’t experience the incredible appreciation, we are often not affected by the sudden downturns and significant depreciations seen across the country, “Baskin adds.

While in Chicago, Baskin previewed the newest development from The Ritz Carlton Residences in which will feature properties expected to sell above $1,000 per square foot and other luxury properties in downtown Chicago. New York property values have hit as high as $4,000 per square foot for luxury penthouses in New York City according to Frederick Peters of Warburg Realty. Tulsa’s highest prices per square foot top out at $400. Oklahoma luxury property can be found here.

Representing such an affordable luxury market is a pretty easy task when you can report to your national peers that similar properties in Tulsa can be purchased for more than half the price of competing markets. When asked about missing the ocean, mountains and ski slopes, Baskin remarked “Green Country offers some fantastic settings. Besides, for the amount of money Tulsan’s save in housing, they can afford to travel anywhere in the world several times a year or, like many Tulsan’s, own second homes in a place of their choosing. That’s the kind of luxury you don’t tire of.”

For additional information, contact Darryl Baskin at 918-740-0077

Glenn Beck Visits Tulsa

As talk radio junkies ourselves, we love the entertainment of Glenn Beck and his political humor. It puts a light spin on serious matters but you stay up on events. We always try to sponser Glenn Beck events when he is in town.

Glenn Beck, Teresa Baskin amd Darryl Baskin at the Glenn Beck tour stop at the Mabee Center.

Is Tulsa Shrinking?

Is Tulsa Shrinking?

By Darryl Baskin

 

Census data indicates an exodus from the city of Tulsa to the tune of approximately 10,000 people while surrounding communities of Bixby, Broken Arrow, Jenks and Owasso make headlines for per-capita growth. How has this impacted the real estate market? Interestingly, a supply and demand comparison using active and pending home sales between Tulsa and surrounding communities shows demand for Tulsa homes remaining high - higher, in fact, than Jenks and Bixby if compared by school district.  What would cause this?

 

Census figures reflect the past while pending real estate sales indicate the present.  Late 2001 marked a significant downturn for Tulsa’s real estate market for various reasons; including several major corporate reductions and relocations.  The current census numbers available reflect this turmoil of the past few years.

 

It is also important to note that data cited between different reports will mix school district boundaries with city limits.  Tulsa numbers may or may not include Union and Jenks school districts which will often skew perspectives.  Suburbs are experiencing growth in impressive numbers.  Bixby, Owasso and Jenks are growing at approximately 39%, 28% and 37% respectively.

 

Jenks and Bixby’s growth put the two cities at a disadvantage under this type of comparison for the simple reason that a growing city keeps up with growth by building houses. When homes stop selling for even a short time, inventory piles up quickly.  This is why carefully watching the supply and demand in communities and neighborhoods is critical expertise for a real estate professional.  These “extra inventory” homes become competition for you as a home seller when demand lags.

 

These trends have an impact on your real estate value.  As buyers move to school districts of choice and as builders adjust to changing demands, supply of housing will determine what home sellers see on their bottom line at closing.  A clear understanding of absorption rate and buyer trends can protect your profit when selling. Always make sure your real estate broker has the skill to put this kind of information to work for you in your home sale.

 

Census data source: ok.gov

Housing statistics source: Tulsa MLS

Graph Caption:

The ratio of homes available to the number of sales pending show Tulsa holding strong at 3:1despite census data indicating a drop in residents.