Home Buying in Chaska>Question Details

David, Both Buyer and Seller in Chaska, MN

Is this a good time to buy a few investment properties in Chaska?

Asked by David, Chaska, MN Tue Jan 29, 2008

What is the current rental market like in Carver county? Do you feel that hwy 312 will improve the rental market?
Facts:
1. Rates are low
2. There is a glut of inventory in this range. (

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Answers

6
As has been stated, the market in Chaska right now is very cool from a home sales perspective, but when the market returns we'll see stronger interest because of the new 312. Rental vacancies have started to fall and this will help push rental rates higher.

The cost of money (rates) right now is ridiculously cheap. On a long term basis, locking in such a low interest rate now makes a lot of sense and if you can get it to cash flow today, you shouldn't have problems in the future. I just wouldn't bank on any substantial appreciation for a few years.

Craigslist is invaluable... if you're still uncertain of interest, put up a test ad for a couple days with the rental amount and features of the home(s) you're looking at and see what kind of responses you get... if there's strong interest you should see at least a few emails in the span of a couple days.
Web Reference: http://www.AaronSOLD.com
1 vote Thank Flag Link Tue Jan 29, 2008
David,
If you have a five plus year horizen it is a great time to buy investment real estate. You can buy low and lock into some great rates. Check the papers and Craig's list to see what rents are going for, I have kept my rentals full easily the last few years.
Good luck,
Michael Doyle Realtor
1 vote Thank Flag Link Tue Jan 29, 2008
When you look at the market statistics for Chaska for 2007 and compare them to 2006, you will find that:
1) listings were down 7.6%
2) Closed Sales were down 25%
3) The average sales price increased by 1.3%
4) The average days on the market were 152 days
5) The sold price compared to list price was 94.8%, down from 97.1% in 2006.

What this tells us is that while listings were down some, buyers were not buying in Chaska as much as they did in previous years. It is also interesting so see that sellers have still been asking for above market prices, but buyers haven't been buying until those sellers bring their list prices down quite a bit.

The 312 is definately going to help the area as it will be easier for residents to commute and it is expected to bring in future business ventures. I have spoken to many home owners who are so glad the 312 is open. Only time will tell how this effects the real estate and rental markets.

What is most important is that sellers price their homes right from the beginning in order to attract buyers quickly. With a 25% drop in closed sales this last year, I don't see 2008 being any better. Home prices haven't declined in Chaska, for the most part, so buying an investment property there would have to be a really good deal. They can be found, you just have to look for them. Your best bet might be to look into foreclosures in Carver County...right now, these are the best deals around. If there is anything else I can help you with, please don't hesitate to ask!
1 vote Thank Flag Link Tue Jan 29, 2008
It's all about the cash flow. Prices are good for properties right now. Rents are increasing as vacancy rates shrink across the Twin Cities. (Currently about 2.4% vacancy.) While we don't expect home appreciation to come roaring back any time soon, if the property cash flows and you have the time and inclination to be a landlord, over time, the tenants will pay off the mortgage and you will make money in investment property. It's important to do your homework, buy a good property without too many "needs" and do what you need to do to keep the property occupied.
0 votes Thank Flag Link Mon Aug 29, 2011
If you're not from the area...the new 312 Highway that everyone is talking about is really going to be the new Hwy 212....why a temporary name....I'm sure some genius has it all figured out.

Either way....being near a 212 off/on ramp will be vital to selling your rental as commuter friendly.
Web Reference: http://www.annieandbob.com
0 votes Thank Flag Link Tue May 13, 2008
Hi David,

I have quite a number of clients and friends that have rental properties spread throughout the twin cities area and without exception, they say the rental market is great and rents are increasing.

I would tell you now is a great time to buy remtal proerty and that corridor is prime for appreciation because of the 312 project.

Good luck in your endeavor!

Thanks, Todd
Web Reference: http://www.toddnorsted.com
0 votes Thank Flag Link Wed Feb 13, 2008
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