June Burke, Both Buyer and Seller in Harrington, ME

IS THIS A GOOD TIME TO BUY INVESTMENT PROPERTY IN EASTERN MAINE OR SHOULD I WAIT.?

Asked by June Burke, Harrington, ME Sun Jan 6, 2008

WHAT IS THE MARKET CONDITION IN EASTERN MAINE AT THIS TIME...BUY OR SELL?

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Answers

6
This is a great time to buy investment property in Eastern Maine. I work mostly in the Acadia region and we are seeing people "buy themselves a job" meaning they are buying investment properties like B&B's and multi-family rentals. With prices coming down (even commercial property) and rates the way they are it is a great time to invest in real estate.
0 votes Thank Flag Link Wed Apr 22, 2009
I completely disagree with Diana's statement regarding interest rates. It is better to buy a home for a low price at a high interest rate, rather then an inflated price with low interest. You can always refinance at a lower interest rate in the future. You can't refinance the principle you pay though.

The fact that interest rates are low right now means that home prices will remain higher. As interest rates rise, home prices will drop.

If you can truly get a good deal at a low interest rate, then that's great, but you should never buy a home based on low interest rates. We've seen what low interest rates and high prices has done the country so far...

If you're going to rent out the home as an investment, you'll know that it's okay to buy if you can rent it out and immediately make a monthly profit. Don't buy just to hope for appreciation or to rent it out at a monthly loss.
0 votes Thank Flag Link Mon Aug 18, 2008
Hello June- Good answers here in general, but a couple caveats.
While generally mortgage rates are pretty low (anything under 7.0% should be considered "Low"), that is not really the case for investment properties (non-owner occupied, etc.). Especially if this is more than a 2 family home you are interested in buying. It is still feasible, but the rates will not be that great in today's markets. The lenders that are doing them charge you big fees- I've found in the last 6 months- and they will continue to do so until the market rebounds.

My only other opinion is that in general I think southern Maine is a good and growing RE market, I'd guess that the people that want to live in York County but commute down to Boston are a declining bunch. Due to high gas prices. I would just watch out for that. Focus on where the jobs are- Portland, Portsmouth, etc- but I wouldn't give a lot of stock to the 90 mile commuters anymore.
Thanks, and Good Luck,

Ken L.
0 votes Thank Flag Link Mon Aug 18, 2008
There are 3 good times to buy. When the interest rates are low or when the prices are low or when the inventory is high. Right now in all three of these conditions apply, so I do believe it is a good time to buy.
0 votes Thank Flag Link Tue Aug 5, 2008
I have a property in Bucksport ,Maine if you are interested . The property is 35% below FMV . Answer back if you want more information !
0 votes Thank Flag Link Mon Jun 2, 2008
June

Grest question and one people are asking in every market. Real estate is a little like football (stay with me here); depending which seat you occupy determines whether you are enjoying the game. If you are a Patriots fan, life is good! I cannot directly address your Eastern Maine market question and I do not know what your personal investment criteria is, but generally speaking there are "slices" of the market here in Maine doing very well for buyers, sellers and investors. Many consider today's market an investors dream and recognize their are "golden nuggets" in their market (some distressed properties offer great opportunity, but beware as many are more complex than they seem from the outside looking in). The key to successful investing lies in knowing 3 primary, specific and fundamental things. 1 Criteria - knowing and defining exactly what you are looking for (SFH, Multi- family, location, price, etc) 2.Terms - understanding the specific terms (financing, closing costs, return on investment, cash flow, equity build, etc) under which you clearly can recognize will deliver your expectations or means you walk away from a deal if you cannot negotiate such terms 3. Network - having a a 'team" ready ,willing and able to support your decisions and find you that "golden opportunity" (realtors, attorneys, contractors, etc). Investing is based on very personal criteria and a great realtor can help you find property that will deliver against that criteria but your is the homework to define it.

Generally speaking - three factors contribute to the "market" (there are many more but these we feel are key). 1. Money - the availability and cost of borrowing money. 2. The sold inventory - if absorption rates indicate more than 6 months supply; then buyer-advantaged market. 3. For Sale inventory (current and pending homes); if less than 25% are under contract ; then buyer advantaged market conditions exist. A realtor can "thin slice" the market to help you find the opportunities that work within your criteria. The key with real estate is it is locally driven - and location driven. Similar property on two streets side by side can carry huge price differences. So I'd suggest assembling your team, at least a great realtor and lender to get the foundational pieces in place. CPA's and lawyers can follow.

I'd also recommend (if you haven't already studied it) the book "Millionaire Real Estate Investor" by Gary Keller and Jay Papasan - a great tool for the investor.

Good luck and happy hunting!

Deborah
0 votes Thank Flag Link Mon Jan 7, 2008
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