Home Buying in Milford>Question Details

Lei, Home Buyer in Simsbury, CT

Buying second home or investment property in Milford or surrounding area

Asked by Lei, Simsbury, CT Mon Jan 19, 2009

We are thinking of buying a second home in Milford or surrounding area. This will be our vocation home during summer time. It is nice to have water view if it is not right on the beach. We lived in Woodmont many years ago and fell in love with that place. However, we have concerns on the current economic condition. It will be prudent for us to recoup the cost of mortgage by renting it out in part of year or full year at first.
After a quick look from http://www.realtor.com, there are so many houses there for rent right now. Based on the price of house that are close to water in Milford, the average rent may not be able to cover the mortgage payment.

We are interested in knowing the housing market condition and the rental market in Milford or surrounding area. Which kind of people normally rent in Milford? Should we consider West Haven since it is closer to Yale that may attract renters? Do we have to wait for a better REO deal?

Any comments or suggestions are welcome.

Lei

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Answers

4
West Haven taxes are beyond rediculous. Milford and West Haven are like day and night. A realtor can run Rent and Sale comps in Milford for you.
0 votes Thank Flag Link Sun Feb 22, 2009
Hi Lei,
I am a Realtor-Investor, live in Milford near the water and moved here from out-of-town as well. Your basic question has to do with the market conditions, timing of the market as an investor (REO) and the return on your investment through rent rates. As a member of the CTREIA (Connecticut Real Estate Investors Association) I work with investors as a full-time real estate consultant. In market conditions such as we are currently experiencing, you don't want to base your investment decision on the potential appreciation as this could take years to overcome. As you correctly pointed out, you want to be looking at income potential or cash-flow potential of the property. Having a University nearby or job growth are two things to be aware of when evaluating a market and cash-flow. However, this is also a property you are going to want to live in part of the year and enjoy the views, location, etc. I would recommend two things; first stay open to areas such as West Haven, even though the taxes are higher there are investment opportunities that may out-weigh the taxes. Second, do your own research as well as working with a knowledgeable Realtor-investor who can provide you with market data and information to help you make the right choice for you. I provide my clients with a regular "Market Snapshot" that gives you the active listings, solds, cost comparisons between asking price, sold price and maps the properties with a tremendous amount of detail data for investors, buyers and sellers alike. If you would like to receive this free report without obligation, just email me and I will send it to you right away. You can also visit my website http://www.TimDenboHomes.com for more information on myself, the area and market conditions. I hope this was helpful, please let me know if I can be of any further assistance.
0 votes Thank Flag Link Thu Jan 22, 2009
Hi Lei,
As a native New Yorker I can understand the reasons that you were "Charmed" with Milford. I came here 14 years ago and fell in love with it as well. The water was the reason I move here and never looked back.
I will attempt to answer all your questions in order.
The market in Milford has of course slowed, but is doing reasonably well. In the past 90 days 107 homes have gone on deposit or sold out of 325 Listed.
Rentals-59 have been rented in the same time frame ranging in price from $825 to $2800. 9 were over $2000 and 17 were the higher end of $1500 to !975.
Milford has a cache that West Haven does not share. We also have the beaches that have been written about in New York Magazine and a two page spread in the New York Times Real Estate Section.
We are just 60 miles from NYC. We have many NY'ers who don't want to commute to the Hapmpton's. Easy Metro north commute. Rentals near the water are usually the first to go. There are summer rentals and Academic Rentals. The waterfront is comprised of multi million dollar homes. Many professional have moved here. If you need help finding a shore area home. please feel free to contact me. Carolyn Nisita, William Raveis Real Estate, Milford
0 votes Thank Flag Link Mon Jan 19, 2009
Would love to help you. I have a home in Woodmont and know the area and housing well. Would not go the West Haven route as taxes are an issue. Milford and Woodmont in particular has a much better reputation and is better long term for resale. How much are you looking to spend?

Would love to chat. Tania
0 votes Thank Flag Link Mon Jan 19, 2009
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