With all the negative news in 2008, there is plenty to be optimistic about in 2009. Here are several of my goals and predictions.
I look for a slight rebound in the slow Williamsburg market. With National Averages for 30 year mortgages at 5.14%, this should boost sales and refinancing business.
NOW IS THE TIME TO BUY!!!! There are deals out there, and the interest rates are low. Analyze investment properties with Gross Rent Multipliers (GRM) from before the increase in the market to determine if the deal makes sense. Duplexes, in James City County, were selling for a gross rent multiplier of 100 to 110 in the early part of the decade. I have seen them within the past year in a half at around 140. Detached rental houses typically sell for higher GRMs. Also, duplexes within the City of Williamsburg typically sell at a higher GRM.
Example of valuing a Duplex with a Gross Rent Multiplier
Gross Rent GRM Estimated Value
$1,000/month times 140 equals $140,000
$1,000/month times 110 equals $110,000
Personal Financial Goals:
I plan on buying at least one investment property in James City County in 2009.
I have a goal of increasing my business by at least 10% over 2008.
I will refinance my home.
Choose not to participate in the recession.
HAVE A HAPPY NEW YEAR!!