Real Estate Market

Featured Listing

Featured Listing

For Sale: $570,000

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Market Trends for Ventura County

Passive Income

One of the greatest features of real estate rental property is that it produces passive income. Passive income is income that continues to come to you regardless if you are working or not working. Contrast that to active income in which you trade you time for money. Active income
is limited by how much time you have whereas passive income is not limited by time. Watch today's video about the fastest route to passive income.

How To Fight Inflation Through Real Estate Investing

Inflation: a sustained increase in the general level of prices for goods and services. In more lay terms, it means as time goes on and inflation goes up, your buying power becomes less and less with the same amount of money. Remember in the mid-90s when $1 million dollars seemed like you were ready to retire for life? Fast forward to 2019 and that same amount seems like it would barely suffice for a few years. Here’s an example. In 1995, what you could buy with $1,000 would now cost between $1,650 and $1,700. That’s a 65% cumulative rate of inflation over 24 years. Doesn’t sound too terrible.

 

Let’s take a bigger item. If you were buying a house for $250,000 in 1995, in 2019 it would require $419,000 — or more. Keep in mind, this doesn’t consider any appreciation that the home has acquired. It solely takes into account the spending power and value of the dollar that has been changed due to inflation. The question becomes, how can you fight and even profit from inflation?

The answer: real estate.

 

First, let’s evaluate how you actually lose to inflation through traditional investments. For many people, we evaluate what we will need to retire based on our current lifestyle. If we’re making $100,000 a year, we might begin investing and set up our accounts based on what we deem will be comfortable. However, if you began a retirement account in 1989 with a $100,000 salary in mind, in 2019, you would actually need $209,910.82 due to the cumulative inflation rate of 109% over the past 30 years. Beyond that, the fees charged to manage many retirement accounts completely eat up the funds required to keep up with the inflation rate.

 

Now, let’s evaluate real estate as a tool to fight inflation and produce cash flow now and in retirement. Real estate investments are often seen as inflation hedge investments. Inflation hedge investments are typically assets that are expected to increase, or at least maintain, in value over a period of time. This plays into three aspects that make real estate a great tool to fight inflation: appreciating value, increasing income (rents) and depreciating debt.

 

           

Color Codes

Understanding the latest in coatings and choosing the right products for the job can reduce the need for frequent repaints and ensure a property’s aesthetic appeal for years to come. Here are some important factors to keep in mind when selecting coatings:

 

The Kitchen

Kitchens are often centrally located and have become the go-to hub for social gatherings. This means higher levels of traffic and increased wear on materials.

Selecting a higher-gloss finish or a technologically advanced washable flat allows for frequent cleaning while maintaining a uniform appearance. For the walls, look for coatings that resist food splatters, wash easily, and resist high moisture levels. Additionally, consider a coating that features Odor Eliminating Technology, which helps reduce lingering odors from cooking, smoke, and pets. This technology can reduce common indoor odors so rooms stay fresher longer.

 

The Bathroom

Water and mildew resistance are key for a bathroom. Whether occupants view the bathroom as a relaxing retreat or functional space for everyone in the family, keep it sparkling by selecting durable products that withstand the test of time.

Consider selecting a coating that provides high levels of resistance to moisture and water-spotting. Also, a paint formulated with antimicrobial agents inhibits the growth of mold and mildew on the paint surface and inhibits the growth of bacterial odors. Applying the right product in the bathroom can also mean a faster return to service and fewer repaints.

 

The Living Room

The living room remains a central and favorite location in the home. Today, occupants are looking for a unique, livable space that feels customized, which you can offer while still maintaining cost efficiencies.

Consider adding a custom accent wall or painting a color on the ceiling to increase property value and attract potential homeowners without adding significant costs. As for coating attributes, look for durable paints with very good washability and hide. And for fast-turn, easy maintenance, and to eliminate spot-priming, use a stain-blocking paint and primer in one.

 

The Bedroom

Homeowners and occupants will sleep easy with the right product specifications that can create a desired refuge.

 

For children’s bedrooms, consider coatings that are highly washable with stain-blocking properties, as well as resistance to marks and burnishing.

Paint technologies have come a long way. Selecting the right products for a space can have a significant impact on satisfaction, property durability, and long-term savings in cost and labor for property owners.

Contact Information

Photo of Harold Powell Real Estate
Harold Powell
RE/MAX Gold Coast Realtors
5720 Ralston St. Ste. 100
Ventura CA 93003
(805) 339-3516