Great Opportunities!!

[gallery]Well, I usually blog about more general topics, but this time I am going to make an exception. The reason is that there are a couple of opportunities on the market right now that I can comfortably say are the type of opportunities I believe people will look back 5, 10, 20 years from now and say “Wow, I should have jumped on that deal.”

The first opportunity is on Big St. Germain Lake. There is a seller who has a series of three excellent properties that are impeccably maintained with breathtaking views and they offer level, sand frontage. The seller and his family have not been using the properties as much as they use to and because of this, the seller has recently reduced the price of these to make sure he sells at least one of them this fall. These are the types of properties that people were fighting to even find available a few years ago. Now you can take advantage of the market to not only own these great properties, but you can get them at a great price. In addition, the seller is willing to throw in significant personal property to make the sale happen in the next few weeks. MLS#’s 103881, 102587, 102582.

The second opportunity is at The Wild Eagle Lodge on the Eagle River Chain of Lakes. Despite the market conditions, these properties have continued to sell over the last two and a half years since they have been offered (38 units sold). The reasons are simple. They are priced right (a great value as the lowest priced condominiums on great frontage, on a good lake, as a new development). The 2,000’ of level, sand frontage on 19 acres is not matched anywhere. The amenities are not matched anywhere, offering an indoor pool, tennis court, sauna, large hot tub, on-site lounge, choice swimming beach, and much more. The optional rental program gives buyers an opportunity for some income while they are not using the property (if they would like). The units themselves come fully furnished, well designed, and are ideal for buyers to use as their Northwoods getaway. BUT here is why ‘now’ is likely the best time you will ever find to buy at Wild Eagle Lodge. Recently, we have developed a financing agreement with River Valley Bank where they are going to be able to offer 4.68% financing with as little as 5% down for qualified buyers. In addition, Wild Eagle Lodge is offering 2 years association dues paid for by the seller. (Note: the financing offer is only going to be available for a very limited time, is subject to change, includes seller concessions and buyers must qualify. Please call LeeAnn Erickson at River Valley Bank for more details at 715-358-3434. The 4.68% is a 5yr ARM, amortized over 30 years.)

If you have considered purchasing a Northwoods getaway, you have to consider one of these truly Hot Deals that are available right now.

Interest Rates Are Very Interesting!

Recently, the fed has come out and cut the Fed Fund rate a surprise 75 basis points. The feeling is there will be additional cuts of 25 – 75 basis points over the next couple of month coming. These are giving us interest rates that are extremely low. Jim Cramer talked recently about how he liquidated his real estate holdings about two years ago but said he is looking to buy again. On High Net Worth, he stated, “Mortgage rates are so low I can not afford to miss this opportunity.” He called it a “no choice perspective.”

Real Estate is in a buyer’s market and interest rates are extremely low. Warren Buffett once said something like this when talking about stocks. When toilet paper goes on sale, we always buy more. Yet when stocks go on sale, people get scared and sell. They only buy when stocks go higher.

Richelle and I feel real estate has a similar reaction from people. Now is the time to look at taking advantage of this market and to see if there are opportunities that make sense for your situation and time table.

Second Home for Pleasure and Profit

The dream of owning a beautiful getaway as a second home has occupied the minds of many people. But more and more people want their second home to be a good investment as well. John Tuccillo’s, the former chief economist for the National Association of Realtors, and Tom Kelly, a nationally syndicated real estate columnist and talk show host, wrote a book about how to find a second home, finance it and use it to build long-term wealth. In How a Second Home Can Be Your Best Investment, John and Tom state “there are two points that we wanted to make clear. . .The first is that most folks buy second homes as an investment and would like to see that investment grow over time. The second is that real people buy second homes. We wanted their experiences in the book.”

The Northwoods has been an excellent location for people who are looking for a second home. Whether the individual is looking for a home they are going to retire to or just a getaway they can escape to, the Northwoods offers an experience that few places in the country can offer.

It has also proven to be an excellent investment for many people. Over the last 7 years both Vilas and Oneida counties have averaged over 10% appreciation. The tourist industry in the Northwoods has allowed many people to rent their second homes out to cover many of the expenses of their home. Beyond property appreciation and rental income, there are other methods people can use to make their second home a good investment. In an article written by Broderick Perkins, he talks about how “tax laws, now exclude from taxes up to $500,000 in capital gains when you sell a home. That extra money can be rolled over into another home – or two – where additional tax benefits await.” This technique is also explained in Tuccillo’s and Kelly’s book.

Perkins warns though, “returns on any investment, especially real estate, are almost never over-night sensation, but long term obligations.” He also says, “Pick a real estate team. Line up an investor advisor, real estate agent, loan officer, tax specialist, attorney, and others who can assist you. An investment-smarts heavy team of professionals positions you to identify, and quickly close on the best investment properties.” . . . “Think location, location, value.”

According to the authors of How a Second Home Can Be Your Best Investment, “the typical vacation or retirement home is not a million-dollar house in the Hamptons or a posh ski condo. Cottages, cabins and chalets are much more common than expansive estates. As millions of Baby Boomers get nearer to retirement, they are buying vacation homes where they hope to eventually retire and the second home market is expected to increase by 100,000 to 150,000 (homes) each year during the next decade. Investors of all ages now are considering a variety of rental homes that can later be traded for an eventual getaway property.”

If you are thinking of buying a second home or if you are ahead of the curve and already own one, take a look at information on how to make your second home a good investment as well as a place to enjoy. Kelly and Tuccillo’s book shows readers how to save thousands through exchanges and exemptions and includes valuable experiences of second home buyers and real estate investors. Study your options and talk to experts. You might find pleasure and profit in the same place.

Winter is Alive and Well in the Northwoods

This past week winter gave us a taste of her beauty with over 10” of snow in the Northwoods. This recent snowfall is one of few this winter, but it will not go to waste. It has given the Northwoods the look of a Winter Wonderland we fall in love with year after year. My husband and I were at Clearview Supper Club last night where we spoke to some snowmobilers who have been coming up throughout the winter. They said the trails are absolutely excellent. With more snow on the way throughout this weekend and temperatures predicted to stay in the 20’s, it looks like we might have our best conditions of the year for winter activities in March.

If you like to snowmobile or snowshoe, or have always wanted to try it, now might be a great time to sneak away for a weekend. There are a number of links on our website if you want to touch base with some of the local resorts. If you make it up here and would like to check out the local real estate market, stop into Eliason Realty. We have some excellent year round cabins and homes that would make great 2nd homes. We would love to see you.

Richelle Kruse

Welcome to the Kruse Team’s Blog

Welcome to the Kruse Team Blog. It is our hope that you will find our Eliason Realty web site and this section to be your best resource for all of your Real Estate needs in the Northwoods. In this section we will from time to time update you on some of the statistics on the market, our opinions on the market direction, and/or just let you know what is going on in the Northwoods. Please feel free to provide your feedback on the information we are providing or let us know what you would be interested in seeing on this page.

Thank You,

Tim Kruse

The Kruse Team

Eliason Realty of the North

Here are some interesting housing statistics provided by the Wisconsin Realtors Association.

Vilas County- Number of Home Sales

Q1 Q2 Q3 Q4 YTD

2006- 131 233 269 209 842

2005- 143 255 345 244 987

2004- 71 147 199 142 559

2003- 71 140 203 138 528

Oneida County- Number of Home Sales

Q1 Q2 Q3 Q4 YTD

2006- 165 301 329 271 1066

2005- 198 348 448 243 1237

2004 – 106 212 273 187 778

2003- 89 161 270 182 679