Archive for the 'Hartford' Category
Interest in Landlording
Landlords are required to follow rules while handling the money of their tenants. One of them relates to the security deposits that they collect when someone first moves in. Tenants are supposed to earn interest on their deposits at a rate defined by the state.
For many years (since 2002) the state held the required security deposit interest rate at 1.5%. This page on the CT Department of Banking site shows the historical interest rates for a wide variety of deposits held in the state of Connecticut. As most everyone knows, it’s been really tough to find a 1.5% interest rate for deposits over the past few years. So landlords have been out of pocket each year to make up the difference. It’s not like it’s a huge amount, the entire 1.5% on a $3,000 security deposit would be $45, but still.
The state reduced the rate dramatically in 2012 to 0.16%. This is more in line with the current interest rate environment, so in that sense it’s long overdue. That same $3,000 security deposit will now only earn $4.80 per year.
But the bigger question is whether or not your landlord is actually paying interest. We would hope that the larger, professional organizations know about the law and comply with it. But the mom-and-pop landlords may not actually know what they’re supposed to be doing. We’re frequently surprised at how fast and loose some landlords seem to run their businesses.
Keeping up with the various rules regarding landlording was one of the main reasons we exited the business after only two years. It really is a commitment to do it right, and for us to be renting a single unit just didn’t make sense. We could see how it would be different if we made that our full-time job, or hired out the management to professionals, but neither of those options were right for us.
It’s actually a good time to be a multi-family property buyer right now. Prices are down overall, and in the more urban towns there are plenty of opportunities for distressed buildings. Many need a cash investment to bring them up to rentable condition, but that’s part of the reason they’re so cheap. People with cash to invest (and who want to earn more than the 0.1% the banks offer) may want to consider real estate. But keep in mind that it’s a tough business that will require time and attention.
Gardening in Greater Hartford
The snowless winter has made sledding nearly impossible this season. We got a few runs in after the Halloween storm, and a few more after a modest snowfall in January, but since then the sleds have been idle.
Instead we’ve been thinking about spring and the upcoming gardening season. And it seems like others are on the same page. Last week we learned about an updated plant hardiness map from the USDA. The map for Connecticut shows that the Greater Hartford area falls in either the 6a or 6b zone depending on the local conditions.
This version of the map is more detailed than the USDA has been able to put out in the past. They have made an effort to identify the mean lowest daily temperature for everywhere in the country, which is apparently the critical factor in whether plants will survive the winter. Their website shows static maps for entire states, and you can also enter your zip code and get the zone for your precise location.
We were out working on the yard this past weekend. Although we do have ambitious gardening plans for the spring, our recent activities were still related to cleaning up the ornamental tree that we lost in October. All that remains is the stump, which is turning out to be more troublesome than we had hoped. Anyway, once we get into planting mode it looks like we’ll be able to select flowers and shrubs for the 6b zone, which should give us a lot of nice options.
January Contracts: A Fast Start to 2012
The number of single-family homes that went under contract in January 2012 jumped 14% over January of last year. The total of 458 deals that came together signals that the local real estate markets are off and running for 2012.
We have heard a number of theories as to why buyers are active so early in the year. One is that the lack of snow has everyone acting like it’s spring. Another line of thinking is that buyers who had their search derailed by the Halloween snow storm and subsequent power outage regrouped after New Year’s weekend and resumed their search. Finally others believe that the activity level is up due to favorable buying conditions. The truth is most likely a combination of these, and other, factors. But the end result is a quick start to the year.
There are a few main factors that play into the favorable buying conditions that we should note:
1. Mortgage rates are very low with 30-year fixed loans often having interest rates below 4%. The government announced that they plan to keep short-term rates at current levels for years, so it is possible mortgage rates may also remain quite low for an extended period.
2. Prices have fallen back to the levels of the early 2000s, making homes much more affordable than they were near the peak in 2006/2007.
3. Buyer confidence has increased to the point where people seem comfortable with the idea of either becoming homeowners or moving up to a larger property. This is partially a reflection of the local business environment where we see companies more inclined to hire workers than lay them off. There also appears to be more people relocating to the Hartford area for jobs than there has been over the past few years.
We’re expecting a busy spring real estate market in 2012 and already see activity picking up. Sellers should feel comfortable listing their homes at any point in the next few months, as buyers are already out there bidding. Buyers need to realize that they will have competition for the most desirable homes and plan their bidding strategies accordingly.
Moving By Bike?
Did you ever think that you could move all of your furnishings and belongings to your new home via bike? Me either. But someone who moved to Hartford recently did…
Thanks to Kerri Provost from the Real Hartford blog for providing this inspiring story.
Sledding in Hartford: Elizabeth Park
Elizabeth Park has a popular sliding hill just to the east of Prospect Avenue, and just south of Asylum Avenue in Hartford.
Though not very long, the steep embankment always draws a crowd in fresh snow and makes for an exciting run. There is even an opportunity for a jump at the bottom of the hill when crossing over the gravel path that circles this portion of the park.