Oui - j'adore a pied-de-terre!

The literal French translation of pied-a-terre is “foot on the ground.” In Paris, the super tiny apartment rules with most city dwellers, who seem to prefer to do their “living” at local cafés. Personally, I love the word “pied-a-terre.”  It reminds me of those 60’s black & white French films where the main character, who is always chic and perfectly coiffed, is seen posing on the Juliette balcony of their perfectly vintage Parisian apartment and dreamily looking out at their perfect view of the Le Tour Eiffel.

In our modern urban world, the pied-a-terre has become the home away from home for those non-city dwellers to spend the summer, the weekend or just a night in town. Whether you’re going to Bumbershoot or just catching a show at the 5^th Ave Theatre and a late dinner at Palace Kitchen – a small place of your own is often a much better option than staying at pricey hotel or crashing on your pal’s fold-out couch.  (Not that I haven’t done that but sometimes a girl needs her own space after a long night on the town!)

Beyond making a great second home, a pied-a-terre can also be the best choice for a first time buyer or new city dweller.  As the rental market continues to get tighter and tighter and more and more expensive – buying a small studio home might make better financial sense. For as little as 3-5% down you can have your own little palace on Capitol Hill in Seattle. No more crazy landlords, absent apartment managers, ugly white walls or dishwasher-less kitchens. Plus, it’s all yours – tax write off, crazy paint colors, new dishwasher and all.

The Park Summit on Capitol Hill

Let’s embrace small living and take a peak at some of our fav pied-a-terre’s on the market. One, of course, is our favorite 383 square foot abode at the Park Summit off Olive Way in Capitol Hill. This one is a cutie, tucked off the street in a quiet courtyard with a huge deck , yet – just one block to the bounty of city living! “C’est fantastique!”

Multi-Family Homes in Phinney Ridge

Team Diva Real Estate receives at least two-three requests for rental property every week through our website. Seattle is not known to be the type of city that a renter needs to hire a broker. But lately the rental vacancy rates are quickly decreasing making it super tough for new to the city renters to find places to live in core Seattle neighborhoods. Our team member Diva Kaz is happy to help in these situations.

Today I received the following story via NW MLS Northwest REporter via Chris Anderson, esq. It pretty much sums up the technical reasons why now is an amazing time to buy rental investment properties. From a in the street knowledge I can say that it is cheaper per square foot to buy an investment property in Seattle than a traditional single family home. Right now in Capitol Hill a single family home is priced around $351 per square foot. A multi-family home in the same neighborhood is priced at $290. Do the math!

Below is the story:

Paul Getty famously said, “Buy when everyone else is selling and hold when everyone else is buying.”Many commercial brokers believe that present market conditions provide an unprecedented buying opportunity to lock in significant real estate investment returns. Despite the opinion of some real estate professionals, however, many investors remain on the fence. While each investor must carefully consider their own financial objectives and risk tolerance before jumping back into the market, we’ve listed a few reasons investors should consider in assessing today’s real estate purchase opportunities:

9 Reasons to Buy Investment Property Now

1. 1031 Exchange Opportunity – Investors with low basis properties may utilize Internal Revenue Code §1031 to defer tax on the sale of one under performing asset to acquire one or more discounted replacement properties that may enhance cash flow and provide higher long term investment returns.
2. Attractive Purchase Prices – Many distressed sellers (and some banks) are selling investment properties at deep discounts and accepting offers that are below current replacement costs. Recent reports indicate that lenders are selling foreclosed properties (often referred to as ‘real estate owned’ or “REO” property) at an average discount of 28% below prices being paid for comparable non-distressed properties in the same market.
3. Historically Low Financing Costs – The Fed’s stimulus efforts, such as QE2 (“Quantitative Easing 2”), have resulted in historically low interest rates, making the cost of debt service exceptionally attractive. Qualified real estate investors can take advantage of today’s low interest rates to bolster cash flow and lock in better long-term investment returns.
4. Inflation Hedge – With many economists predicting that inflation will increase at some point in the future, hard assets, like investment real estate, can provide a hedge against the declining value of money in an inflationary environment. Additionally, ownership of leased real estate can provide an investor with increased income as rent rates also tend to rise in inflationary periods.
5. Yield – Financial institutions are paying very low yields on money market accounts and other conservative investments. In contrast, many investment properties are generating returns in the 7-9% range, providing considerably better yields than many other competing investments.
6. Less Competition – Foreign ownership of U.S. investment real estate is increasing. Foreign investors see U.S. real estate as a solid investment in a stable economy, and the lower value of the dollar has made U.S. real estate an even more attractive bargain. These two trends will increase demand, which will drive up prices on certain types of investment property. By buying now, investors can stay ahead of the competition.
7. Desirable Product Classes – Some classes of investment property are experiencing considerably more demand than supply. For example, in the multi-family segment, demand for rentals has increased as foreclosures have mounted and there is little new multi-family construction in the pipeline to meet such increased demand. As a result, multi-family rents are increasing and many experts project this trend to accelerate.
8. Worst Price Declines are Over – Property values nationally have declined by 30% or more since the market peak in 2006.  Many economists believe we are at an important pivot point where prices will stabilize and begin to increase (albeit at lower appreciation rates than in the past). If investors wait too long, they may find they are facing competing bids and higher prices to close. Buying before demand picks up in the nearly inevitable recovery locks in today’s bargain prices.
9. Real Estate is Local – Despite national statistics about real estate prices, most investors are aware that real estate is local and supply/demand and investment returns are determined by local market conditions. Many investors are using 1031 exchanges to exchange out of areas that are not projected to perform well and into areas where the local economy is more robust and investment returns are more favorable.

Financial professionals tell their customers it is almost impossible to”‘time the market” and purchase investments at the very lowest point and later sell these same assets at near market peaks. The concept is fraught with many problems and, as a result, most financial advisers caution customers to not pursue this approach. Despite this advice, investors often wait until it’s too late to purchase and miss opportunities. Don’t be left out.

Cris Anderson, Esq., Northwest Division Manager,Asset Preservation, Inc.

Make Your Home a Home + The Investment Will Follow

Team Diva Real Estate’s basic response to this weeks economic news is “Avoid the Panic & Take Advantage of the Temporary Down Turn”! Seriously!

Once again we want everyone to take a deep breath, walk outside, have a glass of wine and relax. August is the month when a majority of the managers on Wall Street exit New York City for the Hamptons and middle managers head to the Jersey Shore.  Who is left on the market? Typically, less experience folks who are told to manage the ship with minimal guidance.

The recent downgrade by S&P was merely a hand slap by the private sector to the federal government to say get back to work and make real progress on the economy. Team Diva does not agree with the downgrade, as it has the potential to impact mortgage interest rates and destabilize what little recovery the housing market has seen thus far. Remember – these are the same folks who gave Lehman’s and mortgage back securities AAA ratings right before the crash. Our personal view is that we are going to get out of this by, thankfully, living in Seattle, working together, supporting local businesses and just taking this recent spat of bad news in stride.

Let’s look locally to see where Seattle stacks up compared to the rest of the nation. A recent article by CNN Money Article reviewed home price trends in 384 markets based on the Fiserv/Case-Shiller Indexes. Nationally, it will be well into the first quarter of 2013 before median home prices across the nation will even be on par with prices from the first quarter of this year. Below is a great review of what we need to look at once the personal panic has subsided.

David Stiff, Chief economist for Fiserv, stated in a recent CNN Money Article that “markets that are ripe for a turnaround will be in the Pacific Northwest. The biggest gainer is expected to be Tacoma, Wash., where Fiserv said prices will rise nearly 25% by March 2013. Seattle and Portland’s prices are expected to stay flat through next March and then record double-digit gains of just over 10% each over the following 12 months.

“Homes are undervalued in the Northwest,” said Stiff, “the economy is diverse and the demographics strong. It has tech, manufacturing and extractive industries (like lumbering and mining) and people are still moving into the area.”

Diva Call to Action
Take a breath and make the most of the situation!

1. Be a Community Member: Get involved with your local area to make it better. Mow the lawn on that foreclosure down the block, volunteer with a youth group, take over an abandoned lot and build a garden, help your condo board, etc. Just get out there and make things better.
2. Buy Investment Property While it’s Still Cheap: Vacancy rates are dropping in Seattle and rental prices are skyrocketing.
3. Feeling cramped in your current home: Buy up to your next home to take advantage of the depreciated market while you still can!
4. Make A Home for your Family and the Investment Will Follow: Create a home environment that works for you and your family, get to know your neighbors and have fun. The houses that sell the quickest and for the most money in Seattle, are the ones that have character and soul. Love your home and it will love you back!
5. Sell Your Home If It Makes Sense: Sell your home if it makes sense for you economically and if it’s the right time. Seattle has managed the downturn in better fashion than most cities. There is still a lot of equity in our local market.
6. Relax and enjoy summer with friends and family!

Seattle's Real Estate is Always Local

Reading or watching the news, we are inundated with newly released reports on the state of the housing market. These reports often contain conflicting information, and rarely do they focus on one geographical market. Case in point: the monthly Case-Shiller Index that came out last week. The latest Case-Shiller Index reported that housing prices increased by 1% from April to May. However, even with this price increase, housing prices are down overall by 4.5% from May 2010. This information is obviously important, but if you don’t understand exactly what you are reading, you could end up with a false image of the current real estate market in your city.

There are a few things to keep in mind when reading or hearing about market reports. First, these reports are historical information. Usually when a market report comes out, the information is 60 days old, sometimes older. In the real estate market, things change quickly and the climate 60 days ago might be completely different than what is going on today. Second, these reports usually use data collected from a few major metropolitan markets and use this data to establish trends for the entire country. Unless you live in one of these markets, the numbers you are reading may have no similarity to what is actually happening in your neighborhood. Even within the studied markets, trends can vary widely based on what neighborhood you live in. Third, you have to know what type of properties each report looks at when gathering data. The Case-Shiller report uses data on single family homes. If you own a condo, this report doesn’t really give you any useful information. In addition, the Case-Shiller incorporates data from Tacoma to Pierce County. Not exactly a localized perspective considering the economic conditions outside of Seattle.

Whether you are looking to buy or sell a home, having current market information is necessary when determining the value of a home. Information from 60 days ago just won’t do. So how do you find out the latest market conditions for your neighborhood? Call us!!! The Team Diva Real Estate gals can pull current market data and let you know what is going on RIGHT NOW. And we won’t give you the market update for the entire city – we narrow it down by neighborhood and type of residence. We want our Diva Dwellers to have the most accurate and up-to-date information when it comes to pricing their home or making an offer. Being market savvy gives our clients an edge, and in this quickly changing market, having an edge gets you the best deal.

For instance the last Team Diva Real Estate report released showed an upward trend on Capitol Hill and other neighborhoods in Seattle. Read the whole report here->

Super awesome FIUTS student, Fredrik Ryden, gained some recognition last night for his work to hack Microsoft’s Kinect. Fredrik was hosted by two of our best Team Diva fans, Tad and Glenn, this past fall. At dinner the other night, Fredrik casually mentioned that he was working on a way to use Kinect’s technology to better improve medical surgeries. It took him just one weekend to hack Kinect and come up with a ground breaking use for this Microsoft technology.

Congrats Fredrik!

There is a long standing love affair between the Divas and Beacon Hill. Back in my (Diva Chavi) old corporate working days I use to love taking the super long but interesting old #36 route all the way from Rainier Beach to Downtown Seattle going straight down Beacon Ave. The line traveled down the former trolley line, turning at Beacon Ave Park, passing Fou Lee, the Jefferson Golf Course and then ending up in North Beacon right next to the stunning new library and light rail station. Each stop on the #36 takes in the local culture and flavor of the neighborhood. It’s almost cliche to say that the neighborhood is multi-cultural. It is the one of the few neighborhoods in all of my travels where one truly sees people of all ethnicities, modern home owning young couples, mid-century home loving gay folks and multi-generational traditional families all living together in harmony!

One of my favorite anthems about Beacon Hill comes from one of our favorite local artists Blue Scholars called “Fou Lee.” It perfectly captures the essence and how locals hang in their special hood on the Hill. Blue Scholars’ music perfectly capture the pride and love of growing up and thriving in Beacon Hill. Watch and enjoy->

Mackelmore is by no means a new comer to the Seattle scene but Mackelmore and friends are making a big splash nationally. The video below, Our Town, captures the romance of hanging out in North Beacon Hill and watching the sun setting over the city. Its as if Our Town-Seattle is seen best from Beacon Hill!

Diva Dwellers: Deb + Dean

Team Diva met Deb and Dean through Divotee friend Hara. We met on a Saturday afternoon in Columbia City at Empire Espresso. They were first-time home buyers who never thought they could own a home of their own. That same day we took them out and showed them exactly three homes. The second home that we showed, Dean stopped in the middle of the living room and said “You can show me other homes if you want – but this is the one. You will bury me in this house.” Wow!

When Diva Kim mentioned that our Community Partner Organization, FIUTS, was looking for host families for international UW college students last summer, Deb & Dean eagerly signed up.  Deb was waiting for her Swedish student Oskar, at the airport when she recognized our Divotee Tad also waiting for a student. They quickly found out that both their students were from Sweden and from the same school. From that moment on, a group of FIUTS hosts and Diva Pals quickly bonded together. They were going out to dinner, going to performances of Dean’s band, and having brunch. Now they are all fast friends and strong FIUTS supporters. Much of this is thanks to the community minded duo of Deb and Dean.

Deb and Dean’s Diva Wall of Fame Story

Hood: Seward Park

How did you meet the Divas? We met Kim and Chavi through a mutual friend and coworker of Deb’s. We were soon involved with FIUTS, hosting foreign students, and were subsequently swept into the maelstrom of fabulousness that is Divadom. Our circle of friends expanded exponentially, and we’ve been never been busier or happier.

What type of home did you purchase? We bought a wonderful 1910 Craftsman-esque 3 bedroom/2 bathroom single-story house   with a completely finished basement. Each of us has a small room of our own, and we still have plenty of space for visitors. The front yard is a jungle of flowering plants that we love to watch bloom—it’s like a super-slo-mo-4^th of July out there!

What was your first “OMG” house moment? We were both amazed at how the house reminded us of our beloved previous residence in Los Angeles, only with a Northwest feel. We instantly loved how the interior walls were painted with bright, open colors that somehow match. Deb particularly digs the bold choice of painting the kitchen a blood red — something she would never have the guts to do herself. Kim and Chavi were “OMG” at the fact that we bought the second house they showed us.

What is your greatest home extravagance? It’s too soon to tell yet. Now that we’re homeowners, we don’t have any money for extravagances! That evil catch-22.

What is in your junk drawer? That’s pretty funny. This old house doesn’t even have a drawer for our silverware!

Would you rather:

• mow lawn / paint the fence: Hmm. One doesn’t have to paint the fence but once every ten years or so, right? Sounds good to us. Besides, our neighbor mows our tiny little lawn for us just ‘cause he likes us. Such a deal!

• untangle computer cords / sort socks: Deb ~ Sort socks. Dean ~Untangle computer cords. In fact, this is exactly how we divide up our household chores. How’d ya guess?

• test the smoke detectors / fix squeaky doors: Break out the WD40, baby!

• plunge the toilet / clean out the refrigerator: Dean ~ Both activities require dealing with smelly substances, so I’d have to go with six of one, half dozen of the other. Deb’s particular toward the fridge for some reason.

• clean the gutters / take down holiday decorations: Judging by our neighbors, they’d rather clean the gutters. I suppose we’re inclined to do the same—since we never actually put up decorations.

What is your favorite Hood hangout spot? Dean: We’re both pretty keen on Seward Park, only about a 20 minute walk from our front door. I’m liking the Caffé Vita across from the PCC Market and the Columbia City Theater for music. I already miss the Columbia City Cinema! I hope whoever takes over the space keeps the films a-runnin’. Deb’s “in like” with the Verve Wine Bar and “in love” with the Columbia City Farmer’s Market.

What is your favorite local organization/non-profit? FIUTS of course. Its really amazing to host students from all over the world and connect with our other Saturday Night Gang of hosting families.

Deb and Dean's Diva Dwelling

What do you love the most about your house? Love coming home and having a peaceful place to be. The neighborhood can be a tad raucous, but our house is a respite from all that. I love being so close to the Othello Light Rail station. I love that it’s practically soundproofed throughout–from my room downstairs I can blast my LPs until 3 a.m. and nary a sound can be heard upstairs. All of our neighbors are terrific. There’s no tension among all the different cultures that live here. It feels like we won some weird kind of neighbor lottery. I love how there’s still tons of potential to the place, but it’s still completely livable as is.