Harvard Investment Properties
If you're looking for a town that has a great family environment and some of the best schools in the state, then Harvard, MA, is a good option. For professionals, this town is also fairly close to both Harvard and Worcester; both cities will take less than an hour for a commute in light traffic. Currently, this town is considered very affluent and there rolling hills, fields, and wetlands throughout town that really beautifies the area. The town is fairly rural, and only has a population of 6,562 people, but that being said, there are plenty of investment options for those looking to invest in property.
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Residential and Commercial Investment Properties
If you're looking for a real estate residential or commercial property, then you'll find that this small rural town has options. In some parts of this town, there is a very low vacancy rate, which presents a very stable market for real estate investment. The majority of the properties in town are single-family homes, but with that said, there are also more than a few options for those that want to invest in rental multi-unit properties as well.
When you're investing in properties, most investors aim to seek out financing so that some of the financial burden is eased. With this in mind, let's take a look at the finance process for different property types:
- Single-Family Homes – If you're looking to invest in a single-family home, you'll have an option of a conventional mortgage, a government-backed loan, or a portfolio loan. Each of these has its advantages, but you can expect to pay in at least 20 percent of the purchase as a down payment.
- Multi-Unit Properties – Believe it or not, when it comes to residential properties, multi-unit properties have the most stable finance process. Simply put, when working with properties of this type, there is usually a lower vacancy and foreclosure rate, so banks and lending institutions are willing to lend more money for these types of properties. Additionally, if your intent is to move in and work on the property while renting the other units out, you can receive owner-occupied financing, which has a lower down payment and very reasonable interest rates.
- Commercial Properties – There are several types of loans that work well for this type of property. Not only are traditional mortgages available, but you can also apply for commercial bridge loans, and commercial hard money loans as well. For higher amounts of financing, you can also apply for an SBA 7(a) loan, which has a loan limit of five million dollars, or a CDC/SBA 504 loan, which doesn't have a traditional maximum limit.
Real Estate Market Overview and Neighborhoods
When it comes to neighborhoods, this town is small enough that it only has one. That being said, there is a fairly strong real estate market in this area due to the fact that the town is fairly affluent. Currently, the median home value in this area is $561,000, which is higher than the Boston Metro area average. It's fairly easy to find properties in this town that are close to a million dollars, but many of these properties are also beautiful and large, which means that they can be purchased in order to convert them into multi-family properties.
With 14.4 percent of the town population being telecommuters, properties with home offices can be real sellers in this area. Even for those without these spaces set aside, a smart investor can have these types of features installed to ensure a favorable level of forced appreciation on the property. It's important to note that this rate of telecommuting is far above the national average, and the amount of people working from home this way is bound to increase.
This is primarily a town of white-collar workers, so commercial property can definitely be worthwhile. Traditional office space and retail space would be the name of the game in this regard, and with a population that has a high amount of people working in media, office space can be an excellent cash flow generator for this area of Massachusetts. Also, with this type of property, you can charge your tenants maintenance fees and a portion of real estate taxes as well.
Choosing the Right Investment Property
With a unique rural environment and a relatively close proximity to both Boston and Worcester, this small town can be very attractive to the right investor. Of course, not all investments will work in this town; while commercial investments like office space and retail space can be successful, other commercial investments like hotels and resorts could flounder in this town. It's absolutely crucial that you have all of the appropriate information before you attempt to engage in a commercial or residential investment in any market.
For that reason, engaging with a knowledgeable real estate brokerage like Boston City Properties is a great idea. We know the area well and we have licensed real estate professionals on-staff that can walk you through your next investment, so give us a call at 617-247-1933.
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