Area Real Estate News & Market Trends

You’ll find our blog to be a wealth of information, covering everything from local market statistics and home values to community happenings. That’s because we care about the community and want to help you find your place in it. Please reach out if you have any questions at all. We’d love to talk with you!

Feb. 8, 2024

Debt vs. Equity: Choosing Your Financing Fortress in Commercial Real Estate

So, you've got your sights set on that perfect commercial property.  Before you sign on the dotted line, a crucial question lingers: debt or equity?  Deciding the best way to finance your real estate venture can feel like navigating a financial labyrinth. Fear not, intrepid investor, for this post will illuminate the pros and cons of both debt and equity financing, guiding you toward the path most prosperous!

Debt Financing: Borrowing Your Way to the Top

Think of debt financing as a loan from a friendly (or not-so-friendly) lender. Banks, real estate investment trusts (REITs), and private lenders offer chunks of cash in exchange for interest payments and, ultimately, repayment of the entire sum.

Pros:

Faster Access: Debt financing can get you up and running quicker, eliminating the need to find multiple investors.
Tax Advantages: Interest payments on your loan are often tax-deductible, reducing your taxable income.
Limited Liability: Your personal assets are typically protected if the venture goes south.

Cons:

Debt Burden: High interest rates and hefty repayments can strain your cash flow and limit your future borrowing capacity.
Loss of Control: Lenders might impose restrictions on your operations or require collateral, impacting your decision-making freedom.
Pressure to Perform: Consistent rental income or property value appreciation is crucial to avoid foreclosure.

Equity Financing: Sharing the Pie, Sharing the Risk

Equity financing involves selling a portion of ownership in your property to investors. Think of them as partners, sharing the risks and rewards.

Cash Boost: Access large sums of capital without incurring debt or interest payments.
Flexible Terms: Investors might be more open to unconventional projects or riskier ventures.
Professional Expertise: Savvy investors can bring valuable experience and connections to the table.

Cons:

Loss of Control: Investors have a say in decision-making, potentially diluting your control over the property.
Profit Sharing: Sharing rental income and potential sale profits means less money in your pocket.
Finding Investors: Identifying and vetting the right investors can be time-consuming and challenging.

The Verdict: It's All About You

Choosing the right financing option depends on your unique goals, risk tolerance, and financial situation. Consider factors like:

Your risk appetite: Are you comfortable with debt burden and potential foreclosure?
Your desired control: Can you share decision-making power with investors?
Your project timeline: Do you need funds quickly or have time to find equity partners?

Remember, consulting with financial advisors, lawyers, and experienced commercial real estate professionals is crucial before making any major decisions. With a clear understanding of debt and equity financing, you can choose the path that leads your dream deal to a prosperous reality!

 

Posted in Real Estate
Dec. 20, 2023

Should you buy a home in 2024?

"Inaction breeds doubt and fear. Action breeds confidence and courage." — Audrey Hepburn

RSM U.S. real estate senior analyst Crystal Sunbury, CPA, “Assuming no significant economic shocks, mortgage rates are likely to continue slowly easing over the next few months, to reach a 6% to 6.5% range by spring of 2024.” — Forbes Advisor

If you can gather the cash, don’t hesitate. Buy that home. Once rates hit 6%, buyers will flood the market and prices will spike.

Let’s talk. Call 781-933-2500.

#realestate #buyingahome #woburn

Posted in Real Estate
Sept. 26, 2023

Unlocking the Power of Real Estate Option Contracts: A Comprehensive Guide

Real estate transactions can be complex and filled with uncertainties. Buyers, sellers, and investors often seek creative solutions to mitigate risks and secure favorable terms. One such solution gaining popularity is the use of real estate option contracts. In this blog post, we will explore what real estate option contracts are, how they work, and the benefits they offer to both buyers and sellers.

**What Is a Real Estate Option Contract?**

A real estate option contract is a legal agreement between a property owner (the grantor) and a potential buyer (the option holder). This contract gives the option holder the exclusive right to purchase the property at a predetermined price within a specified period, without any obligation to do so. In exchange for this right, the option holder pays the grantor an upfront fee, known as the option premium.

**How Do Real Estate Option Contracts Work?**

1. **Negotiation**: The process begins with negotiations between the property owner and the potential buyer. They agree on terms such as the option premium, the option period's duration, and the purchase price at which the property can be bought.

2. **Payment of Option Premium**: Once the terms are agreed upon, the option holder pays the option premium to the grantor. This premium is typically non-refundable and compensates the property owner for taking the property off the market during the option period.

3. **Exclusive Right**: During the option period, the option holder has the exclusive right to purchase the property at the agreed-upon price. This means the property owner cannot sell the property to anyone else during this time.

4. **Decision Time**: The option holder must decide within the specified option period. They can choose to exercise their option and proceed with the purchase or let the option expire. If they exercise the option, they proceed with the purchase, and the option premium is typically applied toward the purchase price.

**Benefits of Real Estate Option Contracts**

1. **Risk Mitigation**: Option contracts provide a level of protection for both buyers and sellers. Buyers can take their time to conduct due diligence and secure financing, knowing that the property won't be sold to someone else during the option period. Sellers, on the other hand, have a committed buyer and may retain the option premium if the buyer decides not to proceed.

2. **Flexible Terms**: Option contracts offer flexibility in negotiations. Buyers can secure a property at a predetermined price, allowing them to benefit from potential appreciation. Sellers can receive upfront payments while maintaining the possibility of selling the property at a higher price.

3. **Strategic Investment**: Real estate investors often use option contracts to control multiple properties without committing to purchase all of them. This allows them to assess market conditions and select the most profitable investments.

4. **Avoiding Bidding Wars**: In competitive real estate markets, option contracts can give buyers an edge by securing a property without getting caught in bidding wars.

**Conclusion**

Real estate option contracts are a valuable tool that can benefit both buyers and sellers. They provide security and flexibility that traditional purchase agreements may not offer. However, consulting with legal professionals and experts in real estate transactions is crucial to ensure that option contracts are structured correctly and align with your specific needs and goals. When used wisely, real estate option contracts can be a powerful asset in your real estate investment or buying strategy, providing a win-win solution for all parties involved.

Aug. 8, 2023

Kiklis Real Estate Tours Lyrik in the Back Bay

Recently, I was fortunate to participate in an exclusive tour of the under-construction Lyrik building located at 101 Massachusetts Avenue in the Back Bay.  This is the project being built over the Mass Turnpike (Interstate 90) by Massachusetts Avenue.

This mixed-use project is being developed by Samuels & Associates and will contain 650,000 square feet of space, including 450,000 square feet of office space, 33,000 square feet of retail space, and 150,000 square feet of hotel space. The office space will contain the new headquarters of CarGurus and the hotel will be a citizenM hotel.

Mark standing in the office tower

Lyrik

July 12, 2023

New Affordable Housing Opportunity

As part of the Special Permit granted by the Woburn City Council, the Highland at the Vale is offering 30 affordable units, by lottery, for eligible first-time homebuyers. There are 10 one-bedroom condominiums, 9 two-bedroom condominiums, and 11 three-bedroom townhomes that will be available in the lottery. Eligible residents are encouraged to apply! 

Learn more about the lottery and application process

If you have questions and cannot attend the Public Information Meeting, please contact MCO Housing Services at 978-456-8388 or by email at lotteryinfo@mcohousingservices.com

What are the qualifications required for Prospective Buyers?
Qualify based on the following maximum income table, which is adjusted for household size:

KEY MEETING DATES:

PUBLIC INFORMATION MEETING via Zoom
6:30 p.m., Tuesday, July 18, 2023
Go to Zoom.com and provide the following, when prompted:
Meeting ID: 826 1384 5523
Passcode: 889529

APPLICATION DEADLINE
August 21, 2023

LOTTERY via Zoom
3:00 p.m., Friday, September 22, 2023
Go to Zoom.com and provide the following, when prompted:
Meeting ID: 893 2306 0952
Passcode: 794136

If you have questions and cannot attend the Public Information Meeting, please contact MCO Housing Services at 978-456-8388 or by email at lotteryinfo@mcohousingservices.com

 

June 16, 2023

New Boston Street Bridge Update

New Boston Street Bridge Project Underway in Woburn

Construction is underway on the new New Boston Street bridge in Woburn, Massachusetts. The bridge will connect two sections of New Boston Street that have been separated by train tracks for decades. The new bridge is expected to improve traffic flow and pedestrian access in the area.

The bridge is being constructed by A.A. Will Corporation of Stoughton. The project is being funded by a combination of federal, state, and local funds. Construction began in May 2022 and is expected to be completed in 2025.

The new bridge will be a three-span structure with a total length of 1,850 feet. It will be built to accommodate two lanes of traffic and a bicycle path. The bridge will also include a new water main and electrical and communication conduits.

The construction of the new bridge is a major project for the City of Woburn. It is expected to improve traffic flow and safety in the area, and it will also provide a new pedestrian and bicycle connection between two sections of the city.

The new bridge is a welcome addition to the City of Woburn. It is a project that will benefit residents and businesses for years to come.

Benefits of the New Boston Street Bridge Project

The New Boston Street Bridge Project is expected to have a number of benefits for the City of Woburn, including:

  • Improved traffic flow: The new bridge will provide a direct connection between two sections of New Boston Street that are currently separated by train tracks. This will help to improve traffic flow in the area and reduce congestion.
  • Increased safety: The new bridge will be designed to modern safety standards. This will help to reduce the risk of accidents and injuries.
  • Enhanced pedestrian and bicycle access: The new bridge will include a bicycle path. This will make it easier and safer for people to walk and bike between the two sections of New Boston Street.
  • Economic development: The new bridge is expected to spur economic development in the area. It will make the area more attractive to businesses and residents, which could lead to new jobs and investment.

The New Boston Street Bridge Project is a major investment in the future of the City of Woburn. It is a project that is expected to benefit residents and businesses for years to come.

Tap here for more information on the project.

 

May 16, 2023

Real Estate Installment Sales: What You Need to Know

An installment sale is a type of real estate transaction in which the buyer pays the seller over time, rather than in a lump sum.  This can be a beneficial option for both the seller and the buyer.  For the seller, an installment sale can help to defer the payment of capital gains taxes.  For the buyer, an installment sale can make it easier to afford the purchase of a home.

There are a few things to keep in mind if you are considering an installment sale.  First, the seller must receive at least one payment after the end of the tax year in which the sale takes place.  Second, the seller must report the gain on the sale on their tax return over the life of the installment payments.  Third, the buyer must pay interest on the unpaid balance of the purchase price.

There are a few advantages to using an installment sale.  First, it can help to defer the payment of capital gains taxes. This can be a significant benefit for sellers who are in a high tax bracket.  Second, installment sales can make it easier for buyers to afford a home.  This is because they can spread out the cost of the purchase over time.  Third, installment sales can be a good way to sell a property that is difficult to sell in a traditional market.  For example, a property that needs repairs or is in a declining neighborhood may be more easily sold through an installment sale.

However, there are also some disadvantages to using an installment sale.  First, it can be more complicated to structure and document an installment sale than a traditional real estate transaction.  Second, the seller must be willing to wait to receive payment for the property.  Third, the buyer must be able to afford the monthly payments.

Overall, installment sales can be a good option for both sellers and buyers in certain situations. However, it is important to understand the pros and cons before entering into an installment sale agreement.

Here are some additional tips for sellers and buyers considering an installment sale:

For Sellers:

  • Get professional tax advice to make sure you are maximizing your tax benefits.
  • Structure the installment sale agreement carefully to protect your interests.
  • Be prepared to wait to receive payment for the property.

For Buyers:

  • Make sure you can afford the monthly payments.
  • Get professional financial advice to make sure you are comfortable with the terms of the installment sale agreement.
  • Be aware of the risks involved in installment sales.

If you are considering an installment sale, it is important to do your research and understand the pros and cons. With careful planning, an installment sale can be a win-win for both the seller and the buyer.  Contact Kiklis Real Estate for more information at 781-933-2500.

April 22, 2023

5 Reasons to Move to Woburn, MA

1. Rich History and Culture

Woburn, MA has a rich history dating back to the 1600s, when it was first settled. Visitors can explore the city's past by visiting historic landmarks such as the Woburn Public Library, which was built in 1879 and is one of the oldest continuously operating public libraries in the United States. The city is also home to the Woburn Historical Society, which offers tours and exhibits showcasing the city's history and culture.

2. Thriving Economy, Low Taxes & Great Public Services

Woburn has a strong economy supported by a diverse range of industries and a robust commercial tax base. This allows the City to provide excellent public services while maintaining one of the lowest residential property tax rates in Middlesex County.  Some of the top employers in the area include Raytheon, Symbotic, and Skyworks Solutions. The city also has a growing biotech industry, with companies such as Comera Life Sciences and CutisPharma expanding their operations in Woburn. With a low unemployment rate and a median household income of $95,000, Woburn is a great place to find employment, build a career, and call home.

3. Excellent Schools

Woburn is home to several top-rated schools, making it an excellent choice for families with children. The city's public school system includes seven elementary schools, two middle schools, and one high school. The high school, Woburn Memorial High School, has a graduation rate of 94% and offers a range of Advanced Placement (AP) courses for students looking to challenge themselves academically. In addition to the public school system, Woburn also has several private schools in the area, including the St. Charles Elementary School and the Montrose School, and Open Bible Academy.

4. Access to Major Cities

Woburn is located just 10 miles north of Boston with easy access to Interstates 93 & 95, making it a convenient location for commuters who work in the city. The city is also within easy driving distance of other major New England cities, including Cambridge, Worcester, and Providence. For those who prefer public transportation, the MBTA Commuter Rail offers service from Anderson/Woburn to Boston's North Station, with a travel time of just 20-25 minutes.

5. Abundant Recreational Opportunities

Woburn offers plenty of recreational opportunities for residents and visitors alike. For outdoor enthusiasts, the Horn Pond Reservation is a popular spot for walking, running, hiking, fishing, and boating. The city is also home to several parks and playgrounds, including the popular Library Park. For those looking for shopping and entertainment, the Woburn Village and Showcase Cinema de Lux are both great options. And for history buffs, the Woburn Public Library and the Woburn Historical Society offer a glimpse into the city's rich past.

Conclusion

Woburn, MA is a great place to live for a variety of reasons. With a rich history and culture, a thriving economy, excellent schools and public services, low residential property taxes, easy access to Boston, and abundant recreational opportunities, it's no wonder that more and more people are choosing to call Woburn home. If you're interested in learning more about the city or exploring homes for sale in Woburn, contact Kiklis Real Estate today.

Posted in Real Estate
April 22, 2023

Woburn, MA Real Estate in 2023: A Comprehensive Guide

Woburn, MA

Woburn, Massachusetts is a vibrant city located just 10 miles north of Boston. With its rich history, diverse population, and strong economy, it's no wonder that Woburn has become one of the most desirable places to live in Massachusetts. In this post, we'll take a closer look at the current state of the Woburn real estate market, explore the area's demographics, and highlight some of the best schools, restaurants, and attractions in the area.

Woburn Real Estate Market

The Woburn real estate market is showing no signs of slowing down in 2023. According to recent data, the median home value in Woburn is $575,000, which represents a 4.1% increase from the previous year. The average price per square foot in Woburn is $337, and homes typically sell within 42 days of being listed.

As of 2023, the Woburn real estate market remains highly competitive, with many homes receiving multiple offers and selling for above the asking price. Despite the competitive nature of the market, there are still opportunities for buyers to find their dream home in Woburn, especially with the help of a knowledgeable real estate agent.

Woburn Demographics

Woburn is home to a diverse population, with a total population of just over 39,000 residents. The city has a median age of 41 years old and a median household income of $89,000. The racial makeup of Woburn is 82.8% white, 5.5% Hispanic or Latino, 4.6% Asian, and 4.4% Black or African American.

The Woburn population is also highly educated, with 92% of residents having a high school diploma or higher, and 43% of residents holding a bachelor's degree or higher.

Woburn Schools

Woburn is home to several top-rated schools, making it an excellent choice for families with children. The city's public school system includes four elementary schools, one middle school, and one high school. The high school, Woburn Memorial High School, has a graduation rate of 94% and offers a range of Advanced Placement (AP) courses for students looking to challenge themselves academically.

In addition to the public school system, Woburn also has several private schools in the area, including the St. Charles School and the Montrose School, a Catholic all-girls school.

Woburn Attractions

Woburn offers plenty of attractions and activities for residents and visitors alike. For outdoor enthusiasts, the Horn Pond Reservation is a popular spot for hiking, fishing, and boating. For those looking for shopping and entertainment, the Woburn Mall and Showcase Cinema de Lux are both great options. And for history buffs, the Woburn Public Library and the Woburn Historical Society offer a glimpse into the city's rich past.

Conclusion

Woburn, MA is a great place to live in 2023, with a strong real estate market, diverse population, and excellent schools. Whether you're a young professional, a growing family, or an empty nester, there's something for everyone in Woburn. If you're interested in learning more about the Woburn real estate market or exploring homes for sale in the area, contact a local real estate agent today. With their knowledge and expertise, they can help you navigate the competitive market and find the perfect home to fit your needs and budget.

Overall, Woburn is a city that continues to thrive in 2023, offering a high quality of life for its residents. Whether you're looking for a bustling downtown or peaceful suburban streets, Woburn has it all. With its rich history, diverse population, and strong economy, it's easy to see why Woburn is a top choice for many homebuyers in Massachusetts.

Posted in Real Estate
July 31, 2017

Curious About Local Real Estate?

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Curious about local real estate? So are we! Every month we review trends in our real estate market and consider the number of homes on the market in each price tier, the amount of time particular homes have been listed for sale, specific neighborhood trends, the median price and square footage of each home sold and so much more. We’d love to invite you to do the same!

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You can sign up here to receive your own market report, delivered as often as you like! It contains current information on pending, active and just sold properties so you can see actual homes in your neighborhood. You can review your area on a larger scale, as well, by refining your search to include properties across the city or county. As you notice price and size trends, please contact us for clarification or to have any questions answered.

We can definitely fill you in on details that are not listed on the report and help you determine the best home for you. If you are wondering if now is the time to sell, please try out our INSTANT home value tool. You’ll get an estimate on the value of your property in today’s market. Either way, we hope to hear from you soon as you get to know our neighborhoods and local real estate market better.

Posted in Market Updates