I’m Joe Gerrity, local businessman, investor and Real Estate Broker. For my monthly “Yo Joe!” column, I’ll be answering your real estate questions as well as providing market information and housing statistics.
I believe the main responsibilities of a Realtor are to add value and facilitate mutually beneficial transactions, and through this column I hope to help the New Orleans community make more informed decisions about their housing future.
Yo Joe! What’s your general feeling about the housing market right now?
This is obviously one of the main recurring topics of discussion amongst Realtors. Things have been slow the past few months. Hurricane season turns into election season, and then the holidays roll around. There was uncertainty in not only the real estate market but the stock market as well. A lot of people felt that the real estate market has plateaued, or even started to trend downward.
Lately Realtors are feeling more optimistic. The calls have started coming in again, and properties that had been sitting for a while are starting to see renewed interest. The economy as a whole is still growing and despite a brief hiccup locally I think that people are optimistic about their future prospects of employment and economic gain. As such, I expect that we’ll see renewed growth in 2019. A lot of Realtors are expecting a big spring and I tend to agree.
Yo Joe! What do you look for when buying a New Orleans investment property?
Real Estate investing in general is a time tested method of growing your net worth, in some cases passively. When considering investing in a property you want to look at a lot of the sames things you look for when buying a new orleans home. You’ll want to know that the property is in good condition, won’t require a lot of upkeep, is in your desired area, and can be obtained at the right price.
The big differences are that it doesn’t really matter if you personally like the house, since you won’t be living there, and also the amount of income that it brings in plays a key factor. Typically around Tulane and other areas that see lower rates of homeownership, investors target properties that receive annual rent equalling at least 10% of the purchase price. This is of course general baseline, and that number can be lower or higher depending on other factors such as the expected cost to maintain the property, an owners personal financial goals, and the owners belief that a certain area will see an increase in property values. In some cases investors sacrifice monthly cash flow entirely in exchange for the often higher returns that come from an area that’s seeing higher than usual property value hikes.
I recommend talking to a Realtor who has their own real estate investing experience if you’re planning to make the jump into property investing. At Korman Gerrity Real Estate we have multiple realtors who own their own investment properties, and can guide you through the process of investing in New Orleans. I personally work with a number of clients who have purchased dozens of investment properties throughout the local area, and have room for a few more people who want to start growing their portfolio through real estate.
Yo Joe! What architectural or design trend that has been bothering you lately?
Let’s start with stairs that are made with metal grates. Look, I get that they’re modern looking, and that they’re largely maintenance free. I understand the intent, but the reality is that women (or men!) can’t wear heels without the heel going through the grate. Dogs hate them too, especially if they’re textured like so many are. My pup won’t walk up them on her own accord. Considering that over one in three households has at least one dog, builders and homeowners may want to consider more pet (and people) friendly stairs options.
Yo Joe! I remember you from when you used to cover the Pelicans. Are we going to keep AD?
Oh man… I hope so. Hard to believe we’ve had him for so long and had such limited success in the postseason. Last season was nice, but we’ll have to advance at least that far for him to realistically consider staying with a team that has shown very little in the way of success over the course of his career. I think he’ll start the season with the team next season, but unless we add a third star I can’t imagine he’ll continue to give us the benefit of the doubt for much longer.
You Know Joe?
Joe Gerrity is the Broker and managing partner of Korman Gerrity Real Estate, a full service New Orleans real estate brokerage located at 4505 Magazine Street. He is also the managing partner of Big Easy Buyers, and a founding partner of both Crescent City Vape and Simply CBD.