There has been a real run on modestly priced homes in the Northwest Woods of East Hampton over the last six months or so. As a result, inventory has tightened considerably, although just a year or two ago many good properties were unable to attract buyers.
This week’s transfers have eight houses that sold for between $550,000 and $950,000. Many of them are saltbox-style homes with three or four bedrooms, built 20 years ago, with vinyl pools and wood decks on 1/2-acre lots.
These types of homes have been selling for around $700,000, depending on location and amenities. They make attractive rentals with seasonal rental yields that exceed 30-year mortgage rates and can be used by their owners during the off-season.
While no two properties are exactly the same, an example of this kind of investment in this week’s transfers is 25 Blue Jay Way, which sold for $695,000. The house sits on just under a half acre, was built in the mid 1980s and has four bedrooms and three baths.
Like many of these kinds of homes the center of this house is a double-height great room with open kitchen, plus dining and living areas with fireplaces. Although not entirely renovated, the kitchen has been updated, and the house was well presented in clean condition with attractive furnishings. Sliders open to a pool and deck.
This type of property could easily rent for $40,000 for the summer. Borrowing around 80 percent, or $560,000, at 4 percent for 30 years results in an annual mortgage payment of around $30,000. That leaves room for the tenant to help with the insurance, taxes and maintenance, too, making this property, and others like it, compelling investments so long as rates stay low.
27east on Mar 29, 2013