Telluride Real Estate & Homes has been developed as a Real Estate resource for the consumer. We have teamed up with an industry leader to provide you mortgages rate quotes and resources. Our interest is in matching up Realtors seekers with the best Real Estate List or Mortgage Brokers in Calgary if possible. This Real Estate service is completely free to viewers.
FOR OUR SELLERS
we add value to the sale of your home – not just list it! With our aggressive marketing approach and skills in multi-media advertising, creative photography, landscape, and interior design, we bring out the best qualities of every property we represent. Marketing really does make the difference – generating excitement and interest in our sellers’ property is our goal.
FOR OUR BUYERS
we dedicate ourselves to paying attention to our client’s needs. Using our advanced computer systems, we have the most up-to-date market information to quickly find the perfect match for our clients – the right property and the right location at the right price. Telluride has a good proximity of the Pacific Ocean provides for a temperate climate.
The downside is that overbuilt markets can cause sharp declines in rents and increases in vacancies over a relatively short period. Therefore, before buying a facility, it is highly recommended that a feasibility study be conducted by an independent third party, if for no other reason than to provide an unbiased perspective.
As stated in the introduction, this is also a great time to sell–if you are a seller. If you are a long-term owner, there are very few options for a better real-estate investment. Nevertheless, sometimes you must sell, as in the case of retirement, partnership issues, estate planning, cash needs or a competitive situation that makes long-term ownership unattractive. If you fall into one of these categories, now is a great time to sell for the same reasons it is a great time to buy: interest rates are low and money is generally available-allowing buyers the ability to pay a reasonable price and close quickly. The general optimism in the market also means that there will be more buyers for your property, ensuring a better chance to get your property sold on favorable terms. Although the time is right for selling, a note of caution to sellers is appropriate. The buyers today are generally very sophisticated (many are already self-storage owners). So, don’t think that a good market will allow you to achieve above-market prices. The “Greater Fool” theory of pricing simply does not work. Instead, it always seems that in looking for the greater fool, a seller almost always passes up a deal that should have been made in retrospect.
Hopefully, our original paradox of a time to buy and a time to sell has been resolved. If you are going to buy, now is the time–before interest rates move. It is also the time to sell–if you must. In sum, the comings and goings of the self-storage market couldn’t be better. The last three to four years have been very exciting for the self-storage industry. Since June of 1994, more than $1.5 billion in self-storage properties have changed hands–a volume the industry has never before seen. Will this level of activity continue? More importantly, what can the industry do to insure that this high level of activity continues? Obviously, the REITs (real estate investment trusts) are the key ingredients to maintaining a $5 million per-year consolidation volume (they have been involved in more than 75 percent of the ownership changes in the last three years). Therefore, in order to understand what will keep this volume going, we must understand the REITs and their motivations. REITs are companies whose sole business is buying, developing and operating real estate.REITs have been in existence for many years.
Most REITs are publicly traded on one of the stock exchanges, which means that the ownership of the company is distributed among several million shares and several thousand shareholders. Between 92 percent and 95 percent of the profit that the company generates is passed to the shareholders through dividends. The REIT itself does not pay income tax on its profit, because along with the income, the tax burden is also passed to its shareholders (the shareholders simply pay income tax on the dividend income). The per-share price of a REIT stock is usually directly related to its dividend, which makes REIT stocks much like bonds and utility stocks. In today’s financial climate, REIT investors look for a REIT stock to yield between 5.5 percent and 7.5 percent, depending on the overall strength of the company.
About 250 REITs are publicly traded on one of the stock exchanges. Of the 250 or so REITs, five focus solely on self-storage properties. There are several reasons why the publicly traded storage REITs (Public Storage, Storage USA, Sovran Self Storage, Storage Trust and Shurgard Self Storage) are acquiring as many properties as they can. As Wall Street is investing money in the self-storage REITs, the REITs will continue buying. Wall Street will continue investing in the self-storage REITs as long as two elements exist: strong financial performance from the self-storage REITs and a bullish stock market. If either of these two elements cease to exist, the optimism that has fueled the buying frenzy will become more cautious and probably slow down. How do the REITs continue to post strong, quarterly performance?
It’s quite simple: Grow FFO (funds from operation), grow occupancy, grow revenue and grow the asset base (acquisitions). So far, the REITs have consistently posted strong growth numbers. For example, Storage USA has more than quadrupled in size since its IPO (initial public offering) and Storage Trust was one of Money Magazine’s top ten performing REITs of 1996. The main reason REITs have performed so well is supply/demand ratios have favored owners, a trend that is beginning to change. Many local and national apartment, office and retail investors are acting on the self-storage REITs’ success and diversifying their portfolios by developing new self-storage projects. The problem is, many of these developers have adopted the motto, “Build It and They Will Come.”