Dennis Norman
By: Dennis Norman
I’m talking of course about Branson, Missouri which, according to the Branson Lakes Area Chamber of Commerce website, is celebrating it’s 50th anniversary of Branson’s first show, “The Baldknobbers”. The Chamber Site also states that the Branson area has:
- more than 50 live performance theatres
- three pristin lakes
- 12 championship golf courses
- an international award-winning them park
- a new Airport and a full range of dining options, host of hotels, etc
The site also states the Branson area is less than a day’s drive for one-third of Americans making it a popular vacation and recreation destination. But how is the real estate market doing? I recently interview agents active in the gulf coast of Florida vacation market as well as North Carolina market. While Branson may not be the first place people think of when you mention vacation home, it is clearly a popular destination in the Midwest so I thought I would look into it further.
James Smith, Aux-Arcs Real Estate, Inc.
To do this I did an E-View TM with James Smith of Aux-Arcs Real Estate, Inc. who is pretty much a new-comer to the Branson area, however is an experienced real estate investor from the west coast.
Lets begin:
Q- James please tell me about yourself and your background.
A-I was a real estate investor in Orange County; flipped a number of homes in La Habra, Santa Ana and Historic District of Orange. I worked for three years at Home-Loans Inc. as a Loan Officer and later became a REALTOR(R) at Home Pro’s Real Estate in Canyon Lake, CA. My wife Christine and I own and manage several rental properties.
We were looking to retire in Branson West, but decided to move here full-time in October, 2009 – where we live in a fabulous Lake View Home.
Q- What is the primary market you focus on?
A-I primarily focus on the residential market; Lake Front and Lake-View homes, in Branson West, Kimberling City, Lampe and Reeds Spring.
Q-I know the Branson and Tri-Lakes areas seemed to be on fire during the boom and even after markets were cooling off all over the country my contacts in your area were still reporting good news. I know by now the slow down that has affected markets around the country has taken a toll on your market to some extent but please tell me where you see the market now and where the activity is.
A- In our area buyers are looking for vacation properties and second homes especially in the prices range of $140,000 to the low $200’s. Contributing factors may have to do with the value for the dollar but more importantly financing. Homes for sale above $300’s have been on the market for some time and are expected to remain. This trend has produced a number of great buys for a reasonable price.
As far as the market, both the Branson and Table Rock markets have been affected by the economic slow-down. However in the Tri-Lakes area, appraised property values have remained fairly stable. We are a rural area that offers quality living with low taxes, low crime rate, award winning health care, AAA rated schools, nearby shopping districts and entertainment .
Q-You mentioned financing. This has become a major issue throughout the country, espcecially when it comes to vacation homes, 2nd homes and investment property. How readily available is financing in your market?
A- Financing is a challenge. The best recommendation I have for clients in my area is portfolio financing with a local lender who has direct relationships with local Title Companies and more importantly local Underwriting. The best rates are of course for credit scores above 740 with LTV 80% or less. Debt to Income 29% on the mortgage side – no more than 40% total. 620 credit score or above required. Although rates are low, there are not very many programs available besides FHA, USDA and conventional 20% down, and expect to close in 30 days or more due to the refinance craze and low work staff. Vacation home or Second Home expect 2 – 2 1/2 points. Loans for foreclosures – the best recommendation is to get an FHA approved construction loan (203k) to avoid having to place capital in an escrow account to cover the cost of repairs.
Q-I believe there have been quite a few new condominium developments in your area over the past few years. Most vacation destinations have a “vacation rental” market and many investors like investing in this type of real estate. Does this market exist in your area and if so what kind of shape is it in?A- Property values for condominiums have fallen for a number of reasons – oversupply of nightly rentals, high tax rate on income produced, programs offered have proven to favor the nightly rental company over the investor. This explains the high number of foreclosures in condominium projects in our area. In our local area it may prove a better investment for weekly rentals, or single family residential homes.
There are excellent lake front condo projects that do not allow nightly rentals, starting in the mid $200’s and up, and low rise condo projects in Branson near the Branson Rex-Plex just off of Gretna Road – also starting in the low $200’s.
James, thank you for taking the time to do this, I appreciate it. If you would like to contact James with questions about the Branson/Tri-Lakes market you can reach him at his office (800) 296-LAKE, cell phone at (417) 598-1667 or via email jsmith@aux-arcs.com.
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[...] Is the “Live Music Show Capital of the World” the place to invest …A-I was a real estate investor in Orange County; flipped a number of homes in La Habra, Santa Ana and Historic District of Orange. I worked for three years at Home-Loans Inc. as a Loan Officer and later became a REALTOR(R) at Home … There are excellent lake front condo projects that do not allow nightly rentals, starting in the mid $200’s and up, and low rise condo projects in Branson near the Branson Rex-Plex just off of Gretna Road – also starting in the low $200’s. … read more… [...]