Welcome Back,

I hope your Sunday is going great at the time your are reading this! Welcome back to another real estate analysis. The market we will be going over today is that of Savannah, Georgia. We will also talk about the importance of property management. Enjoy!

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Daily News Updates:

In a significant political development, President Donald Trump has announced plans to impose tariffs on imports from Canada, Mexico, and China starting Saturday. The White House has not specified any exemptions, indicating a broad application of these tariffs.

• Economic Developments: Pharmaceutical giant AstraZeneca has canceled its planned £450 million investment in a vaccine manufacturing plant in Liverpool, citing reduced UK government funding under the Labour administration. This decision is a significant setback for the UK's economic growth agenda.

• Environmental Concerns: The Palisades and Eaton fires in Southern California have been fully contained after 24 days. These wildfires caused extensive damage and prompted widespread evacuations.

• Business News: AstraZeneca's withdrawal from the Liverpool project is expected to have significant implications for the UK's pharmaceutical industry and its economic growth strategy.

• Global Affairs: In the Middle East, Israeli forces conducted airstrikes in the Beqaa Valley, targeting underground weapons manufacturing and arms smuggling sites. These operations resulted in two fatalities and ten injuries.

Market Snapshot:

Savannah, Georgia

The Savannah real estate market is experiencing steady growth. As of December 2024, the median home price reached $354,000, marking a 4.6% increase year-over-year. Homes are selling after an average of 65 days on the market, indicating a moderately competitive environment. The median sale price per square foot stands at $198, up 3.7% from the previous year.

• Median Home Price: $354,000

• YoY Price Growth: 4.6%

• Active Listings: Approximately 1,382 homes

Deal Of The Day:

9 unit apartment building in Downtown Savannah

• Price: $8,500,000

• Units: 9 (2-Bed, 2-Bath each)

• Monthly Rental Income: $22,500

• Cap Rate: 7%

This apartment building is in Downtown Savannah offers a blend of historic appeal and modern amenities. Each unit rents for $2,500 per month, totaling $270,000 annually. Given the area's popularity among tourists and students, this property promises consistent rental demand and potential appreciation.

Deal Rating: 8/10

Investment Strategy:

Seller Financing

In seller financing, the property owner acts as the lender, allowing the buyer to make payments directly to them. This approach can benefit investors by:

• Negotiable Terms: Flexibility in interest rates and repayment schedules.

• Reduced Closing Costs: Eliminates certain fees associated with traditional mortgages.

• Easier Qualification: Beneficial for buyers who may not meet conventional lending criteria.

Example: Purchasing a property for $400,000 with a 10% down payment and the remaining $360,000 financed by the seller at a 5% interest rate over 20 years can result in favorable terms for both parties.

Current Interest Rates:

Savannah, Georgia

• 30-Year Fixed Residential: 6.65%

• 15-Year Fixed Residential: 6.1%

• Commercial Rates: Starting at 6.2%

Mortgage rates in Georgia have seen slight fluctuations. As of January 30, 2025, the average 30-year fixed mortgage rate is 6.65%, a slight decrease from the previous week.

Real Estate Tip:

The Importance of Property Management in Real Estate Investing

Effective property management is crucial for real estate investors aiming to maximize returns and maintain property value. A competent property manager handles tenant relations, maintenance issues, and ensures timely rent collection, thereby reducing vacancies and preserving the property's condition.

In Savannah, where the rental market includes a mix of long-term tenants and short-term vacation rentals, professional management can navigate the complexities of local regulations and tenant expectations. Investors should consider the following when selecting a property manager:

• Experience: Familiarity with Savannah's market dynamics.

• Reputation: Positive reviews and references from other property owners.

• Fee Structure: Transparent pricing with services that justify the cost.

While self-managing properties might save on fees, the time commitment and potential for missed opportunities often make professional management a worthwhile investment.

Economic Conditions

Savannah's economy remains robust, bolstered by its thriving port activities and tourism sector. The city's unemployment rate is below the national average, reflecting a healthy job market. However, rising construction costs, influenced by increased material prices, pose challenges for new developments. Despite these hurdles, Savannah's affordable cost of living and strategic location continue to attract both residents and investors.

Market Rating: 7/10

Key Takeaways:

• Savannah Market Update: Median home price is $354,000, with a 4.6% YoY increase and an average of 65 days on the market.

• Deal of the Day:  A 9-unit apartment building for $8,500,000, offering a 7% cap rate and $22,500 in monthly rental income.

• Tip: Familiarize yourself with local zoning laws to avoid investment pitfalls, especially in historic districts with stricter regulations.

• Investment Strategy: Consider seller financing for more flexible purchasing terms and reduced closing costs.

• Interest Rates: 30-year fixed residential mortgages are currently at 6.65%, while commercial rates start at 6.2%.

• Economic Conditions: Savannah's economy remains strong, with job growth driven by port activities and tourism, but rising construction costs could impact new developments.

• Real Estate Management: Hiring a property manager can maximize returns by handling tenant relations, maintenance, and legal compliance—especially useful for short-term rental investors.

That’s All For Today

I hope you enjoyed today’s issue. If you have any questions regarding today’s issue or future issues feel free to ask. Come back tomorrow for information on how to grow your income and wealth. I hope to see you.

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Disclaimer: This newsletter is for informational and educational purposes only and reflects the opinions of its editors and contributors. The content provided, including but not limited to real estate tips, stock market insights, business marketing strategies, and startup advice, is shared for general guidance and does not constitute financial, investment, real estate, legal, or business advice. We do not guarantee the accuracy, completeness, or reliability of any information provided. Past performance is not indicative of future results. All investment, real estate, and business decisions involve inherent risks, and readers are encouraged to perform their own due diligence and consult with qualified professionals before taking any action. This newsletter does not establish a fiduciary, advisory, or professional relationship between the publishers and readers.