Is there still value in SF Bay Area real estate buying?
I’m going to answer this question, assuming ‘value’ means appreciation value.. there is always value in a rental income property, SF Bay Area of anywhere else, but think the question most asked is about appreciation of a property bought for residential use..
Well… A no-frills answer is NO. As in values have gone up so much that (as of August 2017), if your prime consideration is upside, of a residential unit, I would like to think they have 5-6% more upside, but tough to get more. I know there are a lot of follow-up questions. For e.g
1) Does it mean it’s due for correction: Not at all.. at least not necessarily anytime soon.. (I’m happy to discuss more in-person, is too many factors to describe here).
2) Does it mean I shouldn’t buy now, continue to rent? Not at all.. Rental values are going up big time (for other factors), so Rent Vs Buy is a different analysis. As also is the tax advantages of a residential home.. so.
Back to SF Bay Area: The popular wisdom in Real Estate Broker circles is that residential inventory is low, prices are going to be 5-7% trending for next 2 summers, with seasonal (year-end) adjustments.. I concur.
If you are buying a single family home for a rental income, depending on your tax considerations, like 1031 exchanges, highly recommend looking at North Hayward.. Still a lot of value there, good schools, a lot of local infrastructure being built next 2 years.
This is a topic where a lot of folks have varying opinions.. The above is a point of view, starting point for am in-depth debate, that will be personalized. Not a decision making factor I hope 🙂
I’m going to jam through a series of short blogs next 2 weeks, so pardon the brevity.. Contact me anytime via email for more…
Next Topic: What areas in California would you recommend buying an investment property?