Is anyone here buying a residence for themselves anymore?
It seems it’s all investing these days.
Years back, we actually had people wander in who were trying to buy a home for themselves.
The bears scared all the first time buyers away, when starter home were the best bargain ever…now they are $1m in the west bay and $600k in the east bay
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I know two of my friends looking for homes. They were fed-up with the prices, after repeated failures, stopped looking nowadays. Both of them paying appx $2600+utilities !
So Jil. They stopped looking. Are they then concluding they can never buy a home and will remain in place in the BA, renters for life? Or, are they expecting a price decline and planning on getting in then?
The answer is condos…First time buyers will have to settle for condos and a lot more will need to be built.Plus I bet a lot of the new remtal stock will be converted to condos…Investors should take advantage of this trend…
One person has only 5% down payment, FHA was looking at any condo to live in, but no one gives him with 5% down payment. He decided to pay rent and continue to stay until he saves for 20%. It may take 2 years or more. He has no choice but to pay rent forever. Single earner, can not move out of bay area as his main business center is bay area.
He is paying $2600+utilities for 2BD,2BH apartment. As of now, he is ready to buy any affordable condo with 5% down payment.
Another person, with 20% down payment, tried many offers with his realtors for more than 2 years. Unable to understand the competition, scared of overbidding,mainly does not want to commit higher loan, finally decided to stay out of race, continue to rent. Double earner, may not move out of bay area as both can not get good pay, one has to live jobless, going out side bay area. He is paying $2600+utilities for 3BD,2BH SFH home. He knew the rent is low as his landlord does not like to leave this guy. Landlord told him the rent is $3000 across bay area, but he is maintaining same rent $2600 for him (Good IT Tenant). He just increased $50/year from $2400. They are potential buyers if price drops or able to get one contract in their life term!
Tell me more.
Condos are where the action is…East San Jose, Hayward…prices have skyrocketed but so have rents
Great minds think alike!
Plus the fact that many investors stay away simply because of HOA’s is music to my ear.
My view, either rental or primary, stay away where crime rates, such as drug, shooting and trafficking, are high. We can change the home, finish etc - for fixer upper etc, but can not change the location issues.
I agree with your first quote, but skeptical on second quote as this is not inline with real estate Location, Location and Location Mantra. Financial Safety is the main issue.
Rents & Prices may go up during bullish period, but will have negative impact on prices during bearish times, especially with higher foreclosures.
For real estate, desirability and competition is very important. It protects your investment.
Of similar thinking. Not interested in dealing with such issues. Lower cap rate is ok to me. Whatever the cap rate, still higher than putting in the bank.
Agree !!! Risk management is more important chasing return, yay!
I tried to find my original post but I can’t find it so I am posting it here. I originally said the townhouse next to me was for sale but they were asking to much for it. Here is the listing.
https://www.redfin.com/CA/San-Jose/3321-Swancreek-Ct-95121/home/1232605
It went contingent after 14 days with no price reduction. I have no way of knowing the contract price, but I believe I may have been mistaken. I had to go near the listing price. If the appraisal comes out ok they may sell it for that.
I think primary home buyers are transitory members. Most people only care when they are looking to buy or then get ready to sell. Investors are the only people that care over the long haul. I didn’t post or read Redfin for quite awhile. What brought me back was thinking of upgrading.
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Upgrading in San Jose?
I haven’t decided yet. That’s why I haven’t done anything. Overall, the lack of inventory is discouraging.
Good time to upgrade, but you have to start at the bottom…The bottom end still has legs…we call low end property Bread and Butter real estate. …or cash cows…pride of ownership is code for negative cash flow…
Is that so? How come they didn’t tell me in real estate school??!!
I joined as a first time buyer, later as move up buyer, stick around for relevant regional and macro discussion and to troll you guys sometimes. Maybe some day as an investor who knows?