Is it a good time to sell Phoenix houses now?
Bay Area housing price is already in decline and it seems that peak has passed for this cycle. But it is not a crash for sure, more like a correction and then stabilize.
Does it make sense to sell Phoenix and 1031 exchange back to Bay Area?
Phoenix price is still below 2006 peak and the market fundamentals are solid. I think it won’t drop. But over the long term, I find Phoenix is not as good as Bay Area.
How many do you have in Phoenix?
Not a lot, but significnat cash equity. With a mortgage, it can turn into Bay Area low end houses.
My fear is that I may sell Phoenix too soon if Phoenix continues to rise for another 2-5 years,
and Bay Area may lag Phoenix after I sell.
What I heard from veteran real estate investors is that long distance real estate investments don’t work. If you are lucky enough to have made some profit, you should sell. Real estate appreciates primarily because of land. There is plenty of land in those areas and very limited in the bay area.
I think the appreciation is negligible, but the tax depreciation will be taxed heavily, much more than capital gains tax, so l’ll have to do 1031 exchange.
Inflation should help Phoenix more than Bay Area. Inflation will cause construction cost soar, land may not appreciate much in high inflation years.
Now we have a high rate and low inflation. So high inflation may not come at all.
It’s so hard to predict the future. I still like to make the best decision I could.
I am still bullish on Phoenix. We are selling our new 250 unit building. Should do very well. But we develop and sell. Just like Texas …buy and hold is less lucrative
250 unit multi family or condo?
I am wondering why people build apartment while condo is more lucrative?
What’s the price tag for a brand new aprrtment? And what’s the cap rate?
I’m a minor player. The management team will determine the price. Multi family luxury apartments are very lucrative and without the headaches and litigation of condos. In fact multi family is preferred by most developers especially in the BA.
Gentrification is a good thing