So what's up with the BA RE market?

#62

What about Slack?

#63

As well, I think we will see improved outlook wrt economic uncertainty - Trump is under the gun to ā€œsolveā€ the trade war that he created with Chinaā€¦ particularly as a hostile House of Reps makes it that much more important for Trump to show that heā€™s doing a ā€œgood jobā€ with the economy.

For that reason, the aforementioned IPOs will likely find a favorable environment in 2019/2020.

#64

If you give your SV SFHs to your kids, there is another (huge) benefit ā€”- all those tax writeoffs you take over 27.5 years as you depreciate your SFHs to zero essentially becomes tax you never have to pay ā€” because depreciation recapture will get wiped out when you die, and your kids get a step up in basis cost in the eyes of the IRS.

Letā€™s say you bought two homes for 4M and you are depreciating half of that (canā€™t depreciate land) ā€¦ thatā€™s 2M in depreciation ā€¦ 2M in income that you never have to pay taxes on.

#65

Iā€™m confused about how that works.

#66

That method works for investment property, but not for primary home as we do not claim depreciation

#67

Whatā€™s your expectation of the price decline? When you see a 10% price drop, will you buy or continue to wait? At what point, will you just buy and forget about your gut and analysis?

#68

We may never buy in Danvilleā€¦ perhaps weā€™ll keep renting and use the cash to buy somewhere with better appreciation and cap rateā€¦ Danville (or the Bay Area), is not our forever place. 5 yearsā€¦

Plenty of rentals available everywhere, and moving all my heavy furniture every couple of years keeps my upper body chiseled and buff :wink:

#69

Iā€™m super interested in finding a place with better appreciation and cap rate. Letā€™s brainstorm and find that place.

If you work in SF, why not buy a house in Peidmont? Even Orinda and Lafayette can be good choices and they are only slightly more expensive than Houston

#70

How about 2-3 of these instead of a a shack in Burlingame? Rent them out until retirement, free place to stay every summer. Warm Mediterranean at your feet.

https://www.idealista.com/inmueble/40373744/

Balearic islands are on sale right now! Only up 10% since the crisis

image
image.jpg943Ɨ632 106 KB

#71

Need to study Spanish to figure this out, thatā€™s a barrier. 10% since 2009 is disappointing :rofl:

#72

After inflation thatā€™s like negative return.

#73

exactly! buy low sell high! do you invest based on past returns or future returns? :slight_smile:

Burlingame shacks going to cost $6 million in 10 years? :smile:

oh, and a massive cap rate on those rentals, european mortgages at almost 0% real cost

#74

Socialism doesnā€™t allow returns. No point to invest in Europe

#75

Is it so simple to predict future economic growth rates? :slight_smile:

Spainā€™s historical GDP growth rate, 1.5% max in the last 22 years

#76

no, but some of you in this group just take the ā€œlineā€ for the last 10 years and extend it into the future foreverā€¦

itā€™s called the ā€œrealestateforums.netā€ index :slight_smile:

#77

USA >>>>> Spain

#78

Spain is like investing in Bonds.

Bay Area is like investing in stocks, returns much higher long term even if invested in Index funds. :slight_smile:

#79

so cheap maintenance and utility bills too! even better!

these are rented to germans, northern europeans for 8 months out of the yearā€¦ Majorca becomes one of Europeā€™s busiest airports in the summersā€¦

look guys, there is RE life and opportunities elsewhere in the California, the US, and even the world. I guess I am in the wrong placeā€¦

#80

It only fell 15% during the crash. What big catalyst is going to drive it to beat the highs prior to the crash? Their unemployment rate is still one of the highest in Europe.

#81

I was just playing with you :slight_smile:

You should buy where & when you feel comfortable