So what's up with the BA RE market?


#82

so cheap maintenence and utlities, great! My landlord just paid $400 to unclog a drain pipe…

you guys are making my argument forme! :slight_smile:


#83

oh, and it’s an ocean you can swim in :slight_smile:


#84

it’s all good, no sensitivities here… :slight_smile:


#85

uhmmm… all those “China Stocks” threads in here showing huge returns must be all fake? :slight_smile:


#86

If I know Spanish I’d look into Barcelona.


#87

Appreciation and cap rate do not go together, esp in bay area.


#88

Most people on this forum are open-minded. It’s just that since most of us are already here in the bay area, preference is given to bay area investments because remote landlording is a real barrier that is not easy to overcome. If a group of RE investors from Atlanta are discussing opportunities, they wouldn’t be giving the same level of preference to bay area properties.

My personal experience is these resort RE investments rarely work out. I have never invested in them but I’ve read about them a lot. Can you put some numbers together for this Spanish island condo and we can all learn from it?


#89

The question isn’t where to buy an investment, the question is whether you want to settle in the BA long-term and own your own place. You need to decide on that first. IF you decide you want to be here long-term (after all your job is here), then the question is where. If you decide to do the peninsula, now appears to be a great time.

And in case it’s in question, we put our money where our mouth was and bought this summer. We did get a good price per square foot–not all the houses are priced alike.


#90

Sometimes it’s better to play dumb, stop thinking and just follow the crowd. This works better in RE. RE has plenty of safety margin that very few people fail. The percentage of foreclosures are tiny.


#91

Agree… my problem is, I’m a skeptic and contrarian by nature… sometimes it’s good, sometimes it’s bad.


#92

Yeah, it’s hard to beat yourself. I returned all the houses to the seller for my first couple of offers due to buyer’s remorse. Feel sorry for those innocent sellers :rofl:


#93

I’m confused on how to define Chinese economy. Is it a market economy? Or is it an economy becoming more and more market economy?

Whatever it is, they are working harder and probably much more capitalistic than Spain. Even with that, their stock market is doing very poor. RE appreciation is way better than stocks

SSE Composite Index - Google Search…0…1c.2.64.finance-immersive…0.1.74…0.nr2pH2DeC0w#scso=_tJxYXKqaDZLj9AOnwYTQAw2:0


#94

Definition is for academic. Why do you need to define? How does the definition help you?


#95

totally understand… and I have never done it publicly here… but I was specifically asked to provide examples elsewhere.

Majorca luxury apartments (850K euro: cap rate 3-5K euro/week for 30 weeks/year, 120k, or ~14% gross. low property tax, HOA, maintenance, etc). Future appreciation? (who knows, but I like the “buy low” approach). Swimmable mediterranean at your feet: priceless :slight_smile:


#96

Buy condos to rent out on Airbnb there. So more of a cash flow play than appreciation. I once heard on a podcast there’s tremendous opportunity in Barcelona for this type of play. They even raised money to buy up some condos there.


#97

Slack files to go public

https://finance.yahoo.com/news/slack-ipo-174929144.html


#98

If you’re worried about a downturn, vacations are one of the first things people cut in economic downturn.


#99

Exactly - buy where most of the jobs are if you have to invest in Spain.


#100

a lot of old money in Europe… high end doesn’t suffer much


#101

nope. I know the dynamics very well. You go to a high end resort in Europe in the middle of a recession, still packed. Same with ski slopes.