Short video on upside and downside of buying Bank foreclosures.http://www.veoh.com/videos/v18571450XncRAr2p
Market Downswings offer Buying Opportunities. Short Term Sellers take the HIT!
We are all challenged with the market undulations. At times, it feels like we are on a rollercoaster ride and we are helpless to do anything but HANG ON. But for many long term homeowners, the paper loses on the market fluctuations will have little or no effect.
And here is why:
Real Estate always follows trends and market cycles. Market corrections are inevitable. We have been on an upswing market trend in San Francisco since 1999. The good news is that after the market corrects itself, the 50 year market performance statistics reveal that the market eventually recovers and, in time, the prices go even higher than the last high.
FOR FIRST TIME BUYERS: The reduced prices in the market allows for many FIRST TIME BUYERS to afford home ownership. There is also a $8000 first time buyer credit available for those that qualify.
FOR SELLERS: For sellers trading up, what you lose based on past higher values on the sale of your home, you will pick up on the now lower values if you purchase of another home.
SHORT TERM SELLERS take the hit: The people who get hurt in market swings are the short term buyers and sellers. If you are a recent home purchaser and if you are forced to sell because of financial needs, a job transfer to another area and you do NOT replace this property with another property in the area, then you may suffer financially from the downturn.
Some of you remember, as I do, the real estate market in 1980 when interest rates peaked over 18% interest on FHA 30 year Loans. There was recession, and then there was recovery. Then there was the up market swing in the 1980s with yet another correction. In the 1990’s we had the DOT COM boom and then another correction.
The TRUTH about real estate markets is this:
There is ALWAYS a market…good or bad.
There are ALWAYS buyers and sellers.
Any given market is determined by an offer from a willing buyer and acceptance from a willing seller.
Buying opportunities occur when there is less competition and increased inventory.
And such is our present market.
San Francisco properties are subject to a wide variety of ordinances and regulations concerning tenant’s rights, rent controls and evictions, as well as zoning and use issues. Fortunately, we have landlord tenant attorneys and land use attorneys and advisors to help guide us though the ever-changing maze. Over the years, I have had dealings with many of the issues that come up on development of TIC units, unlawful detainer evictions and Owner-Move-In Evictions (OMI), the Ellis Act, and tenant buy outs.
The rental market in San Francisco is very strong and while offerings for investment properties and developmental opportunities can be lucrative, there are many pitfalls. Investors need local, reputable expertise in these areas to define the problems and provide for cost effective solutions. The following are some useful websites that may be helpful to you to navigate through this maze. This list is for informational purposes ONLY and not intended to be used as recommendations. Please call me direct for more specific details.