It’s said that the rain falls on the just and the unjust. A rising tide floats all boats. One can extrapolate that a recession and lousy economy is terrible for some - and can be profitable for others.
It is terrible to lose your job and/or your home. It’s terrible to be stressing over feeding your family. Everyone, in some form or another, will be glad when things pick up.
Having said that, this recession and lousy economy is a boon to those who are positioned to take advantage of the low home prices. Donald Trump is buying. Warren Buffet is buying. I’m sure that their purchases have a lot more zeroes in the sales price than what is on the market here in Silicon Valley, though.
But - investors are now able to buy properties in California that actually cash flow!! Novel concept – right?? Rumor has it that offshore cash investors are again buying in California because of this.
The prices on investment property are extremely attractive. Fourplexes, duplexes as well as single family homes are much less expensive than they were a year ago.
In Sunnyvale, an attractive highly desirable community, there are 7 fourplexes listed for under $1M and 8 listed over $1M. If an investor buys one for $800K, that is $200K per door – pretty inexpensive housing for Silicon Valley. Santa Clara, Campbell and San Jose offer similar bargains. The highest priced investment property in SJ is a 56-unit complex with an asking price of $9.8M. That is only $175K per door – the deal of the century!!!
There are single family homes in San Jose that sold for $500K-$600K 2 years ago and can now be bought for well UNDER $300K.
The time to add to your real estate portfolio may never be better!!!
Contact me: karen@biglarderi.com
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