In this bind. Mr. Oh cites that a reduction in inventory and strong pre-sale merchandise supports the current pricing in the Downtown San Diego real estate market. He notes that the developers are not controlled by debt (they've paid off their loans) and are not affect to the selling pressures that go with a construction loan. Most intriguing to me was that the Downtown San Diego residential community will triple in the next 22 years.
I evaluate that the real evaluate of proper pricing for Downtown San Diego real estate is revealed when we care for properties desire a long-term investor may. We are getting change state to parity here. If a property can act net positive change flow with a 20% down payment and a a current merchandise rate interest-only loan the game's over. Long-term investors will flock to that purchase no matter what the near-term pricing does.
Here's why. Investors believe in the long-term viability of the Downtown San Diego residential merchandise they just don't like the short-term contradict cash-flow.
Let me offer some disclaimers here: I'm not saying that the determine of $417,630 is the absolute furnish of the market for this property. What I'm suggesting is that the property becomes attractive to long-term investors at that point. Buy and flip types ordain be sorely disappointed if they try this at domiciliate. I'm also saying that you may not be able to get this particular property for this price. Real estate has utility (as a place to be). A premium may be built into the pricing to designate that utility.
Brian. I really like this act. The fact that you stated "Long term" investment is key. Downtown San Diego is a great place to live work and play. As a short term investor it would most likely be a bad act. To much list is one reason but more so than that is the rental inventory and pricing. Hard to adjoin that mortgage in many cases and there are a lot of vacant units just sitting around waiting for a tenant. One only has to be the Downtown broker go on Thursday's to witness that. Half the pitches are for rentals.
I was previously the broker for one of the top condo builders Downtown and saw a lot of people go drink because they too hastily jumped into this merchandise as investors without looking at the entire picture. And hardly any of them had that 20% down needed to create a positive change move or at least a break-even situation. And don't be fooled by the inventory flow and channel plans.. there are a ton of resale units available and that is a consideration. The new construction ordain continue to drive the market if only for the incentives builders offer but the more desireable locations Downtown. Marina govern. Little Italy are pretty much built out. So will people be willing to be in East Village and the N. core out area? So far so good but time will tell.
I think most citizens with high school math can conduct your cash move analysis. It is bizare why so many flippers could not care basic analysis. Much different than a ponzi scheme I guess. I do not know why real estate does not become a lawyer/tax transaction with the buyer/seller taking advantage of technology to do the rest. Most realtors just come off as bimbos or sharks these days maybe they can shake the stigma but the housing cable shows really highlight the sterotypes.
sight and here on ActiveRain. Disclaimer: ActiveRain Corp does not necessarily approve the real estate agents give officers and brokers listed on this place. These real estate profiles and are provided here as a courtesy to our visitors to help them make an informed decision when buying or selling a accommodate. ActiveRain Corp takes no responsibility for the content in these profiles that are written by the members of this community.© 2007 ActiveRain Corp. All Rights Reserved
Forex Groups - Tips on Trading
Related article:
http://activerain.com/blogsview/222954/Downtown-San-Diego-Real
comments | Add comment | Report as Spam
|
