Ajit, Home Buyer in Singh

Duplex prices in mountain view, would they appreciate ?

Asked by Ajit, Singh Sat Jul 26, 2008

I'm interested in buying a Duplex in Mountain View. Does it make more sense to buy a Duplex with a freind/relative or just a single family home ? Would the prices of Duplexes appreciate over time ?

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22
Ajit:


"The prices have been dropping and would continue to do so because they are superficial. You would continue to see 5-10 fools who are thinking that this is the right time to buy and you would even find multiple offers on a nice property BUT remember these are the same fools due to which the bubble inflated."

Glad you ignored the Pro's. You got horrible advice. You did the right thing for your family.
1 vote Thank Flag Link Tue Apr 7, 2009
Here is Ajit speaking for himself. Nothing against anyone but just my opinion on it.
I have been actively looking at Houses since i posted my question ,I evolved a lot during this and trust me i have been spending time (every day one hour looking at MLS ) and here is my take on the whole thing. The prices have been dropping and would continue to do so because they are superficial. You would continue to see 5-10 fools who are thinking that this is the right time to buy and you would even find multiple offers on a nice property BUT remember these are the same fools due to which the bubble inflated. I think due to government's efforts to stabilize the market, the bubble would deflate at a controlled pace now. Most of the people have come to realization that these prices are simply superficial and i think the rest of people would soon follow suit. Once again, this is just an honest opinion of an evolved buyer and nothing against anyone.
1 vote Thank Flag Link Mon Apr 6, 2009
M$P I enjoy these posts. What the Pro's do not get is that they call themselves "Pro's", think they are like Doctors, say whatever they can think of to get a sale and then when they are wrong and someone just says "Hey, man - you were wrong" - they get mad. (One guy wanted to report me into my ISP for saying I thought it was not a good time to buy.)

They used to say it was always a good time to buy - all the way through the last 1-3 years which was the worst time to buy and then they still say it is a good time to buy now.

Now they say they "don't have a crystal ball," but in the next breath say IT IS STILL A GOOD TIME TO BUY!!!

I do not get it either. Who knows.
1 vote Thank Flag Link Mon Apr 6, 2009
Million$producer,
You are CORRECT agents need to be more specific about which market/areas/price when giving advice.
I will tell you this there are so MANY buyers buying on the LOW end ( 475K and below on SFR and with Duplexs under 600k depending on the area) with every nice property having 3 to 20 offers on them all over asking price, and remember only one person gets the property so the other people who offered are your competition on the NEXT property. I don't know ,but it's hard to imagine low end prices going lower as there is to much demand and we know demand or lack of is what drives any realestate market.
Regards,
Allyson
1 vote Thank Flag Link Mon Apr 6, 2009
Million$producer,

How low did duplexes drop over the time of Ajit's last question (July 2008)? How have rents changed over this same time? What rent could have ajit obtained if he bought? What is his after tax position? What will his rate of return be after holding the property for 7-10 years? What are his disposition costs should he decide to sell in 10 years? These are questions Ajit should be asking himself. And only he can answer them based on his assumptions of the market.

Are you stating that if Ajit purchased sometime after July 2008 and held the property for 7-10 years that it definitely would be a bad investment? Based on what information? What are your assumptions to claim that it isn't a good investment for Ajit? Please share your investment strategy for Ajit?

I try to make suggestions about options that Ajit may not have thought about. Ajit (and all buyers) need to investigate why he (they are) is thinking about purchasing a duplex. What are the pros and cons. None of us (including you) know what Ajit's goals are for any property that he is thinking about purchasing. What are Ajit's other options for the money he was thinking of investing into a duplex?

I love it when you take things out of context and then attempt to make every real estate practitioner look like a fool. Sure there are agents who claim it is always a good time to buy. But anyone with half a brain can realize that when they read their posts. Why are you so bent against all real estate agents? Perhaps you made a bad invesment and are blaming the real estate agents for your decision. Remember, real estate agents provide data and insight, but the final decision remains solely the client.

Lastly, Since you are so versed in the economics of our local real estate market, please enlighten us with your expertise as to where our local real estate market will be in 1 year, 3 years, 7 years and 10 years. Pretend that I am a buyer who has money and needs advice on when to buy. Also, remember that all of us real estate practitioners will crucify you (after the fact) when you aren't 100% correct.

I look forward to more of your bashing behind the anonymity of Trulia voices
1 vote Thank Flag Link Mon Apr 6, 2009
Million$producer,
One wonders WHAT you are a Million dollar Producer of ? What you fail to take into account is that there are at LEAST 3 levels of Realestate High, Middle, and Low end. You are CORRECT if you say hold off on the high end market at this time, Also some middle end homes NOT in good school areas are in the WAIT catagory, BUT the LOW end, now that is a Screaming BUY right now. If Ajit is looking at REO/Short Sale Duplexs (which I suspect he is ) at the low end. Then this IS the time to be looking at the market and buying.
You need to get off the generalitys of DON'T BUY and you need to get off of the "hate realtors" ban wagon.
Ajit the other realtors gave you good advice as far as that goes just make sure you study the market and Know when a good deal comes along.
Regards,
Allyson
408-705-6578
allyson@homesbyallyson.com
1 vote Thank Flag Link Mon Apr 6, 2009
Blast from the past:

"The duplex in Mountain View appreciate just as the real estate appreciate. " - Grace 8/2008

"Yes. Duplexes will appreciate over that time period. " - Matt 7/2008

"A duplex is a good investment." - Tom 7/2008

"Makes good sense. I was thinking you might buy a duplex yourself and rent out the other unit (if you could afford it). " - Dave 7/2008

"Mountain View duplexes, assuming you pick the right area, continue to appreciate. " - Earl 7/2008


EVERY Realtor says buy. EVERY one was wrong. This is insane. How long will this go on? Where are these people now? Did Ajit listen?

Here is a classic from a year ago from out man Matt: "Now is the best time to buy in decades and you should definately take advantage of it. I don't suggest waiting to own at all because interest rates are still extremely low, no matter what anyone else says, and there are few buyers in the market. Don't wait and buy right now.:"

UNREAL!
1 vote Thank Flag Link Mon Apr 6, 2009
we bought a Mountain View duplex in 1991 near Sylvan Park, at the top of the market, we paid 500K and then it promptly was underwater for a few years, but now is worth double what we paid. and it has worked out great as we have my dad living in other half. HOWEVER If we had bought a single family in Los Altos for 500K in 1991, it would likely be worth 1.5 today. maybe more depending on improvements and location. In this crazy market I would not buy anything assuming appreciation over next few years, but overall duplexes are great investment properties if the cash flow works for you. Sunnyvale Duplexes are a better buy.
0 votes Thank Flag Link Sat Feb 6, 2010
Ajit,

more directly - rentals appreciate with the Gross Rate Multiplier.

Rent X GRM = Value
Web Reference: http://www.2familyhomes.com
0 votes Thank Flag Link Mon Apr 13, 2009
Mathew, good response however I think you may be wasting your breath, just as with Found the Bottom's last post being a totally outright lie just so he can spread more of his realtor hating propaganda answering hateful remarks from the negative people with a hidden agenda against agents can be futile no matter how much I enjoyed reading it.

The reason I say this is because they in turn reply with a lot of quick short hateful posts from the multiple profiles they have setup which can make it difficult to keep up.

Just notice how Found the Bottom and Realestate#1 always have the same amount of thumbs up on their comments in the same blogs, because they or he continues to make comments and pat themselves on the back for them, they post in blogs topics all over the country in Trulia and yet always seem to find the same blog questions to answer. Hmmm.... interesting coincidence huh?... BLOG SPAMMERS!!!!

I can't explain why these guys are so hateful towards agents spending so much time on the attack.
I have found over time a few of these guys are stock brokers and hedge fund managers trying to convince home buyers to rent and invest their money in better investment like the products they push. Kinda shows who the bottom feeders are just like ambulance chasing attorneys.

If you see other suspected spammers like this post the info here
http://www.trulia.com/blog/victor_kaminski/2009/04/fake_trul…

Agents feel free to click the report button to their off topic, non factual, spam messages when you see them.
0 votes Thank Flag Link Sun Apr 12, 2009
There are so many opportunities right now for multifamily homes.

The link in the web reference is great for finding duplex properties.
0 votes Thank Flag Link Sat Apr 11, 2009
It's very hard to be a real estate customer and know ANYTHING about housing market, and not hate a typical realtor.

Most realtors provide either wrong/false/bad advice or are useless.

Examples of bad advice:
1. best time to buy
2. always goes up in long term - over last 200 years, all real estate markets have significantly returned below inflation
3. they are not making more land - as if they had been making lands until yesterday, and this is a new information suddenly increasing prices
4. rates are low - idiot, when rates go high, house prices plummet
5. rent is wasting money - ever heard of opportunity cost?

The reason they are useless
1. buy only when it's best time for you personally - thanksfor information, otherwise I would have bought when it was just the worst time for me
2. i dont have crystal ball - why the heck you are mentioning it then
3. none can time the market - talk about yourself loser
4. housing market is very local - i always thought a Manhattan mansion cost same as one in South Dakota
5. houses, assuming you pick the right area, continue to appreciate - No, I want to pick the wrong one and want it to appreciate
6. some areas will continue to rise while others drop - really? I thought all 30M houses were part of a union that made them rise and fall together
7. bay area is a desirable place - No, I hate living here and dont know how it feels to live here. That's why I am planning to buy a house here.


Victor, when was the last time you provided a useful and correct advice?
0 votes Thank Flag Link Wed Apr 8, 2009
Be very careful about comments people make or the advice you follow by doing a little of your own due dilligence, this character seems to have created a profile for the sole purpose of realtor bashing, take a look for yourself, he makes posts at the rate of 1 per minute with the same theme (Realtor Bashing), posting that quickly I don't think he even had time to read the full posts!

"Found The Bottom!" Profile posts
http://www.trulia.com/voices/profile/Both_Buyer_And_Seller-C…

I would not be suprised if Found the Bottom and Million$producer aren't one in the same but then again there are quite a few of these folks trolling these forums who just bash realtors and the real estate market no matter what the situation is. Just read some past posts of these folks to get a little insight before following any advise.

By the way found the bottom's posts make no sense and are not based on any factual data saying prices dripping is superficial? What the heck does that mean? Elaborate a little, provide a little data, facts, references and descripions instead of just throwing out a few obsurd comments.
0 votes Thank Flag Link Wed Apr 8, 2009
Found The Bottom and Million$producer,

I looked at all of the responses to Ajit's question from the "Pro's" and found only two (out of nine) advising Ajit to "buy now" (Chris, without and qualifying and Allyson, qualifying that it is a good time to buy in the lower price ranges).

All the other "Pro's" attempted to answer his question about whether a duplex was a good investment and how a duplex would appreciate over time relative to a single family home. How does answering a question about the appreciation aspects of duplexes versus single family homes equate to a "you must buy now" mantra that you claim we are espousing?

Trulia voices is a platform that adds value to the consumer and offers a place for open discussion and transparency. There is value in your comments, but only if they are based in reality. Your point that (some not all) agents always claim it is a great time to buy (and sell) is well taken (and correct). But to continually spew the same anti-agent filth, when its clear that the answers the "Pro's" have left mention nothing about "buying now," is pathetic. Bashing for bashing sake, may make you feel better, but it is a waste of everyone's time.

Please continue with the comments, but adress the questions and answers and get off your soap box of bashing the real estate industry. I'll get off my soapbox as well.
0 votes Thank Flag Link Wed Apr 8, 2009
Allyson:

The point is every single person told him to buy. No asked about high/middle/low. None asked what location. None asked at what price. They all just old him point blank: "Buy now prices will go up!"

They were dead wrong.

Time will tell if your GTTB! claims will be right or wrong.
0 votes Thank Flag Link Mon Apr 6, 2009
Yes, Ajit,
The duplex in Mountain View appreciate just as the real estate appreciate.
I personal own duplexes also. It creates a very easy entrance point to share the cost of living and appreciation with another owner. However the amount of appreciation will be not high as the single family home.
Wish you good luck! If you need more question, please contact me.
Web Reference: http://gracekeng.com
0 votes Thank Flag Link Sat Aug 2, 2008
1.) I don't have problem of finding a co-buyer becuase i would be buying it with my sister's family.
2.) I can't afford it alone because the price of Duplex would be divided between 2 families.
Mountain View downtown is nice and It's like a central location so that one can easily commute to various Software companies which are there in Bay Area.
0 votes Thank Flag Link Sun Jul 27, 2008
How sure are you that you can't afford it without a friend?

Is the area close to a town with jobs, transportation, eateries, etc?

A duplex is a good investment (of course at the right price do that it cash flows).
Web Reference: http://www.noobdogs.com
0 votes Thank Flag Link Sun Jul 27, 2008
Ajit,

Makes good sense. I was thinking you might buy a duplex yourself and rent out the other unit (if you could afford it). In a few years, sell the duplex, take the any appreciation from the "lived in" unit and buy a single family home. On the "rented" side, roll that into another property by completing a 1031 tax deferred exchange. Its a smart way to use real estate to get ahead. Note: you need to have your tax accountant on board with the idea, so he/she can guide you through all the tax ramifications.

Another option if you want to buy 1/2 of a duplex, there is a unit at 1714 Plaza Court in Mountain View for sale at $650,000. Its a 2 bed/1.5 bath duplex w/Los Altos Schools. It does the same thing as what you're looking for except that you don't have to go out and find another investor. This unit was originally a duplex that has been subdivided into two seperate units. The front unit is for sale.
0 votes Thank Flag Link Sat Jul 26, 2008
I plan to live in this Duplex for a period of 7-10 years along with my co-buyer for the 2nd unit. The reason I'm looking at the Duplexes is because i simply don’t afford to buy a single family home in Mountain View at this time at my own. I certainly can buy a single family home in another 5-7 years but the thought is why should I waste my money on rent for this period of time.
After that we plan to pursue one of the two options, whichever would make more sense at that time.
a.) Sell it.
b.) Rent it
Do you think that I’m thinking on right lines and such a thought process would help me make/save me some money eventually?
0 votes Thank Flag Link Sat Jul 26, 2008
Ajit,

I'm a little confused over your question. Are you looking for an investment or a place to live or both? If you compare the appreciation of a duplex to that of a single family home, it is going to be less over the same period of time.
However, for the same cash outlay, you're likely to get better rents (cash flow) with a duplex over that of a single family home. What is your ultimate goal? Do you plan on selling the duplex in a few years and buy another investment property or a single family home (and be subject to capital gains). What is your holding period for this property? I guess I'm writing that it's tough to give advise when we don't know what your ultimate goal is.
0 votes Thank Flag Link Sat Jul 26, 2008
Hi Ajit,

Mountain View duplexes, assuming you pick the right area, continue to appreciate. If you're buying it with a friend or relative, be sure you both have the same goals, and decide up front what happens when one of you want to get out of the property. Most problems happen when one person wants to sell, and the other one doesn't.

A duplex is a great first step into the housing market. The next step would be to keep it as a rental, and then buy a single family home for you to live in. There are a couple of good duplexes on the market in Mountain View right now. Please contact me, and I can give you additional information.
0 votes Thank Flag Link Sat Jul 26, 2008
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