"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.
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.
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.
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.
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
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.
"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.:"
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
Agents feel free to click the report button to their off topic, non factual, spam messages when you see them.
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?
"Found The Bottom!" Profile posts
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.
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.
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.
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.
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.
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).
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.
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 Iâ€™m thinking on right lines and such a thought process would help me make/save me some money eventually?
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.
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.