Home Buying in San Francisco>Question Details

Tarandeep, Home Buyer in San Francisco, CA

Is it a good time to buy a condo in San francisco?

Asked by Tarandeep, San Francisco, CA Sun Apr 22, 2012

I am thinking of buying a condo for investment purpose (won't live there, will put it for rent)

The areas I am looking at Russian Hill, Telegraph Hill, Cow hollow. The rent is pretty good in these areas.

My budget is ~500k

Is it a good investement ?

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Answers

14
Depending on how diversified your portfolio is, buying a rental unit in San Francisco can be a great investment. After factoring in the obvious like your monthly expenses such as mortgage payment (unless you're a cash buyer) and HOA fees, what is your rate of return and will it exceed other options?

As of just a few weeks ago San Francisco was voted the most expensive rental city in the country. It has become very competitive so, at this time, I would say that this option is a good one and you may want to consider expanding your target areas as well. Here is a good article for your review:

http://www.huffingtonpost.com/2012/03/14/san-francisco-rents…

The Mission District is another area that I would be aware of. It is expanding rapidly and is a epicenter of activity these days with no sign of slowing down. Here are a couple links for the area that may help:

http://www.sfnewdevelopments.com/10095/299-valencia/
http://www.sanfranciscodays.com/mission-16th/
http://www.sanfranciscodays.com/mission-valencia/

Finally, North Beach and the North Waterfront should be places for you to consider too:

http://www.sanfranciscodays.com/north-beach/
http://www.sanfranciscodays.com/fishermans-wharf/

Best of luck with your decision and your search! If you would like any assistance I can be reached directly at 415-562-6999 or via email at gabriel@climbsf.com.
2 votes Thank Flag Link Mon Apr 23, 2012
Yes! San Francisco is a great place to invest.
0 votes Thank Flag Link Wed May 9, 2012
The future is impossible to predict, so my investment advice for you is to make sure you crunch the numbers, and know what you are getting into. If you buy a property that is cash flowing, and you don't mind being a landlord, then it is a great time to buy. If you buy something that is losing money, and you absolutely need price appreciation for it to work, then you are at the market's mercy. Worse still is if it turns out you hate being a landlord, or buy a property with major problems, then now is a terrible time to buy.

Some other thoughts.... I think it was Warren Buffett who said "try to be fearful when others are greedy and greedy when others are fearful". I don't see fear now. On the other hand prices have been falling or flat for nearly 4 years, and finally we are seeing some pretty significant price appreciation over the past 2 or 3 months. So has the market turned? And will it continue up? Show me 10 experts and I'll show you 10 opinions, so I won't hazard a guess. I'll just repeat my intial advice - buy it right, and be sure you know what you're getting into. I'm happy to explain more about what I mean about buying it "right" and what pitfalls to avoid if you're interested.
Web Reference: http://www.SFisHOME.com
0 votes Thank Flag Link Thu Apr 26, 2012
Tarandeep,

These are great neighborhoods with plenty of competition for what you want to do. One of the questions for you is what kind of a condo do you really want, e.g. studio, 1-bedroom, etc.? Next, what are your investment goals and strategies? There are others that will influence the answer to your question as well.

Asking the question you asked here is addressed to real estate professionals, most of whom will tell you that it's always good to buy and own property.

Feel free to call me at 415-200-7202.
0 votes Thank Flag Link Mon Apr 23, 2012
Hello Tarandeep:

For sure we can help you. Please contact me ASAP.

Warmest Regards,
Manzar D. Azari, MBA, Broker, Realtor
Founder/President
"2012, Top Women Owned Business in CA" http://www.theazarigroup.com
(415) 377-4115 - A moment ago
0 votes Thank Flag Link Sun Apr 22, 2012
Welcome to the herd. Yes this is a good time to buy but there is strong competition for the product you are looking for. Oh and there are few condos in that price range.
We are seeing multiple offers on just about everything that is marketed correctly. With that prices are rising.
Bear in mund also that San Francisco has less than 2 months supply of inventory so it is strongly a sellers market.
So roll up your sleeves and get ready to join the fray. It will only go up from here for awhile it seems.
0 votes Thank Flag Link Sun Apr 22, 2012
Jed Lane, Real Estate Pro in San Francisco, CA
MVP'08
Contact
A good investment? It all depends on how long you plan to keep the property and what portion of your investment will be financed. The timing is great however, prices have been moving up for the past 12 months or so.

The neighborhoods you mentioned are all great areas and always in demand however, your budget may not quite meet your expectations. Here is a snapshot of property values for SF:

http://www.oggikashi.com/newsmonth/Values.html

Feel free to contact me directly for more info or guidance.

Best,

Oggi Kashi - 415.690.3792 direct
Broker Associate, Paragon Real Estate Group CA DRE 01844627
All data from sources deemed reliable but subject to errors and omissions, and not warranted.
Web Reference: http://www.oggikashi.com
0 votes Thank Flag Link Sun Apr 22, 2012
Your investment goal will depend on your monetary input into this project: all cash buy, or financing. In all cash scenario, your expenses are low and it'll be a good investment in shown areas. If you need to finance, the outcome of your investment will relate to income/expense and time figures.

(415)-722-6249 / proqvest@gmail.com
ProQvest, Inc.
Jeff Tepermeyster, Independent Broker & CEO
0 votes Thank Flag Link Sun Apr 22, 2012
Of course, my colleagues and I will always advise you that
Web Reference: http://www.kevinho.org
0 votes Thank Flag Link Sun Apr 22, 2012
If you can find a condo in the 500K range in San Francisco and the net cash flow meets your needs and goals, I think now is a fantastic time to purchase. And, that is whether you are purchasing with cash or looking for financing. The Bay Area will always be a very desireable place to live and the prices will probably not be as affordable again. Best of luck! If you want your information about financing options, please contact me directly.
0 votes Thank Flag Link Sun Apr 22, 2012
Hi Tarandeep-It is a good time to buy. A condominium has potential as an investment, but there are other properties that may even be a better income generating investment. Give me a call to discuss what's out there and how you can put your money to work. Have a good day-Matt Ciganek

http://www.sfpropertyreport.com
415-240-9901
0 votes Thank Flag Link Sun Apr 22, 2012
If you require financing rates are still ridiculously low and this has a big impact on value as higher rates can make your monthly outlay significantly more expensive. With all the money coming into this city it has made the market place more competitive so really need a broker with a lot of experience and great negotiating skills to avoid continually getting outbid.

If you would like a no-strings expert consult to give you an idea of what you might get in your price range and how to get all your ducks in a row so you are in a position to move quickly if/when you find the right place.

Best Regards,

Lance King/Owner-Managing Broker
lance@fixedrateproperties.com
415.722.5549
DRE# 01384425
0 votes Thank Flag Link Sun Apr 22, 2012
I think it is a good time, depending on the condo and location within those areas. Given the price range you are talking about, there is a limited supply.

As with all rentals in San Francisco, it will depend on how much money you put down, the dues in the complex, whether you'll have outside management and what you hope to get out in income. Unless you plan on paying cash, you'll likely end up nearly breaking even, and waiting for time, appreciation and rental increases to increase your investment.

Your best alternative is to contact a local real estate professional who can help you answer this question taking into account your situation and perhaps introduce you to other areas of San Francisco where you may get more bang for your buck.

All the best
Eric Castongia
Zephyr Real Estate
DRE No. 01188380
0 votes Thank Flag Link Sun Apr 22, 2012
It is always a good time to buy real estate. Make sure you are paying a market price for it.
Manzar D Azari, MBA, Broker, Realtor
Founder/President
The Azari Group Real Estate, Inc.
Wew.theazarigroup.com
Web Reference: http://Theazargroup.com
0 votes Thank Flag Link Sun Apr 22, 2012
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