Investment in Cherry/Guardino:pros and cons for Cherry Ln, Fremont properties?

Asked by Mindy, 94306 Sun Apr 17, 2011

I'm considering an investment property in Cherry Ln area of Fremont. Are these good investment? What about schools for this area? Will these hold value or appreciate?

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5
Tina Lam, Agent, San Jose, CA
Mon Apr 18, 2011
For investment property, you should focus on the income that you can generate. Given the proximity to the hospital, fremont hub and BART station, rental units in Cherry / Guardino are very desirable. As the Fremont housing market has been declining, you should be able to get good return from an income generation standpoint. A good rental unit will always hold its value. If you want sheer appreciation, Fremont has been slower compared to San Jose. So you have to trade off between income generation and future appreciation. Feel free to reach out if you need more info on investment property analysis.
Web Reference:  http://www.archershomes.com
1 vote
Jason Huang, Agent, Fremont, CA
Sat May 12, 2012
i would check the hoa for rental restrictions if there's hoa.
0 votes
Michael Cheng, Agent, San Jose, CA
Wed Apr 20, 2011
Mindy,
In considering an investment property, we need to be clear about what you consider to be good, since there's a very broad spectrum of investors and investment goals. If you're looking for appreciation potential, you're generally looking at locations with the highest variation or volatility in price. Professional investors consider price volatility to be an indicator of risk or what they like to call beta. For example, tech stocks typically have high beta since their earnings can fluctuate dramatically. But, consumer products companies like P&G have low beta since people generally buy the same amount of detergent every month and those companies give high dividends.

This means the risk adverse investors like to buy P&G and happily collect regular dividends. The stock isn't likely to double in a year, but that's not their goal. In the property world, this would be a strong cash flow rental unit in a prime location. You'll make good rent but the price is not likely to move much. That's more typical of Fremont. If you want to bet on appreciation, you'll have to accept higher risk. Right now, there are many condos in San Jose which have just dropped 65% in the last 3-4 years. While that's a wild ride, the current rent is supporting a bottom for the price and the price appreciations are more likely to outperform Fremont. For many investors we work with, that's a good investment.

So, what you should do is to work with somebody who can properly assess and match your investment goals with the right property. You should always make sure the investment makes sense for you and your portfolio.
Web Reference:  http://www.archershomes.com
0 votes
Mindy, Home Owner, 94306
Mon Apr 18, 2011
Thanks, Brian and Tina.

Regarding the comment by Tina comparing the properties with SJ market : are you suggesting that the income for SJ properties is less but potential to appreciate higher? Conversely, income with Fremont properties higher but potential to appreciate lower than SJ?

If so, what is the reason or basis for this observation?

Also, is there a chance of oversupply in the future in this area?
0 votes
Brian Ripp, Agent, Fremont, CA
Mon Apr 18, 2011
Mindy,

It's a great time to buy and Fremont is a great location to invest in.

The Cherry Lane area is nice, close to Central Park, Library, hospitals, BART, and so much more. Yes, this area will be a good investment and should hold their value. Regarding schools, some of this area goes to Parkmont Elem. and some will go to Vallejo Mills, both are fine. You should call the school dist. at 510-657-2350 with an exact address and they will give you the school info.

It's a great time to buy rental property.

good luck,
Brian
Realtor & Property Management
0 votes
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