what is the best housing option for single income and short-term investment in bay area,CA?

Asked by Mala Sara, San Jose, CA Wed Dec 26, 2007

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Michael Robe…, Agent, San Ramon, CA
Wed Dec 26, 2007
Hi Mala, The market in uncertain in many areas of investment here. Your question makes 2 qualifiers that will determine my answer without having your income. Do not post your income though, please.

Short term 1-2 years?
Single income under 150k per year?

I had a conversation yesterday that was interesting....we were debating this question with regard to rehabing property. The 1 million dollar market looks like the best short term investment market in most of the bay area for now. This was determined specifically due to the tightened lending circumstance.

1 vote
Ali Moein, Agent, Saratoga, CA
Wed Dec 26, 2007
Hello Mala,
If by short term you mean less than two years, then your investment in real estate as a housing option at best will give you a tax shelter. For longer than two years you'll enjoy tax shelter and some equity. The longer the better.
2 votes
Realtor, ,
Sat Dec 29, 2007
Buy a townhome in an area with a great school!
1 vote
Sylvia Barry,…, Agent, Marin, CA
Wed Dec 26, 2007
Hi Marla:

The best housing investment option depends on your goal - are you thinking about cash flow, tax write of, equity build up, rent saving, fixer, etc?

The best way to get started is to talk to a Realtor who can give you advise on the local market you are interested in (rental properties, condos, single family homes), the prices, availability, whether it's a sellers market or buyers market for the specific type / price range, etc.

The Realtor can also introduce you to a reputable mortgage broker who will be able to analyze your income / expense / credit and give you advise on how much mortgage and monthly payment you can afford, which will be useful when determine what type of housing you should go with for short term investment purposes.

Yes - the longer you hold a house, usually the higher return you will be able to achieve. .

1 vote
The Hagley G…, Agent, Pleasanton, CA
Wed Dec 26, 2007

I have several other questions for you before I would attempt that answer. The first one being.....this would also be your primary residence? Many questions may be answered through the link below. Fel free to shoot me an e-mail if you need more information. I am happy to help you!
Web Reference:  http://www.cindihagley.com
1 vote
Mike Kelly A…, Agent, Santa Rosa, CA
Tue Jan 15, 2008
Rent! If you are in it for the short term realize the costs of purchase (loan points, escrow, title, moving expenses, monthly payments versus renting, then the costs of SALE! Point to sell (3-7?? of the sales price) with no doubt zero if not MINUS appreciation. Single person, minimal tax benefits? Home ownership is not a strategy for everyone and in this market short-term means a loss.
Or--bargain like a thai rug merchant, get one heckuva good deal, sell FSBO, and call it a day!!
0 votes
Andrea Wince…, Agent, Milpitas, CA
Tue Jan 15, 2008
You best short term investment shouldn't be shorter than 2 years or you may be subject to capital gains tax. Speak with your tax advisor to get the best answers to your individual circumstances and income. In my opinion, you have the opportunity right now in a "Buyers" market to find a good fixer upper (that's liveable), in a decent neighborhood with good schools, and take your time over the next couple years to fix up and then sell later on in a better market. I can email you some "fixer" listings if you'd like, just let me know.
0 votes
Mala Sara, Home Buyer, San Jose, CA
Wed Dec 26, 2007
yes Michael - for 3 years and the income is less than 140k. Is owning a townhome good option for short-term? how are their resale compared to s.f.home?
0 votes
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