Greetings Wealth & Legacy Builders,
It’s hard to believe we’re already in the second month of 2021. I truly hope that, since my last post, you were all able to find opportunities to take space and make space for rest, restoration, dreaming, planning and preparing for it all.
For me, 2021 feels like it’s moving at twice the pace of 2020, and with twice the number of new and daily challenges. While the beginning of the year for real estate has been quite active, as typically expected; almost a full year into the pandemic, and much to the dismay of many Buyers, it is still a Seller’s market in CA. And with that fact come the too familiar groans and gripes about Bay Area home prices.
Typically, I would simply agree with prospective Buyer moans and keep the conversation moving. This time though, in honor of the new year, I’ve decided to offer a new response. And I’m hoping that this response will change a few minds about buying real estate in the Bay Area.
Let me start with a few questions:
First question:
Would you purchase a 1-bedroom, 1-bathroom, 950 sq ft. single family home, in an urban neighborhood, for $600,000?
Second question:
Would you invest $600,000 in a real estate venture that is projected to yield a 30-40% return on investment within 3 years, with minimal risk to your principal investment?
Third question:
Would you believe me if I told you that, when buying real estate in certain Bay Area markets, answering “yes” to either of the previous questions is the same as answering “yes” to both questions?
I’ll admit, growing up in the Midwest, it took me some time to grapple with the enormous price and space disparities of real estate in the Bay Area. But, it didn’t take long to realize that while I could purchase a large family house in Chicago for less than half the price of a starter house in Oakland, a $500,000 Oakland home (in certain neighborhoods) has the potential to resell for $700,000 or more within 5 years.
It’s time to accept the current Bay Area real estate market for what it is, and no longer compare it with the 2005 market, or completely dissimilar markets in other parts of the country. While it might take longer than average, owning real estate in the Bay Area is possible, prudent and profitable…even for the average Buyer who doesn’t have a six-figure savings.
If that’s you, and you’re serious about wanting to plant roots in the Bay, C2O Realty is serious about supporting you on your journey to home-ownership. Contact me to discuss your custom plan for becoming a Bay Area home-owner, even during a global pandemic.
To learn more, and hear one of my strategies for buying real estate in the Bay Area, check out our most recent upload: "Episode 2: Bay Area: Not Your Grandparent’s Real Estate" on the #RealTalkaboutRealEstate education podcast series.
Until next time,
Live Wealthy!
C2O Realty – Supporting Real Estate needs in the CA Bay Area & Surrounding Cities
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