Dawn Thomas - a Realtor friend of mine here in the Bay Area tells me that she's getting Internet inquiries from folks looking to purchase investment property in the San Francisco Bay Area. Specifically - they are looking for properties in Palo Alto, Los Altos, Cupertino, Saratoga, and Los Gatos for $100,000 to $200,000.
Let's pull out the trusty calculator (I've had my 2 cups of java this morning, but it's not yet happy hour - the perfect time to do arithmetic). Assuming the median home price in Los Altos last year was $1,500,000 (it was a little higher than that... but let's be conservative). And assuming you can find that same "median" house now for $200,000 - that would be .... an 87% drop in value. [note... my original calculation was bass-ackwards & was OFF! obviously I need another cup of coffee!]
I'm guessing the only way we're going to see prices like that is when my engineer-husband finally perfects his time travel machine. He's planning to go back to circa 1958 and buy Portola Valley. All of it.
And in the mean time - if you're a 2009 investor looking for a great property in the $100,000 to $200,000 range - I suggest trying a slightly different market! Perhaps just a hop, skip, and a jump away in another part of California... stay tuned!
And if - by some twist of fate - you come across some $200,000 fixers in Los Altos (that are bigger than a dog house) - buy all of them you want. Then call me. I want the rest!
Evidently I got a new role in the bailout bonanza & didn't even know it! Now - I am helping to stimulate the coffers of the fair city of Raleigh, NC.
Raleigh has enacted a new ordinance requiring that owners of investment property within their city limits register their rental properties. The Rental Dwelling Registration ordinance lists benefits including resident safety, expediting repairs, and safeguarding property values.
All this for an annual $30 fee per parcel (plus $10/unit for multi family units).
Here's the rub.
- Affected property owners are not being notified of the new ordinance. If you are lucky - your property manager will inform you (another reason to use professional management) - or perhaps you heard about the law in the local media if you are nearby.
- The owner must personally register the property (online is recommended) - the property manager can not do it for you.
- The penalties for noncompliance are stiff - $50/day up to a maximum of $2000/month.
Evidently - the city is expecting this law to generate some serious revenue. It is planning to fund several employee positions with the proceeds. So I'm guessing that ignorance of the law is not going to be seen as a valid excuse! (and as a resident of the fiscally-troubled state of California - I can only guess that other localities are considering similar actions....)
The deadline to register rental properties in Raleigh is April 30, 2009. Registration forms, general info, and frequently asked questions are available on the Raleigh city website here.
Please help get the word out!
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