I've always maintained that if you buy a house in a good neighborhood, it will (mostly) maintain its value even in a bad market. One of those good neighborhoods is Crosswoods in Citrus Heights. I remember a client of mine who would buy nowhere else but in that neighborhood.
And I must say, I agree with him.
Here are the numbers: in an overall dismal condo market for Sacramento county where there were over the last six months 1478 condos on the market, only 39% were sold or pending sale. The median price for these condos was $215,000.
By contrast, there were only 40 Crosswoods condos for sale over the last six months of which 47.5% sold for a median price of $237,500.
Saturday, September 8, 2007
Crosswoods Condos Holding their Value
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4 comments:
What's the average rental value of a comparable property?
I haven't checked recently but rents in the Crosswoods area have been between $800 - $1200 a month.
If you're considering buying there, let me know and I'll get more accurate information.
Association dues are $270 a month.
Wow, really?
So for basically $10-$12k a year in rent I can live in a place that would sell for $250k?
I'd be paying about $20k in interest alone were I to take out a mortgage to live there, + $3400 in association dues + taxes all while accumulating only about $2k a year in principle. Wouldn't it make more sense to just rent for $12k and invest the $15k that I saved my renting? At the end of the day the same amount of money is out of my pocket but I saved $15k instead of $2k.
I'm new to real estate really, but I don't understand how that makes sense. I guess we'd be hoping for the property to appreciate?
The association dues are higher in Crosswoods than they are at other condos.
Interest and taxes are tax deductible.
And yes, in your example, renting is cheaper, but it really depends on how long you intend living in a certain area. If it is between 7 - 10 years, you can pretty much count on the property appreciating.
It all comes down to a personal preference in where you want to invest. I don't like the dichotomy between buy a house or invest. I think some people DO invest when they buy a house.
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