The Key of course is buying a property in a “growth area”.
I left the San Francisco Bay Area back in 1989 which was about the top of the market back then before there was an “adjustment” in Real Estate prices a few years later. Others would call that part of the 90”s a “Downturn”.
The Sacramento Region since that time has shifted some what from being a Government and Housing driven market to something more “diverse” with some decent paying private sector jobs.
If you’re an investor in Residential Real Estate, be it a Single Family home, a Duplex/Four-Plex or even an Apartment complex, you have to have jobs and job growth if you want Real Estate rental prices to increase and of course by extension, potential “resale” values to grow.
Because we had another “downturn” caused by the Bank meltdown of a few years ago, construction of new projects pretty much came to a screeching halt. Only recently have we seen builders begin the process of constructing new home, but not much in the way of “rental type” properties such as apartments.
Rents in this area have gone up dramatically and in Folsom where our office is, our Property Management company has no shortage of rental applications if the property is in good condition and located in a desirable area. If you want to rent a nice pad in Folsom or Roseville for example, you almost have to “know somebody” to get one. I’ve written about this many times, so click here for an article about rents in the area.
The “driver” of this phenomenon is, as I mentioned above, our increasingly diverse economy here.
Click here for short article that makes my point. This is old news of course to those of us that live here. The article gives you a quick view of some of the “hi-tech” companies located here, expanding here or moving here. These are companies that most of you have heard of too.
So….. If you are thinking of making an investment into this area, then please contact me and I’ll give you the “Chamber of Commerce” tour of the area including work centers, recreation areas and neighborhoods. After you’ve seen the growth in Sacramento, Roseville, Folsom, El Dorado Hills, Elk Grove and Rocklin, you’ll see why many of us have decided to not only invest here… we live here.
In the Mean Time…?
Make it a Great Day…!
Ed Favinger, Broker CRS, GRI, SFR, CDPE 916-203-1260 firstname.lastname@example.org