All Forum Posts by: Sid Naik

Fellow BPers ,

Bay area prices have started correcting .

My condo is 15% off April high . From 700k in April 2018 to 595k now .

Inspite of that I still have 300k equity and am faced with the question sell or refinance and have 15% COC return for the last 5 years ( in equity ) . Breaking even on cash flow .

I  want to go the cash flow route in out of state .

looking for advice to choose from below options .

1) Sell to cut further losses  and pay taxes and put money in CD for 2/3/4 years and then invest into cash flow properties out of bay area whenever there is RE correction all over . I believe NY, california leads the charge and soon the impact should be felt in many markets .

2) Keep the property and refinance during recession . My equity would have been further reduced but I can pull $$ from my other property as well . The negative cashflow which I will experience from california property will be made up by the positive cashflow in out of state property so I am thinking why do i need to sell ?   This way even if bay area property market starts recovering due to low interest rates i will still be covered .

I am trying to sell my condo in Sunnyvale and prices are down 15-20% from peak of April 2018 .  I believe we are already in correction territory already. if you go by history once RE downturn starts it goes on for a while unlike stocks and it starts in the high profile areas like NY , Sillicon valley . The only time i have seen it reverse course is during 2001 dotcom crash where lower inter rates cause RE to heat up again .

The condo prices in Sunnyvale are down by 15-20% from April 2018 . Question is whether the tumbling interest rate will revive it or is this the start of a  sustained real estate downturn ? 

@Philip Johnson

Throughout spring we had lower interest rate than 2018 and in fact in Sunnyvale market has sunk lower than Dec 2018 . I think this is starting of a longer term downturn . IF u see newyork , sydney,vancouver all major markets have started downturn 2-3 years back .

@ Andre .. you are right , I am not getting any buyers for school . but renters with kids are going for it and that is the best renting feature for me .. the schools .

@Sam Shueh

I did receive a low ball offer of 580 k cash offer , no other offers . Same condo sold for 680 k in feb 2019 . 

Any advice ? My mind says take it as it is a declining market but heart won't agree :-) .

I feel Bay area   real estate is starting to go down (15% correction from peak already )  .  I have 200k equity built in my condo which I will lose on if i don't cash out now . However with the market conditions , don't think it is wise to invest now . What options do I have ? Make a cd for 2.6 % and eat the loss  ( 4.75 -2.6 % ) for a couple of years before I can start investing again in real estate ?  My goal is to be invested in real estate leaving aside bubble years like now . Another option is to sell for low offer which I am getting  (15% correction from peak already ) which my heart does not seem to agree though mind does :-)  

Hello,

I have my condo in the market for last 2 months . Single bedroom condo 1 mile from Apple Spaceship campus . Reduced the price by 5% since listing .   In general we have had a few bites and did go pending once at original price but buyer backed off .This week I had no showings .

Does that mean its time to reduce price further ? This is supposed to be a high in demand area and I was expecting it to sell in 2 weeks . Any suggestions ? 

Below is link for ur analysis 

https://www.redfin.com/CA/Sunnyvale/880-E-Fremont-Ave-94087/unit-515/home/2123973

@Wayne Brooks

If somebody hired me as a consultant and I tell my client I will be away for few weeks and my friend will cover is it fair of me ? Even though he can take calls where our day time is night time there am I getting the services I am hiring him for  ? 

Hello,

This is the first time I am selling property and signed contract with a broker . We expected to sell the property quickly but it has been 4 weeks since it is on market and now broker tells me he is going to be out of the country for 5 weeks  . He is having his friend cover him but the friend realtor will not be doing any open houses . I am not happy with that besides all the postings have my realtor number . What are my options ? Is the contract binding me not to fire him ? 

Thanks,

Sid