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Old 08-03-2011, 08:48 PM
 
Location: Oakland, CA
28,226 posts, read 36,736,145 times
Reputation: 28561

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Quote:
Originally Posted by baybook View Post
Sure, Hayward, close to Union City. I bought in Dec 2002 for 250. They were selling at one point close to 400. Do a search on 94545 and you should see some around 105ish.

I know some condos in Oakland that have suffered the same fate. Durant Square(although this was very close to an undesireable area) and the ones by the Quarry
The some of the condos around Grand Lake/Piedmont Ave have also done the same. Or close. Across the way from me a condo went from $170k in 2001 to $290k in 2006 to $109k now.

This one had 80s era appliance, 80s era bathrooms, and 50s cabinets. The buildings in the area have pretty expensive HOAs ($300 for a 1 bedroom) and limited amenities (typically a laundry room, garage and occasionally a courtyard). I personally think this is a lot closer to the right price.

The value will probably remain flat even in a great neighborhood since integrating a washer/dryer will be tricky and most of the HOAs are underfunded (especially if they need to get earthquake insurance. (My building dropped a potential assessment ranging from $10k-30k for earthquake insurance a few years ago, instead of wiping out the reserves of $500k. THe building I am in has an HOA in pretty good shape, and the prices reflect it. I live across the street and the similar sized unit is listed for $200k and a minimally renovated "2 bedroom" (they added a wall in a large 1 bedroom) recently sold for $300k about a year ago.

To the OP, is real estate coming back? It depends. I see the prices ticking up a bit in some neighborhoods with the right mix of amenities and other similar units in the same area languishing.

Hayward is tricky since although it is ideally located, it doesn't have the trifecta of location, schools and amenities. I think a neighborhood needs 2 of 3 to do well.

Last edited by jade408; 08-03-2011 at 10:14 PM..
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Old 08-03-2011, 09:02 PM
 
2,340 posts, read 4,611,589 times
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Quote:
Originally Posted by jade408 View Post

Hayward is tricky since although it is ideally located, it doesn't have the trifecta of location, schools and amenities. I think a neighborhood needs 2 of 3 to do well.
Unfortunately, this is probably the case. My location is great. Very close to the 880 /Bridge Connection. Close to the Union City shopping/movie complex and just across the bridge is the S Bay. I have no idea about schools as I was childless at the time. LOL

I'm pretty lucky. I had a renter for the last 7 years. He is buying a place now so it's time to try to find someone new.
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Old 08-03-2011, 10:15 PM
 
Location: Oakland, CA
28,226 posts, read 36,736,145 times
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Quote:
Originally Posted by baybook View Post
Unfortunately, this is probably the case. My location is great. Very close to the 880 /Bridge Connection. Close to the Union City shopping/movie complex and just across the bridge is the S Bay. I have no idea about schools as I was childless at the time. LOL

I'm pretty lucky. I had a renter for the last 7 years. He is buying a place now so it's time to try to find someone new.
Maybe you can market it to Peninsula commuters? Easy commute to San Mateo, better price? Not sure. Older students?
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Old 08-04-2011, 01:22 AM
 
15,633 posts, read 26,144,529 times
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Quote:
Originally Posted by baybook View Post
Sure, Hayward, close to Union City. I bought in Dec 2002 for 250. They were selling at one point close to 400. Do a search on 94545 and you should see some around 105ish.

I know some condos in Oakland that have suffered the same fate. Durant Square(although this was very close to an undesireable area) and the ones by the Quarry
Hey! I live in that area -- dem's fightin' words! Yeah -- we got socked and hard.... but not as hard as 94621 -- right next to us. My house was up to 475K and now we're down to 135K -- if that.

I can live easily here, since we bought in 1987, and on our refi we didn't cash out -- although there were LOTS of people telling us we were crazy we didn't.... so my house payment is less than 450...

So OakAve -- yep -- in some areas we've lost a lot of unrealized equity... but not 400%.... more like 74%.
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Old 08-04-2011, 07:35 AM
 
2,340 posts, read 4,611,589 times
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Hey - No fighting! I'm from East Oakland. I think I know where you live. I looked for a place in your area back in 2002 but I couldn't afford anything so I took my $$ to Hayward. I even looked at Durant back when they started building and there was a lottery to buy a place. By the time I was ready, I was priced out of that area too!

I think you're on the Durant side which has pockets of very cute older homes with great architeture. I don't like the other side of East 14th Street and the area up closer to Sunnyside.

ETA: Now that I type this, I hope I'm not offending someone else's area. Sorry.

Quote:
Originally Posted by Tallysmom View Post
Hey! I live in that area -- dem's fightin' words! Yeah -- we got socked and hard.... but not as hard as 94621 -- right next to us. My house was up to 475K and now we're down to 135K -- if that.

I can live easily here, since we bought in 1987, and on our refi we didn't cash out -- although there were LOTS of people telling us we were crazy we didn't.... so my house payment is less than 450...

So OakAve -- yep -- in some areas we've lost a lot of unrealized equity... but not 400%.... more like 74%.
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Old 08-05-2011, 12:35 AM
 
28,107 posts, read 63,452,226 times
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Bought my first home in 82 because I wanted to own vs. rent... near 92nd and B in Oakland.

Since then, I have seen several market turnarounds... luckily, I bought in a down market... 3 years rent equaled what I paid for my first home.

Short term, I'm not optimistic for Real Estate... still too many homes in my area coming on the market as much as 80% down from peak 2007 prices.

Long term... people have to live somewhere.

The only thing I'm considering is selling and taking a loss to buy something similar in one neighborhood to lock in lower property tax for the long term.

The Alameda County Assessor has been a bear to deal with... one year down the next year up...even when everything around me continues to decline.

Has your tax advisor offered any strategies?

I have avoided Condos, Town Homes, Associations and Mello Roos because I see them as a negative in terms of value.

Desirable areas will always be in demand... this is why I have had to lower some of my rents in less than stellar locations to keep good tenants and attract new good ones.

Families buy and rent in the best school districts they can afford... good schools stabilize prices.

To answer your question... I do not see current home prices as unrealistically low... the market is saturated and fewer people have the ability to become buyers or the desire... much of the rapid price escalation was fueled by very easy credit... check that... unbelievable easy credit compared to the norm or when I got my first loan.

My strategies have been to buy in both the top and bottom areas... the top will always be in demand and the bottom has no where to go but up should things improve. Seems those in the middle take most of the risk because the number of "Middle" places is so great.

Last edited by Ultrarunner; 08-05-2011 at 12:45 AM..
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Old 06-27-2013, 07:55 AM
 
1 posts, read 602 times
Reputation: 10
Facing the same problem - bought a house in San Leandro, near BayFair Mall and BART for $650 six years ago. Now it will list for $460 or so and I might get close to $480 if I'm lucky. Inventory is extremely low, so I know it will sell fast. If I rent it will get about $2500, but I will have to deal with tenants who might trash the place, etc. My issue is, if I sell, I will just be able to pay off my mortgage, but would have lost all my savings. Does anyone have a calculator that can help me figure out how much I will lose/gain by keeping it, paying the mortgage, tax hit due to it now being investment property, etc., with the hope that the market will appreciate in 2-3 years?
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Old 06-27-2013, 10:42 AM
 
Location: Sunnyvale, CA
6,288 posts, read 11,734,410 times
Reputation: 3369
Quote:
Originally Posted by Shalinat View Post
Does anyone have a calculator that can help me figure out how much I will lose/gain by keeping it, paying the mortgage, tax hit due to it now being investment property, etc., with the hope that the market will appreciate in 2-3 years?
No, but you should base your calculations on worst case scenario, rather than best case scenario. How likely is it the market to appreciate? Nobody really knows if it will or not. In two or three years you could be back on here asking the same question. It's better to calculate worst-case and see if that's something you can afford.
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Old 06-27-2013, 07:55 PM
 
Location: Silicon Valley
18,813 posts, read 32,314,714 times
Reputation: 38565
You should get a tax break rather than a tax hit. And you can have a home office to deal with your rental, and you can write off that percentage of your current rent/mortgage, utilities, etc., and travel, and maintenance and interest, and real estate taxes...

You can write off repairs, you can depreciate improvements, you can depreciate the property, write off lawyer/tax advisor expenses, etc., etc. Could be worth it. Even if it's a loss, you can take that loss against other income.

Top Ten Tax Deductions for Landlords | Nolo.com

The Home Office Tax Deduction for Landlords | Nolo.com

Publication 527 (2012), Residential Rental Property
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Old 06-28-2013, 12:24 PM
 
339 posts, read 514,211 times
Reputation: 424
That's the thing about Oakland. Areas around Lake Merritt, Downtown/Uptown, Jack London and North Oakland (Rockridge, Montclair, Temescal, etc.) are booming. New restaurants, condos, etc. Prices soaring. Then, there's most of the rest. I don't see how or why prices in much of east Oakland will rise. Maybe West Oakland if gentrification actually starts there.
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