{"id":2965,"date":"2008-04-13T15:09:57","date_gmt":"2008-04-13T22:09:57","guid":{"rendered":"http:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/?p=2965"},"modified":"2008-04-13T15:09:57","modified_gmt":"2008-04-13T22:09:57","slug":"are-you-still-waiting-for-her-to-come-back","status":"publish","type":"post","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/2965\/are-you-still-waiting-for-her-to-come-back\/","title":{"rendered":"Are You Still Waiting For Her To Come Back?"},"content":{"rendered":"

So much of the country hasn’t experienced the 15-40% annual appreciation rates places like San Diego have experienced several times. Regardless of the down times, we’ve learned she always comes back smiling. The market? In the end, she would always love us. She always has. Though at times she could lash out, she always made up for it with lavish gifts of abundant appreciation. That may still be the case in regions like SoCal, but it’s my belief it won’t include the vast majority of residential income property.<\/p>\n

There are several reasons allowing investors to conclude this. I wrote about many of those reasons in over at my place, adding a video for fun<\/a>. <\/p>\n

First and foremost, developers paid attention in eighth grade math class. They can make $X building duplexes or fourplexes and the like OR $X+ building condos\/townhomes OR $X+++ building single family residences — and all on the same piece of dirt. Go figure, they chose to build where they found the most profit. This has been happening in places like San Diego since the ’80’s. <\/p>\n

The only residential income product built since then has been recently. It’s been concentrated on the coast and upper income locations with rents that are incredibly high. These newish projects are not competition, nor do they have any positive affect on the values, rents, or vacancy rates of 35 year old duplexes. Duh.<\/p>\n

An example is a new place offering 1 bedroom apartments for twice the rent of competition half a mile away. Twice as much. They also offer their tenants everything but a Friday night date — something I’m sure they’ll correct upon reading this. <\/p>\n

The point is that the market? She’s left you. And she ain’t coming back no matter how much you turn on the old charm. When investors have the choice of putting less than 35-50% down just to break even, they’ll do it. The party’s over. Capital flows to the best returns. Duh. So why do folks in places like uh, the west coast for instance, insist things will revert to the status quo they’ve relied upon for so Read more<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

So much of the country hasn’t experienced the 15-40% annual appreciation rates places like San Diego have experienced several times. Regardless of the down times, we’ve learned she always comes back smiling. The market? In the end, she would always love us. She always has. Though at times she could lash out, she always made […]<\/p>\n","protected":false},"author":8,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_crdt_document":"","_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_post_was_ever_published":false},"categories":[8,5,28],"tags":[],"class_list":{"0":"post-2965","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"hentry","6":"category-investment","7":"category-real-estate","8":"category-retirement","10":"no-featured-image"},"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":10037,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/10037\/capture-appreciation-and-cash-flow\/","url_meta":{"origin":2965,"position":0},"title":"Capture Appreciation and Cash Flow","author":"Cooksquared","date":"October 12, 2009","format":false,"excerpt":"The advantage of investing in today\u2019s market is the potential to capture appreciating assets that provide strong cash flow. These investments are the holy grail of real estate investing. In strong markets, these properties simply don\u2019t exist, but in down markets, a smart investor can pick out these diamonds among\u2026","rel":"","context":"In "Real Estate"","block_context":{"text":"Real Estate","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/real-estate\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":2682,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/2682\/words-never-fail-we-hear-them-we-read-them-they-enter-into-the-mind-and-become-part-of-us-for-as-long-as-we-shall-live-who-speaks-reason-to-his-fellow-men-bestows-it-upon-them-who-mouths-inanity\/","url_meta":{"origin":2965,"position":1},"title":"Words never fail. We hear them, we read them; they enter into the mind and become part of us for as long as we shall live. Who speaks reason to his fellow men bestows it upon them. Who mouths inanity disorders thought for all who listen. There must be some minimum allowable dose of inanity beyond which the mind cannot remain reasonable. Irrationality, like buried chemical waste, sooner or later must seep into all the tissues of thought.","author":"Greg Swann","date":"February 29, 2008","format":false,"excerpt":"From Less Than Words Can Say by Richard Mitchell, The Underground Grammarian A colleague sent me a questionnaire. It was about my goals in teaching, and it asked me to assign values to a number of beautiful and inspiring goals. I was told that the goals were pretty widely shared\u2026","rel":"","context":"In "Blogging"","block_context":{"text":"Blogging","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/blogging\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":4606,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/4606\/federal-bailouts-world-crisis-what-about-little-ol-me\/","url_meta":{"origin":2965,"position":2},"title":"Federal Bailouts, World Crisis… What About Little Ol’ Me?","author":"Sean Purcell","date":"September 23, 2008","format":false,"excerpt":"Lots of talking heads.\u00a0 Lots of outrage.\u00a0 Even a little fear.\u00a0 Keeping up with economic developments lately is taxing and I mean taxing in its most negative \"IRS and April 15th\" connotation.\u00a0 Last night Brian Brady and I were interviewing Matt Padilla for Bloodhound Radio.\u00a0 It was a great discussion\u2026","rel":"","context":"In "Marketing"","block_context":{"text":"Marketing","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/marketing\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":25,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/25\/antless-shrugged\/","url_meta":{"origin":2965,"position":3},"title":"Antless Shrugged","author":"Odysseus","date":"December 11, 2005","format":false,"excerpt":"Jonathan Higuera in the Arizona Republic asks: \"Are home costs scaring firms off?\" The article consists of the dutiful transcription of the unfounded fears of \"Barry Broome, president of the Greater Phoenix Economic Council.\" If you are intrepid enough to read the article all the way to the penultimate paragraph,\u2026","rel":"","context":"In "General"","block_context":{"text":"General","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/general\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":10732,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/10732\/appreciation-is-a-luxury-invest-accordingly\/","url_meta":{"origin":2965,"position":4},"title":"Appreciation Is A Luxury – Invest Accordingly","author":"Jeff Brown","date":"December 29, 2009","format":false,"excerpt":"Here's an example, using real properties recently purchased by real clients. I'm gonna modify some of the numbers, but the modifications will not in any way make the bottom line better by an inch. (Worse in fact.) What if you paid $245,000 apiece for four properties, each with an annual\u2026","rel":"","context":"In "Investment"","block_context":{"text":"Investment","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/investment\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":44,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/44\/how-to-profit-by-bad-examples\/","url_meta":{"origin":2965,"position":5},"title":"How to profit by bad examples…","author":"Odysseus","date":"January 15, 2006","format":false,"excerpt":"If you want some really bad real estate advice, look no further than The Arizona Republic. Somehow or another, reporter Judy Nichols found three people who suffer from the notion that renting is better than owning their own homes in high-appreciation neighborhoods. Only two actually pulled the trigger and sold\u2026","rel":"","context":"In "General"","block_context":{"text":"General","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/general\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/2965","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/comments?post=2965"}],"version-history":[{"count":0,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/2965\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/media?parent=2965"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/categories?post=2965"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/tags?post=2965"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}