I will be moving to San Jose, CA in September of this year and would like some information on buying (as owner occupant) and investing in preconstruction residential properties (i.e. Condos and SFRs).
I currently own and invest in SFRs primarily in Georgia and have a very limited understanding of the SV/SF market. Any insights from the knowledgeable BP community would be helpful. With that said, has anyone invested in any of the following areas:
1. San Francisco
I spoke with several brokers in the SF market and got the impression that SF operates differently than the rest of the Valley. The prices, the contract flexibility, appreciation, sq footage etc.
2. San Jose and surrounding areas
Could someone give me a very broad range of prices and frequency of new construction projects around 30-50 sq. miles around downtown San Jose.
In this area, what are the prices for condos and SFR (preconstruction)?
How long does a typical project take? For highrise (or other types of residential construction) and SFR?
If you want to purchase townhomes or condos, is buying via preconstruction a good option?
Will it help you avoid the bidding wars that seem to take place with older properties?
I also welcome any other comments you guys may have buy and hold investment strategies in the SV market.
@Vishak Ganesh undefined
Welcome to BP and soon to San Jose. I'm a fairly new player in the RE scene, but can tell you a few things out of my personal experience. I've been looking for off-market deals in the past 7 months, focusing on SFR in the suburbs of the South Bay area (Santa Clara county). Everyone here knows about the crazy demand and low inventory that's going on, and know their houses are worth a ton of money regardless to condition. It's not uncommon to see houses listed at a very high price and sold for even higher due to multiple offers. Thus, fixers are sold close to their ARV and I even saw a house the was sold by owner at above the ARV.
Because of that, the deals I began targeting are tear-downs or houses that require a substantial amount of construction to fully maximize the size of the lot. You haven't mentioned what type of investing you're after, but flipping is very popular here.
Construction prices: $200-$250/sqft as far as I've been told by several developers.
What are the construction prices around Atlanta?
Thanks for the response.
I am not sure what the construction prices are in Atlanta. I can tell you that the last home my family and I purchased was in early 2014. There has been significant appreciation since 2008 onwards (and from 2011 when we entered the Atl market).
Depending on where you plan to invest, the prices vary significantly. All of our properties are in South Atlanta (Hampton, Jonesboro etc.). Feel free to send me a message and we can discuss further.
Do you personally know of or could you put me in touch with investors/brokers that deal with pre-construction homes/condos?
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