Why You Should Invest in Bay Area Real Estate Today

Every investor wishes for the market to be exactly where they want it when they’re ready to buy, but here’s a universal investing truth: the best time to invest is when you have the money and you find a great deal.

It doesn’t matter what the national real estate market looks like. You can’t predict what’s going to happen in the Bay area at any given time. When you’re ready to buy real estate, you should buy it.

If you’re looking to grow your investment portfolio, buying in the Bay area today is a good idea. Here’s why.

Good Returns in Bay Area Real Estate

There’s been a lot of hype about the mass exodus that’s occurring in the San Francisco Bay area. That can be managed. More important is the fact that real estate in this part of the country is always going to be valuable. You can count on good returns when you invest here.

The demand for housing may be lower in this market now, but it’s going to rebound. It hasn’t disappeared forever. Ups and downs are expected in real estate. Before we have fully adjusted to the lack of demand right now, we’re likely to find ourselves struggling with a housing shortage.

Silicon Valley is not going away. This is an area and an industry that has managed to withstand every difficult economic turn. Our part of the country will always be home to venture capital funds, tech giants, exceptional schools, and entrepreneurial development.

Managing Misconceptions about Investing Now

The buy and hold strategy proves itself over and over again, especially in unique markets like this one.

Long term rental property is still a good idea. There’s a fever for short-term rentals right now, but that’s not nearly as sustainable as an apartment building or a strong portfolio of single-family homes that rent to long-term tenants.

Look for opportunities. An apartment building that has a 20 percent vacancy rate right now is going to need cash. They’ll likely sell at a discount, so you have more leverage. You can negotiate for a better price and more advantageous terms. Use this to your advantage. One investor’s challenge is another’s opportunity. Look for those low prices and strong return possibilities.

There’s a lot of talk about people leaving California for different areas, where rental housing is cheaper.

That may have been the case late last year and early this year, but things are stabilizing. The real estate market in other parts of the country is crazy. It’s getting more and more difficult to buy something that’s reasonably priced and even rental property rates are beginning to climb. If you’re leaving the Bay area for Texas, you might find you’re paying just as much there as you’d pay here. And, the weather’s not as nice.

The Bay area’s real estate market is active. Houses on the Peninsula are still selling in 30 to 60 days, just like they always have. Don’t give into the misconceptions or buy into the hype.

Looking to the Future

The work from home trend will not last forever, either, especially out here. Google has already said they want their employees back into the office this summer, and that’s just one of the major employers around here. Other companies are also bringing their employees back, recognizing the value that collaboration and culture provide.

It might get worse before it gets better. The fallout from the eviction moratorium is still being felt, and we honestly don’t have a crystal ball that tells us how things will look the rest of this year.

But, we’re optimistic. And we know that real estate investments in the Bay area are always a good idea.

Contact us at Bayside Management to talk through this more deeply. We’d love to help you decide what comes next for your portfolio.

Founded in 1982 in Marin County, Bayside Management has expanded to offer full-service San Mateo property management to the entire San Francisco Peninsula. We manage single-family properties, multi-unit complexes, commercial properties, and homeowner associations.