Dear Monica: I am in the market to buy a rental property but real estate prices have gone up so much that I am thinking I should wait until the market cools a bit before buying. What would you advise? Jonathan C.
Dear Jonathan: We have seen prices rise considerably in many Bay Area communities in the past 5+ years. But there is still strong demand and companies are building large office spaces up and down the Peninsula. All of those who work in the buildings want to live as close to them as possible or take public transportation if it works well for their commute. So here is what I believe and what I tell my clients. You don’t need to wait to buy, but if you buy, you should have a long term plan for the property. Quick turnovers don’t work in this market. But a buy and hold policy does work, if you hold it at least 5 – 7 years. Our market will fluctuate from time to time but barring a larger correction this strategy is the best plan.