Investment Opportunities

Property Investors Getting Spooked

June 1st, 2011 by Michael Cheng \\ Investment Opportunities

As investors, we’re often swayed by our selective information and attention, which are incomplete. When investment properties are appreciating, we tend to believe those property are charmed and must be kept at all costs, even when the rental returns are miniscule compared to the price. And, when prices drop, we hold on since our rents [...]

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Property Investor Traps

June 1st, 2011 by Michael Cheng \\ Investment Opportunities

As with all investing, timing is key. You only make money when you anticipate a market direction and get ahead of it. Unfortunately, our brains are wired so that we instinctively respond in the opposite direction. For some reason, behavioral scientists keep finding that we all have an extremely strong preference for something we currently [...]

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What will the real estate market look like 5 years from now?

May 30th, 2011 by Michael Cheng \\ Home Buying, Investment Opportunities, Local Market Conditions

Aside from the obvious difficulties of forecasting a largely unknowable future, the real estate market is constantly evolving, making direct price and demand comparisons five to ten years from now difficult at best.  As many commentators have pointed out, it’s patently clear that we’re in the midst of a big demographic shift with the aging baby-boomers [...]

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Short Sales are Causing Short Fuses

May 23rd, 2011 by Michael Cheng \\ Home Buying, Investment Opportunities, Local Market Conditions

It’s no secret that distressed sales are dominating most real estate markets and that most distressed “sales” are short sales.  While short sales are very common on listings, very few actually end up being successful sales, hence my emphasis on the word.  Rather, short sales should really be called short listings, since the ultimate seller, [...]

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Reporters Are Still Looking Into the Rearview Mirror on Housing

May 12th, 2011 by Michael Cheng \\ Home Buying, Investment Opportunities, Local Market Conditions

In another generally fluffy bit of reporting on the housing market, the Associated Press reports that mortgage rates are once again dropping towards record lows and the housing market continues to look terrible.  While that’s no surprise to readers of this blog, what I do find surprising is how seeming normal market conditions are being blamed [...]

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Zillow Predicts Housing Market to Fall a Further 8% This Summer – Why I Think That is a Good Sign

May 10th, 2011 by Michael Cheng \\ Home Buying, Home Improvement, Investment Opportunities, Local Market Conditions

Once in a while, a kindred spirit writes an article that brightens my day with analytical clarity.  In the midst of the current housing market doldrums, this article by MarketWatch’s Brett Arends makes a ton of sense.  While the housing market continues to suffer and works through what appears to be another tough summer, the signs [...]

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Living/Investing in the Crossroads on Dempsey Road in Milpitas

May 10th, 2011 by Michael Cheng \\ Home Buying, Investment Opportunities, Local Market Conditions

There is a condo complex on Dempsey Road in Milpitas that has attracted the attention of many first time home buyers looking to get a better deal owning than renting.  Here’s some history to help. This is a condo conversion that was done back in 2005-2007.  A bunch of old 1970s vintage apartments worth about [...]

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Current Interest Rate Trends Indicate Buyers Should Wait

May 10th, 2011 by Michael Cheng \\ Home Buying, Investment Opportunities, Local Market Conditions

As discussed in my earlier blog and contrary to the rest of the real estate industry’s predictions, mortgage interest rates have resumed their fall back towards historical lows.  Once again, just seeing today’s rates as being low on the charts means nothing without understand the underlying economic forces. Freddie Mac reports lower mortgage rates as [...]

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Zillow Posts Results of Its Own Study on Accuracy of Zestimates

May 3rd, 2011 by Michael Cheng \\ Home Buying, Investment Opportunities, Local Market Conditions

More often than I’d like to admit, I’ve found myself swinging to highs and lows based on Zestimate figures.  I know deep down it’s irrational since Zestimate is just an estimate of home prices and does not replace a real estate broker’s more realistic market assessment.  But, when somebody publishes a number on your house, [...]

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“The Works” Lives Up to the Name

May 2nd, 2011 by Michael Cheng \\ Home Buying, Investment Opportunities, Local Market Conditions

Sometimes I’m left a bit speechless by a new development’s location and architectural audacity.  The Works by Barry Swenson definitely pulled it offer.  Unfortunately Barry, it’s not pleasant. The Works is a “relatively” new condo development in the middle of an industrial warehouse district off of Highway 280′s Virginia exit on 125 Patterson St.  Despite [...]

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