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Investing in SF Real Estate

Investing in SF Real Estate

I recently saw three properties on Broker’s Tour in three different areas of the city – Duboce Triangle, Hayes Valley, and Russian Hill. All have offer dates this week. The interesting thing about these three properties was how much they have each appreciated, two of them in a relatively short period of time (less than 6 years) and one of them in 9 years.

The Duboce Triangle 3 bedroom condo was purchased by the sellers in 2011 for $969,000. The Hayes Valley two bedroom plus condo was purchased by the sellers in 2009 for $783,750. Finally, the Russian Hill three bedroom condo was purchased by the sellers in 2006 for $1,050,000. Based on the “comps” I reviewed for each of these properties, I anticipate they will each sell for at least $1.5M. (I’ll report on their sales in a later blog post.) That’s an amazing amount of appreciation!

None of these were significantly renovated since they bought them. For the Duboce Triangle condo bought just four years ago, that will be an increase in value of more than $500,000! For the Hayes Valley condo bought not quite six years ago, it will be an increase of more than $700,000 and for the Russian Hill condo bought at the top of the market in 2006, it will be “only” an increase of more than $450,000.

These numbers demonstrate two things. First, SF is an amazing place to invest in real estate if you can wait and sell in a hot market. Second, it shows that if you buy at the top of the market like the sellers did for the Russian Hill condo, if you hold onto it long enough, you will still make a nice profit but not as much as you would have made if you had bought in a down market like the Duboce Triangle and Hayes Valley condos in 2011 and 2009, respectively. Of course, we can’t always time these things. If you are looking to invest in SF real estate, please don’t hesitate to give me a call!

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