Flying back to pristine Marin from Bellingham, Washington my Silicon Valley seat mate updated me on a change that I’d been pondering … the meaning of the upswing of purchases by people from Brazil, India and China … fascinating…

These are, he assured me, multigenerational purchases … future oriented people buying property & thinking ahead …

“I’m seeing families buying with a multi-generational ownership plan … eight or ten family members are coming over, taking advantage of the jobs, the excellent schools and the real estate values … a few of my friends have told me that they’re going to live in the property for a long time, all together, and save and then buy more property.”

Then I thought of my friend Marteli telling me that she has a long time tenant doubling up …. they’ve asked for approval for additional roommates in a medium sized home. Saving half the rent!

Yes, it was disconcerting to think of space usage … I realized that I’m a bit out of touch, living alone in a big small empty nest cottage in Ross … but that is due to change, soonish. Stay tuned.

What is important is that long term thinking brings up the value of short sales … I’ve talked several clients into holding on (and a few about selling) … here’s the logic:

With great schools, proximity to a major urban area loaded with high tech and a limited supply of land, Marin will follow Silicon Valley’s lead and the influx of talented immigrants from one of the several prospering countries mentioned, who see our economic slowdown as being to their advantage, means our real estate will soon be seen as a bargain …. driving prices!

Think ahead … how long does it take to gather together a 20% down payment on a property worth say, $850,000 (the average sales price in San Anselmo) … saving $170,000 takes how long? …. now say you owe $900,000 on the $850,000 home … should you sell?

Maybe. Maybe not. If you can afford the property payments, stay. If you can’t afford the payments, how about other options? How about renting it? Bringing in an equity partner?

Say the mortgage costs you $5000 per month and you can only afford $3000. If you rent it for $3500 … can you afford $1500 plus pay for a rental for yourself? Do you know someone else who may be willing to take a half share in a future sale for making half of the mortgage payments? Let’s be creative … in a most creative area.

Equity partner, part II … You keep the property … in five years it could easily be worth $1,000,000 instead of $850,000. You live there. You and your partner share the proceeds from a future sale. Forced savings. Future thinking. Good life.

Shall we talk numbers? Call me!

Update on a few short sales:

New …. 10 Egret, Mill Valley $1,895,000

Blogged about and now in escrow … 312 G Street, San Rafael (a Victorian) … 37 Palm, San Rafael (beautiful Victorian…

Posted by:  Tom Verkozen