Real Estate is not a one night stand, a Tale of Two Queens

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It was an exciting sight to see the Queen Mary II in San Francisco for an overnight on her maiden visit here. Champagne flowed, although I didn’t see the Mayor sipping, taxis slowed along the Embarcadero, and then she quietly slipped out during the night ducking under the Golden Gate on her way to her next port of call. It was all a little like a one night stand.

Last night I was at the bash hosted by SocketSite and Redfin and overheard Adam Koval, Editor in Chief of SocketSite, talking about what the local market influence will be with so many new condos coming on the market in the Rincon Hill area and beyond. I’ve had the same question, how will we absorb this record new units coming online, in the back of my mind for the last year and it’s what has gotten me thinking of this one night stand analogy and how it relates to real estate values, flipping and asset churning.

Looking at the basics; lots of jobs infux in the immediate area, and continued low rates, I don’t see red flags waving. Of course, the other basic of real estate is to buy and hold. Primary resident purchases should be for a minimum of 3-5 years for new construction — ideally you bought into the first phase release — so that you’ll weather a 6-18 month hiccup in a local market. As an investor looking for value, your timeline will be part of your overall strategy; that other queen, the Queen of England, owns much of London and leases it out on 99 year terms — no one would accuse the Queen of one night stand thinking.

8 responses to “Real Estate is not a one night stand, a Tale of Two Queens

  1. Pingback: SocketSite “Plugged In” Gathering at Maury Properties - San Francisco Real Estate

  2. Interesting analogy. I agree.

    I’ve been spending a lot of time thinking about the cycles that different markets go through and in terms of long term investing, I’m wondering how much it would help investors to understand that there were cycles that usually lasted for this long or that long. Would it help them to “stay the course” if there was strong evidence for leaving it there, other than hearing someone tell them to do so?

    Maybe there is quite a bit of information out there about this, but I haven’t personally seen it.

  3. Hi Cut,
    The “investors” that watch real estate trends like their day trading accounts won’t be swayed by anything like demographics or cyclical talk.
    Although there are some great trend and cyclical analysis out there … I’ll work on a round-up blog highlighting these resouces! Thanks!

  4. Under English common-law the “Crown” – as represented by the Queen – owns virtually everything.

  5. Greetings,

    Nice Posted! Its so very informative and knowledgeable for your visitors or readers.
    Thank You for sharing.. Keep up the good work..

    More Power,
    Freddie Aguilar
    Real Estate Investments

  6. I’m agree Freddie. It seems to me really interesting and easy to read.

  7. Читаю что Вы пишете – дом2 вспоминается🙂

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