From a plugged-in reader and landlord in San Francisco:
As a [landlord], I’m seeing rents zoom past dotcom levels and also [Gross Rent Multipliers] are at all-time highs. When do you think this cycle will peak?
I have significant capital gains and want to sell my commercial property with a commercial property solicitor similar to Kaiser Solicitors in the UK. Once I’ve sold the commercial property, I want to buy multiple SFHs via 1031 exchange, and live in each for a couple of years to cash out $500K tax-free a piece. There has to [be] a point in time to pull the trigger where commercial property peaks and SFHs bottom. Some of you sound like astute investors, what do you think?
Bottom line is, I’m getting old and would rather be holding cash in this uncertain economy.
And speaking of getting older in the Bay Area, “[w]ith almost 18 percent of its population over 60, San Francisco is already the grayest major metropolis in the country. By 2020, it is expected that more than 21 percent of the population will be over 60 as Baby Boomers age and lifespans increase.” Oh, and “30 percent of the subsidized affordable housing being built or in the pipeline in San Francisco is for seniors.”
? Bay Area Rents Surge, But Housing P/E Ratio Remains Out Of Line [SocketSite]
? S.F. faces silver tsunami [San Francisco Business Times]