Who Knows What 2017 Will Bring?
Napa and surrounding areas will most likely continue on their trend lines: prices increasing gradually, inventory limited, perfect properties selling fast and challenging properties taking longer, a seller’s market for the most part, cash as King, and pre-approved financing essential.
Interest rates have recently gone up a quarter point, and may again. Nevertheless, these are historically low rates, lower than appreciation, and real estate outperforms most alternative investments. Purchasing power will decrease with any rise in interest rates, so there is no better time than the present to purchase. Equity can be yours in 2017 if trends continue.
Certainly any effort to improve property can create wealth. Home equity lines of credit (HELOC) and renovation financing rates are also historically low. Leveraging the cost of improvements against their value plus appreciation, is one of the best ways to make money, on paper.
Investing in rental property, for income with the added benefits of depreciation and expense deductions, is also one of the best ways to deploy your money. This, in addition to property improvement and appreciation, can be a real bonanza over time.
We are fortunate to be in the San Francisco Bay / Silicon Valley region, and most especially blessed to be in Napa Valley. The world will always clamor for the jobs, weather, scenery and quality of life this place offers. And with Napa County’s Agricultural Preserve based General Plan, growth is constrained, and demand will outpace supply.
Wondering what is over the horizon accomplishes nothing. Choosing a strategy based on probabilities achieves results! It is precisely how wealth is created. Just my sense.
Posted By Linda Fischer At 7:38 AM •