Wednesday, February 01, 2006

Santa Rosa, Northern California Real Estate

"Is Now The Time To Take Some Money Off The Table"

Recently I was talking to a client of mine about what the future holds and what she should be doing with her real estate. Like many of us property owners in Sonoma County, she has a lot of equity. The question was what the next direction the market will take is. That presupposes that I know what the market is going to do. This I do know, real estate goes up in value over time. Real estate more or less doubles in value every ten years. But in the short term, it’s anyone’s guess as to what is going to happen.

In a prior life I worked as a Registered Investment Advisor, that’s another name for a financial planner. One of the things that I always talked to my clients about was diversification. It is important to diversify assets to protect your wealth against risk. Whether its stocks or real estate… diversification is a good idea.

So I told my client about how I diversified my real estate risk. I recently decided to take some money off the table here in Sonoma County. I owned a rental home in Santa Rosa on Vale St. So I sold Vale Street and bought a vacation home in Lake Conroe Texas. Lake Conroe is a gated lake community with three golf courses, yacht facilities, lighted tennis courts, fitness center and a country club. I can guarantee you that unless you’ve been to Lake Conroe, your impression of this part of Texas is wrong. Currently I am keeping this as a vacation home but if I chose to rent it, it would have significant positive cash flow with only 20% down.

Why Texas you ask. A recent National Association of Realtors survey recently identified 130 metro markets as least likely to have a real estate bubble. I do not believe that Sonoma County is on a bubble, but as a way to continue owning property and diversify my risk I chose to buy in one of those other markets. I still have my Fountaingrove home here but I’ve now got another little piece in another market. "By the way Texas property goes up in value too”. Last year property values went up eight percent.

If you want to investigate a little diversification in your wealth portfolio call me. I have a lot of information on how to continue maximizing your wealth while reducing your risk.

11 Comments:

Blogger Margaret Rome said...

A Realtor that invests in buying and selling has to be a wonderful asset to his clients. Thanks for sharing the information.
Margaret Rome
Baltimore,Md.
www.HomeRome.com

8:45 PM  
Blogger Jeff Schoenfield said...

Excellent article from someone who obviously knows both real estate and investing. Very informative and timely.

Jeff Schoenfield
Gatlinburg, TN
www.Gatlinburg-Homes.com

6:14 PM  
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