Property in Santa Cruz Real Estate Blog

REO’s and short sales are common terms in today’s Santa Cruz real estate market. The bank owned property, otherwise known as REO’s ( real estate owned) is a good property to buy. The bank has gone through the process of getting back the home and wants to sell. While the government is finally stepping in and trying to avert this with housing bill, that should slow this process down. By acting now there are good deals on Santa Cruz housing and the surrounding area. Short sales are where the bank takes less than is owed on the property. If you want to see what is available, you can visit my site at www.propertyinsantacruz.com

For those who are truly capable and qualified to buy, this is a great time to buy. Banks are, as might you imagine, scrutinizing buyers more than ever, and with good reason. Having good credit, a good job and a down payment are all musts in today’s market.

Buyers should realize real estate is a 5-10 year investment. The current malaise will go away, but will take a bit of time. Some areas have fallen further than others, and will likely take longer to recover. The national and regional real estate markets are different than our local one. Santa Cruz County is a vacation and second home destination, in addition to having education, agricultural, mariculture, hi tech, tourism and all the other normal jobs a county of upwards of 300,00 has. Not many counties’ can boast the diversity of natural beauty and climate that attracts most.

Some things an investor might want to consider:

• Real estate does not often cash flow in Santa Cruz with less than 30% down payments. That does not make it a bad investment, as appreciation is greater in this area.
• Consider the condition of the property. Cheapest does not mean best condition. Paying more for a property in better condition may be cheaper in the long run.
• Are multi-residential units something you want to consider? The financing is completely different with more than 4 units and rental history is now necessary. Will you manage or have it professionally done?
• Will you purchase be under the conforming limit of $417,000 or the blended jumbo limit of $729,750 for the Santa Cruz real estate market area. Rates are better at the lower level.
• Will you buy a short sale or a foreclosure or a conventional property that is a good deal?
• Use of the property- rental for a son or daughter in college, general rental, vacation home, home for you? What is the purpose or use of the investment in Santa Cruz real estate?
• The use and cost, will determine in part, the down payment that is due.
• Location- think about why this house or property is a good value- area, architecture, age, neighborhood, current or future use of the property all come into play.
• Do you have the financial reserves to weather months without rent due to the market place or condition of the property?

These are some ideas to consider in making a Santa Cruz real estate investment. As with any investment choose an experienced professional. Gregg Camp is a real estate broker and has been active in the Santa Cruz real estate market for 20 years helping investors, buyers and sellers. His www.propertyinsantacruz.com site has information on the REO’s and short sales in Santa Cruz County.