Sacramento real estate market... ?!? ;)

#1
Also some rent luxury homes or even condos where the hoops they may have access to are not private and therefore off-access.

Unless a player plans to be Sacramento for life they'd be foolish to invest in a permanent multi-million dollar home in the Sacramento area. First, or at least direct second-hand knowledge here.
 
#2
Unless a player plans to be Sacramento for life they'd be foolish to invest in a permanent multi-million dollar home in the Sacramento area. First, or at least direct second-hand knowledge here.
Not necessarily true. Lots of folks lost big on the heels of the last recession.

But sans recession, top end home prices have been increasing around the SAC area due to demand. Lots of folks moving from the Bay and SoCal looking to escape a much higher cost of living. Because of that, the SAC area market has been strong for a while. Again, everyone lost ground due to the recession, none more than top end housing.
 
#3
Not necessarily true. Lots of folks lost big on the heels of the last recession.

But sans recession, top end home prices have been increasing around the SAC area due to demand. Lots of folks moving from the Bay and SoCal looking to escape a much higher cost of living.
Like I said, direct experience. Maybe we just got horrifically unlucky. But I've seen it happen in other locales as well.
 
#4
Like I said, direct experience. Maybe we just got horrifically unlucky. But I've seen it happen in other locales as well.
To be clear, not saying it doesn't happen. I know that it does. I know of folks that it has happened to. But all from the fallout of the last recession.

I'm sure prop values will be hurt by what's going on now too.

But prior to the recession things were going well and were back on that track until recently.

My POV is influenced by several real estate agent/brokers in the family. They've historically been seeing SoCal and Bay area transplants moving up here and putting down significant capital on multi-million dollar homes. And since there are more and more folks escaping those higher priced areas, the demand hasn't stopped and the values still good in re-sale. Except in times like now and the last recession.

Sorry to hear about your direct experience. Hopefully you'll be more fortunate next time around.
 
#5
Sorry to hear about your direct experience. Hopefully you'll be more fortunate next time around.
Hopefully nobody who I have a direct financial relationship with ever buys that type of property again. I didn't like it when it happened and I hated it when they realized what a money pit it was.

My family does include some high end brokers as well, they struggled to move this piece.

This was Gold River for whatever that's worth. Maybe other areas do better.
 
#7
Hopefully nobody who I have a direct financial relationship with ever buys that type of property again. I didn't like it when it happened and I hated it when they realized what a money pit it was.

My family does include some high end brokers as well, they struggled to move this piece.

This was Gold River for whatever that's worth. Maybe other areas do better.
Been following your convo. My two cents:

1. Real estate has some advantages, which makes it one of the better investments--interest on the mortgage is a deduction, cap gains is excluded on a primary residence (up to a point, at diff levels depending on whether you're single or married). If it is a rental, you can depreciate the property, which shelters the net rental income. We used to be able to write off property taxes, but that's been jumbled together with local taxes and capped at $10k. And should anyone be fortunate enough to inherit property, the prop taxes from your parents carry over via prop 13 and 58.

2. That said, the idea that real estate appreciation is linear is not true. As evidenced by what happens during recessions when home prices compress. And the focus on home prices alone is wrong--the focus should be on whether the owners are able to carry the debt service during recessions. If you can't pay the mortgage, the home gets taken away--along with your equity in the home.

3. I have a lot of close friends, who are in real estate. At pretty much every level of the supply chain--from realtors, to flippers, to hotel and Airbnb owners. I've fired a few of my real estate friends as clients over the last few years, because their view of risk was distorted by the 11+ year bull run in RE. Better to maintain the friendship than to argue over risk. Their expectations were distorted. Hard not to be distorted when everything you touch turns into gold in RE. The one common thing that I've noticed among them is that they end up doubling and tripling down in the industry (rather than diversifying away from it), which has unfortunately lead to a potentially catastrophic situation now when the economy has effectively grinded to a halt.

4. As for non-Sacramento residents buying Sac property. It's true. We almost bought a property in El Dorado in 2011. Should've since the property has appreciated 150% since then. Will likely buy in that area, should RE properties compress. Would like to have a place there because it's an hour or so from South Tahoe (usually takes us 2.5 to 3 hours to get to Tahoe) and it gives us a place to stay when we're visiting friends, fam, and going to Kings games.
 
#8
I am for the record generally pro-real estate. But not pro-statement homes that carry >10k month maintenance expenses and are now subject to the SALT caps. For whatever reasons I tend to hear about athlete's with custom homes that are very specific to athlete needs lingering a lot.

If your 4 million dollar home has a private basketball court and a private gym for example, a 10 car garage for your car collection and a recording studio for your solo rap career during the offseason it's going to have a very distinct appeal and not sell overnight. I do get that maybe that's a 10 million dollar custom home in SoCal - but again, how many athletes want to make their primary residence in Sacramento - vs. say Miami or Texas where the tax situation is favorable and there are hundreds of other pro-athletes living from multiple teams vs. a town with one major sports team?

And that to get the land for a big custom house like that you are going some place like Gold River, Folsom, Rocklin, Auburn, Elk Grove.

That's kinda what I'm getting at? If I were a pro-athlete I'd buy/rent the nicest place in mid-town or get something in the Fab-40s and go live elsewhere in the off season. Unless I was totally committed lifelong. Am I wrong? But in that case you are committed to using the team's practice facilities.
 
#9
Not sure what triggered this initial discussion, but I don’t want to start another real estate thread so I’ll try asking here.

Does anyone here live in or have experience with The Residences at The Sawyer? I’m intrigued but have questions. Unfortunately the two units currently listed don’t suit me so I’m hesitant to interact with the listing agents. Trying to gauge if it’s worth waiting for the right unit.
 
#10
Not sure what triggered this initial discussion, but I don’t want to start another real estate thread so I’ll try asking here.
It sprung from some folks' assertions that all NBA players should have estate home with basketball courts so they can practice during the lockdown :D

I am not familiar with these condos but I would not be surprised if my mom knew a resident or if my aunt/uncle who are realtors had info, if you don't get your questions answered I can poke around.
 
#11
Not sure what triggered this initial discussion, but I don’t want to start another real estate thread so I’ll try asking here.

Does anyone here live in or have experience with The Residences at The Sawyer? I’m intrigued but have questions. Unfortunately the two units currently listed don’t suit me so I’m hesitant to interact with the listing agents. Trying to gauge if it’s worth waiting for the right unit.
I don't have any relevant info. Just wanted to say those condos look fly and would be a treat to live in during a normal basketball season.
 
#12
Not sure what triggered this initial discussion, but I don’t want to start another real estate thread so I’ll try asking here.

Does anyone here live in or have experience with The Residences at The Sawyer? I’m intrigued but have questions. Unfortunately the two units currently listed don’t suit me so I’m hesitant to interact with the listing agents. Trying to gauge if it’s worth waiting for the right unit.
they look pretty nice, great views too. Prices are a little steep though. What units are you looking at?
 
#14
they look pretty nice, great views too. Prices are a little steep though. What units are you looking at?
Min 2 bedroom, preferably facing the arena. Decided I’ll contact the agent after all for a viewing and to answer all my questions. If season tickets are a primary motivator for moving to the area, might as well explore embracing it in full.

Not sure how thrilled I’d be during the off-season though. :D
 
#15
Seems like it would be great if you go to other arena events as well. I've only been to the area a few months before opening day so I haven't seen it in about 4 years. Which is crazy since I effectively grew up spending a ton of time down there when my mom drug me to her work.
 
#16
Seems like it would be great if you go to other arena events as well. I've only been to the area a few months before opening day so I haven't seen it in about 4 years. Which is crazy since I effectively grew up spending a ton of time down there when my mom drug me to her work.
lol me too. Except I did because my mom would get fed up with me during the summer and drop me off to my dad at the DA’s office, which he wasn’t thrilled with.
 
#17
lol me too. Except I did because my mom would get fed up with me during the summer and drop me off to my dad at the DA’s office, which he wasn’t thrilled with.
Usually I'd get given a fiver and go to the Time Zone and then when that was done we'd walk over to K street or if we were lucky we'd get more arcade money. And then we'd probably demand to go home. Eventually I would get assigned special projects and at least be able to earn some money for doing a wine inventory or help out with a spreadsheet or mailing list (back in the DOS days, these were freaking awful but I had a good "system").
 
#18
Usually I'd get given a fiver and go to the Time Zone and then when that was done we'd walk over to K street or if we were lucky we'd get more arcade money. And then we'd probably demand to go home. Eventually I would get assigned special projects and at least be able to earn some money for doing a wine inventory or help out with a spreadsheet or mailing list (back in the DOS days, these were freaking awful but I had a good "system").
oh man TimeZone. I used to have birthdays there. That takes me back. The highlight of my day was maybe get to go watch my dad in court, which really wasn’t all that fun lol