Two Rare Investment Opportunities!

Here at the Boyenga team, we are happy to present TWO incredible investment opportunities!

965 Katherine Court in San Jose’s Rose Garden and 204 Alice Avenue in Campbell are both single family homes on spacious lots, and both of them have secondary units that can easily become a revenue stream for owners through rent. Katherine is an elegant turnkey new-construction while Alice is a unique historical home ready for your finishing touches.

965 Katherine Court, San Jose 95126

    RoseGardenHome.com

The builder is highly motivated and would like to get it sold quickly! To speed up the sale he is increasing the buyers agents’ commission to 3%, so act quickly before their home is gone. This is a once in a lifetime opportunity to purchase a property with a second stream of income, so cash flow ultimately reduces mortgage expenses.

204 Alice Avenue, Campbell 95008

CampbellResidence.com

Invest now as an income opportunity and use the Mills Act to lessen your property tax and receive local and state grants to subsidize your renovations. Plans are fully approved for an update/remodel of the front home.

Q2 Market Report: Santa Cruz County

Standing just a little ways apart from the furious bubble of fast-paced Silicon Valley and home to UC Santa Cruz, Santa Cruz County’s housing market is quite different from those of typical lazy beach towns. In line with overall Bay Area trends, housing markets in Santa Cruz County continue to grow ever more pricy and competitive each year. This county in particular stands out for its sharp seasonal fluctuations, with spring performing significantly better than other seasons.

Santa Cruz County has seen a steady rise in median home prices since the late 90s and experienced a slow but steady rebound after 2008. It’s a pretty predictable trend, and we can safely expect that home values will continue to rise — perhaps at even faster rates — in the coming years. Currently, Santa Cruz County’s median house price sits at a record-high $935 million as of the end of spring.

Broken down by city, it seems every city in Santa Cruz continues to follow this upwards trend of home value. Prices in Santa Cruz show a sharper rise compared to neighboring cities.

Housing in Santa Cruz is highly seasonal. Buyers and sellers both are most active in spring, while midwinter markets are extremely slow. This trend is relatively predictable year-after-year. In spring (Q2), Santa Cruz County sees 3x-4x more new listings than in midwinter.

Seasonal fluctuations are just as evident when it comes to how quickly homes sell. The fewer number of days a listing spends on the market, the stronger the demand. Again, Q2 performs best, while in Q1 homes tend to stay on the market for almost 2 months on average.

In Santa Cruz County, homes tend to sell for less than their first listing prices. Home sellers, naturally, tend to choose higher listing prices, especially because property value appraisals are never objective. However, when buyers come to expect that property prices will drop with more time spent on the market, it can instill risky buyer expectations that result in lower final sale prices. The last few quarters have seen especially low sale price to original price ratios.

Interested in learning more about the Santa Cruz County housing market or looking to buy/sell a home there? Get in touch with us at homes@boyenga.com — we’re here to help, regardless of the season.

Q2 Market Report: Santa Clara County

With stock markets surging and federal interest rates at a steady low, the housing market has bounced back! Though this quarter’s surge in home prices and sale volumes isn’t as hot as peak housing demand a couple years ago, Santa Clara’s housing market is looking up for sellers.

Q2 performed significantly better than Q1 in terms of median home sale prices, coming in this spring at $1,335,000 from last quarter’s $1,215,000. Since 2016, the market has seen a major uptick in home price trends, with seasonal fluctuations as usual (spring tends to perform best).

Luxury home sales followed a similar, though more stable, trend. Again, spring (Q2) routinely performs best. At Boyenga Team, luxury homes priced over $3,000,000 make up roughly a fifth of our sales, though we’re expecting listings to shift heavily into the luxury market in the coming year.

Here’s a bigger-scale breakdown showing home price trends in Santa Clara County over the last two decades. The market rebounded slowly after the 2008 crash, but has seen a sharp incline since 2012 with predictable seasonal fluctuations and especially sharp changes in the last couple of years. Average home prices now are nearly 7 times more than they were just twenty years ago.

Most properties sold were single-family homes with 3-5 bedrooms, making up more than 2/3 of all home sales in the last 12 months. Over half of these sales were in San Jose alone, indicating fast turnover and a strong market on both sides in the city.

Average Days on Market is a tough trend to figure out, but seasonal fluctuations once again play a role — spring tends to be a hot seller’s market, when listings stay up for significantly fewer days than other seasons. Longer periods spent on the market might be indicative of a longer-term consumer behavior trend, but can also be attributed to rising property prices in general.

To learn more about your neighborhood data or if you need help with any of your real estate needs, contact the #PropertyNerds today!

www.BoyengaTeam.com | homes@boyenga.com | 408.373.1660

 

Neighborhood Spotlight: Leland Manor – Palo Alto, CA

1955 Newell Rd, Palo Alto 94303
Leland Manor – Palo Alto, CA

Just two miles from the hustle and bustle of Palo Alto’s University Ave is a quiet neighborhood of oak-shaded, traditional ranchers. Leland Manor is a rectangular segment tucked between Louis Road, California Avenue, Middlefield Road, and Seale Avenue. It’s a friendly and highly affluent neighborhood —  most of the residents are Baby Boomers and retirees. Recently, however, the neighborhood’s proximity to schools and vibrant community centers has attracted an influx of younger families. 

Homes in Leland Manor were all built post-war, largely in 1946 – 1951. Though they vary in style, with homes featuring Mediterranean influences to English-styled manors, most are single-storied. The homes in Leland Manor pioneered the familiar rancher style now iconic to Palo Alto. Within the neighborhood, cul-de-sacs provide pockets of privacy and safety for homes. A unique feature of the neighborhood is its lack of telephone poles and wires — its utilities are all underground. 

Leland Manor’s peaceful ambiance but close proximity to community hubs makes it an attractive option for every demographic. It’s across the street from Greene Middle School and right next to Walter Hays Elementary, as well as Rinconada Library, Rinconada Pool, the Palo Alto Art Center, and the Children’s Library. It’s also minutes away from Stanford University and Palo Alto Square, offering working professionals a short commute. For longer distances, US Route 101 is just down the road. The neighborhood’s suburban nature means it’s not quite within walking distance to restaurants and bars, but well-contained traffic controlled by well-placed stop signs and bike-friendly paths is a more-than-fair tradeoff. 

Check out our listing at 1955 Newell Rd in the Leland Manor neighborhood!

If you’re interested in living in Leland Manor, check out our latest listing in the neighborhood at 1955 Newell Rd. Flooded with Californian natural light and sprawling over a quarter-acre lot, this beautiful Mission-style home at the heart of Leland Manor is accented with elegantly charming details — open-beamed high ceilings, a brick fireplace, quartz countertops. With both a newly updated kitchen and a freshly landscaped backyard, this property is a sunny, delightful home. It includes a smaller detached ADU in the back accessible through an outdoor entrance and connected via breezeway, offering either a private living unit for parents or kids or a personal office/studio. For more information, a virtual tour, or to schedule a personal tour, check out the home’s website!

Have more questions about living in Leland Manor or our listing at 1955 Newell Rd? Let our local experts help you! Get in touch with our team at homes@boyenga.com.

Boyenga Team #PropertyNerds has ranked among the top 100 real estate teams in the country!

In collaboration with Wall Street Journal, Real Trends ranks the top thousand real estate groups in the country (“The Thousand”) each year. In 2019, Boyenga Team came in at #91 in its round-up of the best performances by transaction volume for the year. 

With a transaction volume of over $207 million in 2018, Boyenga Team’s exemplary performance comes from its forward-looking vision, its mission to always puts clients first, and its ambitious flair for style. Since our founding in 1996, Boyenga Team has hit $1.4 billion in total sales volume. 

Through stellar use of technology and social media tactics to push next-generation marketing, the Property Nerds have established themselves as a trusted source of real estate expertise in the Bay Area. Check out the rest of The Thousand rankings here!

 

All About ADUs

ADUs are the next big thing in housing — because they’re small. With extreme housing demands in California, sky-high costs, and shrinking household sizes, ADUs offer a solution that provides wins for homeowners, tenants, and city municipalities alike.

What is an Accessory Dwelling Unit (ADU)?

An ADU is a secondary, distinct housing unit on a single-family residential lot. In other words, it has the potential to serve as an independent house. They’re commonly referred to by other names — backyard cottages, granny flats, garage apartments. ADUs might be completely separate from the main house or attached in some way, such as in the basement or connected on the side.

Don’t let the idea of “secondary” mislead you — ADUs are often spacious units with living space comparable to an apartment or condominium. Whether they stand alone on the property or are attached to the house, ADUs provide rooming and income opportunities. They’re unique in their smaller size and informality in structure. In metropolitan areas like Los Angeles and Seattle, ADUs can be found in anywhere from 10% to 20% to homes! ADUs have taken the idea of living in a parent’s garage or basement and innovated it into a smart, profitable use of space and resources.

In California, ADUs are increasingly being recognized as a solution to housing crises in high-demand areas, and the state is making an ongoing effort to encourage the construction of ADUs. As of January 2019, a new state law allows homeowners who previously built ADUs without permits to bring their ADUs into compliance under the supervision of a local building inspector.

Why is it an investment opportunity?

American family demographics are shifting from larger households to just one- or two-person households. These smaller households now represent two thirds of households in the U.S. In fact, the average household size has shrunk from 3.3 in 1960 to 2.5 in 2018. As the traditional model of three- to four-people homes drops in demand, the market potential for smaller, more affordable housing rises.

ADUs bridge the gap between modern small-household needs and the traditional structure of larger-household homes. For homeowners, they’re an excellent low-effort opportunity for an extra stream of income. The potential demographics for an ADU tenant are broadly varied — from young working professionals to new couples to aging retirees. These populations provide demand for long-term leasing, but short-term leasing might provide an even more profitable use for ADUs. They’re the ideal property asset to use as an Airbnb, for example.

Economic benefits

ADUs are constructed with wood frames, which are significantly less costly than multi-household buildings. On top of that, building an ADU does not require paying for additional land, major new infrastructures, or parking. Residents of ADUs benefit from the same city infrastructures, eliminating the need for the city to pave new ones. That means they’re highly affordable to construct with massive potential to generate income. As their functionality comes more and more into demand, ADUs increases the value of homes.

Environmental benefits

Size matters. Evidence shows that a building’s size is the most important determinant in how much environmental impact it has, and is now accounted for by environmental building certifications such as LEED for Homes. By nature, the smaller size and efficiency of ADUs is a clean, green solution to housing needs. It takes less electricity and gas to power a smaller area. What’s more, ADUs take advantage of existing infrastructure, negating the need to construct more utility and transportation means. In addition, ADUs contribute to a city’s environmentally impact by building on density instead of sprawl. Studies show that residential energy uses increase with sprawl, which ADUs prevent, and vehicle and fuel use per household decreases with higher density.

Social benefits

For extended families or families with unique needs, ADUs offer a housing setup that can provide both independence and connection. They’re a multi-generational asset. Consider a typical family with children — as the children graduate from college and enter the workforce, the ADU provides affordable living space in their own childhood homes that still offers independence and privacy. As the parents age, they can choose to simplify their lifestyles by moving into the ADU while generating income by leasing the main house. Another option could be offering the ADU as housing for a caretaker or extended family. And when ADUs aren’t being lived in, they can serve as distraction-free home offices or studios.

To learn more about ADUs, the #PropertyNerds will be hosting an informational workshop at our listing on 965 Katherine Ct, San Jose 95126 this Sunday June 23, from 1:30-4:30 PM! Be sure to visit us and learn the ABCs of ADUs!

www.RoseGardenHome.com

Benefits of ADU (Accessory Dwelling Units) in the Silicon Valley

Learn more about why this ADU at our listing in 965 Katherine Ct is great for real estate investors / homeowners looking to lower their mortgage payment or creating cash flow (if bought with cash).  We will be having an informational session at our open house next Sunday June 23, from 1:30 4:30 PM!

Learn more about this property at www.RoseGardenHome.com

For more information contact us at homes@boyenga.com | 408.373.1660

 

Great San Jose Investment Opportunity!

The #PropertyNerds are so excited to share with you our newest listing at 965 Katherine Ct, San Jose 95126.

This is the perfect opportunity for you if you’ve been looking to own a house and also have an investment property at the same time!

  • Current CAP Rate: 6% (based on 6% cash on cash return)
  • Annual net income: $32,000 (includes $3,599 annual tax rate; ADU only)
  • Estimated ADU valuation: $547,000

LONG TERM LEASE:

  • Estimated rental: $2,700-$3,000*
  • Low inventory in Rose Garden = HIgh demand
  • Low maintenance costs
  • Potential renters:
    • Young families
    • Single young professionals
    • Techies
    • College students

*Assumed numbers based on Craigslist interest and city data

Learn more about the benefits of having an ADU here!

We will be having an informational event about owning an ADU and all the great benefits of having one next SUNDAY, JUNE 23 at 965 Katherine Ct, San Jose 95126 from 1:30-4:30 PM. To learn more about this great investment opportunity, check out www.RoseGardenHome.com

 

 

Silicon Valley Real Estate News

Executive Summary:

  • IPO expectations are already showing up in home sales activity, particularly in San Francisco and San Mateo
  • Sales of homes in San Francisco, San Mateo and Alameda have solidly exceeded last year – up 7 percent, 4 percent and 2 percent respectively year-over-year in April
  • Santa Clara, Wine Country and Contra Costa remain slower compared to last year
  • Homes priced between $1 million and $2 million continue to struggle, except in San Francisco and San Mateo, likely a result of tax reform changes and reduced state and local tax (SALT) and mortgage interest deductions
  • Nevertheless, sales of homes priced above $3 million have surged again, posting a 5 percent year-over-year increase, matching last year’s peaks
  • While growth in inventory of homes for sales is broad based, availability of homes priced above $3 million accelerated again to a 26 percent annual growth in April
  • While price growth remains flat in most regions, San Francisco median prices up 2 percent year-over-year in April
  • A 9 percent annual increase in homes under contract suggests buyers are back in droves, especially for homes priced over $3 million, up 44 percent year-over-year

For more information about the real estate market, contact the #PropertyNerds today!

Boyenga Team – Compass Concierge

Concierge lets you easily increase your property’s market value by fronting the cost of home improvement services like staging, painting and more. No hidden fees, no interest charged — ever.

Exclusive to Compass, our Concierge program is among a suite of services designed to prepare your home for the market. From deep-cleaning to cosmetic improvements, your Compass agent will work with you to assess every opportunity to elevate your home’s value.

Once the necessary improvements have been determined, Compass will cover all upfront costs, collecting payment for the services rendered at the time of the property’s closing. By investing in your home’s potential, we aim to provide a swifter, more profitable sale.

Services may include:
Staging
Deep-cleaning
Decluttering
Cosmetic renovations
Landscaping
Interior + exterior painting
Pest control
Custom closets
Moving + storage

FAQ:

What costs are associated with Compass Concierge?

Compass will invoice you during or post-closing for the total cost of work covered through the program, and nothing more. There is no added cost for participating or interest owed to the company.

Are there any services not covered by the program?

Currently, construction, floor installation, and other non-cosmetic services are not covered, though we anticipate accommodating this type of work at a later date. Otherwise, the program is quite flexible; we’ve developed Concierge to be used with most vendors for your convenience.

How can I find out if I qualify for the program?

Easy! Call the Boyenga Team today to discuss eligibility.