Thinking Long-Term Can Help Navigate Through Market Downturn

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Buying property with the next five to seven years in mind is the safest route when a down housing market is a possibility, says Bay Area real estate agent Tim Gullicksen.

According to Bay Area realtor Tim Gullicksen, the interconnected world economy we live in can be quite frightening.

"Trade wars, traditional conflicts, and extreme weather events rage around the world," he said. "We are left to wonder if and when this chaos will affect us in the delightful bubble that is the San Francisco Bay Area. Will mortgage interest rates be going up? Have housing values gone as high as they can? Will property values come down in the near future?"

Unfortunately, he continued, there is no way to predict the future so buyers must consider why they are thinking of buying a home in the first place. Obviously, having a place to live is most important. In high rent areas like San Francisco, it can be more expensive to rent a home rather than buy, especially when the potential tax savings from the mortgage interest deduction is taken into account. Therefore, a buyer would not only have a place to live but also be spending less in the short term.

Gullicksen thinks the potential of a home as an investment vehicle should be considered over the mid-to-long term.

"As property values go up you can realize substantial gains on the initial investment you made in your property," he said. Of course, values don't go upward forever. Even in the city we have had downturns before, and will have again. The safest bet is to make sure you buy a home that is likely to meet your needs for the next five to seven years minimum. That way if there is a downturn you can ride it out in comfort. The market may provide opportunities to sell your property sooner than five years, but it's best to be prepared for a longer haul if circumstances require it."

Gullicksen advises property owners to remember that while they can't control the factors affecting interest rates and home values, they can make the best decision for their particular situation. An experienced realtor is an invaluable asset in this endeavor! The Gullicksen Group of San Francisco would love to help!

About the company:
Tim Gullicksen has been a top-producing real estate agent since he first entered into the business and takes great pride in managing every aspect of each transaction. After graduating from high school in the South Bay, Tim earned a bachelor’s degree in political science and history from the University of California-Berkeley. He went on to earn his teaching credentials from JFK University in Orinda and taught kindergarten in the San Jose Unified School District. He brings an educational approach to real estate developed from that background and sees himself as a facilitator of property transactions. For more information, visit his website at http://www.gullicksengroup.com/.

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