[Music]
Hello and Welcome to another episode of
Selling Greenville your favorite real
estate podcast here in the upstate of
South Carolina I'm your host as always
Stan McCune realtor right here in
Greenville South Carolina all of my
contact information is in the show notes
as always if you need to reach out to me
for any reason and just a reminder as
always please rate review subscribe
download unsubscribe
resubscribe hit the five stars do all of
those things to help this podcast get
out to the masses to get as many people
listening as possible I would greatly
appreciate that that will help me to be
able to do some cool things in the
future maybe get some guests on here and
whatnot it it gives the power to
the podcast when I'm able to show
statistics that show that more and more
people are listening and we do have
more and more people listening so it's
helping those that have done that
please do it I would appreciate it and
and that's the only thing I ask of
you guys that and to remind and to
remember me if you have any real
estate needs now today we're going to be
talking about safe Investments and
not specifically with regard to
investment properties but just kind
of generally speaking because there's
I'm I'm starting to hear some Ang
just generally speaking I don't think
there's anything specific but just
generally speaking i' I've heard a lot
of different people different parties
say that things are are just starting to
feel a little bit 2006 is and just a
reminder 2006 was when things were a
little bit crazy Nationwide housing
housing
wise Banks were giving out money Willy
for all sorts of different
different loans that weren't fully
vetted out and and there was a huge
housing crash that happened around
2008 and and that caused a lot of
people's home values to go down that
caused a lot of people to go into
foreclosure people that bought homes
that they could really couldn't afford
but they knew if all else failed it
would appreciate in value by you know
10% at least every year and then they
could just sell it and Bank the
appreciation those people you know ran
into problems when they then potentially
lost their jobs or even if they didn't
so just all sorts of of different
things happened in 2008 that caused a
lot of problems for a lot of people
but the reality of the situation is even
though I don't personally feel like
we're having an exact repeat of what
happened happed in 2006 I don't see a
major Market correction happening and
and you guys if you've listened to other
episodes you've heard me say that before
I do see a slow kind of ramping down
happening particularly if the FED
starts tinkering with mortgage rates
as they do indirectly of course if they
start t tinkering with those things
causing mortgage rates to go up a little
bit that will slow down the housing
market and honestly the housing market
probably needs that but that's a
different thing altogether than a major
correction happening but at the end of
the day you never know a lot of things
could happen that could cause an an
economic collapse that would then cause
the housing market to collapse a lot of
things that we have no control over I
mean who would have predicted two years
ago that we were about to enter a
pandemic that would last sever years and
and cause all kinds of crazy impacts
on the
economy so it's very unpredictable and a
lot of people right now are trying to
think and I and I keep hearing people
saying I want to purchase a home that's
safe right and not safe from crime but
safe from the standpoint of as an
investment that it's not going to in the
next year or two suddenly lose a ton of
value that it had and and that's the
thing that's what happened it for the
most part Greenville wasn't hit as badly
as the rest of the country you know
those major urban areas were the ones
that got crushed in 2008 but in
Greenville and and the upstate in
general it was not good it it was a it
was a tough few years there were a lot
of foreclosures I I just showed a
house recently ly that was a house
that sold in 2006 so 15 years ago it
sold for
$300,000 and it's currently for sale for
$375,000 and and not selling by the way
that that's after a price drop well
that's really really bad
appreciation over the span of 15
years I mean right now we're we're
seeing one to one and a half% in some
areas 2% appreciation per month
occurring in in many areas and and
here's a house that in 15 years has I
mean who knows what it will actually
sell for let's just say it's not going
to sell for 375 I'm pretty confident
about that but it may have experienced
perhaps 1% appreciation per year since
2006 on average and that's simply
because it lost so much value in you
know between 2008 and
2012 and it it took a while to recover
that value and and now it's starting to
get to the point where it's probably a
little bit above what it was 15 years
ago but that's just wild to think about
it's wild to think that homes that sold
in 2006 could just now be past the
point of of the value that they had in
2006 but there are some instances of
that and people want to make sure that
they don't make those mistakes that they
aren't one of those people that buys a
house that then 15 years later has
barely appreciated over what it was
worth 15 years earlier because in
that instance it's almost better to just
rent and then you know if you're
saving money on you know maintenance and
taxes and all of that while you're
renting potentially obviously not
property taxes that's that's baked into
whatever rent you're paying but you
know I'm saying if you're saving money
on the different
expenses that the landlord is
covering while you're renting and in
some cases that can
be in in a sense a more economical
option month-to month then you can
potentially use that money to invest in
other things that would be better
often times than purchasing a home
that's really not going to appreciate in
15 years you need the home to appreciate
in order to justify all the maintenance
you have to put into it and all the work
you have to do to make it your own etc
etc so as we're looking at the market
and as I'm looking at the market what
are some Investments that I think are
safe what are some properties that I
look at and I'm like okay these are the
properties that if we if tomorrow the
economy completely collapsed these are
the properties that are going to be safe
and by safe I don't mean that they're
not going to lose value or run into
problems from that standpoint
but that they are going to either not
lose as much value as the rest of the
field or that they will maybe continue
to appreciate but just at a slower Pace
in comparison to other homes that
either won't appreciate or will fall
into a depreciation type of track in the
event of an economic recession so I have
a list of five homes Five property types
that I think are the ones that are again
not Recession Proof but the ones that
are going to better withstand the
recession it's like think about it this
way when a hurricane comes through there
are some homes some properties some
buildings that are going to withstand
the force of a hurricane better than
others but no building is immune to the
effects of a hurricane all right so
that's what we're talking about here
these it's similar a recessions like a
hurricane there are different degrees of
them different categories of them and
some property types and some investment
types even though I'm not a financial
advisers and I'm not giving Financial
advice of course you guys know that I'm
not allowed to do that but some
properties are generally speaking going
to better withstand the storm of a
recession than others and here's the
ones that I personally think are in that
position let's start with homes with
acreage now this is something this is
something that's interesting the past
two years the fervor at least I've
experienced this is just anecdotal I I
don't know you know exactly to what
extent others have experienced it but I
know that I'm not the only one so I will
say that much I know anecdotally from
a few others from several other
realtors that this has become really
popular in recent years people are
starting to become a little tired of the
suburbs but also in Greenville
there's not really an urban living
option I mean yeah we have a gazillion
condos that you can live in downtown but
if you want live in a house you can't
live downtown it is it is not an option
unfortunately and this is something
I I really am unhappy about in terms
of of some of the central planning that
the City of Greenville has done even
though much of it is really tremendous
with Downtown Greenville but they've
essentially converted all single family
housing within walking distance to
downtown into commercial and it's like
an someone on social media was saying
saying recently they're actually trying
to get some kind of a petition about
this but that essentially an entire
historic district I would actually say
multiple historic districts in Downtown
Greenville are just law firms now and so
so there's not really an urban living
option unless unless you want to live in
some kind of a a highrise right and
some people are getting disillusioned
with Suburban living they don't want to
live in a house that's like right next
to your neighbor with a small yard and
and all that so more and more people
are starting to look at homes that have
some acreage homes that are a little bit
spread out from the neighbors homes
where you know you have some options for
what you do with the land mini
farming is becoming a a kind of trendy
thing as people are starting to look
for more sustainable ways of living and
also as there's just angst over you
know people not wanting to have to go to
grocery stores when grocery stores might
be out of everything or or when grocery
stores might require you to take
certain medical or health or sanitary
precautions or whatever and people don't
want to do that it's becoming more
and more popular for people to want to
have the option to have a few chickens
have a few you know pigs or whatever
the case may be they want to be be able
to do that on their own land and the
reality is and and one thing that you'll
see that's a Common Thread with with all
of these five thing these five property
types I'll be talking about one of
the reasons why I do believe that they
all have a better chance of holding
their value in an economic apocalypse is
because there's a low supply of them and
so even if the demand is low it doesn't
matter they'll still hold value and
that's the thing with homes with acreage
as you know the suburban sprawl
continues to happen in the upstate here
of South Carolina these homes that have
any sort of acreage attached to them it
becomes fewer and fewer every single
week that goes by there is fewer housing
available on acreage that is the reality
of the situation so those homes there is
always always going to be demand
for a house on some land I don't care
what the what the economic climate is
there will always be someone that wants
some land with a house on it for
whatever reason I listed off a bunch of
reasons different people have different
reasons and right
now there is substantial demand for it
so it it's a it's a situation currently
where the demand is dramatically more
than than the supply and you know any
home that comes on on the market that
has multiple Acres attached to it I mean
we're talking about in some obscure
areas as well I mean home pops on the
market with acreage and like you know
enery South Carolina some people
pronounce that honory whatever whatever
you want to pronounce it like that will
sell instantly now if it's not
overpriced nobody would have ever
considered living there a few years ago
and so the climate has changed where
that's becoming that's really trendy but
I don't think that that's a flash pan
Flash the pan kind of trend I think that
that's a trend that has staying power
simply because of the the low Supply and
that wasn't the case you know 15 20
years ago we had a lot of houses like
that on acreage 15 20 years ago in the
upstate but they're gone and and they're
gone forever you know once those areas
are developed they're you can't
undevelop them I mean I guess you can
but very very difficult very very
expensive so so I think homes with
acreage those will continue to have
staying power in terms of their value
for years to come we talk a lot about
multif family on this podcast and I
would be remiss if I didn't mention
multif family in this discussion multif
family housing again is a similar
Dynamic low supply high demand and
demand that will always be there and
it's not just the demand for multif
Family itself but it's also the demand
for renting and and the demand because
there's demand for for renting so so you
know when the economy collapses if and
when the economy
collapses often times people do get
foreclosed on and then they need a place
to live and a place to live is multif
family that's a common option is is
in some type of apartment or Suite or
whatever the case may be duplexes
triplexes quadruplexes apartment
buildings whatever the case may be
that's where people end up having to go
to and so there is a con need for them
in the rental market and that drives
the desire for investors to own them and
then of course there's
increasing interest in what people
call house hacking which is basically
you own a multif family property you
live in one unit and then you rent out
the other units and you have them pay
pay for your mortgage and maybe you make
a little bit money on the side as well
that's a very popular thing as well
that I think is a concept that really is
in only in the past few years has
started to get traction so I think that
that has will continue to have a lot
more appeal in future years as well
but again look at the multif family on
the market in Greenville let me let
me pull up Greenville MLS real quick
here and I'll tell you I'm recording
this on November 16th I'm going to tell
you how many active multif Family
Properties there are in Greenville
MLS o I hit the wrong button I hit the
contingency contract button
active here we go my computer is running
slowly 10 10 active multif family in
Greenville County at the moment that's
nothing 10 10 multif Family Properties
that's a joke and and you know those
10
I can I'm not looking at them closely
right now but they're either going to go
under contract or they're like way
overpriced or they've got a major
problem with them I know that there's
one in in the lawren county I believe
it is right now that is just like needs
a full renovation on it you know it it
is like nearly falling apart so
that's one of the 10 that we have so
multif family supply and demand it will
continue to have staying
staying power in terms of its value
here's another category here's number
three homes near areas where major
developments are
happening so when I say this I'm
thinking about of course all these
developments downtown you've got camper
down which is that's done at this
point they're just kind of fill in the
space so I shouldn't really include that
but you've got County Square
obviously
anything anywhere near County Square
that is going up really quickly and it's
looking really good and that area is
going to be completely different than it
was we've talked about un Unity Park
that area is there are
some rough areas around uni park right
now let's just be honest and some
good opportunities to to buy some
affordable housing in that area and that
area that has staying power right they
are dumping a l lot of money into Unity
park right now it's it looks like it's
going to be super nice there is you
know southern side Brewery right there
and the commons and the the swamp
rabbit bike trail and all of that like
there's so many things right there that
area is you know there's going to be
some people that are going to make a lot
of money in that area we've mentioned po
Mill which you know in theory they're
going to start developing that at some
point I haven't heard much much news
about exactly what they're doing but
that's another area that's interesting a
lot of these other Mills they're
starting to look at and and you know
finally starting to to get up and
running obviously we know that the
Lofts at Mills Mill has already been
redone but still there are areas around
there that I think are are worthwhile
Investments because of how when the
losss were there then that added to that
just kind of changed the dynamic of the
whole area so long story short you look
at any of these areas where major
developments are happening and I think
that that really bodess well for the
homes in those areas in general now of
course you have to to keep in mind
developers can run out of money too and
that can be a problem so I would
particularly say the areas where
developers that are you know chummy with
the local government getting getting
some some subsidies from the
government or developments that are
specifically government oriented or or
spearheaded by the government such as
the ones we mentioned before Unity Park
and County Square University Ridge
that area
obviously th those are going to get done
right the the government is going to
make sure that those things get done
they have the money they're going to
do it so I think that those those areas
will have a big impact on the real
estate around them and I think that that
makes them the real estate around
those areas relatively safe Investments
long
term number four homes near
award-winning schools now I have to be
careful here I have to really I have to
be careful with all all of this but
there there's a lot of landmines when
you're a realtor obviously I can't
promise the areas are going to continue
to appreciate I can't steer people
towards certain school districts but
the reality
is award-winning schools
Drive traffic to them and they drive
people that to to purchase real estate
in those school districts and so a
lot of people don't realize just how
important that is to the value of their
home and that's that's true in in a lot
of different ways that is a major
deciding factor that people make in
their minds when they're choosing where
they want to live if they have children
that they plan to put in public schools
they want to make sure that the schools
that those kids go in are good generally
speaking and so that's something that
is going to continue to be a driver
of value for homes in those districts
and so that's something to keep in mind
I shouldn't really discuss specific
districts so I'm not going to but the
data is all out there you can look at
you know I think it's called
greatschools.com there's a lot of other
websites out there where you can look
at the different Awards the different
schools have gotten and so the homes
in those school districts obviously
if people can't afford to move they're
they're not going to move regardless but
those homes and and and I I say that
from the standpoint of if we go into a
recession and then people aren't able to
afford to move you
know you might not necessarily be able
to sell your home that's in an
award-winning school district and get
your money back but in comparison to the
homes that aren't in those award-winning
school districts you have a better
chance of your home continuing to have
value and continuing to be in demand
with others and and the other thing is
that
investors look at this as well investors
look at the school districts and they
see that and then that brings their
interest as well into some of these
into some of these areas where where
the award-winning schools are and so it
just has homes in those areas just have
a lot more eyes on them and again supply
and demand they have a lot more demand
than homes not in those areas and so
that is something that I definitely
think will continue to help homes that
are are near those well-known and
award-winning schools number five
which is our our last one and then we'll
wrap up homes not in
HOAs pretty much I don't want to say
any new development but I mean any new
subdivision right now has an HOA that's
just the reality developers just
automatically put them in place it
simplifies things for the developers
and those h they don't go away and
because of that the homes that are not
in HOAs those homes have a lot of
interest in them now it's there are some
people that that prefer to be in a
community that has an HOA because they
want those amenities they want to have
the community pool or the community
basketball hoop or whatever the case may
be that's fine but there's a a gazilion
of those what there's not a gazillion of
where where there's low Supply is the
homes that are not in HOAs there are not
I mean in comparison to everything else
that's on the market there's always
fewer homes not dramatically fewer homes
that aren't in HOAs and there are
that are in HOAs and a lot of the homes
that aren't in HOAs here's here's
another thing they tend to be those Mill
houses you know you go to Judson Mill or
Denine Mill or
whatever those are are the classic ones
that aren't in HOA subdivisions
now and so there is more supply of those
now if you have a house that's not a
millhous and that's not in a Nati way
now the the amount of of Supply goes
and the amount of demand the amount of
Supply goes down and the amount of
demand goes up even more so so there are
degrees to that as well so you have
a a nice big house that's not in an HOA
listen you're in great shape that house
is going to to continue to appreciate
and value
substantially do not fret now again I
can't promise it won't lose value in a
recession but you're in a better
position than the homes that are in HOAs
if you have that home that's not in one
there will be more people
interested you know and that and
that's the thing too at the end of the
day is that
when when there is a major economic
event that
happens
people aren't able to be super super
choosy or I should say the people that
aren't able to be super choosy they're
just going to just go with whatever
whether the house has an HOA doesn't
have an hway whatever they just have to
to work with whatever money that they
have
but the people that have the money that
want to avoid an HOA they're going to
specifically be looking at that there's
not a lot of people that are going to
have money that are going to be
specifically looking for homes that
aren't in HOA communities again or that
are in HOA communities again there's a g
gazillion of those but there is a a
select demographic that is really
aggressive that really wants that
community that doesn't have an HOA or
that really wants that house that isn't
in HOA community and they're going to do
their part to try to get it and they
they will be aggressive and so that
helps keep the value of those sake now
if you've got multiple if you check off
multiple of these you've got a multif
family house on acreage not in the
natureway near where major developments
are happening in a good school district
I mean listen that thing you've got
it all now I will say there's not a
whole lot that's going to fit all five
of those criteria but hey if you find
something hold on to that thing because
that thing will continue to go up in
value and will be a great likely a great
investment for years to come that's all
I've got for today I hope you guys have
a great rest of the week stay safe next
week is Thanksgiving so perhaps diet or
or do something I'm I'm trying to think
about how I can find a way to exercise
you know in in the next week to try to
get ready for turkey day I literally ate
my myself sick not last year last year
was Co Thanksgiving but the year
before when which was the last
time that like we had a big family
Thanksgiving I literally ate myself sick
and I was embarrassed I like wasn't able
to help out cleaning up afterwards and
whatnot because I I felt like I was
going to throw up if I even moved
hoping not to do that this year I'm
going to try to exercise some
self-control for a change but but
the rest of you guys you already
exercise all your self-control so just
enjoy the day I will produce an episode
next week and I hope you guys listen to
it it's going to be a thankfulness
episode I'm actually going to record it
right after this one so I don't have to
record next week but thank you guys
for listening I hope that you have a
great rest of the week get that exercise
in get in your last minute dieting and
we'll catch up next week right around
thanks Ging
[Music]