TIC Market Gets A Jump Start
Sky-high housing prices drive trend of shared ownership
That's why a bank's offer of individual mortgages to TIC buyers sent shivers of excitement and fear through the city this summer.TICs have been a feature of the local market for quite some time, for obvious reasons. This new form of mortgage, even with a variable rate and 25% down should be very popular.By making TICs less codependent and more like individually owned condominiums, the Bank of Marin's so-called fractionalized mortgages were designed to make the option attractive to more first-time buyers.
But the move, expected to be duplicated soon by other lenders, also has exacerbated suspicions among the city's powerful tenants lobby that the TIC tool is being used by developers to dump rent-controlled properties and get around San Francisco's strict condominium conversion limits.
Comments
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David Porter
Posted by: David Porter | October 24, 2005 06:20 PM
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Posted by: Bill Quick![[TypeKey Profile Page]](http://www.dailypundit.com/sfrealblog/nav-commenters.gif)
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October 25, 2005 03:52 PM
The reason TICs are more affordable than condos is because they they are more complicated and have a greater amount of uncertainty than a condo. Many people bemoan this fact but as it gets easier to buy a TIC, prices will increase towards those of a regular condo.
Posted by: Chompers | October 27, 2005 09:40 AM
You are right. TICs have certainly found their way into the real estate investment market.
They are a great exit strategy along with Private Annuity trusts for owners who want to take advantage of their gains without pays scads of taxes to Uncle Sam.
Why not hang onto those dollars and let them work for you for years to come!
Posted by: Paula Straub | October 31, 2005 07:35 PM
Does anyone know of a real estate agent that is familiar with TIC in the East Bay? Contrary to the City, this concept is not yet popular here. Thanks!
Posted by: Debbie | November 7, 2005 05:22 PM