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Old 09-05-2018, 11:54 AM
 
11,016 posts, read 21,584,696 times
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Quote:
Originally Posted by cpomp View Post
Which makes me wonder why people think that is a good investment?, and who how that many people can afford those prices! At least a $3M condo in Manhattan gives me the benefit of being in Manhattan, but $2M for a bungalow in Cupertino.....

You could buy a gorgeous home for under a million in Chicago, Philadelphia, and so many other cities. How that market is sustained for this long confuses me (and this is coming from an engineer in real estate in Manhattan).
I have to say I was shocked, I'm in commercial real estate investing so I know the markets and I know how insane the San Jose and peninsula area is, but what really got me was just how dated everything seemed. it's all decades old, and yes it was very nice, but it's outdated office buildings, smaller post war through late 1970's homes, strip malls full of suburban stores, etc. There was nothing WOW about it at all, seeing how homes are all millions and millions of dollars for what you could get for $85,000-$120,000 in small town Iowa. I know there are reasons people want to live in San Jose and not Iowa, but just that sheer difference of $85,000 compared to $2,300,000 for the same dreary house.

My husband and I just bought an $850,000 single family home in Chicago, and we were embarrassed to say how much we bought it for because $850K in Chicago is a LOT. It's 6 bedroom, 4 bath, three levels on a double wide lot, 4,200 square feet. Complete gut rehab. Three houses down from a really awesome park, a 6 minutes walk from either the blue line L station or a commuter station that takes you directly downtown in 12 minutes. Double garage, 3-4 minute direct access to the expressway, good schools. For us it's an great investment and we love the house, but for Chicago $850,000 is a ton of money, but I feel like we're getting our monies worth to a fair degree. Tons of ammenities, space, shopping, parks and transit. We have good bang for your buck here, white collar salaries in the city are quite high, but housing for the most part is still affordable in most areas.

It's crazy in different areas just what you can get for the same, say, $250,000 or whatever amount you choose. I know in suburban Detroit the houses are really nice and the areas are great and you can score what would be impossible deals in most of the large urban areas of the country.
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Old 09-05-2018, 12:12 PM
 
Location: In the heights
20,152 posts, read 21,760,655 times
Reputation: 10231
Quote:
Originally Posted by Gaylord_Focker View Post
1 million dollars goes a long way in every city except NYC and San Fran.
A million dollars gets you something much better in NYC than in San Francisco.
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Old 09-05-2018, 12:30 PM
 
Location: SF Bay Area
1,316 posts, read 1,266,445 times
Reputation: 743
Insane, Iím in Daly City and late 40ís built row homes are going for $800K +. I hope these municipalities are socking that property tax revenue away for a rainy day fund because these insane costs wonít last forever. Just a slight increase of a point or two in interest rates or a downturn in the tech sector could have negative consequences.
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Old 09-05-2018, 12:38 PM
 
1,419 posts, read 682,166 times
Reputation: 1890
Go on a realtor's site, and check what $500,000 gets you in some of those cities ranked the highest on this list. It's ridiculous, and no thank you!!
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Old 09-05-2018, 12:40 PM
 
Location: That star on your map in the middle of the East Coast, DMV
3,471 posts, read 3,006,603 times
Reputation: 1945
Quote:
Originally Posted by Chicago60614 View Post
I have to say I was shocked, I'm in commercial real estate investing so I know the markets and I know how insane the San Jose and peninsula area is, but what really got me was just how dated everything seemed. it's all decades old, and yes it was very nice, but it's outdated office buildings, smaller post war through late 1970's homes, strip malls full of suburban stores, etc. There was nothing WOW about it at all, seeing how homes are all millions and millions of dollars for what you could get for $85,000-$120,000 in small town Iowa. I know there are reasons people want to live in San Jose and not Iowa, but just that sheer difference of $85,000 compared to $2,300,000 for the same dreary house.

My husband and I just bought an $850,000 single family home in Chicago, and we were embarrassed to say how much we bought it for because $850K in Chicago is a LOT. It's 6 bedroom, 4 bath, three levels on a double wide lot, 4,200 square feet. Complete gut rehab. Three houses down from a really awesome park, a 6 minutes walk from either the blue line L station or a commuter station that takes you directly downtown in 12 minutes. Double garage, 3-4 minute direct access to the expressway, good schools. For us it's an great investment and we love the house, but for Chicago $850,000 is a ton of money, but I feel like we're getting our monies worth to a fair degree. Tons of ammenities, space, shopping, parks and transit. We have good bang for your buck here, white collar salaries in the city are quite high, but housing for the most part is still affordable in most areas.

It's crazy in different areas just what you can get for the same, say, $250,000 or whatever amount you choose. I know in suburban Detroit the houses are really nice and the areas are great and you can score what would be impossible deals in most of the large urban areas of the country.
Are we predicting a bust at some point in San Jose/Bay Area due to this?
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Old 09-05-2018, 12:42 PM
 
1,419 posts, read 682,166 times
Reputation: 1890
Quote:
Originally Posted by the resident09 View Post
Are we predicting a bust at some point in San Jose/Bay Area due to this?

It can't keep going up. Also, California has some pretty strict per household water restrictions coming up...that doesn't bode well, I wouldn't think.
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Old 09-05-2018, 12:44 PM
 
1,419 posts, read 682,166 times
Reputation: 1890
Right now, for $500,000 in San Jose, that will get you a 1 bedroom, 1 bath house of 562 sq feet. Wow, can I be the first in line for that? If you look, you will see it. It's also pretty shabby looking....lol. They don't even show the pics of the inside.
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Old 09-05-2018, 01:31 PM
 
Location: Atlanta metro (Cobb County)
1,192 posts, read 545,435 times
Reputation: 1122
Quote:
Originally Posted by atadytic19 View Post
So is Charlotte, Nashville, Phoenix and Houston; even Austin. Yet they are all on the list.
Again I am speaking relatively. And with all the cooperations headquartered in Dallas and Atlanta I was assuming they would be listed higher. Add to that the popularity of Atlanta in terms of reality stars and musicians I was expecting Atlanta to be on the list.

Put it this way, why do you think nearby areas of Nashville and Charlotte have a higher percentage than Atlanta other than Atlanta being more populous. No shade to Nashville and Charlotte, this may be a learning experience.
While celebrity households are likely a small share of the overall market just about everywhere, that is probably a good argument for Nashville coming ahead of other Southeast metro areas, in addition to the lack of income tax in Tennessee. Maybe Atlanta just narrowly missed the cutoff for this list, as my guess is it has a similar housing value distribution to Charlotte. Perhaps some of the high-end properties around Lakes Wylie and Norman pushed Charlotte above the threshold.
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Old 09-05-2018, 01:37 PM
 
Location: Washington D.C.
121 posts, read 104,642 times
Reputation: 66
Quote:
Originally Posted by Gaylord_Focker View Post
Also, I don't know about DC's median home price being 395k. That gets you trash in that area.
That's for the entire DC area, DC itself is close to $600K.
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Old 09-05-2018, 02:46 PM
 
Location: New York City
4,871 posts, read 4,514,102 times
Reputation: 2201
Quote:
Originally Posted by OyCrumbler View Post
A million dollars gets you something much better in NYC than in San Francisco.
In surrounding boroughs, but not in Manhattan. Its pretty bad what a million gets you in Manhattan, but at least you're in New York.
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