Is Waltham really this hot? (Boston, Newton: apartments, renting, home)

[yesmaybe]

Originally Posted by yellowstatus

Yep, Waltham is hot just like the entire Boston metro region. If you plan to live here for 5 years and can afford it, buying real estate here is a great investment. Hard to imagine any 20 year scenario where the prices go down.

if the Fed raised rates, a lot of these people will get crushed. Just that alone is one scenario. Now I doubt they will any time soon but in a 20 year timeframe you are talking about a long time.

[Lampert]

Originally Posted by audemars

Agreed. Nothing wrong w/either town, but given how close the pricing is to that of towns with much better school systems (which help hold values during declines), it seems a bit off.

A 1mil dollar in a town with a ""bad"" school district may be a 2 mil dollar home in a "good" school district. The money you save on the house you can use for private education.

[Lampert]

Originally Posted by yesmaybe

if the Fed raised rates, a lot of these people will get crushed.

Why? Aren't most of these mortgages at a fixed rate?

[yesmaybe]

Originally Posted by Lampert

Why? Aren't most of these mortgages at a fixed rate?

I guess it's not a loss if you never sell. But finding people to buy the property at these valuations would be harder obviously.

[simplexsimon]

You're not going to find a Waltham environment in either Wayland, Sudbury, or Lincoln and vice versa...just not comparable.

The people I know that purchased in Waltham in recent years want a diverse population (hint they're not white) and shorter commute time either into Boston or to the ever growing number of companies along 95/128. As for schools, they just plan to make it work via personal involvement in the children's education.

[audemars]

Originally Posted by Lampert

A 1mil dollar in a town with a ""bad"" school district may be a 2 mil dollar home in a "good" school district. The money you save on the house you can use for private education.

You'll likely get back your $2mm+ when you sell in the better town, but you'll never get back what you paid in tuition.

With most private schools at $20k-$40k+, over 2-3 kids for 12 years, the weaker school district doesn't seem like a good financial choice using your example.

[simplexsimon]

Originally Posted by audemars

You'll likely get back your $2mm+ when you sell in the better town, but you'll never get back what you paid in tuition.

With most private schools at $20k-$40k+, over 2-3 kids for 12 years, the weaker school district doesn't seem like a good financial choice using your example.

Most parents who send kids to private school don’t do it based on financial return.

[bugelrex]

Originally Posted by msRB311

Right. Almost feels like 1 million is becoming an average priced home these days. Strange.

Inflation causes all kinds of strange things. The Fed has been denying inflation for the last 20 years... its now very obvious it was all a lie

[Lampert]

Originally Posted by audemars

With most private schools at $20k-$40k+, over 2-3 kids for 12 years, the weaker school district doesn't seem like a good financial choice using your example.

it's more like 2 kids. 3 kids is not that common anymore. The average American family has less than 2 kids and it has been like that for a few years already.
And as others have said, financials aren't the only reason.

[Lampert]

Originally Posted by yesmaybe

I guess it's not a loss if you never sell. But finding people to buy the property at these valuations would be harder obviously.

I see, yeah people could get "stuck" or have to sell at a loss.