Home price = deal breaker for moving to Bay Area? (San Francisco: apartment, renting)

[DocGoldstein]

Originally Posted by capoeira

For 600K I expect around 4,000 sq. ft.,a minimum 1/2 acre lot and a "10" rated school district. This can be easily had for $600K in most areas of the country except CA and the Northeast.

That was easy to get in the mid-90s. Blame the tech booms, and all the speculators/investors that came along with the booms. They forever changed the landscape for Bay Area RE.

[Ultrarunner]

Originally Posted by DocGoldstein

That was easy to get in the mid-90s. Blame the tech booms, and all the speculators/investors that came along with the booms. They forever changed the landscape for Bay Area RE.

Areas with good school districts weathered the downturn better... as for prices... areas of the Bay Area were also hit hard about 5 years ago... down as much as 75 to 80% from the peak.

Other areas it was little more than a ripple...

[Mark Fitsburgh]

Like i said six hundred grand won't get you anything around the bay. You have to go inland. I bought some rental property in Brooklyn because i feel Brooklyn is a better buy than the bay area.

[bendiesel]

Im from VA too... And live in the Bay now.. I agree with everything everyone above has posted.. Spot On!

[jeffredo]

Originally Posted by Mark Fitsburgh

Like i said six hundred grand won't get you anything around the bay.

Of course it will. You can get a mid-century modern in the Westlake area of Daly City for that.

[Larry Siegel]

Originally Posted by jeffredo

Of course it will. You can get a mid-century modern in the Westlake area of Daly City for that.

Not bad. A friend of mine just paid about $500K for a 700 square foot "condo alternative" house in the Outer Sunset. I'd rather live in a real house in Daly City.

[DocGoldstein]

Ugh, the schools in Daly City are simply subpar. $640,000 to go to barely above average schools.

[bentobox34]

Originally Posted by Malloric

The 800k was just the down payment. Figuring a typical 20% down, yes, $4 million will get you a pretty nice house in many parts of the Bay Area. Even in Menlo/Atherton, $2-3 million will get you something that looks like middle-class housing.

That assumes OP desires a $3.2m mortgage and has the income to make payments on it. By my back-of-the-napkin estimate, the payment would be about $16k/month and you would need an income over $600k/year to qualify.

[DocGoldstein]

Originally Posted by bentobox34

That assumes OP desires a $3.2m mortgage and has the income to make payments on it. By my back-of-the-napkin estimate, the payment would be about $16k/month and you would need an income over $600k/year to qualify.

It's actually closer to $18,000 a month, and $600,000k a year may qualify (not sure), and we are assuming they'll eat white rice and ramen all day, and never save for a rainy day.

Realistically you would need an $800,000+ yearly gross salary to afford an $18,000 a month mortgage. $3.2 million dollar mortgages are not cheap and should be reserved for NBA stars, or plastic surgeons with successful practices.


Front-End Ratio
Monthly gross income $66,667
Front-end ratio 28%
Calculated payment for front-end ratio $18,667
Back-End Ratio
Debts and obligations $3,000
Percent of gross income 4%
Maximum percentage available for mortgage payment 32%
Calculated payment for back-end ratio $21,000
Payment Calculation
Minimum of the two ratio options $18,667
Less: taxes and insurance $3,650
Equals: maximum allowable payment $15,017
Calculated mortgage amount $3,242,531
Down payment $800,000
Home value you can afford $4,042,531

[Mark Fitsburgh]

Originally Posted by jeffredo

Of course it will. You can get a mid-century modern in the Westlake area of Daly City for that.

Rare you can bet 200 rich Chinese and Filipinos will be having a cash bidding war that will push that thing to close to a million.