Getting depressed...mortgage=no home, cash only wins (San Jose, Fresno: loan, homes)

[Ultrarunner]

Enlarging may be a possibility... I helped my brother add on 3 times to his 1950 rancher on a large lot in a desirable neighborhood.

Unless a person is so inclined and can be realistic as to the financial and time commitment... expectations are not realized.

[1AngryTaxPayer]

Originally Posted by meameame12

here is what i cannot understand--why not buy a smaller home in a decent area, like a 2 bedroom house, put 100k - 150k into it or so (i.e. double the size)? what am i missing?

Yep

We had the same problem, flippers out bidding us, until we bought a complete wreck and remodeled it. We now have a house we designed the way we wanted it for cheaper than buying someone else's "idea" that would have needed changes anywho.

[oldtrader]

Things have changed over time in the San Jose area. We raised our children there and lived in 3 different homes paying $13,750 for the first on a $0 down V.A. loan, and the last one $22,500. Today those same homes almost 60 years old are selling for $650,000 to $1,000,000 plus.

It will get harder, not easier to buy a home there you can afford in the future. Someday the people there will be looking back at today as the good old days for real estate when homes were affordable the same as we are.

[Ultrarunner]

Originally Posted by oldtrader

Things have changed over time in the San Jose area. We raised our children there and lived in 3 different homes paying $13,750 for the first on a $0 down V.A. loan, and the last one $22,500. Today those same homes almost 60 years old are selling for $650,000 to $1,000,000 plus.

It will get harder, not easier to buy a home there you can afford in the future. Someday the people there will be looking back at today as the good old days for real estate when homes were affordable the same as we are.

True enough... the thing to remember is San Jose was still very much agricultural 60 years ago.

A similar comparison would be to compare prices in a part of the State that is agriculture today...

My Father saved his money from being in the military and bought several Acres in Monte Sereno... it was an old orchard... Several years later he sold it for just a little more than he paid for it because he was getting married.

I remember going to look at that land with him in the 80's... it had several gated estates and one little lot that was carved out of his original parcel was for sale for 100 times what he had sold it for in the 1950's

He said he could have never imagined land so far out in the countryside would ever have that kind of value... my parents moved to Hayward CA

[oldtrader]

I had a friend that bought the corner of Winchester Road and Stephens Creek Road when he came back from the military at the end of WWII a large orchard and he could get a G.I. farm loan on it. He soon found out he was not a good farmer, and leased it out as no one wanted to buy it. Mid 50's he got a great price for commercial land and sold. He bought some farm land by the airport, and suddenly the city wanted to extend the airport and needed part of his farm and commercial developers wanted the rest. He did not have to work any longer.

Look at the famous San Jose Flea Market. It was a parcel of land no one wanted, an old feed lot owned by some brothers I knew. They started a flea market as it was very cheap to do and wanted to do something with the land as they held it for some income, and look at what it is today, one of the greatest flea markets in the country.

[Ultrarunner]

Originally Posted by oldtrader

I had a friend that bought the corner of Winchester Road and Stephens Creek Road when he came back from the military at the end of WWII a large orchard and he could get a G.I. farm loan on it. He soon found out he was not a good farmer, and leased it out as no one wanted to buy it. Mid 50's he got a great price for commercial land and sold. He bought some farm land by the airport, and suddenly the city wanted to extend the airport and needed part of his farm and commercial developers wanted the rest. He did not have to work any longer.

Look at the famous San Jose Flea Market. It was a parcel of land no one wanted, an old feed lot owned by some brothers I knew. They started a flea market as it was very cheap to do and wanted to do something with the land as they held it for some income, and look at what it is today, one of the greatest flea markets in the country.

Reminds me of a couple of old addages...

I'd rather be lucky than smart...

or

Location, Location, Location

[Huckleberry3911948]

its not about dreams its about doing what is sensible. you will get a chance i am sure save your money and dont be in such a hurry to pick up a house the right thing will come.
pray.

[bigdumbgod]

Originally Posted by oldtrader

I had a friend that bought the corner of Winchester Road and Stephens Creek Road when he came back from the military at the end of WWII a large orchard and he could get a G.I. farm loan on it. He soon found out he was not a good farmer, and leased it out as no one wanted to buy it. Mid 50's he got a great price for commercial land and sold. He bought some farm land by the airport, and suddenly the city wanted to extend the airport and needed part of his farm and commercial developers wanted the rest. He did not have to work any longer.

Look at the famous San Jose Flea Market. It was a parcel of land no one wanted, an old feed lot owned by some brothers I knew. They started a flea market as it was very cheap to do and wanted to do something with the land as they held it for some income, and look at what it is today, one of the greatest flea markets in the country.

Folks that own key pieces of land in SV here in 2012 have had it in their families/organizations for generations.

Related note: Wonder what the pricetag was for that Winchester/Stevens Creek BAREC property that has senior housing replacing the old agricultural research field? (Or...what would the open market value have been if it had been a private entity selling it?)

[tempest411]

I almost bought a home in San Jose, but pulled out of it after hearing too many of my coworkers in Livermore remind me how much of a rip-off it is. You can save 100K or more just by living in Livermore, and Livermore is 10X cleaner than San Jose to boot! I've lived in San Jose all my life, and have sadly watched it go down hill steadily. Even if you as a resident live a good, clean life, the odds that you're going to have a neighbor that doesn't, is about 50%. This is probably the root cause of the anti-growth sentiments if the Bay Area in general. The highways have too much traffic on them as it is(and they're not going to lay down more road ways), and improvements in mass transit are very expensive and slow to come (high speed rail, BART). Increasing the number of people living in the area would only reduce the quality of life for everyone. It's been declining since the very first farmer got his first neighbor.

[ccm123]

Try other areas then just San Jose (Santa Clara County). Try the East Bay, for example.