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There's nothing shameful in living at home until you one day inherit.
My parents live in the sticks. I wouldn't live there. And there are no jobs. It wold be a 2.5 hour commute each way to my current job. No thanks. Their home won't appreciate much. It might be a down payment for where I live.
If I could do no better in my career than low wage work, I wouldn't stay in those high cost areas.
Quote:
Originally Posted by NewbieHere
You don't have to live in the Bay Area. Simple. Same with NYC.
But every city needs low wage workers. Who will support the high wageworkers needs to eat ou, go shopping, take uber, use instacart, use handy, do their gardening, mow their lawns......
My parents live in the sticks. I wouldn't live there. And there are no jobs. It wold be a 2.5 hour commute each way to my current job. No thanks. Their home won't appreciate much. It might be a down payment for where I live.
There are hundreds of other job centers. Go where it is cheaper.
So again back to my first question. If "No One" could afford to pay or qualify to take out a mortgage on this home then how come the home does SELL at the above price and usually in a bidding war. I think alot of this is just envy
Because there's a perfect storm of overpaid tech millionaire hipsters who are driven by their desire to live close to "gourmet free range hip" places and will pay any price to live in San Francisco solely because "it's the place to be", Chinese executives who don't want themselves or their money to "disappear" in their authoritarian homeland, and nearly bottomlessly funded hedge funds and REITs who want the sweet rent money in a low yield environment. It created a cesspool that killed off most of the middle class who did not buy a home in the 1980s or earlier.
My prediction is the pendulum will swing back... no idea how far.
When prices dropped and in parts of Oakland prices dropped a lot I was trying to get people interested... saying this is the time to be out looking to know what you want...
Not a single person in my circle at the Hospital were interested in owning... some had owned and said never again... they were dead serious... saying things like why would I ever want to own again when renting similar means saving 50%.
Tried to say how short sighted this was... rents are basically what the market will bear... unless you are in a rent controlled area and none of them lived in SF, Oakland or Berkeley.
Now that property is up they feel really upset mostly from missed opportunities...
The time to move is when prices are down all things being equal and the medical staff working in a Bay Area hospital are pretty secure in there jobs...
People have been lately asking for advice and I have not encouraged any of them to buy unless they are fully committed...
The clerk at the local Safeway owned 5 homes at one time... he bought all of them between 2003 and 2007... he lived in one and rented the others... by 2010... he lost/walked away from all of them... rents fell dramatically as did home prices... he simply could not cover enough of his costs to hang on...
My prediction is the pendulum will swing back... no idea how far.
When prices dropped and in parts of Oakland prices dropped a lot I was trying to get people interested... saying this is the time to be out looking to know what you want...
Not a single person in my circle at the Hospital were interested in owning... some had owned and said never again... they were dead serious... saying things like why would I ever want to own again when renting similar means saving 50%.
Tried to say how short sighted this was... rents are basically what the market will bear... unless you are in a rent controlled area and none of them lived in SF, Oakland or Berkeley.
Now that property is up they feel really upset mostly from missed opportunities...
The time to move is when prices are down all things being equal and the medical staff working in a Bay Area hospital are pretty secure in there jobs...
People have been lately asking for advice and I have not encouraged any of them to buy unless they are fully committed...
The clerk at the local Safeway owned 5 homes at one time... he bought all of them between 2003 and 2007... he lived in one and rented the others... by 2010... he lost/walked away from all of them... rents fell dramatically as did home prices... he simply could not cover enough of his costs to hang on...
Because there's a perfect storm of overpaid tech millionaire hipsters who are driven by their desire to live close to "gourmet free range hip" places and will pay any price to live in San Francisco solely because "it's the place to be", Chinese executives who don't want themselves or their money to "disappear" in their authoritarian homeland, and nearly bottomlessly funded hedge funds and REITs who want the sweet rent money in a low yield environment. It created a cesspool that killed off most of the middle class who did not buy a home in the 1980s or earlier.
The buy opportunity of a generation was in 2011... no need to go back 30 years... home prices in neighborhoods in my Bay Area city had fallen to 1980's prices without having the outrageous 1980's interest rates.
He and his wife rent... they both work full time and have a 5 year old daughter.
I encouraged him when he was making his first purchase in Castro Valley... later he said he was going to buy a brand new home for an investment in Tracy and I saw a red flag and said as much... I suggested a 2 or 3 unit property in Castro Valley or San Leandro where he could increase equity and be close enough to keep an eye on things or even move into a unit.
They recently were thinking of a owning again after the rent went up... they don't have good credit and can't afford what they walked away from...
Location is supposed to be everything... timing with a bit of luck has to be right up there.
The buy opportunity of a generation was in 2011... no need to go back 30 years... home prices in neighborhoods in my Bay Area city had fallen to 1980's prices without having the outrageous 1980's interest rates.
The prices were not comparable you could have bought in the Oakland hills for 50 grand.
The house right next to my rental home sold for 80k in 1989... it sold for 510k in 2007 and the bank sold it for 100k in 2009... Laurel District
A home I bought in 1983 for 45k and sold for 250k in 2006 was sold a year later for 355k and the bank sold it for 70k in 2009... I even considered buying it back! Havenscourt
Spoke with the guy that bought the Havenscout house and he still lives there... said he couldn't believe how cheap he could buy it compared to the same home across the street was rented for $1000 a month...
He was able to buy it for 6x the gross rent at that time... now that home would rent for $1650... which means he paid about 3.5x the gross rent based on today's price...
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