Perks of the Bay Area housing market: (Mountain View, Burlingame: condo, home)

[Oakformonday]

Originally Posted by Electrician4you

Lol. So which bank account is that 15k deposited in? Congrats on the purchase but don't get too drunk on the value. Unless you're selling or gonna play the ATM the house away ponzi game

It's called building equity. It's not personal to you so try not to take it that way. Do you have equity?

[American Expat]

Originally Posted by Ruth4Truth

Pix bought in Vallejo, which reports say is in the process of being "discovered" as the last outpost of cheap housing on the Bay. Pix made a pretty smart move. Daring, but smart.

Don't disagree but the pattern also has these outlying suburbs being the first to fall when things get bad but I would agree that is a sweet spot.

[aslowdodge]

15k is more of a psychological pat on the back. Pretty insignificant compared to the total value of the house and hard to prove unless an appraiser just came out or it was sold. If he got that value from Zillow or a site like that there is a decent margin of error. Also factor in that to actually get that cash it would have to be sold and then it would disappear when paying out the sales commission.
Still better than a sharp stick in the eye

[phantompilot]

Originally Posted by Oakformonday

It's called building equity. It's not personal to you so try not to take it that way. Do you have equity?

But this is an illusory paper gain. First of all, that's just an estimated value, and have you forgotten the transaction costs? How much is 5% of whatever the house would sell for? Until you've actually accumulated more than the expenses it would incur to sell, you haven't gained any equity.

[basehead617]

Originally Posted by PixelatedTherapy

I bought a house early last month and since then it has increased in value by nearly 15k. If you own property in the Bay Area, you basically have a money printer.

It is hard to time the market.

You're in Vallejo right? Around 2008 I was looking at a nice place in Vallejo - gated street etc. I was close to pulling the trigger but decided against it. A few years later that $450k house was worth $250k.

You are ignoring the thousands and thousands of people who lost their shirts and got foreclosed on during the last real estate downturn. Be careful of your 'irrational exuberance'.

[Perma Bear]

Originally Posted by basehead617

It is hard to time the market.

You're in Vallejo right? Around 2008 I was looking at a nice place in Vallejo - gated street etc. I was close to pulling the trigger but decided against it. A few years later that $450k house was worth $250k.

You are ignoring the thousands and thousands of people who lost their shirts and got foreclosed on during the last real estate downturn. Be careful of your 'irrational exuberance'.

And many of those ranchers sold for 10k new in 1959. What's your point?

[phantompilot]

Originally Posted by Perma Bear

And many of those ranchers sold for 10k new in 1959. What's your point?

Nothing built in Vallejo in 1959 was in a gated community.

So what he is referring to was likely new/recent development.

Nobody wants to live in some post-war shantytown unless it has been (or is being) gentrified.

There was scads of these cheaply built homes built for returning GIs after Korea, they were cramped and spartan to begin with and by the 80s were often the most blighted parts of whatever town they were located in.

[Perma Bear]

Originally Posted by phantompilot

Nothing built in Vallejo in 1959 was in a gated community.

So what he is referring to was likely new/recent development.

Nobody wants to live in some post-war shantytown unless it has been (or is being) gentrified.

There was scads of these cheaply built homes built for returning GIs after Korea, they were cramped and spartan to begin with and by the 80s were often the most blighted parts of whatever town they were located in.

I see tons of " post war shanty towns" with 1 million dollar houses in bad neighborhoods on the peninsula so i guess people do want to live there.

[phantompilot]

Originally Posted by Perma Bear

I see tons of " post war shanty towns" with 1 million dollar houses in bad neighborhoods on the peninsula so i guess people do want to live there.

Yes, and they are all properties that have been razed and rebuilt as new. The commonality of such areas are that it has been gentrified through turnover and teardown.

[Perma Bear]

Originally Posted by phantompilot

Yes, and they are all properties that have been razed and rebuilt as new. The commonality of such areas are that it has been gentrified through turnover and teardown.

99.99999% of them are original. Almost none of them are completely torn down McMansions.