Buying a house in East Oakland (Berkeley, Richmond: real estate, to rent, refinance)
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Context: Just graduated from my master's program in Texas and thinking of moving to the bay area for a new job in tech. I've visited and love the bay area for its weather, culture and food.
Home ownership is an integral part of the American dream and a quick look at zillow in the bay area pretty much crushes those dreams. With my entry level salary in tech plus my existing student debt, i will NEVER be able afford the 1.7 million dollar house listed in the supposedly "up and coming" Rockridge neighborhood. A quick glance around the map revealed a potential solution: It looks to me that East Oakland seems to be the last bastion of affordability in the bay area where I can still commute to work < 45 minutes, and pay around <$500k for a house, which is what I consider to be reasonable for a starter home.
I have read various posts about how east oakland is "war zone" and I will absolutely get robbed/stabbed as a white male. However it seems that recently, even "bad" neighborhoods such as east palo alto has gentrified and the situation is getting better all round for once working-class areas in the bay. A quick look on google street view reveals that some areas of east oakland residential streets doesn't look that bad. Yes, there is still the odd liquor store by the corner of every block but overall, the neighborhoods seems quaint.
My question to you is: How bad is east Oakland in 2018? is it undergoing gentrification? will some areas gentrify faster than others? Is it a good idea for me to buy a house there and ride it out before I'm priced out forever? I'm looking specifically around the Seminary, Millsmont and Frick area, how is this part? Love to hear your thoughts.
Context: Just graduated from my master's program in Texas and thinking of moving to the bay area for a new job in tech. I've visited and love the bay area for its weather, culture and food.
Home ownership is an integral part of the American dream and a quick look at zillow in the bay area pretty much crushes those dreams. With my entry level salary in tech plus my existing student debt, i will NEVER be able afford the 1.7 million dollar house listed in the supposedly "up and coming" Rockridge neighborhood. A quick glance around the map revealed a potential solution: It looks to me that East Oakland seems to be the last bastion of affordability in the bay area where I can still commute to work < 45 minutes, and pay around <$500k for a house, which is what I consider to be reasonable for a starter home.
I have read various posts about how east oakland is "war zone" and I will absolutely get robbed/stabbed as a white male. However it seems that recently, even "bad" neighborhoods such as east palo alto has gentrified and the situation is getting better all round for once working-class areas in the bay. A quick look on google street view reveals that some areas of east oakland residential streets doesn't look that bad. Yes, there is still the odd liquor store by the corner of every block but overall, the neighborhoods seems quaint.
My question to you is: How bad is east Oakland in 2018? is it undergoing gentrification? will some areas gentrify faster than others? Is it a good idea for me to buy a house there and ride it out before I'm priced out forever? I'm looking specifically around the Seminary, Millsmont and Frick area, how is this part? Love to hear your thoughts.
Seminary is horrible. Rented a room there for a bit, not at all worth it. Gunshots every night. Not kidding. Millsmont is technically part of the Oakland Hills, there is some crime, but it's not by any means a bad area. It's really diverse, and rather charming. Frick is fairly rough, not as rough as Seminary, but still pretty rough. Seminary is one of the worst areas in California. I'm not going to sugarcoat this for you. Where would you be working? Also, you're not limited to Oakland, Richmond may work for you as well.
OP, if you're just out of school and have a lot of debt to pay, shouldn't you be looking at a room to rent in a shared household, so you can pay off your debt and save for a downpayment ASAP? Were you really thinking of buying a place so soon out of the gate? I'm trying to get my mind around this.
People are buying in East Oakland, but they're being very selective as to the neighborhood. You should get a room in Berkeley or a studio in Rockridge or Albany (cheaper), and spend a couple of years studying the market over there, while you pay off your debt. Then get back to us.
I also can't believe Zillow refers to Rockridge as "up and coming". Rockridge arrived long ago. Very long ago. The Temescal neighborhood west of there could be described as "up and coming", possibly. You could take a look around there.
OP, if you're just out of school and have a lot of debt to pay, shouldn't you be looking at a room to rent in a shared household, so you can pay off your debt and save for a downpayment ASAP? Were you really thinking of buying a place so soon out of the gate? I'm trying to get my mind around this.
People are buying in East Oakland, but they're being very selective as to the neighborhood. You should get a room in Berkeley or a studio in Rockridge, and spend a couple of years studying the market over there, while you pay off your debt. Then get back to us.
This is good advice. Also, it's clear that OP has never been the Bay Area. It's better to rent a room and get a feel for the area. City Data is helpful, but it's not a substitute for actually going to these places yourself. Still, with that said, avoid Seminary. lol
This is good advice. Also, it's clear that OP has never been the Bay Area. It's better to rent a room and get a feel for the area. City Data is helpful, but it's not a substitute for actually going to these places yourself. Still, with that said, avoid Seminary. lol
Thanks for the input. I will avoid Seminary! Here are the reasons why I want to buy a place
1, I already have a 20% down payment saved up because I did some contract work tech while in school.
2, My student loan interests are really low, i refinanced it at 4.x% through so-fi. Sure i can wipe out my student loan with the money I saved up but with this kind of interest rate, I don't see a need to pay it off ASAP
3, I can qualify to purchase a place with my current debt to income ratio, i already checked with a bank.
4, Most importantly, housing prices in bay area rises a LOT faster than wages, inflation or any other form of investment. There's so much demand and almost no new construction, so it doesn't feel like its going to change anytime soon. I feel like I don't buy something now, I will be priced out forever.
Thanks for the input. I will avoid Seminary! Here are the reasons why I want to buy a place
1, I already have a 20% down payment saved up because I did some contract work tech while in school.
2, My student loan interests are really low, i refinanced it at 4.x% through so-fi. Sure i can wipe out my student loan with the money I saved up but with this kind of interest rate, I don't see a need to pay it off ASAP
3, I can qualify to purchase a place with my current debt to income ratio, i already checked with a bank.
4, Most importantly, housing prices in bay area rises a LOT faster than wages, inflation or any other form of investment. There's so much demand and almost no new construction, so it doesn't feel like its going to change anytime soon. I feel like I don't buy something now, I will be priced out forever.
If buying is what you want to do, then I'd suggest a decent part of Richmond near one of the El Cerrito Bart Stations. Richmond is very similar to Oakland, but a little more affordable.
Thanks for the input. I will avoid Seminary! Here are the reasons why I want to buy a place
1, I already have a 20% down payment saved up because I did some contract work tech while in school.
2, My student loan interests are really low, i refinanced it at 4.x% through so-fi. Sure i can wipe out my student loan with the money I saved up but with this kind of interest rate, I don't see a need to pay it off ASAP
3, I can qualify to purchase a place with my current debt to income ratio, i already checked with a bank.
4, Most importantly, housing prices in bay area rises a LOT faster than wages, inflation or any other form of investment. There's so much demand and almost no new construction, so it doesn't feel like its going to change anytime soon. I feel like I don't buy something now, I will be priced out forever.
So true. Well, you could still rent a room in Berkeley/Oakland, or Albany, while you study the market with a good RE agent, who can point you to less-risky areas, vs. no-go zones. And also check with us, throughout your process, for additional guidance and feedback. Check prices in that Temescal area of Oakland I mentioned, too. It borders Rockridge.The better part is the part closest to Rockridge. Avoid the area around Adeline and Alcatraz Streets, where they cross.
And Richmond is also "up and coming" as Pix said, but one of our recent posters couldn't find an affordable place, and he had a little more to work with than you do. IDK, it's a very tough market, and be aware that any list price you see will get bid upwards by around 30% if not more, depending. It can be very discouraging for a buyer. You can lose out to people able to pay cash.
So true. Well, you could still rent a room in Berkeley/Oakland, or Albany, while you study the market with a good RE agent, who can point you to less-risky areas, vs. no-go zones. And also check with us, throughout your process, for additional guidance and feedback. Check prices in that Temescal area of Oakland I mentioned, too. It borders Rockridge.The better part is the part closest to Rockridge. Avoid the area around Adeline and Alcatraz Streets, where they cross.
OP is looking to be under $500K--Temescal is $1M+ for starter homes. Definitely far beyond his/her price point, as is the area near Adeline and Alcatraz (not quite at $1M but getting close and super popular right now).
Millsmont is the safest neighborhood of the three you named (though I have never heard it considered part of the hills--it's below 580!) But I would rent for a year in whichever neighborhood you're most interested in to see how it goes, and then plan to buy on a more leisurely timeline. That will also give you a chance to understand your commute better. (You don't mention whether the job is in SF or in Silicon Valley, for instance--big difference in where to live.) Also consider the Laurel District, in the same area right above 580.
I would also not make the mistake of assuming Bay Area real estate always goes up. It doesn't, and at some point there will be another correction. The neighborhoods you named are risky in that if the market does stumble, you will lose value quickly there if you inadvertently buy at the peak. That's okay if you love the area and are willing to wait it out, because SF real estate will dust itself off and keep on going. But it's really critical to know that you love (or at least can live with) the neighborhood/house before jumping in.
OP is looking to be under $500K--Temescal is $1M+ for starter homes. Definitely far beyond his/her price point, as is the area near Adeline and Alcatraz (not quite at $1M but getting close and super popular right now).
Millsmont is the safest neighborhood of the three you named (though I have never heard it considered part of the hills--it's below 580!) But I would rent for a year in whichever neighborhood you're most interested in to see how it goes, and then plan to buy on a more leisurely timeline. That will also give you a chance to understand your commute better. (You don't mention whether the job is in SF or in Silicon Valley, for instance--big difference in where to live.) Also consider the Laurel District, in the same area right above 580.
I would also not make the mistake of assuming Bay Area real estate always goes up. It doesn't, and at some point there will be another correction. The neighborhoods you named are risky in that if the market does stumble, you will lose value quickly there if you inadvertently buy at the peak. That's okay if you love the area and are willing to wait it out, because SF real estate will dust itself off and keep on going. But it's really critical to know that you love (or at least can live with) the neighborhood/house before jumping in.
My job will be in Alameda, thats another reason why this area is attractive to me since its fairly close to commute.
OP is looking to be under $500K--Temescal is $1M+ for starter homes. Definitely far beyond his/her price point, as is the area near Adeline and Alcatraz (not quite at $1M but getting close and super popular right now).
Millsmont is the safest neighborhood of the three you named (though I have never heard it considered part of the hills--it's below 580!) But I would rent for a year in whichever neighborhood you're most interested in to see how it goes, and then plan to buy on a more leisurely timeline. That will also give you a chance to understand your commute better. (You don't mention whether the job is in SF or in Silicon Valley, for instance--big difference in where to live.) Also consider the Laurel District, in the same area right above 580.
I would also not make the mistake of assuming Bay Area real estate always goes up. It doesn't, and at some point there will be another correction. The neighborhoods you named are risky in that if the market does stumble, you will lose value quickly there if you inadvertently buy at the peak. That's okay if you love the area and are willing to wait it out, because SF real estate will dust itself off and keep on going. But it's really critical to know that you love (or at least can live with) the neighborhood/house before jumping in.
Maxwell Park is also a neighborhood worth looking at - it's long been a stable, safe community - but pricewise may be a reach.
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