Rent on the Peninsula or buy in the East bay? (San Jose: sales, real estate)

[mmccrr82]

Hi, I'm after some perspective from locals...

We're a family of four (two kids, 3 and 1) who moved to the Bay Area 6 months ago. We are living in Belmont by the caltrain, I'm at home with the kids (will apply for green card in September) and my husband has been splitting his commute between Mission bay and San Jose. Soon his work is moving to Foster City but our landlords want to renovate and sell so we will have to find a new place to live before end of September, just as his commute is going to go down to 12 mins drive or 30 min bike! We are also in a safe walkable area with good elementary school and good transport links and in a single family home, we felt lucky to get this place so i'm sad we have to move! But it's worth about 1.3 million so we can't afford to buy it haha.

Lots of things are going through my mind as to our options. We are mid to late 30s, we want to get on the property ladder since we haven't really had the opportunity before (moving around a bit, but we feel we want to stay in this area for at least 5 years, especially with a child starting school next year). Salary is $140k plus bonus/stocks, we pay $3850 rent currently which is a bit of a stretch (not saving any money)...we are getting mortgage preapproval which looks like it might get us a property up to $720k (FHA loan....) and mortgage payments would be maybe $3500/month, but that would pretty much exhaust our savings...

So, our options are, in my mind:
a) find another place to rent on the peninsula for similar/cheaper price (e.g. San Mateo) to have less commute and nice area
b) buy a house in the East bay where it is more affordable but still have the long commute over the San Mateo bridge
c) rent in the East bay, get to know the area, save up to $1000/month in rent, but still have long commute

We want to live in a house with garden, not in an apartment (due to the kids and our cat which has traveled around the world with us, twice!). We also don't want more than 1 hour commute (similar to the current commute to Mission bay/San Jose). Also, i'm not sure what area I would be able to get a job, hopefully next year, in terms of commuting there from the east bay. Probably salary around $80k? My husband has good options for progression in his company so he's likely to stay there for a while.

Looking at decent places (safe areas, good schools) within an hour's commute of Foster City, I was thinking San Leandro, Castro Valley or Fremont. I think we could get something for around $680k (2-3 bedrooms, 1200 sqft, garden). Although, I've never actually been across to the East bay to get a feel for the area! We love the peninsula, especially the feel of San Carlos downtown but we know we're not going to get that.

Your perspectives appreciated - a, b, or c? Recommended suburbs/areas to consider for renting/buying in the East bay? Or just stick to the peninsula for now? Are we crazy to consider buying?! We were just getting to know the area and settling into a new life and it's very disrupting thinking about having to move to a new area so soon.

Thanks for reading my long message/life story...!

[PlainWhite]

Originally Posted by mmccrr82

Hi, I'm after some perspective from locals...

Looking at decent places (safe areas, good schools) within an hour's commute of Foster City, I was thinking San Leandro, Castro Valley or Fremont. I think we could get something for around $680k (2-3 bedrooms, 1200 sqft, garden). Although, I've never actually been across to the East bay to get a feel for the area!

No offense, but how can we take this inquiry seriously if you've never taken the time to travel to the East Bay?

[mmccrr82]

Well, it's just all happened in the past week, of course we will have a look but we can't tour the entire East Bay so some starting points would be good. Just as you would suggest for those moving from overseas.

[mmccrr82]

I mean, it looks kind of feasible on paper... We will also be talking to real estate agents.

[netaxcat]

OP, I think your situation is the same as many families moving across to East Bay. Owning your own house with outdoor space that kids can play, instead of paying high rent every month for an apartment.

And for the same reason, I have seen property prices going up fast in East Bay. Do your homework, and see what fits you and your family best.

[sav858]

Yeah definitely visit and do your homework/research, Castro Valley and Fremont are nice suburbs with relatively good schools but rather bland and lacking the charm of cities on the peninsula with their quaint, walkable Main St downtowns. San Leandro is a mixed bag and lacking in good schools. If you want good schools Castro Valley is probably your only option out of those three and even then the inventory will be tight and competition high for your price range likely. Your budget unfortunately is more in line with homes in Hayward and crappy schools I think.

[WizardOfRadical]

Forget the East Bay, unless you want to spend 3-5 hours a day in the car. At your budget you can't even buy in a nice area.

Rent, keep your kids in the good schools, stay in the area. Life's too short to be an East Bay commuter. LoL

[mmccrr82]

Thanks for your replies - we drove across today and had a quick look around Castro Valley and Fremont. I agree with Sav858's observations about them being a bit bland, lacking the charm of the peninsula, which I would miss! Plus fewer trees and more need to drive everywhere, I do appreciate being able to easily walk to shops and playgrounds, especially as we only have one car at the moment. I think we are probably priced out of Fremont but could strike it lucky with Castro Valley. We might look at San Leandro and Hayward, but from what I can see online for crime rates and schools etc it's not so great compared to where we are now, although maybe there are nicer pockets. We're not too worried about the commute, as my husband has been driving/train to SF and SJ so a drive across the San Mateo bridge would be a similar length, plus he can take a work shuttle for some of the journey and work from home occasionally.

Maybe we can rent in the East Bay for a bit so as to up our budget...! (Although who knows how fast and how far the house prices will rise in that time!). At least I have now discovered the sales history details on Zillow etc so I can see what has sold and for how much recently.

[shooting4life]

Originally Posted by WizardOfRadical

Forget the East Bay, unless you want to spend 3-5 hours a day in the car. At your budget you can't even buy in a nice area.

Rent, keep your kids in the good schools, stay in the area. Life's too short to be an East Bay commuter. LoL

It doesn’t take that long to go across the San Mateo Bridge. I do it every day. If the work is in foster city then they will miss all the really bad part, 101.

[shooting4life]

Originally Posted by mmccrr82

Thanks for your replies - we drove across today and had a quick look around Castro Valley and Fremont. I agree with Sav858's observations about them being a bit bland, lacking the charm of the peninsula, which I would miss! Plus fewer trees and more need to drive everywhere, I do appreciate being able to easily walk to shops and playgrounds, especially as we only have one car at the moment. I think we are probably priced out of Fremont but could strike it lucky with Castro Valley. We might look at San Leandro and Hayward, but from what I can see online for crime rates and schools etc it's not so great compared to where we are now, although maybe there are nicer pockets. We're not too worried about the commute, as my husband has been driving/train to SF and SJ so a drive across the San Mateo bridge would be a similar length, plus he can take a work shuttle for some of the journey and work from home occasionally.

Maybe we can rent in the East Bay for a bit so as to up our budget...! (Although who knows how fast and how far the house prices will rise in that time!). At least I have now discovered the sales history details on Zillow etc so I can see what has sold and for how much recently.

I would also check out San Lorenzo, I live there so that makes it that much better. They have a really good high school and quality charter schools as well. The crime rates are low if you are in the most western parts. You will defiantly need a car though. It isn’t very walkable unless you are really dedicated.