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Old 06-30-2008, 05:05 AM
 
595 posts, read 2,308,848 times
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I lived in the East Bay from 1989 through 1995. A computer job moved me to Phoenix. The jury is still out on that move. I sold in Arizona in 1995, and I've been living overseas. I've been following the declining real estate prices, and I'm interested in three zip codes in Oakland. They are 94621, 94605, and 94607. There are properties under 100K in all of these zip codes. I will be paying cash, so I will demand a good deal. 94605 looks like the wealthiest, but is furthest from the BART. I know none of these areas are that great, but I am single and take care of myself. I think the energy situation dictates that living closer in will be the wisest choice of the future. I also like the idea of minimal heating and cooling. I've assessed the tax records, and know that some of these properties sold for over 300K during the "boom." If anyone could give me some feedback on these areas; I would greatly appreciate it.
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Old 06-30-2008, 10:25 AM
 
Location: San Jose, CA
7,688 posts, read 29,161,273 times
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94607 is certainly the best bet between the three; close to downtown and there's a strong redevelopment movement in the Lower Bottoms, though the retail hasn't yet caught on. 94621 and 94605 are very poor and foreclosure-wracked and are probably not going anywhere.
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Old 06-30-2008, 10:35 AM
 
15,641 posts, read 26,270,321 times
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Quote:
Originally Posted by barryhussein View Post
I lived in the East Bay from 1989 through 1995. A computer job moved me to Phoenix. The jury is still out on that move. I sold in Arizona in 1995, and I've been living overseas. I've been following the declining real estate prices, and I'm interested in three zip codes in Oakland. They are 94621, 94605, and 94607. There are properties under 100K in all of these zip codes. I will be paying cash, so I will demand a good deal. 94605 looks like the wealthiest, but is furthest from the BART. I know none of these areas are that great, but I am single and take care of myself. I think the energy situation dictates that living closer in will be the wisest choice of the future. I also like the idea of minimal heating and cooling. I've assessed the tax records, and know that some of these properties sold for over 300K during the "boom." If anyone could give me some feedback on these areas; I would greatly appreciate it.
I can't say anything about 94607, but the other two are close to my zip. anything listed under 100K is very probably not just in a bad neighborhood -- it's trashed. I just check on trulia and all I can find are foreclosures.

Not that foreclosures are a bad deal, but sometimes they are in bad condition. I've got one in my neighborhood where all the copper has been stripped out -- pipes and wires. So you have to not only redo that -- you have to fix the walls, too.... it's almost a total rebuild.

You can live safely in a marginal neighborhood -- we do. But the other thing you have to account for is you will also suffer from a lack of appreciation in your investment. It'll go up -- but where as someone buys in Marin County can count on a appreciation rate of 5% a year -- you'll be getting 1%.

You can offset this lack of real estate appreciation by living below your means and investing your savings. Lets face it -- if you are going to buy a house in a marginal area, you can forget living off it in your old age! You will have to actively save for yourself.

You also can't live ostentatiously in a marginal area. Chances are if you show it off, they'll break in and steal it.

We did have a really big run up on our home prices in the boom years, but all that means is when the boom busted, we were hit first and hardest. Houses similar to mine (zillow valued at 364K) aren't selling priced at 169K.... which means we still have a farther drop to go -- and which means that houses in our area have sunk to 2001 values.

Which does sound like all doom and gloom -- but I like my little house and our area is fairly quiet, and I'm paying 650 a month on my mortgage. Can't rent much of anything for that -- and with nine cats -- I couldn't rent anything.
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Old 06-30-2008, 11:42 AM
 
253 posts, read 1,332,717 times
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100K in Oakland requires Kevlar siding to avoid getting killed in your sleep by random gunfire.
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Old 06-30-2008, 11:48 AM
 
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Thanks for the feedback. I do remember some folks buying in very marginal areas of DC in the late 60's. People thought they were crazy for wanting to live in a two hundred year old row house, not even 4 meters wide. Now, some of these places are worth one to two million usd.

BTW, according to zipskinny.com, 94605 shows a median household income of 48K, which is somewhat higher than the other two. But, 94607 does seem more strategically located.
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Old 06-30-2008, 11:49 AM
 
595 posts, read 2,308,848 times
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Originally Posted by RandalR View Post
100K in Oakland requires Kevlar siding to avoid getting killed in your sleep by random gunfire.
Yes, Randal, but that same Kevlar was required when they were selling for 300K.
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Old 06-30-2008, 11:51 AM
 
28,115 posts, read 63,692,777 times
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Can't just go by zip codes... 94605 has homes well over a million dollars as well...

From my experience, homes in marginal areas that always have someone at home have very few problems...

The problem is that many homes are unoccupied during the day and it is easy for the criminal element to figure it out.

Resale is also be impacted in marginal areas.

If your goal to own a home for the least possible cost and you are willing and able to make your own improvements... then go for it... I did and it was one of the best financial decisions I made...

The old method of looking to see how many homes in the neighborhood have burglar bars is still valid.
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Old 06-30-2008, 11:58 AM
 
Location: San Jose, CA
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Originally Posted by Ultrarunner View Post
Can't just go by zip codes... 94605 has homes well over a million dollars as well...
Not anymore!
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Old 06-30-2008, 01:58 PM
 
28,115 posts, read 63,692,777 times
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Originally Posted by sonarrat View Post
Not anymore!
Yes... there are residential properties valued well over a million... even Realtor.com has several single family listings listed a million or more...

There are a number of estate homes in the 94605... some with 10 or more acres... I know one estate that has paved parking for 150 cars... and many with stables...
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Old 06-30-2008, 03:39 PM
 
Location: Oakland, CA
1,554 posts, read 5,291,338 times
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Quote:
Originally Posted by Ultrarunner View Post
Yes... there are residential properties valued well over a million... even Realtor.com has several single family listings listed a million or more...

There are a number of estate homes in the 94605... some with 10 or more acres... I know one estate that has paved parking for 150 cars... and many with stables...
But But But But But. IT'S OAKLAND!!!!! You'll get shot for breathing.
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