Rent Vs. Mortgage Options (San Jose: apartment complex, rentals, student loans)

[hissman]

Hi everyone,

I'm new to San Jose and am currently here on an internship that will hopefully transition to a full time position in 2 months. My pay is meager at the moment (less than $20 an hour, since i'm an intern) and that should definitely see an increase if and when i go full time.

My accomodation is compensated for right now, which is a huge plus, as i'm living in a ritzy part of north san jose. However, should I continue full time I will not have this luxury afforded to me, and as a young bachelor I am looking for something sub $800 that includes my electric bill.

Am I putting a little too much in my pipe with that wish? Again, I am in North San Jose, and that is the key thing for me so that I can bike to work (near the cisco head offices), and can avoid buying a car for the first little bit.

any advice, websites or recommendations of communities would be greatly appreciated!

P.S. I put the title as Rent vs Mortgage because I'm wondering if I'm staying here long term if that may be a better option...sorry for the confusion

[txcurious]

Unfortunately, 800$ may not even be enough for a studio apartment. Are you considering renting with roommates? The housing market these days is ridiculously expensive.

[thetrb]

Are you working in tech? If yes, then you should be able to negotiate a salary that allows you to pay a much higher rent than $800. And I agree to the post above, you will most likely have to pay more than $800 a month.

[ggcd951]

800$ will not even afford studio. When i moved in 3 years ago during which time rent was still cheaper than today. I looked around and for 1200$ i got 500sq.ft studio temporarily. I am sure it went up considerably since then.

[NoMoreSnowForMe]

You've got to be joking. Do a Craigslist search for rentals. You might be able to find a room for rent somewhere at that price.

I have a hard time believing that anyone who has an internship in SV (for one) and who is smart enough and has the resources to find and use CD (for two) is incapable of doing a search on Craigslist to see how much rent will cost where they want to live.

[Wintermomma]

You would have to rent a room from someone for that price. I would hold out for more money.

[hissman]

Not sure why there is so much aggression from NoMoreSnowForMe...this is a city forum, and I thought asking the locals anonymously wouldn't be a stretch....frankly I was hoping to get some insight, which I appreciate from the rest of the posters.

Now, as to my salary, I am hoping to negotiate for something close to 70-80k, but after taxes that will likely be 60-70k I imagine, ....again im new here, so cut me some slack?

I have student loans to be repaid and that is my priority so living frugally for a year seems like a good option to avoid accumulating interest.

I've found a studio for $850 a month, but nothing guaranteed....it will definitely be interesting, as I just read today that housing prices in the bay area seem to be hitting record highs....

As a new resident of the area, and the USA...I wonder if another bubble is emerging, I'm very uneasy about all of this....is it just me?

[sonarrat]

On $70K you can afford to pay $1500 a month on the apartment, feed two people, pay a car note, and have enough left over to save for retirement. I know; that has been my situation for the past 4 years and I've been perfectly fine. On the one hand, I have no student loan debt, but on the other, I'm already married but still living on a single income..

[txcurious]

Don't worry about the negative posters. It is a shock to find out how high the prices have gone up in the past couple of years. My husband, son and I moved to the East Coast for a year and a half and when we recently moved back the rent in the same apartment complex increased 400$. It was also a shock to us! I'm surprised you found a studio at that price. Good for you!

[thelopez2]

Originally Posted by hissman

As a new resident of the area, and the USA...I wonder if another bubble is emerging, I'm very uneasy about all of this....is it just me?

In the local tech area, doubtful, they'll be ample people to disagree with me. People are buying with cash and large down payments. The NINJA and neg am loans are gone. The prices will drop when the jobs go, then you'll have other serious problems to worry about.

If you are out of college in an internship, you'll still be in a position to buy when you go permanent, if you have saved enough of a down payment and have the income. It wouldn't hurt you to talk to a lender now to find out what you need to do over the next few years to eventually get into a position to buy, since that was part of your original question.