What would cause the tech companies to move out of the Bay Area? (Montclair: crime, salaries)

[NewbieHere]

Originally Posted by artillery77

Opus. I don't know enough about you to make that call. If you no longer need to sell your labor, you'll obviously be safer than someone that does, but it will depend on what your income stream consists of.

If the money stops, jobs will become scarcer and a degree that is much larger than other areas because of the years of investment that have supported the area. When jobs are scarce, hiring of friends and relatives goes up as opposed to merit based hiring. This doesn't just hurt the otherwise qualified job seeker, it hurts anyone that utilizes the product/service being provided by that position. It amazes me how many of our family's friends come up and ask for a job already. Often I'll have no idea what they do and they aren't specifying....are you looking for a (insert title). Simply, can you get me a job with your company? I mean, the economy is good right now, if it gets bad, I'm sure that will increase.

So your feudal hierarchy in terms of labor would be bank-business owner-hiring manager-employee.

For commercial properties, they will have to worry about their tenant companies going bust. Most are 75% financed with 5 year renewals. So, in 2009, when commercial values sank 50% in San Jose, anyone that had bought in the previous financing cycle was now underwater. Unlike a residential mortgage that is fine unless you stop paying, these need to be renewed every 5 years. Maybe they could afford the payment, but, but if they bought a building for $10M and financed $7.5M, and are now facing renewal only that $10M is now only $5M....and that $7.5M debt is down to $7.1M...they've done nothing wrong, except they now need to pony up enough money to get that $7.1M debt down to 75% of $5M all at a time where tenants are weak. If the building forecloses nobody gets to lease there. If the bank decides to "extend and pretend" then the building owner might be safe for a bit, but will still need to compete in a tough marketplace with higher rents than what another building may be able to offer. If a banker has a friend that wants that building, that might override on the decision.

So you feudal hierarchy in terms of land would be bank-loan officer-land owner/borrowers (current and prospective)-renters(businesses/NFPs/NGOs).

Now you may be retired and sitting in your owned home and not care if your friends and neighbors get foreclosed upon. Maybe you have enough cash and are looking for a golden schadenfreud moment. It should be fine until an unqualified nurse that can't measure medicine properly overdoses you, or your neighborhood becomes one of section 8 housing. The one eyed man does reign supreme amongst blindness. But why would that be appealing?

Too much rambling. Move to a low cost area for better qualified nurse.

[artillery77]

Originally Posted by Opus One

You can't put 5 separate people on the title.

Actually, I think you can, but it's inconvenient. I just purchased a home for my sister. (I had the financing, she's going to live there). When she pays me back the original amount, I'll quit my claim to the deed. To avoid the numerous courthouse trips, normally you would put the property into a partnership that owns the property and change who owns the partnership.

[NewbieHere]

Originally Posted by Opus One

WAS <- that's a keyword.

Do your own research. I won't do it for you.

[drro]

It's ad companies like Google these days in the Bay Area, not 'tech companies'. The tech companies have mostly left already.

[cardinal2007]

Originally Posted by Opus One

I'd love to see all those tech companies leave and see homes for 200,000 again on the peninsula like they have in places like Eureka.
I'm praying for detroitification.

Why is that, because you want to be out of a job? Have you actually lived somewhere with over 20% unemployment? Even if you have a job yourself, only one particular type of person would take pleasure in having a job while their neighbors are struggling. I don't think having entire blocks of mostly abandoned homes with a few renters while banks struggle to figure out what to do, foreclose, not foreclose, rent out the property, let it decay, pay city taxes, don't, lack of city services because very few people are paying taxes, I don't think any of it is good tbh.

I'm not sure why you're praying for that, do you really just like to see human suffering?

[calicoastal]

Originally Posted by drro

It's ad companies like Google these days in the Bay Area, not 'tech companies'. The tech companies have mostly left already.

Google, Facebook, Twitter, Yahoo, etc. are primarily content providers, not ad companies. They provide content that people want to see, and make money by showing ads or charging a fee, just like any other content provider like TV networks or magazines. Without the content they would not be able to make money.

There is a convergence of traditional media companies and new content providers. New content types rely on software development, and thus tech. The providers with the best tech will win, e.g. look at the implosion of MySpace and the rise of Facebook.

Also, tech companies that don't primarily make money on advertising, like Intel, Apple, Cisco, HP, Oracle, Nvidia, AMD, etc. are still headquartered in the Bay Area. It is only the manufacturing that has left. Though Tesla has reversed that trend with its Fremont plant.

Can you name major tech companies that have left?

[Conrad Gray]

Originally Posted by Opus One

Then why is it so expensive? Pray tell.

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[WizardOfRadical]

The same thing that tanked US Autos and US Steel monopolies. Foreign competition. In 50-70 years there will be Silicon Valleys in every large metro area and all over the world.

While Silicon Valley will remain prominent, the dominance will erode.

[phantompilot]

Irresponsible immigration and monetary policies (inflation) have rendered SV the increasingly unlivable mess that it is today...not the tech industry.

Don't forget the "tech" industry here goes back 50+ years to the first days of the defense and aerospace industries, and the track record includes decades of true middle-class prosperity, high living standards, and contentment. (new) Tech didn't just come along and ruin a good thing.

[18Montclair]

So long as the companies like the one I work for(Venture Capital Firm) a squarely centered in the Bay Area, start ups will continue to flock here and companies will be incubated into greatness here.

That has always been one of the foundational advantages this region has had over everywhere else in the world.