Housing Values May Drop Over 50% In Silicon Valley (neighborhoods, to buy)

[dogandcat]

Originally Posted by Perma Bear

750-150= 600k, you'd need to make about 150k to be approved for that even with 0 debt. If you make closer to 60k 400k is probably the absolute max with say a 110k downpayment.

Did you read my previous comment? I told you my personal story how I got similar mortgage for my house not making 150K per year, and having a small car loan. I read your comments for maybe a year or so about pricey real estate in the area, but without any conclusion. Not just yesterday but a year ago I told you about good schools and pretty affordable houses in my zipcode but you did not believe me. Now there houses 50-100K more expensive than a year ago. Sorry but it seems like you are not motivated to buy at all just making jokes around to spend some free time.

[Perma Bear]

Originally Posted by dogandcat

Did you read my previous comment? I told you my personal story how I got similar mortgage for my house not making 150K per year, and having a small car loan. I read your comments for maybe a year or so about pricey real estate in the area, but without any conclusion. Not just yesterday but a year ago I told you about good schools and pretty affordable houses in my zipcode but you did not believe me. Now there houses 50-100K more expensive than a year ago. Sorry but it seems like you are not motivated to buy at all just making jokes around to spend some free time.

Can't see me getting approved for more than 400

[TR95]

Originally Posted by Perma Bear

Can't see me getting approved for more than 400

If you make $110k/year or $9,166/mo you can afford a max total debt at 43% just as someone else said, which equates to $3,941/mo. PITI on a $750k house/$600k mortgage would be $3,918/mo at 4% 30 year fixed, so with no other debt someone can get approved for this. Give it time as the cycle will start with 5/1, 3/1 and 1 year ARMs and people will get into these loans and the bubble will inflate.

[Perma Bear]

Originally Posted by TR95

If you make $110k/year or $9,166/mo you can afford a max total debt at 43% just as someone else said, which equates to $3,941/mo. PITI on a $750k house/$600k mortgage would be $3,918/mo at 4% 30 year fixed, so with no other debt someone can get approved for this. Give it time as the cycle will start with 5/1, 3/1 and 1 year ARMs and people will get into these loans and the bubble will inflate.

Not many people make that much.

[JohnSoCal]

Originally Posted by Perma Bear

Not many people make that much.

There are a lot of people in Silicon Valley that make that much and more. The median household income in many of the SV cities, including San Jose, is over $100k.

[Perma Bear]

Originally Posted by JohnSoCal

There are a lot of people in Silicon Valley that make that much and more. The median household income in many of the SV cities, including San Jose, is over $100k.

Actually the median HOUSEHOLD income is sub 100k (in the 90s) and household is for an entire household i.e 2+ people. Probably sub 15-20% make that much by themselves.

[dogandcat]

Originally Posted by Perma Bear

Not many people make that much.

Other people are other people. Everybody has their particular situation. But I do not understand your complain. You are a young healthy man, aren't you? Take second job. Ride Uber on weekends as a driver. Find a spouse who works as well if you are single. Whatever. It does not require so much to make to buy a condo in San Jose....

[JohnSoCal]

Originally Posted by Perma Bear

Actually the median HOUSEHOLD income is sub 100k (in the 90s) and household is for an entire household i.e 2+ people. Probably sub 15-20% make that much by themselves.

We are not in the 90's.

Real Median Household Income for San Jose California

2015 1 Year Change 3 Year Change
US $55,775 +3.83% +5.17%
California $64,500 +4.02% +7.12%
San Jose $101,980 +5.58% +8.87%

Cities like Cupertino, etc. are much higher.

Median household income is not necessarily 2+ people. A household can be a single person, single person with children, 2 adults with only 1 earner, etc.

There are a lot of high earners in the Valley.

[JohnSoCal]

Originally Posted by Perma Bear

Not many people make that much.

Yes they do. Instead of complaining all the time why don't you do something to improve your situation. You are just playing the victim.

[Perma Bear]

Originally Posted by JohnSoCal

Yes they do. Instead of complaining all the time why don't you do something to improve your situation. Ypu are just playing the victim.

I'm in the top 10% or higher of millennials in net worth. I'd go out on a limb and say I'm exact proof the situation is unsustainable.