Why do you stay? (Pomona, Davis: sales, lawyers, homes)

[phantompilot]

Originally Posted by marcopolo666

Buy a house. Rent out the extra rooms to help with mortgage. Live there 5 years, then rent out the entire house for more than mortgage and buy another house to live in. That's what I have been doing the past 25 years. (Although I didn't change houses in 2009 as I had been planning - I stuck it out until 2011, when I found two fantastic deals on houses for peanuts - they have almost doubled in price.) Come to think of it, it would normally be time to buy another house, but I have more han enough to live on as it is - I'm getting lazy and don't want the extra hassle or work. Last year, I sold the first two houses I purchased and paid off about 90% of the monies owed on all the houses.

I'm here because I am making money hand over fist, on real estate.

It would be impossible to turn a rental profit at the current prices, unless you are a slumlord.

[phantompilot]

Originally Posted by marcopolo666

Or, you could buy a house, live there for 5 years, then sell it and pocket $300K in appreciation, and THEN buy a house for cash somewhere else (with $300K in the bank, to boot).

What zip code are you suggesting this would happen in?

Even in the bubbliest of areas, 300K in five years would be unusual, and don't forget there is an astronomical carrying cost. The property tax alone is going to run 25K/year.

[phantompilot]

Originally Posted by mossly

Work.

My husband is in tech. His job in the Bay Area pays more than double his last salary elsewhere - and while the cost of living is higher here, it's not double. So being here still represents a big jump in income for us.

Well, you must have been living in a very expensive (compared to the national average) area before as well, for it not to be double, since housing in Santa Clara County median price is over 5x the national average. And since housing is one of the largest components of "cost of living" (perhaps even the largest), it has a major impact.

[LeavingDetroit]

Originally Posted by marcopolo666

Buy a house. Rent out the extra rooms to help with mortgage. Live there 5 years, then rent out the entire house for more than mortgage and buy another house to live in. That's what I have been doing the past 25 years. (Although I didn't change houses in 2009 as I had been planning - I stuck it out until 2011, when I found two fantastic deals on houses for peanuts - they have almost doubled in price.) Come to think of it, it would normally be time to buy another house, but I have more han enough to live on as it is - I'm getting lazy and don't want the extra hassle or work. Last year, I sold the first two houses I purchased and paid off about 90% of the monies owed on all the houses.

I'm here because I am making money hand over fist, on real estate.

I'm in the decision process to return to the bay area for a position in SJ. I know this was possible in past and kick myself for not having bought back in 2011 when had a contract on a place but am very dubious that this type of wealth creation will continue over next decade or two, given the rising interest rates and moves of SV companies to TX and elsewhere. Would welcome everyone's thoughts and rationales

[Perma Bear]

Originally Posted by LeavingDetroit

I'm in the decision process to return to the bay area for a position in SJ. I know this was possible in past and kick myself for not having bought back in 2011 when had a contract on a place but am very dubious that this type of wealth creation will continue over next decade or two, given the rising interest rates and moves of SV companies to TX and elsewhere. Would welcome everyone's thoughts and rationales

Hipsters will always overpay for housing.

[phantompilot]

Originally Posted by LeavingDetroit

I'm in the decision process to return to the bay area for a position in SJ. I know this was possible in past and kick myself for not having bought back in 2011 when had a contract on a place but am very dubious that this type of wealth creation will continue over next decade or two, given the rising interest rates and moves of SV companies to TX and elsewhere. Would welcome everyone's thoughts and rationales

Why are you kicking yourself? Because you think right now you could be selling at a big profit?

But that's everything. Stocks, whatever.

This is probably the worst time to get into the Bay Area real estate market. Things can only get worse from here on out.

[usoda]

Originally Posted by phantompilot

Why are you kicking yourself? Because you think right now you could be selling at a big profit?

But that's everything. Stocks, whatever.

This is probably the worst time to get into the Bay Area real estate market. Things can only get worse from here on out.

Can you elaborate on this?

[phantompilot]

Originally Posted by usoda

Can you elaborate on this?

Not very much. If you live here then surely you understand what I'm talking about. The situation here is totally unsustainable. And that which is not sustainable, ends.

[LiaLia]

Originally Posted by jackymcsparrow

Not including those of you who own property or have a long family history in the area. With the absolute joke cost of living, overcrowding, and ridiculous traffic, why do you stay in the bay?

Ok if we discount the above category then my reason would line up with what joeymcmarbles said. When I was in my twenties I didn't get the enormity of what was developing here. I moved away and stayed away for 20 years. Then came back and I got it right away. It's probably true that the majority of people under age 45 who reside here today could not care any less than their already zero care about the history that's in the making. They're concerned with more immediate things, tangible things. Makes sense they want get out of here for different pastures. But the other people who stay even though they have no roots here...I think they stay either because they're locked in work-wise or because they're actually drawn to something here that they think is special. They want to experience it and contribute to it. Help shape it for the future.

[SunshineCA39]

I am stuck here because of the custody of my daughter and messed up family court system of CA. No, I’m not lazy like one of the comments suggested, I work hard and have a decent job; however my salary though more than enough other places in this country, not enough in this area. Single income and no I don’t make over $200k to be just fine. Not everyone does. Single mom with no support here and I mean zero family!
Not getting anything from my ex either. Tried to move out of here to provide a better life for my child and actually start saving for her future, put her in better schools and be near family and have their support and actually let my kid attend extra curricular activities. My ex who does bare minimum for our kid fought me in court, the court dismissed all the benefits of her moving and said she’s used to here (she’s only 6!) and that community is here?!!! Community? She’s 6!!! The whole thing was a mess and yup that’s why I’m still here... they told me what’s good for MY child and basically either suck it up or lose my kid. So unfair and wrong. So I’m stuck!