0
0

Recent bidding war in bay area


 invite response                
2012 May 11, 5:54am   41,841 views  90 comments

by supersunken   ➕follow (0)   💰tip   ignore  

An article:

http://blog.sfgate.com/ontheblock/2012/05/11/real-tales-of-bay-area-bidding-wars/?tsp=1

The all cash offers are ridiculous. Where do people even come up with the money?

« First        Comments 29 - 68 of 90       Last »     Search these comments

29   bubblesitter   2012 May 12, 5:21am  

1sfrenter says

That's the most ridiculous thing I've ever heard and I am assuming you don't live here and have spent very little time here.

Well, hearing about these million $ shacks in BA is just that ridiculous. :)

30   bmwman91   2012 May 12, 6:31am  

rootvg says

We didn't panic. Our deal was the right house at the right time in the right neighborhood and was the same monthly cost as rent. Renting, the tax man nailed us every year because of our incomes and not having children. Owning, we're gonna nail HIM.

If you're talking affordability in Mountain View or Milpitas, yeah...that's nasty.

You bought like a year ago, right? I am referring more to people watching the market now and thinking, "oh shit there is so little available and it goes fast....we need to BUY NOW before there are no houses left, EVER!!!!!" Transient market behavior folks, can't you see?

As for nailing the IRS...good luck. It is easier said than done. If your mortgage & expenses are close to your previous rent, the tax deduction will put you ahead. Sounds like you got a really good deal.

Mountain View...forget that. I love living here ONLY because it is a 15 minute walk to work. That extra 6-10 hours a week of free time from not commuting is almost impossible to assign a dollar value to. Rent is maybe $300 more than I would spend if I had to drive 1 hour each way. Buying however, is stupid expensive around MV that I would have no money left to use on my hobbies with all of my free time from not commuting. I am looking mostly around my parents' neighborhood in San Jose / Cambrian. Sadly, even that area is beyond what I am comfortable spending to get a house that doesn't need to be scraped. The fact is that most people in their late 20's & early 30's can't afford the same house that their parents bought in the area 30 years ago. It's fine though, renting really doesn't bug me since it is still so much cheaper than buying in most parts of the south bay.

31   David9   2012 May 12, 8:38am  

:-) There was a similiar article a couple of months back in the Contra Costa times (spelling?) I thought it was ridiculus so tried to find the home listing online by price, couldn't find it. Then I actually called the reporter who didn't quite admit of any misrepresentation but said 'oh, that house is in Mountain View on Church Lane' and 'We are just trying to make a point'. As you can guess, I never found the house listing or sale record in Mountain View either.

Maybe you will have better luck should you try to find these homes in the article..

32   Blurtman   2012 May 12, 8:48am  

Consider the Bay Area to be the Best Buy of RE. See what you like, and don't like, and buy more for less elsewhere.

33   supersunken   2012 May 12, 11:21am  

Curious to know why people think renting right now is the right way to go when the rental market is on the rise and rent for a 1 bedroom in some places is more than mortgage on a 2/2 condo in the same locations?

I see the logic that you're not tied in for 30 years but if you plan to stay around in the area, your rent will fluctuate only a couple hundred bucks and there is no tax write off. The only real advantage to renting is you're not really chained down and can move easier if needed.

The only renting I see that's still affordable is if you're renting a room. What am I missing here?

34   RentingForHalfTheCost   2012 May 12, 12:07pm  

Rents are not on the rise for me. Houses are falling believe it or not. That makes it easy for me to keep renting. You asked.

35   Malkovich   2012 May 12, 12:20pm  

Blurtman says

Folks should try to get out of the Bay Area.

Wish I could get out of here. But where to go?

I was seriously considering Portland for a couple years. But after many, many people told me about the chilly, wet weather (I always visited in summer) I realize I could not survive there - my mood can be quite dependent on the weather.

Spent two years in Austin. Got really boring. Not a very big place when you live there. Great outdoors scene but itsy bitsy old town surrounded by boring suburbs. And Texas is just, well, Texas.

36   Blurtman   2012 May 12, 12:45pm  

Malkovich says

Blurtman says



Folks should try to get out of the Bay Area.


Wish I could get out of here. But where to go?

If you are ever up in Seattle, and turn on the telly, you might see that just about every other ad is for a CRO recruiting patients for anti-depressant medication studies. But as they say, the two worst things in life are not getting what you really, really want, and getting what you really, really want. Clearly you need to keep your place in SF, and get another place in Hawaii, the Northwest (summertime only), Boston (ditto), NYC (ditto), or other large, vibrant big city, if you need the culture.

37   Malkovich   2012 May 12, 1:44pm  

Blurtman says

Clearly you need to keep your place in SF, and get another place in Hawaii, the Northwest (summertime only), Boston (ditto), NYC (ditto), or other large, vibrant big city, if you need the culture.

Haha.. wish I could.

Actually my GF's family is in Honolulu. I have proposed numerous times that I keep my rent-controlled apartment and profitable business going here, start another business with her bro in HNL, and live half the year in each locale.

Seeing as I won't be buying an overpriced, 100yo, falling-apart duplex or triplex here in the Bay Area anytime soon, this plan may be a good option.

In all seriousness though, I have thought long and hard about moving other places and, well, despite all of its flaws, I love San Francisco/Oakland (I couldn't care less about anything south of SF or east of Oakland).

38   Malkovich   2012 May 12, 1:54pm  

1sfrenter says

It appears that the money is coming from China.

Could very well be. I looked at this http://www.redfin.com/CA/Oakland/3514-Randolph-Ave-94602/home/1808876 last week - technically in a good area but it was a few houses from a crappy area of MacArthur (homies milling around) and it needed a ton of work.

I had a quick look at the house and left. As I walked back to my motorcycle this 7-series BMW aggressively raced up and parked in front of the house. These two 20-something Asian dudes literally bounded out of the car with a clipboard or something. In their dress shirts and pants (must have left the jackets in the car) they started jumping around the house like excited grasshoppers. Helmet in hand, I stood there dumbfounded.

Money from China indeed.

39   REpro   2012 May 12, 3:45pm  

My friend in S.I. (NYC) just sold his very old house to Chinese. House was worthless but sits on nice small uphill lot overlooking Manhattan skyline. He was dreaming on the best possible bid of $550K. He got cool $600K all cash, no questions ask.
We and Europe made some Chinese very reach and now money are coming back to us.

40   bg   2012 May 12, 3:58pm  

supersunken says

Curious to know why people think renting right now is the right way to go when the rental market is on the rise and rent for a 1 bedroom in some places is more than mortgage on a 2/2 condo in the same locations?

My rent is less than a comparable condo. AND I am not buying a depreciating asset. So, I rent.

41   hanera   2012 May 12, 9:07pm  

Let's say you pay $1500 a month for renting an apartment, each year the rent can go up and up and up. 20 years from now, you may be paying $3000 a month (just a guess) for that same exact apartment. But if you buy that apartment, your payment would be $1500 a month - your payment will still be $1500 20 years from now. At the end of 20 years, you can rent out your house with that $1500 mortgage payment, but charge $3000 to rent it out! That is a huge benefit to owning your own property.

42   RentingForHalfTheCost   2012 May 13, 6:33am  

hanera says

Let's say you pay $1500 a month for renting an apartment, each year the rent can go up and up and up

Never happened to me and I have been renting for 15 years in the bay area. One time the landlord put the rent up and I said "nice knowing you" and then rented a better place for cheaper. YMMV.

How about the scenario of renting for 1500/mth while socking away 1500/mth in real investments that pay dividends. After 20 years you buy a house in cash and have money left over to live. No where in this mess did you owe your salary to a bank. Debt is for the weak. ;)

43   B.A.C.A.H.   2012 May 13, 6:47am  

supersunken says

Where do people even come up with the money?

Shanghai. Taipei. Hong Kong. SIngapore. Mumbai. Bangalore.

44   bighorse   2012 May 13, 7:02am  

Can someone name 1 property address that they suspect to have been purchased using money from abroad? I would like to debunk that theory.

45   RentingForHalfTheCost   2012 May 13, 7:06am  

bighorse says

Can someone name 1 property address that they suspect to have been purchased using money from China? I would like to debunk that theory.

14 CottageForYuan Rd, San Jose, CA

46   bighorse   2012 May 13, 7:10am  

RentingForHalfTheCost says

bighorse says

Can someone name 1 property address that they suspect to have been purchased using money from China? I would like to debunk that theory.

14 CottageForYuan Rd, San Jose, CA

That address does not seem to exist. Please check it again.

47   RentingForHalfTheCost   2012 May 13, 7:21am  

bighorse says

RentingForHalfTheCost says

bighorse says

Can someone name 1 property address that they suspect to have been purchased using money from China? I would like to debunk that theory.

14 CottageForYuan Rd, San Jose, CA

That address does not seem to exist. Please check it again.

Sorry, I wrote it down wrong. Here is the correct one

121 KungPao Way, Cupertino, CA

48   RentingForHalfTheCost   2012 May 13, 10:01am  

E-man says

RentingForHalfTheCost says

Debt is for the weak. ;)

Tell that to the greatest investor of all times, Mr. Warren Buffett. It's more like no debt is for the fearful while debt is simply a double edge sword. ;)

Learn from your victory. Prosper from your failure.

Swords are for the weak. I'd rather use my bare hands.

49   SJ   2012 May 13, 11:48am  

For me, the high income job keeps me trapped here for now. However, if I could find a comparable job paying similar income and allow me to work remote from home with some travel, then I would move in a heartbeat to south Florida and pay CASH for a nice place with money left over for retirement and a boat.

50   REpro   2012 May 13, 1:20pm  

E-man says

I have even a better assumption. Let's say your PITI and HOA are $950 to $1,150/month on a condo, and you rent it for $1,500 to $1,700/month. How many would you own?
Or your PITI is $2,000 on a duplex, and you can rent it out for $3,000 - $3,200. How many would you buy?
Those deals existed here in San Jose in 2009, but so hard to find in 2012. :)

On how much down payment %???

51   1sfrenter   2012 May 13, 1:24pm  

RentingForHalfTheCost says

bighorse says

Can someone name 1 property address that they suspect to have been purchased using money from China? I would like to debunk that theory.

Try this one:

539 Holyoke St. 94134

Listed at 499K in Jan. Sold for 588K all cash within the week.

How are you tracing these?

52   REpro   2012 May 13, 1:28pm  

bighorse says

Can someone name 1 property address that they suspect to have been purchased using money from abroad? I would like to debunk that theory.

Bay Area: "Buyers who appear to have paid all cash – meaning there was no evidence of a corresponding purchase loan in the public record – accounted for 29.4 percent of sales in March."
http://www.dqnews.com/Articles/2012/News/California/Bay-Area/RRBay120418.aspx

54   REpro   2012 May 13, 1:46pm  

E-man says

25% down on all except one, which was 10% down and total PITI of $950 and rented for $1,550.

With 25% down deal are just OK, deals like this you can still find plentiful slightly out of center SV. PITI do not cover all rental expenses. Next one with 10% looks great. NET ROI is what matter to me.

55   REpro   2012 May 13, 5:32pm  

I think opportunity is not lost yet. Currently three events push prices up: low inventory, growing rent (scary for some) and decreasing interest rate. What may happen next?
RE: inventory. Most people already accepted the fact that 2006 prices won’t return any time soon. Current spike with prices can be seen as last chance to sale for reasonable price.
RE: rent. New construction of rental communities entering; some renters purchased empty houses; more investor units hit open market. All of this can ease rent increases, stop grow completely or decrease somewhat.
RE: interest rate. Continue decreasing interest rate did not stop house prices from further decrease in Japan. What do we have on horizon able to elevate economy beside of lowering interest rate?

56   RentingForHalfTheCost   2012 May 14, 12:25am  

E-man says

RentingForHalfTheCost says

E-man says

RentingForHalfTheCost says

Debt is for the weak. ;)

Tell that to the greatest investor of all times, Mr. Warren Buffett. It's more like no debt is for the fearful while debt is simply a double edge sword. ;)

Learn from your victory. Prosper from your failure.

Swords are for the weak. I'd rather use my bare hands.

LOL! Hands are for the weak. The smart ones use their brain. ;)

Learn from your victory. Prosper from your failure.

I use the brain of the enemy for throwing practice with my bare hands. Brains are also for the weak. Nothing beats a good set of hands.

57   hanera   2012 May 14, 3:32pm  

RentingForHalfTheCost says

How about the scenario of renting for 1500/mth while socking away 1500/mth in real investments that pay dividends. After 20 years you buy a house in cash and have money left over to live.

Hope is not a bank stock.

58   hanera   2012 May 14, 3:38pm  

E-man says

The smart ones use their brain. ;)

The smart ones use their mouths!

59   hanera   2012 May 14, 3:50pm  

REpro says

Continue decreasing interest rate did not stop house prices from further decrease in Japan.

Every time I read someone quote Japan, I need to comment. Population of Japan has been declining and aging for the past 20 years while population of USA is forecasted to continue to increase briskly and remains youthful. Japan can't be used as a reference.

60   REpro   2012 May 14, 4:33pm  

hanera says

Every time I read someone quote Japan, I need to comment. Population of Japan has been declining and aging for the past 20 years while population of USA is forecasted to continue to increase briskly and remains youthful. Japan can't be used as a reference.

Population of USA is forecasted…aha.
Most of population grow in the past was associated with fresh immigrants coming to US. Now with weak economy as we have now it is not a magnet to immigrants any more. Currently more illegal Mexicans are living US, than coming into. Baby Boomers are aging too, right? What do you think this big housing company will do? E.g. KB Home, they still build new houses in Las Vegas, while prices continue to erode.

61   Bigsby   2012 May 14, 4:39pm  

REpro says

Population of USA is forecasted…aha.
Most of population grow in the past was associated with fresh immigrants coming to US. Now with weak economy as we have now it is not a magnet to immigrants any more. Currently more illegal Mexicans are living US, than coming into. Baby Boomers are aging too, right? What do you think this big housing company will do? E.g. KB Home, they still build new houses in Las Vegas, while prices continue to erode.

I don't get what you are arguing. The US has net immigration. That is just a fact.

62   REpro   2012 May 14, 4:43pm  

Simply, we can’t count on rapid grow of population based on current situation.

63   hanera   2012 May 14, 6:06pm  

REpro says

Simply, we can’t count on rapid grow of population based on current situation.

The original point is what'd happened in Japan is not a good indication of what might happen in USA. Population growth statistics is just one difference. Another is Japanese are big savers while Americans are big spenders. Also, White House and Fed are well aware of what had happened in Japan, unless we don't learn, we should be able to avoid some of their pitfalls.

64   Bigsby   2012 May 14, 7:49pm  

REpro says

Simply, we can’t count on rapid grow of population based on current situation.

That entirely depends on what you mean by rapid.

65   bubblesitter   2012 May 14, 11:51pm  

REpro says

hanera says

Every time I read someone quote Japan, I need to comment. Population of Japan has been declining and aging for the past 20 years while population of USA is forecasted to continue to increase briskly and remains youthful. Japan can't be used as a reference.

Population of USA is forecasted…aha.

Most of population grow in the past was associated with fresh immigrants coming to US. Now with weak economy as we have now it is not a magnet to immigrants any more. Currently more illegal Mexicans are living US, than coming into. Baby Boomers are aging too, right? What do you think this big housing company will do? E.g. KB Home, they still build new houses in Las Vegas, while prices continue to erode.

Bring in 5 new migrants + home grown babies and ship 5 highly paid jobs to Chindia. That sure is going to economically help USA in the long run. Chindia has the most population in the world but most people are living below poverty lines. Same thing will very well happen here. Let the population of USA double but that ain't going to lift the living standards in any ways. :)

66   bubblesitter   2012 May 14, 11:52pm  

hanera says

Also, White House and Fed are well aware of what had happened in Japan

Haha. Thanks for the laugh. Good morning to you.

67   REpro   2012 May 15, 4:41am  

hanera says

The original point is what'd happened in Japan is not a good indication of what might happen in USA. Population growth statistics is just one difference. Another is Japanese are big savers while Americans are big spenders. Also, White House and Fed are well aware of what had happened in Japan, unless we don't learn, we should be able to avoid some of their pitfalls.

It’s happening now, not only in the US but in Europe, as well. Very high unemployment between after school young and people after 50, work on contract instead full time permanent employment, lack motivation to get married and have children, extended work hours, reduced benefits, saving instead of spending, this is just example.
White House and Fed had 20 years to study what had happened in Japan. They don’t get it.

« First        Comments 29 - 68 of 90       Last »     Search these comments

Please register to comment:

api   best comments   contact   latest images   memes   one year ago   random   suggestions   gaiste