patrick.net

Try to buy one. See how far you get.
This is the age of the teasers.
Realtors have been trying to excite people into bidding wars by listing cheap houses. But even if you are the only offer submitted. It will be months before they tell you ya or nay. Which at that point they are taking you up on your 400K offer when the value is now 350K or less.

I did not try, but after seeing all pending, I start to think that the time to buy has come.

How much would it cots to rent a similair house in Milpitas that runs about $400K?

Sure. go ahead if it makes sense. If your mortgage+tax+expenses is almost equal to rent, why not? Also, I would put 1.5% as property tax, the way CA is going broke everyday, they might ask you to pay property tax for the next year in advance as well.

chip, My informal survey of Redfin and Craigslist indeed shows 1950's 3/2 homes selling for around $400k and renting for ~$1750. If you put down 20%, mortgage payments come to ~$1,720. We're doing back of the envelope calculations here, so call it push with the tax breaks balancing out the property taxes and insurance. Man, those houses are ugly, though...

but let me put this on a perspective:

one can come up with any calculations or comparing with a rental, but if someone have been saving money all these years, and he/she wants so much a single family home, i think he/she will find the time right now to be one of the best to buy a home, like those in milpitas selling 400K+

there are a lot of ugly and tiny and 1950s houses in palo alto too, but when you click the interior pictures, yeh it looks very stylish!

even you said the tax break will balance the property tax and insurance, but at least you get that benefit.

maybe if you wait by 2010, 2011, there won't be a tax break, and that ugly home in milpitas will not be in the price range that it is today, and for sure will be higher, or same.

recession is theoretically over, so don't think house will fall again by double digit percentages.
there won't be a back to back recession.

slowly the economy will start picking up, companies will start hiring, and since "americans" have short memory, everything will be inflated again, and everybody will be greedy and big spenders.

buying a house , unfortunately, you have to pay like as if you were buying a new model car.
You pay full MSRP, and if you are lucky you can get $100 off.

i heard, unfortunately, realtors might be using the same tactics as before, using bidding wars, so
i guess one will never be able to buy a home at the listed price.

i have read patrick website since 2004, I am too a good saver and I tried to buy homes back in 05/06, but always got rejected by a higher bidder, thanks God I did not buy at those peak years,
and I wish I could also get to buy in sunnyvale best zip code 94087 3/2 for 450K, but that will never happen.

I come to realize, I need to set a price of 800K tops, that is all I could afford, if i want a decent cute safe area home.

But I am not willing to do that now, even I put 50% down, I still would carry a big mortage ($2000+), and companies and jobs are not plenty....we are not "out of the woods" yet

Chip,

I am curious as to why you think Sunnyvale's 94087 zip code is the best. Other than the school ratings, all the Sunnyvale zip codes south of El Camino are fairly safe. In fact, all of Sunnyvale is relatively safe. Pick up the weekly Sunnyvale Sun and you'll find maybe 15-20 minor incidents a week. Example, last week there were about 17 incidents in the Sun. So how is 94087 "the best?"

Interesting side note, if you can afford $800K, then you can easily buy in Sunnyvale 94087.