patrick.net

There is a discussion on Santana Row on Ben's blog:

http://tinyurl.com/74scr

San Jose downtown is bad enough. But that is a proverbial crime.

Fear corrupts.

Where did you make that up? After your write off the interest, your “$3000+” a month in PITI comes out to no more than $1500 a month. But more importantly, you’re building up equity. After 15 to 20 years, you should have your home outright. Once that happens, you shouldn’t really care what the housing prices are because we all need a place to stay and whatever the prevailing market rate it, it will always be considered “too expensive” to the general population. But you don’t care, because you OWN your house now and nobody can kick you out.

Convince me of your calculations and I will buy a house next weekend.

How can the PITI be around 1500 for a place that is being rented for 1500 if you intent to pay off the mortgage in 15 to 20 years? I am in!

Come, show me your calculations.

Hey “Pete”, you really need a reality check. The engineers/programmers writing an accounting program cannot program if he/she does not understand accounting. A engineers/programmers cannot program an insurance program if he/she does not understand the insurance rating system, … The hardest part of being an engineer/programmer is to understand the domain, the business, … The technology aspect is something an 18 year old college freshmen can understand.

True. But one does not need to know everything about the business. One toilet reading session can probably give half of what is needed.

PN, you really should have argued that engineers here are more exposed to the media and they have a better perspective of the world. This "intangible" advantage would be more difficult to refute.

Now, let’s get a 5% loan for $400K, assuming that you can put $100K down. There are loans out there that will allow you to do this. 5/1, 3/1 or pay enough points and get 30 year or 15 year fixed. Remember, I am assuming that you ARE able to buy the property with the best interest rate, you’re just CHOOSING not to. Therefore, it is a fair assumption that you have 20% down and excellent credit rating. Average home owner refinances within first 5 years of owning a home so to get a 30 years fixed does not make any sense to me… anyway… lets make some assumptions.

Too bad a $400K cannot be rented for $1500, more like $1200 a month.

Why don't you put $400K down and have 0 monthly payment instead?

Again, if you look to move in 5 years, you need to worry about price fluctuations because real estate prices can be down quite a bit in 5 years.

If you were to keep the loan for 30 years, that’s approximately 2,100 a month, add in the property tax, insurance, and make it around 2500 a month.

You forgot the $300 to $450 HOA dues that are quite typical for a downtown condo. This will bring it all the way up to around $3000 again.

$400K loan, a $500K condo… Very few people rarely get 100% loan.

I bet there are more first-time home buyers put 0% down than those who put 20% down.

If you want to take HOA into account, you can subtract the insurance, water, and maintenance cost. HOA covers all that.

It does not always include earthquake insurance. You better check. It is essential here.

I believe HOA ranges from $300 to $450 in SJ. It is more like $500 in PA.

There isn’t a man or a woman out there who made a real estate investment in Silicon Valley in the 50’s, 60’s, 70’s, 80’s, 90s, 2001, 2002, 2003, 2004 and is willing to take back that investment.

Many people who bought in late 1980's did lose money if they sell for whatever reasons before the late 1990's. You need to study history.

The Silly Valley is in decline now and we have a falling real rent environment.

We don’t buy because we can’t afford to.

Too bad if you think that way. Many in this blog can still afford even using traditional financing. Some just sold their homes and have taken profits.

Also, are you saying that somebody that bought a house in Silicon Valley in 1985 and sold it in 1995 lost money? What have you been smoking? I dare you to support that data.

No, but someone who bought in 1989 and sell in 1995 would probably have lost money.

If Silly Valley is in decline, why did San Jose’ just break into top 10 in total population and average housing price in the country?

Just more evidence to show the housing bubble problem. Silly Valley may become another Detroit, albeit with better climate. Regarding population... does it count illegal immigrants?

This is our culture. It is irreplaceable. If you took that attitude anywhere else in the world, they’ll call you crazy.

This culture is being duplicated elsewhere at 1/3 the cost. Nothing in this world is irreplaceble. Nothing. No one.

Remember, you were saying that it is better to rent for 20 years and instead of paying interest on the mortgage, invest that money in something else.

I merely illustrated that property investment must be supported by solid cashflow. Negative cashflow is horrible even if there is extraordinary appreciation, because the net gain is not so impressive in comparison.

>> No, but someone who bought in 1989 and sell in 1995 would probably have lost money.

I seriously, seriously doubt it. Not in Silicon Valley.

Go do some research. Prime locations like Marin county did weather the downturn pretty well. San Jose did not fare so well.

Why do Indians, Chinese, Eastern Europeans come here and become billionaires by starting companies but don’t do the same thing where they’re from?

Because they want to duplicate the environment in their home countries. They will suceed eventually.

Over 700 comments! Holy cow.

>

I know people who were upside-down in their peninsula condo (desirable location) for years before they could finally sell. They bought in the 80s during a price peak, wanted to sell in the 90s because the place was too small once they had a child, but they were stuck there for way longer than they wanted while they waited for their place to appreciate. Finally sold in the late 90s.

"No, but someone who bought in 1989 and sell in 1995 would probably have lost money.

I seriously, seriously doubt it. Not in Silicon Valley."

Oops, sorry, above is what I was responding to in my last message with:

I know people who were upside-down in their peninsula condo (desirable location) for years before they could finally sell. They bought in the 80s during a price peak, wanted to sell in the 90s because the place was too small once they had a child, but they were stuck there for way longer than they wanted while they waited for their place to appreciate. Finally sold in the late 90s.

Over 700 comments! Holy cow.

This thread was your idea, so I guess the most popular thread award should go to you.

BTW, how is your finger?

Don’t tell me that a programmer with domain knowledge can’t do algebra.

Perhaps a programmer with real estate business knowledge sees new math that we mere mortals cannot.

"This thread was your idea, so I guess the most popular thread award should go to you."

LOL. If we're handing out awards, then you get the Most Diplomatic Guy On the Internet Award, hands down. :-)

"BTW, how is your finger?"

It's a strange color but much better, thanks.

I still content that there are only 2 to 4 posters on this board.

SactoQT
Peter P
Randy H
Jack
tsusiat
KurtS
Stanman
Prat
H.Z.
Ptiemann
Owneroccupier
ScottC
Schmend Rick
and ....... Surfer-X

Wow, paranoia, nice. Back to your cubicle and the angry chair.

Yes, but as an admin for this site I can assure you that each persons comments come from different IP addresses.

And do you really think that I post only under “Phong nuygen”?

Dude, just plain not cool, good thing you live in San Jose, you belong there. Enjoy your angry chair.

Phong nuygen, odd I didn't know that Adobes IP's were managed by the D.O.D.

So I guess that would make you just a plain liar all around. As stated prior you have yet another badge of pride to parade around in asshole filled San Jose. You Sir are a shining example of your city, were your "SJAHOLE" badge with pride!

I still content that there are only 2 to 4 posters on this board.

You can content anything. Do you really think that I care. :)

Do you really think that I care

The pain Peter P, the pain. Here I go thinking you cared. Yet another blow in this cruel cruel world. ;) Is your heart black Sir?

I wonder if I should find in amusing to see Phuong destroying himself, but that may be too mean (if he's actually one of my colleagues at Adobe). However, now I'm starting to doubt if he's actually one of my colleagues.

If that's still the case, I hope that Adobe will be even more selective in hiring. In most cases, companies are very selective when hiring people out of state, but for locals, they tend to relax their standards.

Just an out-of-topic comment...

The pain Peter P, the pain. Here I go thinking you cared. Yet another blow in this cruel cruel world. Is your heart black Sir?

I care about you. I just do not care too much about people like PN and MP.

My heart is purple. (Disclaimer: I do not have a Purple Heart)

brightc, you indeed work for Adobe, Phuong (poo-hong?) does not, he works for a .mil organization, DOD paycheck. He is a liartroll, LT?

Adobe makes great products and I'm sure it's a great company.

Adobe makes great products and I’m sure it’s a great company.

It has great employees too. My ex-neighbor works for Adobe and he is one of the nicest guy one can meet.

Peter P, it you're on the console view, check out the spammers hitting the site. Nice.

One thing I've never liked is a liar. Good fucking by asshole, enjoy your Pho, dickhead.

Peter P. Can you delete delete delete?

I am comfortably retired at relatively young age and I do independent contract work for many companies in the bay area because I get bored sitting around the house all day.

Wrong again Troll, your IP is always the same, a DOD contractor, likely Boeing or Lockheed if you're in San Hosebag. You're just another fucking liar who has nothing better to fill their shallow fucking life with. Oh, BTW here's your IP 214.3.118.1 . Perhaps I should send an email to the admin of the site with all your bullshit comments. Dick.

Ok Mr. Estein I paid off all my homes by refinancing ONE of my house in west san jose last year. My ONE mortgage is $2133 a month

One question, $2100 buys about a 200K mortgage, how did you pay off over 2mil worth of property with 200K? Nice, dude, you're not even a good troll Mr. Estein.

Peter P. Can you delete delete delete?

Not my thread... need SactoQt's help.

Peter P, pull dickheads IP and do a search, facinating. Why would the guberment what to trouble with us?

There ARE bots out there which the brother of a friend has written for use by NSA, CIA & FBI (and I guess will be used by the proposed Department of Homeboy Defense) for surveillance. The agencies do scan church/religious pages looking for potential nutcases, trends, etc.

the nipr.mil domain is pretty fascinating.

SactoQT, seems we've had big brother spying on us. Pull Phung Nguyen's IP and do a search on it. the nipr.mil domain is spooky/scary/fascinating

Why aren’t you in Vegas?

The restaurants are too good. It has been said that I will go broke without gambling.

"I still content that there are only 2 to 4 posters on this board."

LMAO! For the record, I am not Peter P. Or MP. Or Fake P. Or Surfer-X. Or anybody else.

Sigh. I did not make Surfer-X's list of regulars. I feel so left out of the cool kids' club. :-P

"the nipr.mil domain is spooky/scary/fascinating"

Isn't it illegal to use .mil domains for anything but official government stuff?

And Jamie!
:)

Isn’t it illegal to use .mil domains for anything but official government stuff?

That's just it, I think we've got us a official guberment troll.

Keywords: Jihad, trigger, enriched uranium, dirty bomb, car bomb, I'm bombed, Allah, white devil, mecca, Muhammed, holy land, Zion, blah blah blah.

New keywords: bubble, Fannie, housing crash, bankruptcy, foreclosure