I know for a fact that offers were over $2.4m. My nephew bid on it. The market there has gone insane.
Why has SF market gone insane? Is it people returning to the dense city thinking that Covid is over?
Are other suburban parts of Bay Area like Peninsula and RBA softening, or are they going insane too?
Albany and Berkeley are similar. My nephew is getting outbid all over the BA. Even with a $1m cash gift from his wife’s family. He is an idiot. But he married well.
Well, increasingly it seems like premier Bay Area SFHs are becoming elite properties, just like in Hong Kong or PCL (prime central London) or Manhattan. Buyers need to come in with $1M or more down payment to buy houses for $2.5M and higher. And they either get that through family gifts like your nephew, or through selling another appreciated property, or by selling huge amount of stock if they are working for the right company at a high enough level.
The common man/woman, even the common engineer, in Bay Area is priced out especially in RBA, Peninsula and SF City.
He is getting outbid on modest 2000sf family homes. Unfortunately he wants me to prequalify all of them. I told him I will if he makes my wife his agent. Buyers are expected to offer with no contingencies. Pretty nerve racking. I just bought a condo in Tahoe. No contingencies all cash and the sellers agent lied about the HOA obligations. I got a good deal. If not I will sue her later.
Things out in East Bay are definitely slowing down - houses not going in 3 days anymore and I’m seeing a lot of price drops even in the 1.5 - 3M range.
That is healthy. Prices need to stabilize for a year or two before they rise again.
$2.4-2.5M really isn’t buying much house in the RBA. This house in Sunnyvale 94086 (not best zip code of Sunnyvale), has 1500 sq ft built area on a tiny lot of less than 4000 sq ft, and is part of an HOA. Yet, it sold for $2.4M. The agent marketed it as a SV starter home in the description…
Give an option to spend <450K
@hanera
Where would you buy
1.) Belmont , NC (2550 Sq feet brand new house ) which will rent for 2600
Or a Resale in Austin Neighbour hoods
Thanks @hanera for trail blazing the Austin area for this forum
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I don’t know anything about Belmont. My selection criteria is not solely based on yield and capital appreciation. In fact, the most important criteria is people like me can walk around there safely.
Based on your data, gross rental yield of Belmont is higher than Austin. Yield in Austin has declined to 5-6% from 7-9%.
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Belmont is a suburb of Charlotte …kind of nicer area of Charlotte suburbs . Super safe , good schools
So you don’t think I can’t get anything for 450K which can give me 2500 in rent ?
I want to do something in Austin . A local realtor ( I can’t say his name here ) has now bough land to construct 100 homes in Austin area .
Austin is going to be real
Good
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.
Local to SV? There are many 100 homes builders here.
Close 
~$2300 in Hutto (78634), Leander (78641) and Liberty Hill (78642) neighborhoods.
Yes a local SV realtor has plans to build 100+ homes in Austin area and is currently going through entitlements
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So @hanera the zip codes you recommended . They can all pretty much commute to Silicon hill easily ?
And yet can generate 2300/pm for 450K - this is pretty good
@cloud Why not invest in the Raleigh triangle area instead of Austin? Trying to understand your thought process for why Austin might be better.
.
They have toll ways that lead directly to downtown and tech companies.
I have bought few rentals in Charlotte area last year Charlotte , Belmont , Gastonia , Lincolnton ) . Almost all of them except 2 new houses I was able to refinance everything and take my money out and still the rent payment exceeds the PITI after refinancing . I want to do more such deals
Raleigh has many 3 story townhomes but the PITI only gets covered by rents and there is no excess .
And I don’t like 3 level townhomes
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I believe Austin will double in 7 years conservatively . If you look at LinkedIn jobs
Every company in the valley has a office there , and they have openings
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Can you share price range and how much rent it can bring for Charlotte? And what’s the property tax percentage for NC?
My Austin house is bringing in $2300 and my neighbor just sold around 430K. It’s about 20 yrs old house. I thought of adding more ato Austin, but property tax rate is high and assessment can increase with the market value. That can be problem when rent is not increasing along.
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Pretty much why I am not buying in Texas - the property tax assessment.
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