Hmmm, would they be interested in a few hundred acres in Castro Valley???
Hey, I gotta work it…
Interesting. Isn’t East Menlo Park has been on fire (that triangle area) due to FB? Also curious to see how FB will change long term Menlo Park market for those millionaires that are aging and wanting to have a family.
The price delta between two ends of Dumbarton bridge is humongous. That gap gonna closes out one way or another…
are you saying union city prices will increase? or PA prices will fall? how will the gap close out?
Sooner it happens the better!
Btw, wouldn’t the price go up north & South of Menlo park along 101 on the West side of Dumbarton bridge or is that area already expensive?
Didn’t we come to the conclusion that Union City, Newark and Fremont are still the areas that should do well since those are the last of the cheap areas that are relatively close to the tech centers???
Increases in MP and RWC due to Facebook happened in 2012.
Probably a little bit of both.
Take a look at this for example:
Union City starter home. 3/2 1200 ft. Not too bad. Price is only 600K for crying out loud. Schools are bad, yes. But c’mon. I would totally buy this if I were fresh out of college landing a 150K/year job at Facebook. Get a roommate or two and mortgage is taken care of. Probably will have enough left over to pay down additional principal every month. At that rate the whole house can be paid off in under 10 years.
Almost forgot Union City has a BART station. So if you were bored with Facebook you can BART to the city to work in one of the hot startups.
How many fresh grad do you know who has that sort of financial responsibility? I am going to guess less than 1%.
They might buy a BMW first and rent in a cool hip downtown area instead of saying I live/own in Union City. But now if you are having kids, you become more sensible about financial responsibility and buy across the bridge with good school area.
True. Youth is wasted on the young.
Don’t agree. If they were stupid, they wouldnt land a 150K job in Facebook to begin with. Fresh grads are not as stupid as you might think.
Also, the fresh grads that get such jobs are like the guys from “the big bang theory” and not like Kumar from “Harold and Kumar”
Zillow says the UC house I linked above can rent for $2850 a month. After PITI cash flow will likely be neutral to slightly negative.
Another catalyst is the car industry. It looks like Fremont will be Detroit 2.0 with Tesla as a strong anchor. Many components firms supplying to Tesla are setting up around Tesla’s Fremont factory. A big wild card will be Apple’s plan. Where will it build its cars?
I don’t think or never said they are stupid. But when you are that age, their priorities might not be the same as older and wiser version. I seriously doubt that they will be interested in Union City or even Fremont neighborhood, they still need to impress the gals or boys they want to spend their future with. So if they are in that 1% that’s smart enough to buy than to rent, they would probably buy a condo or apartment in Mountain View / Menlo Park.
What Union City and Fremont good for are for young families with single tech salary. Again, these are all my opinion, no research done
Bay Area still has lots of opportunities. Union City and north Fremont are not bad in terms of investment opportunities. Another area I started paying attention to only recently is south Oakland north San Leandro. If Zillow rent estimate is correct, the cap rate is extremely high: $2500 rent for $350K house.
Need to study the 880 corridor in great details.
One of the reason that spur me into buying in 2011.
Wait so most areas have doubled since 2011/2012. Are you guys saying Facebook areas have done significantly better?
So have FB & Google areas gone up 3x compared to 2x for other “good commutable to Silicon Valley areas”?