Let’s say Bay Area prices dropped by like 30% on average by this fall. Would you buy an investment rental?
Newsom progressives have made rental property less attractive. Prices will drop to a CAP rate that accounts for that risk.
When total panic takes over and Malibu beach owners swallow the global warmer koolaid. I will buy a beachfront house at 90% off. Not holding my breath.
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Thought you like ski country better.
I do. I have beaches and skiing in Tahoe. But skiing is only good for 4-5 months.
I like the idea of a Mexican beach house. But friends that do, are all panicking and coming home. My guess is Mexican beach front values are going to collapse along with their whole tourist economy. I refuse to own any property outside the US. When all hell breaks loose, the US will be the safe haven.
Enough food and beverages. However, RE would collapse since H1Bs would be booted, no new immigrants and land lords dump houses. Many stocks would collapse since sale would be dropped by more than 50%, domino effect i.e. even utilities are affected since no need so much, couple with hyperinflation. The much dreaded stagflation.
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This is the issue with Bay Area, lot of H1Bs will be forced to go, you can count between 500000 (year 2000) and 250000 (year 2008) to get out of USA when mass lay off starts.
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This Virus will reshape how Bay Area housing. Many of the tech company is using this opportunity to testing out WFH/work remotely to save office space. The need for huge campus and nearby housing will be a lot less , it will save company money not providing space/electric/supplies/food etc…
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@hanera blocked me saying that I need to go along with forum members ! Hi hi…pulling his legs…
Bulls: All forum members are investors, waiting for opportunity to buy real estate deals…do not you feel that?
How about this bull case: couples are having more sex during lockdown as there’s little else to do. The baby boom 10 months from now will drive great demand for housing!
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No doubt, many companies are already thinking this way…
Now, I am enjoying my recent upgrade of 1 GBPS fiber connection…no latency…Nice 4k or bluray streaming on TVs.
Maybe we become more like Vancouver Canada. Expensive housing without the high paying jobs.
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this isn’t really a good “test” of realistic normal wfh conditions considering all parents are having to do childcare, remote school and work a full day…soooo if this is failing I would say it’s because of that not because of being remote.
Let me ask this for those working from home right now, do you want to WFH 5x a week going forward? I can see maybe 1 or 2 times a week but all week?
I wfh one day a week before this. Would prefer 2x but yeah more than that and I go stir crazy. I’m also an extrovert though and need the human interaction… some people don’t
Me too WFH once day in week, esp Friday as strength in office is too low, but WFH for life is boring - personal aspect of it.
For company aspect, this is stress test, max load on servers, with lot of security coverage for tech companies, banks…etc.
With internet booming since year 1998, lot of tech companies are using offshore and onsite model for cost effective purposes.
Current phase will yield working from remote offices, not necessarily working from home. Companies will have head office mountain view, but regional offices at Tracy or far away city too. It will also gives maximum work from home options as company will not see any difference in results.
Absolutely necessary at site work, like security staff or physical movement related work, will continue.
The transformation starts here, but will take few years to implement.
There is a difference between ALL of the team members are working from home and only partial are WFH. When majority of people are in the office, it is taxing to those to include people WFH or even different office. Partial WFH would work like 1 to 2 days a week, but more than that, I am not sure I would like that or I want my team to do that.
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People get free meals at Facebook and Google. I am sure those people don’t want to WFH.
Many people do not want to WFH, but companies will try to do remote jobs as they are enabled with high speed internet. This is to reduce cost, esp building + overhead.
WFH one to two days a week makes sense. You can use the time to shut out meetings and distractions and get some quality alone time. But what about collaboration, brainstorming and meetings? You can’t brainstorm on a virtual whiteboard very well.