I see few new condo/flat developments opening up in milpitas area right across future bart station.
They are seemed to be priced around 700k + Hoa (probably in 500s).
what’s your take on buying this to convert as a rental ?
Will future appreciation and rent help to break even on long run ?
Here are some links
https://www.lennar.com/new-homes/california/san-francisco-bay-area/milpitas/somont
https://www.pulte.com/homes/california/northern-california/milpitas/flats-at-metro-209914
No comment about this specific location, since I don’t know enough about Milpitas Bart area.
My general believe is that buyers have to pay a premium to get new construction. So in general, I rather buy for location than “new-ness”. That is not to say new condos won’t appreciate. All properties will all appreciate in time. I believe better location will appreciate more than new constructions.
1 Like
If it is new condos, the builder seller may have restrictions to investors. They may enforce at least 12 months owner living (not as rental unit). Check with them. They enforce this as lender won’t provide loans to others when 50% of sold units are rental.
Future Appreciation and rent: It is speculative interest than actual as is it hard to predict, esp new units. Newer units take time to establish the neighborhood. Until then, it is your own risk.
Around 18 months before, one of my friends bought until 3bd/2bh - 3 story condo for 630k, and it is 750k now (he says). Initially when the builder floated, he had the option to buy the same size at 570k, but he decided to wait for 6 months and landed up paying 630k. Some of the builder sales are hype and some of them are real.
I like that area. But there are many townhouses and condos there already. So instead of buying brand new I’d look into the older existing buildings in that area.
Instead of condos, how about townhouses?
Where would people take BART to? Are they commuting to Oakland or SF?
1 Like
Mostly people prefer BART to commute SF as tech job opportunities are high.
1 Like
Commute time from Warm Spring to SF downtown is about 50 min. That’s pretty decent actually. Much better than driving on the parking lot aka 101. But condos and townhouses prices are falling in SF. I’d carefully compare the prices between Milpitas and SF. If I can buy a condo in SOMA below 1M why would I bother with Milpitas condos selling for 700?
When my friend (still H1B) bought the home, he was mentioning that he could easily commute to SF job in case local job loss happens ! He does not need to sell the home, but can easily commute SF by staying near by BART locations. BART is kind of added job security or easy to rent later…etc
1 Like
Condos are really good for living and for enjoying the lifestyle. It provides all the amenities and sumptuous in living and prestige condos offering the beautiful ambiance and sights where it located in Toronto. It spreads in hundred of acres and meets all the requirements which are essential nowadays.