Of course, cupertino/wsj is not Palo alto. 
We could have saved a lot of money if we had bought them a couple of years earlier.
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I’m speaking only from an investment perspective. You would consider cash flow, asset value, risk, and potential returns.
If you were to pick up a sfr today at 2.5M for investment, where would it be? If you limit it to Sunnyvale, Cupertino, WSJ, or Palo Alto?
I’d go with PA. If you need an exit and want to extract some additional value you could partner with a developer and not have to front another penny.
If the idea that there are too many spoiled rich people in PA, aren’t those other neighborhoods heading in a similar direction?
I do wonder where people who lived in trophy properties are heading when they sell. There have been a number that came on the market in PA.
Well, perhaps not as high of a selling point as PA but at least at open houses I have gone to in either Fab 7x7 or say San Bruno LAs have mentioned places like Sonoma/Napa or Pacific Northwest. At a nice Oakland home I saw, the folks actually went back to NC to be with family.
My point was about “risk”.
If i have 3 million then i will buy in PA or LA.
If i have 2.5million then i will buy in Saratoga/Cupertino/WSJ.
You cannot find decent home (meaning livable condition, not on busy road, in good neighborhood) in PA or LA with 2.5million.
However, i would rather invest in Cupertino than Sunnyvale. My personal view, though.
Put 2.5M on one single house is not a good investment for me anyway. I’d rather chop it into 5 pieces and buy 5 townhouses or condos in north SJ. Cashflow would not be as negative, and it seems more likely a 500K condo will go up to 600K, versus 2.5M house to 3M. You are less dependent on one tenant too. Unlikely that 5 sets of tenants will leave at the same time.
Of course if you are buying to live in then buy wherever your heart leads you…
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Again, trophy home vs cash flow…
Sunnyvale with bordering Los Altos [Cupertino Schools ] is appreciating higher than Cupertino/WSJ.
I see a bunch of rule breakers here.
Anyways enough of you guys mentioned PA as destination #1. The votes are already in. Manch is right that there is some price compression taking place.
At 2.5 it is less risky in PA. Cloud mentioned taking on projects in PA recently. I bet in large part it is due to entry level pricing.
To me, Cupertino (community) includes all neighborhood within CUSD.
The area you are talking about has large lot with mosty updcale homes. It is also in CUSD.
I always thought this area is as expensive as Cupertino becasue of these reasons. I didn’t know this area appreciated faster than Cupertino recently, though.
Does this mean homes in this neighborhood more expensive than Cupertino ( large lot homes in Monta Vista area)?
Here’s my ranking (most preferred to least):
- Palo Alto
- Cupertino
- Mountain View
- West San Jose
- Sunnyvale
- Santa Clara
Don’t care about price compression. All these are trophy home neighborhoods. Can’t put a price tag on your heart’s delight.
What about Los altos hills? Hillsborough with Yan can’t cook? Or atherton?
Um… those are for people who are actually rich. Us borderline cheapskates can only aspire for Palo Alto at best…
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So, Yan can cook…gobs and gobs of money, baby!!!
See my new Granite Expo commercial, guys???
Sincerely yours,
Martin
Houses in Sunnyvale is older and of lower construction quality, something that is lost on current buyers because of tight inventory. Middle and high schools are not as good but should improve through time. West Sunnyvale is pretty good Don’t like the rest of Sunnyvale.
From a financial perspective, you are right. Rent from those houses is easily 2.5-3.5 times the rent you would pay for a decent house in Cupertino. Humans being humans, they have other considerations and view something more important than making money That is, if you have $2.5 mil, buying those 5 rentals and rent in Cupertino is a wise financial decision but is abnormal human decision.
It takes effort and sacrifice to become the 1%…
Some parts of neighborhoods going to MVHS appreciates very fast, used to be not desirable but prices became same as the desirable ones because new comers didn’t know, they use the same compare Frankly, I don’t like those areas because of no sidewalks, many mom & pop businesses (you will see RVs, trucks, junks in their backyards) and narrow roads with many cars park along the road. Both my houses in Cupertino, hardly have cars parked along the road, even if there are (e.g. Christmas party and Deepavali), can allow two cars (both directions) to move through easily (yes, very wide road).
I am willing to trade 4 east bay houses for one of your Cupertino house… 
