Rich Renters

No need to put all your money into one basket. Buy a group of stocks.

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Agree 100% on this bold highlighted.

I trust Warren Buffet stocks as I believe he would have done enough research before putting his money. The market prices may go up or down, but company survives long with his scrutiny. I do not need to reinvent the wheel, just grab his boat and swim. Same is the case for FAANG+TSLA.

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Should be same for cloud kings and princes too. Jim Cramer did the work! Remember FAANG is coined by Jim Cramer.

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When Cramer coined FAANG it was booming. Since late 2017 choppy, end result pretty stagnant

Housing also dipped 10%. Should we be selling our rentals now to cut some loss?

I am buying. What is my discount price? Been buying stocks too.

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Only 10%. Not much…

Any one can form any acronyms, but blind investment even in FAANGs are not right, Similarly for Cloud Kings+Queens.

Jim Cramer is passer by and he always tells the world after the fact.

Hard part is identifying the stocks that stay long years, say 10+ years
Second part is What price is best for you to get in, as buy and hold?

Say, if you have 1M, which are the stocks you want to buy and At what price will make you grow better?

Say buying AAPL at $142 is wise or $175 or at $225? I did blindly at $225 and results is seen now !
This shows even the best stock you can not enter blindly, but needs to wait for an opportunity.

Statistics Source:

According to CAR, sales in SF dropped 12.2 percent compared to 2017, with the median price of a house in SF actually down year over year, from $1.5 million last year to more than $1.44 million now.

This means 3.7% drop (=56000*100/1500000)

More county by county info

You guys often implicitly rely on momentum investing, but there is a strong case to be made for value investing, which, Jil, you are referencing.

Even with housing, it does not always pay to rely on market momentum. Try to find a house / piece of property that is under-priced or can have value added to it easily or which is located in an area which is/will go through rapid improvement but that the price does not yet reflect.

The value discount is where you make the $. Momentum is gravy on top.

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NW Austin/ suburbs :slight_smile:

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Buy below the midpoint for a neighborhood and where schools are improving.

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I always look at SFH, large lot to get in. I was watching and expecting this home to get hot and it really did !

DryCreek road homes are very exclusive community, with large lots (.55 acre), most likely be bid by some builders with full cash.

Neighborhood is 3.5M to 8M range for 3000 sqft+ homes.

The buyer will tear-down and rebuild a brand new bigger home now.

https://www.redfin.com/CA/San-Jose/2173-Dry-Creek-Rd-95124/home/1414016

The price is for lot size only ! Even at down market, this is pure deal ! If someone is interested, go for open house, see the location

Looks like a lot of land / space for the $.

I think it helps to identify your target market first. Are you buying property to lease it out? If yes, then who are you going after — what is their age / situation in life / etc.? Tailor the product to meet the market. Don’t build the product first and then find a market.

For instance - I target professional, high income couples (boyfriend/girlfriend) in their 30s. Usually no kids, although sometimes they do get married and have a kid. (Then they typically move after the kid is a few years old). I like this demographic because they are usually well heeled, extremely diligent about paying rent on time, and usually have very fine taste in home furnishings — which reflects in the care that they take of my properties.

Anyways, these kinds of professionals, I find, want to live in the city. They want the ability to walk to all kinds of neat restaurants / sights / attractions. They also want a garage to store their fancy car. They might use their fancy car for commuting, but I’ve found more often that they use their fancy car as an “accessory.” That is, they are living in a super walkable area already and they live near downtown (where they work) - so the car is an accessory — think trips to Napa, the Marin Highlands, etc.

From that, I buy properties that are in tony neighborhoods that meet the criteria.

Note — I’m older — I have no desire to live near downtown. I want peace and quiet, and more space. The SFH in San Jose you point out would be much closer to what I would want at my point in life ---- but I am certainly not marketing to myself. I am marketing to a demographic that is at a different point in life.

Perhaps you target a different demographic? Families with kids? Older people that are still renting? Try to use TAM and demographic shifts in your favor when it comes to finding the target market. You want to be marketing towards a demographic that is expanding in size. Go with the current of the river, don’t row your boat upstream.

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This is one of my neighborhoods, no intention to buy.

This place (2173 Dry-creek) is for wealthy professionals/business owners who wants to live near by town access, but quiet location.

The beauty of the place is made up of old creek, no water - i.e., dry creek. Winding Roads inside the creek, large lot homes at the banks of creek, pristine original greenery is maintained. Just 5 miles from SJC airport.

During 2008 downturn, I saw similar home sold for 1.5M, full cash.

Last year, another home (1601-Dry-Creek-Rd) was sold for 1.965M. Yesterday I drove by, noticed the home was tore down, rebuilding brand new home. This one is next to books-in school, good elementary at this area.

https://www.redfin.com/CA/San-Jose/1601-Dry-Creek-Rd-95125/home/845728

The population of wealthy renters grew in each of the Bay Area’s 16 largest cities, the study found. Between 2007 and 2017, Berkeley, Fairfield and Richmond saw four times as many wealthy renters join their cities. Oakland, San Jose, Santa Clara and Vallejo more than tripled their high-income renter populations.

Bay Area agents say many would-be homeowners sit on the sidelines and wait for the market to cool. Younger buyers also can be burdened by student debt, making it harder to amass a down payment.

Von Raesfeld, based in Santa Clara, said having a high salary and stock bonuses doesn’t ensure that someone can buy in Silicon Valley. Although the housing market has slowed, multiple offers and quick sales are still common in hot neighborhoods.

He’s seen young couples tire of the home search and settle for an apartment in a good neighborhood with ample amenities. “They’re getting very frustrated of competing in the marketplace,” he said.

High income earners are too poor to buy in choice neighborhoods… hmm, hasn’t that been happening for years and years? What’s new?

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$150k/36 = $4166 per month. Should be able to get in SJ.
Where are they looking at? PA, Atherton?
Children go to private school?
Parents drive Tesla?

Bullish on Tsla :rofl:

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