More Sunnyvale overbid insanity
https://www.redfin.com/CA/Sunnyvale/810-Mulberry-Ln-94087/home/689539
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“This 1,188 square foot house sits on a 5,700 square foot lot and features 3 bedrooms and 2 bathrooms.”.
whoa.
yeah … it is crazy… homestead schools area is red hot .
https://www.redfin.com/CA/Sunnyvale/1058-Manhattan-Ct-94087/home/827283
he got a good deal during april 2017. more than 500k appreciation in less than 6 months
https://www.redfin.com/CA/Sunnyvale/1169-Susan-Way-94087/home/769178
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How are these prices financially prudent for the buyer(unless he/she) is using their rising equity from 2009-2014 of their earlier home to buy it?
If a household makes $24K(gross)/month(double earner), monthly payment will be @$9500/month(assuming 20% down). After the tax plan passes, one can deduct mortgage only till $500K, so what about the rest $1.1M+ & non deduction of property tax above $10K?
I guess the bigger question is who are the buyers? & how do they financially justify their monthly housing costs. What happens if 1 family member loses a job i.e. how are they managing risk?
*Median household income of Sunnyvale according to Trulia is $99K. So my assumption of household income is 2.5X of the Median income.
https://www.trulia.com/real_estate/Sunnyvale-California/community-info/
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BItcoin. Exchanging a bubbly asset for RE is prudent.
Surely there are many in SV that strike it rich betting on bitcoin.
Real estate is one of the few asset classes safe from bitcoin crash. That’s a new bullish reason to buy RE!
Whether, bitcoin or RE, IMO unless there is massive inflation these prices/price increases are unsustainable long term(in these times of globalization).
If the money is from bitcoin, I won’t mind holding on to the vacant property for many years 
Gain from bitcoin is free, so no problem holding it for years, can pay for property tax and other expenses using gain from bitcoin. Liquidate $5 mil bitcoin, pay Sam $2.5 mil, buy the house at $2.2 mil, $300k can fund tax, insurance and maintenance for a long time.
So new buyers will pay 25k+ per year in tax. I dont know if people think about property taxes at all when they make these kinds of 500k+ overbids.
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