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Your question seems silly. If you believe the reports that the market is about to burst, why does it matter if you travel? If you can afford it now, wait until the burst and make that 💰
I’m waiting for the bubble to burst to buy
If you're entrepreneurial, you could put a decent dent in your mortgage by airbnbing your place when you're gone.
Wait until the bubble bursts, get a place for cheap, and list it on Airbnb when you’re out of town.
2 parter: travel all the time = get a burner apartment to hold your furniture and get mail. Housing bubble = wait to decide to buy.
Did we distill & solve? Yes. Good job, team
Don’t forget that interest rates are rising...
To me it personally matters because of the amount of usage of the place . However to some it might sound like a silly question.
Op my comment wasn’t intended to comment on your use of the space, certainly that’s a concern. However if you think the bubble is about to pop, why would you ever consider buying now?
I mean if you rent you are just paying tons of money for a place you don't use while you travel... And if you have a mortgage at least you have something more than THAT.
And what would make the real estate bubble burst? Aren't there plenty of software engineers who can afford to buy condos in CA?
I’m saying that it’s coming to a point that even techies can’t afford housing anymore. The bubble is based on pricing outpacing the amount of buyers willing and able to buy, not irresponsible lending. I’m not saying it’s going to happen right this second, but it will happen at some point, especially if NIMBYers get their way. There are already reports of an oversupply of high priced housing; meaning those who can afford it either aren’t interested or already have houses. I’m pessimistic about the market being able to replenish the amount of eligible buyers. Sure, there many devs have stock options, but it only means anything if the startup has a successful liquidity event, and any VC can tell you that’s not the typical outcome.
To add to C1 even if you can afford a 900k 1000 sq house/condo , does it make sense to pay 4.5 k per month as mortgage after 20 percent down . How many folks can sustain that?
C1--sitting in the office in SF now. What is this about an oversupply of high priced housing? There is extremely limited housing in the Bay Area. Remember, not every family wants a 2bd/2ba condo and remember that this area encompasses 60 miles of upper Marin down to San Jose. Family homes in commutable areas with good schools are extremely supply-constrained, and demand is increasingly high (multiple offers etc). The condo market in certain areas of the city may experience a softening, as people leave to purchase home, but to say the market as a whole is a bubble is ridiculous. Rents are 4500-7000 a month for 2bd apartments. There has been no decrease in that even when real estate crashed in 2008.
A3 sounds informed, and brings to light a good point about considering home buying on a market by market basis as opposed to all of CAs. There’s always good deals out there if you’re patient and have an agent who’s very clued in to your requirements and financial situation
M1 . That's what I was trying to talk to other fish about . Could it be just my nerves getting the best of me or was this a concern with other folks too ?
Sorry D, but your question makes no sense to get the answer you want. I am on the road all the time, so I don’t know if it makes sense to buy a house. Will the housing bubble burst in CA? That’s a bad non-sequitur.
@A2 COL is out there is so high that it’s entirely possible for high paid devs to struggle financially. For reference, the poverty line in SF is 80K. So if you can imagine, you’ll need a whole lot of money to be financially stable enough to buy a house. The thing about dev work is that it starts of high, but caps off if you’re not on the leadership track.
But from my understanding, the bubble burst before​ due to bad lending regulations, and prices have risen this time due to demand (lots of high paid techies competing over property). If like 10 people are bidding on a given property in the bay area, there is no shortage of demand-- regardless of how that leaves non-techies. And sure, management ops may be limited, but many hires come in with stock options for these companies...
Again, I get that people are struggling. I grew up near there and my family would never have been able to afford even a suburb there if they hadn't bought so long ago. BUT I also know things sell FAST there, for well over their asking price, despite how many people are struggling.
@Deloitte op what does your current rent look like?