Bay Area Real Estate

[Bugsinrugs]

https://www.realtor.com/realestateandhomes-detail/1-Dos-Posos_Orinda_CA_94563_M18511-91001?cid=txt_shares_rdc_ldp
I hope the link goes through. My son put an offer on this house. He went 100,000 over asking, no contingency’s. He was out bid by an all cash offer 300,000 over asking. Things sure have changed since I was buying houses. These people only repaired part of the pest report. There is rot and termites behind the stucco near the front of the house. They said they wouldn’t fix area under the stucco. No dollar credit either. I’m thinking a 3 million dollar house should be almost perfect. It isn’t and I told him but it’s his money.

[look 171]

and they said the bums are ruining the bay area, everyone is leaving in droves

[cantdrv55]

Buying a $3M house at these mortgage rates?

[Noah930]

Originally Posted by cantdrv55

Buying a $3M house at these mortgage rates?

Who cares about mortgage rates when you're paying ca$h?

(OK, not literally, but you get my point.)

Congrats to Bugs that his son is even shopping for houses as beautiful as this one.

[LWJ]

Yikes. The Bay Area folks moving up here have added considerable equity to my home. Only thing is that I can’t move because it is so spendy.

[A930Rocket]

https://www.realtor.com/realestateandhomes-detail/1-Dos-Posos_Orinda_CA_94563_M18511-91001

Here’s the link. Beautiful home.


Dang. $21,xxx per month!

[cstreit]

I don't understand how mere mortals afford those prices.

I guess you just plan on being in debt forever and make it back when you sell?

[cantdrv55]

Tech millionaires

[Evans, Marv]

Man, that's a little over twice the price per s.f. of my house, & I thought that was high. I have an old school friend who lives in San Rarael. I can't imagine what he paid. Everything is so crazy.

[cantdrv55]

There's a woman who bought a house nearby for $1.5M for herself, husband and two dogs. She also bought the smaller house next door for $1M for her MIL. Her husband does not work. She works at Google.

[Bill Douglas]

Originally Posted by Evans, Marv

I have an old school friend who lives in San Rarael. I can't imagine what he paid. Everything is so crazy.

My uncle Obrey lived in San Rafael. He'd be spinning to know what property prices are now.

[Bugsinrugs]

Me being selfish, I’m glad he didn’t get the house. There is a massive redwood tree that appears healthy but if that puppy died it most likely be 100,000 to remove it. All crane work. Lots of stairs and not a great place to put up a ladder. I’m saying this because he would call me for help on home maintenance. I told him this place will cost him to maintain.

[john70t]

Originally Posted by cantdrv55

Tech millionaires

Young tech millionaires, with money burning a hole through their pockets. Image now, not long-term investment. "If I lose everything and start over then c'est la vie because I'm strong".
Youth is wasted on the young.

The thing about RE is that it's the largest investment most people will make in life. It's not over at the time of purchase. Property tax rates continue to make the land itself property of the government. Local and state politics with changes in business and employment can boom or devastate values in the long haul. We've all seen the ghost towns of yesteryear. Single industries can make or break an area. It's more than a comfortable place to live it's an obligation to keep feeding or lose everything. Every advantage during easy times squandered and gone forever.

Sometimes these decisions are made due to pure emotion at the time. "Oh this looks nice honey, let's buy it". Damn the bottom line full speed ahead. That high wears off eventually and it becomes a place to maintain and be stuck with. Life changes. Jobs change. Feelings change. That fat pig of a property is still there demanding to be fed all the time. Tomorrow you travel somewhere and find the new paradise you've always wanted.


Bugs I would recommend you tell the kid to rent for now. Keep everything gained so far. A housing crash is looming and A.I. will probably devastate the tech sector. You make money when you buy property and now is not a good time to buy IMO.

[jhynesrockmtn]

I can't imagine these prices or being able to buy a multi million $ home. I would be so worried it will all come crashing down at some point. I left the Seattle market before it exploded again post 2008. My daughter just paid $700k for a smallish house in a just ok neighborhood that needs a ton of work. That would have bought her a really nice place in Spokane but I can't get her to move

[Bugsinrugs]

My son is a Cardiac Anesthesiologist. Not a techie. He works very long hours and is on call on the weekends. He gets handsomely rewarded. He also rents my townhouse along with his lawyer girlfriend. It’s hard to give him advice since I cannot relate to his earning power.

[john70t]

They are both secure and have jobs that will travel anywhere. Very good! Still, if local business crashes and the flow of new stupid people with money peters off, the end result will be the same. There will be no new buyers when they want to move. It could be a huge loss for both of them.

Unmarried? Another consideration on his behalf is structuring the purchase equally so they both can feel secure. I know it sounds crazy but stuff happens and things can change. Maybe through a partnership with buy-out clauses and obligations when/if their relationship or situation changes.

Two young people that jump into a huge investment together is a big grey legal area. Do the research. Different states have definitions for common law marriage and result in unequal automatic judgements. Protect your son, and his girlfriend. Sex and money are the breakers of relationships. Get it set up beforehand. Her reaction may be revealing. Is she capable of adapting to new criteria which would protect her boyfriend or inflexible?

When times are 'tumultuous' people panic and automatically want to 'do something'. It doesn't matter what that might be. The pheasants get flushed out of the field where they were safe(r).
Don't give in to panic. Be strategic.
Never fall in love with a property. Another one even better will always come along.

[Bugsinrugs]

I’m no expert but I have been waiting for Bay Area real estate to come back to earth since 1980. Still hasn’t happened. Just like LA there is a lot of money in these California cities. As long as there are more people then houses the price will be stable or rise. Four offers came in on the house mentioned. Still lots of money out there. 3.6 million cash put into a house might be more stable then putting it in the stock market.

[Deschodt]

Originally Posted by Bill Douglas

My uncle Obrey lived in San Rafael. He'd be spinning to know what property prices are now.

San Rafael has been a bit ruined by the SMART (stupid) train, buggering traffic despite being always empty. ALso the bus terminal brought a lot of homeless from the city and it's a bit crazier than it used to be. Other than that, prices are up of course (I mean we have the best taquerias in the area)..

Orinda (OP) is a very sought after location because it is a short BART ride to SFO (or anywhere BART serves) - and in the sun belt (jsut behind the hill that keeps all the clouds and cold over berkeley) - it's always been expensive and a posh neighborhood, that house looks very nice and the price in line with the market.

I've been waiting for 356s to come back to earth too, I stand a better chance of that happening than the bay area housing market dropping. Sure there are blips now and then but nah....

[john70t]

San Bruno blocked a BART extension for a while, from what I read.
-Commuters probably parked free in local neighborhoods and rode the last leg into town.
-SF riffraff probably started showing up in parks etc.
-Access to the airport was vital though and a natural part of infrastructure

[ZAMIRZ]

Originally Posted by Bugsinrugs

My son is a Cardiac Anesthesiologist. Not a techie. He works very long hours and is on call on the weekends. He gets handsomely rewarded. He also rents my townhouse along with his lawyer girlfriend. It’s hard to give him advice since I cannot relate to his earning power.

Let him spend it on whatever he wants.

He works hard, I'm sure spent a lot of time and money on education (maybe you helped out with that too).

That's a dope house. If it's a place he wants to come back to after a 2 weeks straight of back-to-back 16 hour days then make sure you're there on the terrace to hand him a cold beer and tell him you love him and are proud of him.