Lost the house to all cash buyer.

VMware Gundaraj
Jul 11, 2018 52 Comments

RANT ALERT: Why won't the investors leave Bay Area alone. They buy properties put 50k and sell at a 200k profit raising the market rates. Regular people don't have cash lying around. Housing was unaffordable 4 years ago today it feels like a constant chase which you never win.

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TOP 52 Comments
  • Apple / Eng No Repro
    Your rant against all cash buyers is misguided. Be angry that our zoning policies don't allow for higher density housing. That's what's artificially keeping supply low and costs high. Take a look at the recent bill from Scott Weiner that was shot down. I'd urge you to vote for folks that are in favor of higher density zoning.
    Jul 11, 2018 13
    • Square avajqua
      The minimum cost of construction alone - excluding land costs and permits - is around $350sq/ft. After factoring in cost of land aquisition and building to code minimums with cost optimal building configurations (6-10 story studio condos) break even cost of construction runs around $550k per unit. That's with zero profit. The permitting cost alone on that would be $15k per unit to the city. Every new purchase would be paying market rate property taxes, they'd be paying 10x+ taxes toward infrastructure than long time owners are. But developers and new homeowners can't pay taxes for transit if they aren't allowed to move in the first place. That post shows how misinformed you are about the current housing economics and why it's hopeless to think anything will chance.
      Jul 11, 2018
    • Its not as expensive as you mentioned above. I am getting my house extended and it costs around $200-220/sq ft (and I solicited multiple quotes from licensed builders).

      I might be misinformed but I am very involved with the city council and operations. You have no idea how much under the table dealing take place - not in all cases though. Builders are making a killing here.

      I blame both builders and city officials for the crumbling infrastructure.
      Jul 11, 2018
    • Square avajqua
      Since you're getting an extension it's safe to assume you're outside SF, so you're right that cost of construction is lower in the rest of the bay. The argument that they're handing out too many building permits just doesn't follow when housing supply is so far below housing demand. It may be more than you want but it's way less than what is needed, which is the root of the housing crisis in the first place. We need more new houses paying market rate property taxes to raise our tax base to fund transit. The existing tax base simply can't be taxed enough to cover it, since these projects are typically funded via property taxes. But since we can't raise existing taxes, and don't allow people to move in paying market rate taxes, nothing will get fixed, prices will stay high, and speculators will continue to be incentivized to drive them higher.
      Jul 11, 2018
    • Salesforce Gidtchvl
      @FANGbound I’m not suggesting ripping the rug from under retirees; however we all need to pay for society’s upkeep. If you keep up with economics, the boomer generation has had a pretty sweet ride and left the folks in the next generation holding the bag to pay. Prop 13 is just one specific example of that.
      Jul 11, 2018
    • Lyft bekoll
      All those who create the shortage and maintain it via their laws and beliefs, should STFU when I raise their rent. you are the reason I bought the house. Even after charging you the highest rent in the world I'm hardly making a profit.
      Jul 11, 2018
  • Google X.team
    At least we should tax foreign investment a la Vancouver. Give money to schools.
    Jul 11, 2018 1
    • Apple tuolumne
      We probably should. But it won’t happen. Look at what happened in Toronto. City coffers need the tax money.
      Jul 11, 2018
  • New / Eng g0pher
    How can you lose something that is not yours?
    Jul 11, 2018 5
    • VMware Gundaraj
      OP
      You make no sense my friend even if you think you do.
      Jul 11, 2018
    • Lyft bekoll
      Have you never lost a bicycle race or a game of Mario Bros?
      Jul 11, 2018
    • New / Eng g0pher
      You can lose your house in fire, but you cannot lose somebody else's house in the same fire.
      Jul 11, 2018
    • VMware Gundaraj
      OP
      You can lose your mind... oh well you can't. Get it? 😄👍🏽
      Jul 11, 2018
    • New / Eng g0pher
      @bekoll I lost all bicycle races I entered, best place was top 5. However, I cannot lose Chris Frooms race no matter what, even if he DNF.
      Jul 11, 2018
  • Microsoft bucom
    Don't talk bad about Chinese. I see where you are going. We have cash and we will use it. It's very fair
    Jul 11, 2018 6
    • Microsoft bucom
      No no we want to survive too
      Jul 11, 2018
    • Oracle / Eng uber.
      Why do you assume all Chinese people are rich?
      Jul 11, 2018
    • Microsoft bucom
      Cause we are
      Jul 11, 2018
    • America is a capitalist country. Greed is good !
      Jul 11, 2018
    • Uber DAmZP3
      Last I checked being greedy is legal so nothing wrong about it.
      "greedy" is a common strategy.
      Let's remember how did white people occupied America (north and south) and Austrilia, Siberia too.
      So buying with hard earned money is being greedy and robbing with guns and cannons is... whatever?
      Jul 11, 2018
  • Twitch twitch.tv
    OP, if you feel that there r lots of cash buyers and market is strong, why don't you offer 200+k higher than asking price? Just put out higher bid. With such good market you will have positive equity in a year or two.
    Jul 11, 2018 6
    • Microsoft bucom
      Cause op is greedy and want to blame Chinese people
      Jul 11, 2018
    • VMware Gundaraj
      OP
      This attitude complements my post. If I had 200k extra, I wouldn't be running in the race, I'd be leading it. People are thinking that pay more and buy it you'll get profit in 2 years. First, people who get a loan can't really afford a market crash, second, there's only so much appreciation a property can take before regular people question it's worth. What I'm trying to get at it, there is inventory in the market which is sold by investors and bought by investors today. It's inflated.
      Jul 11, 2018
    • Uber DAmZP3
      Smart people don't pay what it is worthy.
      Smart people pay what it WILL be worthy.
      Jul 11, 2018
    • Microsoft / Eng GalaxyQ
      I think what he's trying to say is it's ok to overpay if the payout is enough based on market appreciation.

      But you could also just pay what it's worth now, and get even more benefit from said appreciation...that sounds like the smart buyer to me...
      Jul 12, 2018
    • Uber DAmZP3
      But you aren't the only smart buyer and you need to beat other smart buyer. Hence the over bidding
      Jul 12, 2018
  • Buy a house where there is a rental restriction for atleast 1 year.
    Jul 11, 2018 3
    • VMware Gundaraj
      OP
      What do you mean? All cash buyers are not subject to any restrictions?
      Jul 11, 2018
    • They will not buy places where they can’t rent out immediately.
      Jul 11, 2018
    • Its not about rentals, ROI does not make sense. Folks have too much money, and a lot of cash buyers are Chinese investors buying via some proxy (you will see more of this due to trade wars, before the Chinese government clamp down on illegal money laundering/transfers).
      Jul 11, 2018
    • Cognizant Conphused
      Yea FlyHomes, they were my realtors. Becoming one of the biggest names in Seattle area because of their strategy product
      Jul 11, 2018
    • CareerBuilder JonDoe1
      Big need in a few coastal markets but I wonder how this will scale to most markets where you get 1 offer from a shake buyer in 2 months at best. Open Do It is having some success doing something similar.
      Jul 11, 2018
  • Cognizant Conphused
    I feel you. I lost 7 deals just because of that. For that, I would suggest to have a realtor who can put cash offers on your behalf. I did the same n finally won sth.
    Jul 11, 2018 2
    • Does the realtor charge extra?
      Jul 11, 2018
    • Cognizant Conphused
      No, you just have to pay extra escrow
      Jul 11, 2018
  • Microsoft / Eng Tier 1
    Speculators don’t raise prices, they only increase liquidity and help the market discover a fair price quicker.
    Jul 11, 2018 0
  • Salesforce JaEE06
    Hate the game. Investors will do as they will as long as rules allow, not because it annoys people. Remember, people who are taught the opposite: to be aggressive and not care what others think otherwise you will never be successful. We need policies to disincentivize it or startups to democratize the undesired behavior.
    Jul 11, 2018 0
  • VMware / Other
    🤷🏽‍♂️🗣!

    VMware Other

    PRE
    KPMG
    🤷🏽‍♂️🗣!more
    I think you need to find a shark of a realtor. Mine found me a off market 4/2 in Campbell for $1.2.

    Contact Jordan Mott and Jordan Shea @ Intero. They got me my place in 1 try and their claim is they’ve never had to put more than 3 offers for a client to get a house for them
    Jul 11, 2018 0
  • Amazon / Eng Benny Lava
    Think of it this way, if market crash you just dodged a bullet. Like the guys who missed out on a taxi medallion instead of over leverage to finance one, then lost everything and commit suicide.

    I haven't seen anyone bitching about uber causing suicide and bankruptcy.

    Feeling better now?
    Jul 11, 2018 0
  • Workday summerfunn
    Price us cooling off now. So, you can try to buy now.
    Jul 11, 2018 0
  • Facebook public
    There's demand and supply. That's why lol. Buying isn't for everyone.
    Jul 11, 2018 0