Rate my investment - Milpitas Condo

New apbn
Apr 3 55 Comments

I am 25, work in Sunnyvale under H1B visa, living with my girlfriend, and not planning to have any kids at least within the next 5 years. I have been house-shopping in the south bay and the only affordable yet nice property I could find is a new 1200sqft 2-bedroom condo in Milpitas ($850K). HOA is $575 monthly. Should I go ahead and buy it before prices and interest rate go up. Or wait another year in hope of having more options (New developments or salary raise which will allow me to buy more expensive property)?

Note that I am looking to live in this house for foreseeable future, so I am okay with the fact that renting it won’t cover the mortgage payment. But It is not okay if the home price depreciated by the time I want to go for an upgrade.

Also what do you think about living in Milpitas in general? I know about the smell myth, but this property is far enough from the dump, so it should be okay.

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TOP 55 Comments
  • Fitbit Anchorman
    That smell is not a myth.
    Apr 32
    • New apbn
      OP
      Do you live in Milpitas? How bad is it in the area between great mall and I680?
      Apr 3
    • Oracle
      sNQq27

      Oracle

      PRE
      Yahoo
      sNQq27more
      Smell is bad near 680/great mall too. Sorry.
      Apr 3
  • Infoblox 2600
    Never buy a condo as an investment. Keep renting and buy a freehold duplex that is cash flow positive in Oakland.
    Apr 310
    • Microsoft yiqing
      This is wise advice.
      Apr 3
    • Microsoft yiqing
      You can also get cash-flow SFHs in Oakland.
      Apr 3
    • Iterable / DatarAGJ17
      Excuse my jargon knowledge, but what does freehold mean in freehold duplex? Also what’s SFH?
      Apr 3
    • Oracle hurr
      SFH - single family home
      Apr 3
    • Amazon LoanerBadg
      Why?
      Apr 3
    • Freehold means without HOA or other monthly fees
      Apr 3
    • Oracle
      sNQq27

      Oracle

      PRE
      Yahoo
      sNQq27more
      Don’t think any house in the Bay Area would be cash flow positive as an investment. Mainly bought by people who are betting on the home price going up. Would love some examples that disprove me.
      Apr 3
    • Depends on how large the down payment is 🙂
      Apr 3
    • Microsoft yiqing
      There are plenty of cash flow SFHs in East Oakland with 20% down.
      Apr 4
    • Airbnb YdSR51
      West Oakland too
      Apr 7
  • Twitter Nwom
    Condo + hoa = horrible investment
    Apr 30
  • Apple Freakzilla
    #shitpitas dont buy!
    Apr 30
  • Uber / Engtgct8f
    Are you sure that you (and your future family) will be OK with the smell? Have you experienced the worst days of the year?
    Apr 30
  • This comment was deleted by original commenter.

    • New apbn
      OP
      $575 monthly
      Apr 3
    • Google / Engcatburglar
      Why is it so high?
      Apr 3
    • New apbn
      OP
      Not sure. other than a tennis court and a small park, I don’t see anything worth that much
      Apr 3
  • Apple Dr. Xi
    Right now is a great time to buy. Interest rate are low. If you plan to keep this place for at least 5 years buy it. You can alway do an upgrade later.
    Apr 31
    • LinkedIn ex-fb
      Interest rates may go down next year
      Apr 9
  • Apple 867530nine
    That HOA is murder. And the smell isn’t a myth. There’s a smell map. Check it out.

    I’d try and find an older place further out with no HOA if you can.
    Apr 30
  • What’s the HOA? Condo HOAs are sunk cost. In general, I would avoid condos. They are the first to drop in value in a down market
    Apr 32
    • New apbn
      OP
      HOA is $575 monthly
      Apr 3
    • Twitter Nwom
      HOAs are not tax deductible and they only go up over time.
      Apr 3
  • Are you on visa?
    Apr 31
    • New apbn
      OP
      I am on H1B
      Apr 3
  • Nutanix
    SkinnyBill

    Nutanix

    PRE
    VMware, Apple, Cisco
    SkinnyBillmore
    Would not recommend Smellpitas to anyone.
    Apr 70
  • New jay10
    I would wait to get a 3bed/2 bath - highest rental value. HOA above $250 without utilities/services is bad.
    Apr 40
  • Google SergeyBlin
    You can rent a room with just that HOA fee. Add a property tax of 1K a month and you can rent a studio.
    I think this is insanity given that it is stinky Milpitas.
    Apr 40
  • Intuit gmj
    HOA is too high! Milpitas close to 680 N doesn’t stink though
    Apr 30
  • New / Eng
    kr580

    NewEng

    BIO
    Dev/tech ops senior guy
    kr580more
    I dunno guys how's condo horrible investment, but I bought in 2012 and the market value (neighbors selling) is now 3x I paid. HOA fees went up from $527 to 538. My HOA fees include water and garbage and you have to pay for that anyway.
    If I didn't buy I wouldn't be able to rent here now.
    Apr 36
    • New apbn
      OP
      What’s the location?
      Apr 3
    • Apple 867530nine
      If you bought anything in 2012, you’re sitting pretty. That was the bottom of the bottom, or rather when the bottom started climbing upwards. Beautiful timing.

      The only strength of this area is the close commute to employers and everything else worth living in has mooned so people are forced to look there. Because of this It probably has more legs to appreciate. Next is Fremont.

      But Milpitas is pretty much a shit hole apart from a few okay pockets. I would never raise my family here. But from an investment perspective, the area is probably up and coming. Welcome to Bay Area real estate.
      Apr 3
    • New / Eng
      kr580

      NewEng

      BIO
      Dev/tech ops senior guy
      kr580more
      i’m just saying that generalizing “condo is a shitty investment” is, well, a generalization too much :-)
      Apr 4
    • Apple 867530nine
      Agree. My first home was a condo. Then a townhome. Then a single family. It wasn’t a bad investment as long as you follow the 3 rules of real estate.
      Apr 4
    • New apbn
      OP
      @867 what are the 3 rules?
      Apr 4
    • Apple 867530nine
      Location. Location. Location.
      Apr 4
  • Microsoft yiqing
    Could buy a house in East Oakland for half that price.
    Apr 35
    • Akamai Technologies Bboi
      Didnt know this. Is East oakland safe?
      Apr 3
    • Microsoft yiqing
      Seems pretty safe. I own a rental house there and haven't had any problems any of the times I've been there.
      Apr 3
    • New apbn
      OP
      I am looking to live in this house. And Oakland would be too far from the south bay where most of my career life is going to be (I’m a SWE)
      Apr 3
    • Akamai Technologies Bboi
      @yiqing good to know! Oakland is quite large.
      Apr 3
    • LinkedIn ex-fb
      Buy in Oakland to cover mortgage with rent and rent in South Bay?
      Apr 9
  • New apbn
    OP
    Milpitas vs South SJ. For the same property size and price. Which one is more worth it?
    Apr 43
    • Google SergeyBlin
      Where in SJ? Some very nice areas with good schools like Almaden. But bad commute unless you work in Netflix.
      Apr 5
    • New apbn
      OP
      East of Willow Glen by the Guadalupe River
      Apr 5
    • Google SergeyBlin
      Not the best area, but will likely go up in value as Google moves in there in a few years.
      Apr 5
  • This comment was deleted by original commenter.

    • New apbn
      OP
      Yea, the sales told me about it. And they said that the government has done above and beyond to clean it up completely
      Apr 3
    • New apbn
      OP
      Wow. Thanks for this
      Apr 3
  • LinkedIn ex-fb
    Condos don’t appreciate in value due to shared land, while houses do (for the real estate).
    So why not buy a house in South Bay OR
    buy a house elsewhere, rent it and live in a rented house in South Bay?
    Apr 90
  • LinkedIn podkdjjjje
    What OP left out is the condo HOA is high because his condo has an elevator. It's also right across the new BART station. All recent homes in that area have massive over-engineered mitigation barriers to protect from the 80s Jones spill which is already dwindling to undetectable in voc levels. There are chemical spills all around the bay area including mountain view yet none of those homes have passive mitigation barriers. Nonetheless, that HOA is high.
    Apr 60
  • Nvidia groovi
    Good location, HOA is insane though, buy resale ones where HOA is arnd 200
    Apr 30
  • Cisco Wakeup
    Not worth it.
    Apr 30

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