Buy vs Rent in the Bay Area

IBM / Eng
0x0000ff

Go to company page IBM Eng

0x0000ff
Aug 19, 2017 5 Comments

I'm moving to the Bay Area. I have enough cash for down payment and can afford up to ~ 1.4M house.

I'm looking around the Peninsula area close to #Facebook campus in Redwood City, EPA, Menlo Park, Foster City.

SFH goes for $800k at the lowest which is about $4000/month. I could get a roommate or do airbnb to save $1000-$2000/mth from mortgage.

Rent is about $3000-$5000/mth for 2,3 beds 1,2 baths. Or $2500/mth for a studio or 1 bed.

I don't know much about the Bay Area real estate market except it's at record high right now. Does it still make sense to buy if you plan to be there for at least 5 years? How's the Peninsula market?

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TOP 5 Comments
  • Microsoft / Eng
    โ˜ขNutellaโ˜ข

    Go to company page Microsoft Eng

    BIO
    was: S Nutella, โ˜ Nutellaโ˜ 
    โ˜ขNutellaโ˜ข
    Don't forget to overbid by 30% if you want a chance at anything in the Bay Area
    Aug 19, 2017 0
  • Apple
    12345๐Ÿค 

    Go to company page Apple

    12345๐Ÿค 
    Forget 5 years. Bay Area you should buy only if planning to hold. Its a market which will grow a lot faster than inflation due to bad zoning laws restricting construction and prop 13. These 2 alone make buy and hold for ever a no brainer. Bay Area has a boom and bust period. No one can predict when the next bust will happen which can wipe out 20-30% of the value. Though it could go up by 70% before dropping 20-30%. That is why 5 year plans are bad. Those who bought in 2005 and sold in 2010 lost a lot of money. But those who bought it in 2010 made a killing. But those who did not sell even if they bought in 2005 are also in excellent shape
    Aug 20, 2017 0
  • Airbnb / Eng
    mover

    Go to company page Airbnb Eng

    mover
    The market has cooled quite a bit. Money isnt flowing as easily from China (new restrictions etc). Better read up on all of that before you buy since it will like impact housing prices quite dramatically.
    Aug 19, 2017 0
  • House market cooled down recently
    Nov 16, 2018 0
  • Cisco / Mgmt
    Kil'ka

    Go to company page Cisco Mgmt

    Kil'ka
    Aug 19, 2017 0