Buying a 1 million dollar home in the Bay Area - Good, Bad, or Ugly

[Strickly Bidness]

Fellas,

I'm about to drop a million dollars on a nice home in the San Fran Bay area and I'm concerned about recouping my investment if I go to sell this house later. If I plan to live there for more than 5 years, what are my chances of getting a small return on my purchase/investment?

Thanks ,

SB

[Scorpion Man]

Which town? How long you plan on staying?

[Strickly Bidness]

[ QUOTE ]
Which town? How long you plan on staying?

[/ QUOTE ]

I plan to say for 5-10 years easily. As for the town...well probably San Mateo, Foster City, or South San Fran. Towns like Burlingame and Hillsborough are just too damn expensive for my liking.

SB

[Scorpion Man]

What is the down payment as % of your net worth? What is comparable rental rate for what you are buying? Do you have enough income to take full advantage of home mortgage deductions? Can you do this without running afoul of AMT? Do you have a steady job? Are you married? Do you really want to trade up within those 5-10 years?
How much are you putting down as % of home value?

Then maybe i can start to answer.

[Strickly Bidness]

[ QUOTE ]
What is the down payment as % of your net worth? What is comparable rental rate for what you are buying? Do you have enough income to take full advantage of home mortgage deductions? Can you do this without running afoul of AMT? Do you have a steady job? Are you married? Do you really want to trade up within those 5-10 years?
How much are you putting down as % of home value?

Then maybe i can start to answer.

[/ QUOTE ]

Ok a quick summary....I work for the richest company in the bay area and my wife and i bring in a very solid six figure salary. Thing is, I have to buy so renting is not an option. This is because my company will hook me up with huge incentives if I buy due to the fact that I am moving from Indiana and they will give me over 100K in subsidies for purchasing a new home. Thus, I am really worried about the bubble out there and whether or not the value of those homes will go down over 5 years or so....So in short, I do have the income to benefit from interest deductions, and renting is not an option-I need to buy to get subsidies. I guess its more of a real-estate bubble/valuation question here.

Thanks bro,

SB

[Strickly Bidness]

specifically, I'm thinking about this foster city home:

http://horwitzteam.com/mls/details.p...mls_num=670187

[Thremp]

SB,

You are likely fine. Since you say its "not an option" to rent just buy it and deal with it.

Tell yourself "They aren't making anymore land" if it helps you sleep better.

I really would be stunned in 10 years if you hadn't made some money off your house.

[Strickly Bidness]

[ QUOTE ]
SB,

You are likely fine. Since you say its "not an option" to rent just buy it and deal with it.

Tell yourself "They aren't making anymore land" if it helps you sleep better.

I really would be stunned in 10 years if you hadn't made some money off your house.

[/ QUOTE ]

Thremp,

its just that everyone keeps talking about the bubble "busting" and it worries me that I may buy this for 1 million and have to sell it for 700K later

[OnlinePro]

House values will never drop over 10% in value. IMO

[Strickly Bidness]

Another question (and my final one) is this: million dollar home, or 750K condo??? WHich is better for resale and investment safety. Let's say I can live there for 10 years easy.

SB