[QUOTE=HuangDi;178634]Wow, thanks for all of the replies guys! I have a lump of money I saved from some deployments in the Navy that is loosing value due to inflation I’m looking to invest. At the same time, my wife works with a pretty good salary as I mentioned before. Lastly, the housing market here in the east bay is continuing to skyrocket …what I am thinking about now is should I try (keyword) to buy a condo now while I can somewhat (another keyword) afford it, or continue to flush $1500 down the shitter every month for a crappy one bedroom. I might wind up waiting until after school…hence the creation of this thread, in case I do wind up trying to ship out of the hall in two years time. You guys have given me a lot to chew on for now though, and again that is very much appreciated![/QUOTE]
I am amazed that the property values in the Bay Area are still so high. I was out there last month and drove by a house that my folks bought new in Las Gatos in the early 70s for $47K. Just for fun, I looked up online appraisals and found that it comes in valued in the area of $1.5 Million. . . . other homes that we lived in in California, including Santa Barbara have not appreciated anywhere near that.
[QUOTE=HuangDi;178634]Wow, thanks for all of the replies guys! I have a lump of money I saved from some deployments in the Navy that is loosing value due to inflation I’m looking to invest. At the same time, my wife works with a pretty good salary as I mentioned before. Lastly, the housing market here in the east bay is continuing to skyrocket …what I am thinking about now is should I try (keyword) to buy a condo now while I can somewhat (another keyword) afford it, or continue to flush $1500 down the shitter every month for a crappy one bedroom. I might wind up waiting until after school…hence the creation of this thread, in case I do wind up trying to ship out of the hall in two years time. You guys have given me a lot to chew on for now though, and again that is very much appreciated![/QUOTE]
If your wife’s income and credit are sufficient to buy a condo on her merits alone, your information matters less. In fact, she could get the mortgage but both names could be placed on the title paperwork. It wouldn’t be a horrible idea to buy what could be afforded on just one salary. That way, you are more likely to survive a catastrophic financial issue like a layoff etc.
I don’t know the details, but i do know that buying a condo is much different than buying a home. Different lending rules apply not to mention the maintenance fees associated with the purchase of a condo. It is worth res3arching.
If there’s any market I’d avoid unless already very wealthy, it would be that San Francisco market. Just like Manhattan. It’s so over-valued compared to everything else. Not to say values will crash but upside maybe limited and when something is SO out of whack i personally like to stay clear.
My real estate market area is expensive, but has been steady for decades and comparative to other similar areas.
Is the risk of buying (possible depreciation) and expenses of buying greater than the effects of inflation? I’d say I personally could afford to lose a percent or two to inflation than risk possibly losing value to a real estate market bubble popping plus interest/taxes of purchasing a home. You don’t need the deductions on one income as a student (and possible with children).
I’d buy a 60’ sailboat, and outfit her with enough solar panels to cover basic use. Install a grid tie inverter so you have no electric bill at the dock. Earthquakes, no problem. Sea level rise, no problem. Great job opportunity in Tahiti, no problem. Insane Bay Area housing prices, no problem. Upside down equity, no problem. Don’t feel like working your life away, no problem. Works for me, literally. Good luck!
Good points you all. Yes this Bay Area market is getting ridiculous, that is for certain. Homes in my once low-income neighborhood are now going in the mid to high 600s. San Francisco? Forget that…nice city but Jesus, you must be either rich or have some sort of housing project voucher. Lots of local talk on the radio here regarding whether or not there is a “bubble” here in the bay or not. The “experts” say there is not because there is actual cash backing these purchases, either in the form of sky-high Silicon Valley tech salaries or cold hard cash from Chinese investors. Will read more into the condo vs home loan stuff, was not aware there was too much of a difference. Shows how much I need to learn before making any decisions. A boat? Hmm…sounds cool but living on a boat half of my life while working and then at home, not too sure. Not too sure the wife would go for that! Haha; to each his own though!