Just Paid $698K for a 1375sf Condo in SF

West Coast Guy wrote:

And we on the West Coast hope and pray that you stay there.

And vice versa my friend. You keep your rainbows and unicorns there and we'll keep our values and guns here.

Unrealistic Expectations wrote:

Emperor Norton wrote:

That sounds cheap for SF. Seriously. What neighborhood?

Protrero Hill. This listing is very near the one I purchased:

http://www.realtor.com/realestateandhomes-detail/2136-22nd-St_San-Francisco_CA_94107_M18905-67866?source=web

OP:Thanks for the address. I am on my way to egg your house.

Unrealistic Expectations wrote:

$150K.

So how many decades is it going to pay off your mortgage with the state of California's sky high taxes? If you plan to have any kids, I hope you've started saving to get them in a private school, given that the state of California has one of the worst public school systems in the country. And I hope you're not counting on the UC school system for their college education...

fantastic, stunning place to live, mountains nearby, ocean, beaches, redwoods, great food, culture, and sure, you are in pretty deep even at $150k, but it is well worth it. your factor of salary to price is 15/70 or .21, whereas ours (2 incomes) is .62 on a much, much cheaper house, and we're paying it off in five years, using my entire salary, but you are in the better bay area, no question.

Unrealistic Expectations wrote:

Can't believe I did this being from the Midwest originally, but that is what costs here for anyone contemplating the move. The plus is the SF re market is quite strong and doesn't correct dramatically due to the demand.

I don't know who in their right mind would pay $700K for a 1300sf condo. To me, that's just plain insanity. Maybe the weather is better in SF but I can buy a friggin 200AC estate for $700K in Louisiana.

I hate you. I could punch your nose for leaving me here alone.

Pay it off as quickly as you can. If mortgage interest rates go up to 7,8 or 10 percent(which is where they were for most of the last 40 years)-just watch how quickly real estate stagnates or collapses (again.) If you have an ARM cooking-you better hope Obama can keep the prime rate at 0.001%. Jimmy Carter couldn't do it. We are a Tiannamen Square revolt away from another meltdown-If the Chinese stop buying US bonds-interest rates will skyrocket. Mortgages in 1982 were going for 15 percent. On a $700,000 note, that's over 8 grand a month in interest. You takin home 8 grand a month? Do you know anybody who is-and wants to live in a 1375 SF townhome?? Lets say you have a fixed mortgage-and your payments won't rise-the market will collapse and you will be paying a $700,000 mortgage on a $350,000 condo. Half of Phoenix and Las Vegas faced that situation 3 or 4 years ago. Many of them walked. Those real estate markets won't recover for at least another decade.

In the good old days-1995-the prevailing wisdom was don't buy a dwelling more than 2.5 times your annual salary. If you make 150K, that means 375K is what you should be looking at. You are nearly twice that???? Depressed interest rates and creative financing have blown the guideling out of the window-but the piper will have to be paid at some time.

If this is 1973 again, the next decade could be interesting for people in hock to their ears-kind of like the last decade. Google stagflation if you don't believe me.

And tell your congressional representative to balance the Federal Budget.

LeadvilleNative wrote:

Half of Phoenix and Las Vegas faced that situation 3 or 4 years ago. Many of them walked. Those real estate markets won't recover for at least another decade.

Wrong. Phoenix and LV are already recovering. Phoenix home prices are up a solid 20% from a year ago.

Settin the Record Straight wrote:

LeadvilleNative wrote:

Half of Phoenix and Las Vegas faced that situation 3 or 4 years ago. Many of them walked. Those real estate markets won't recover for at least another decade.

Wrong. Phoenix and LV are already recovering. Phoenix home prices are up a solid 20% from a year ago.

But still down 60% from 2008.

LeadvilleNative wrote:

Settin the Record Straight wrote:

Wrong. Phoenix and LV are already recovering. Phoenix home prices are up a solid 20% from a year ago.

But still down 60% from 2008.

Wrong again. Prices at their lowest point were about 55-60% off the 2007 peak. They have since recovered about 20% off that low.

areader wrote:

A big part of the reason that the West Coast is so expensive is that people like you can't afford to live here. Think of it as a Country Club with an incredible coast, beautiful mountains, sophisticated cities with some of the best music and food in the world and the smartest, best looking people. I can afford to buy in, you can't Farm Boy. But thanks for producing food for us!

Even if you're trolling, life is too short to be a huge @sshole, mate.

I live in LA with wifey, formerly from a small east coast town, and struggle with housing prices here. We have solid income, both slightly less than the OP, and get discouraged at the constant boom and bust and irrationality of the CA housing market. Though, as others have said, CA is a wonderland. We're willing to put up with traffic, high cost of living, and self absorbed d bags like the poster above because of it's amazing natural beauty, climate, and world class cities. That may change, but being able to spend time in desert, city, high Sierra, and surf during sunset keeps us sticking around.

Sounds like a good deal. I just paid $310K for 476sf in Brooklyn.

I paid $479K for a 600 sq foot apartment in Mahattan in 2004. ago.

Recently assessed at $625K for a refi. It peaked at $750K.

LeadvilleNative wrote:

Pay it off as quickly as you can. Lets say you have a fixed mortgage-and your payments won't rise-the market will collapse and you will be paying a $700,000 mortgage on a $350,000 condo. Half of Phoenix and Las Vegas faced that situation 3 or 4 years ago. Many of them walked. Those real estate markets won't recover for at least another decade.

Why the hell would you pay it off early if you have a fixed mortgage? If consumer interest rates rise above your mortgage rate, then you are making money by not paying it off early.

True, if you have an adjustable mortgage, then you are screwed. But who gets those these days anyways?

Finally, why are you assuming that the OP paid no money down?

The SF job market is hot right now, as is the Bay Area market in general (Silicon Valley is doing a lot of hiring). It's expensive but if you are still getting started in your career and work in tech or social media it's where you need to be.

The people you meet and work with will help open doors and provide opportunities you would not find back in the MW.

Also, the SF housing market is a lot less volatile than in the outlying areas. Values held up better than most places in the recession. It sounds the the OP got a good deal.

A lot of people are in heavy debt and I think it's the wisest move to spend your money paying off debts first while you spend the least you can on rent. Then buy a house. Then a car.

You guys can have your expensive west coast living....

I paid $92k for my 1700 square foot house (plus 800 square foot basement) in 2000. It's paid off. I make $87k, the wife chips in $50k. We live less than a mile from a 20+ mile rails to trails path, can walk to a grocery store and about 30 restaurants. I have $80k cash in the bank, she has $110k. We could upgrade, but life is so easy this way. Three cars, all paid for. I'm 40, btw. I'll be retired at 55.

Instead of working 80 hours a week to pay down a massive mortgage, I work 37. I take 5 vacations a year. I can drop $500 to fly to NYC for the weekend if I want, it's only 2 hours away by direct flight. Spent 10 days in Paris for the summer, and Christmas in Mexico.

Seriously....enjoy your west coast living. Really.

To each their own. It's all about quality of life.

I'm 29 and live in Chicago. Looking at buying a condo for approx $600k and would never expect more than 1750 sqft. And taxes will be a minimum of $9k per year. But...for me personally it beats the crap out of living 30 miles outside the city and getting a huge home for 1/3 the price.

reality check time wrote:

Many people that live in other areas of the U.S. can afford to live on the west coast, but we choose not to. We much prefer to stay in our less ethnically diverse areas of the U.S. with our other white gun-wielding conservative friends.

This is why we should support secession.