There are tons of foreclosures pending and I guess they need one more lesson

Look at gas prices. 3x, more actually, from 1993. Why aren’t you talking about a bubble in gas?

Or milk, $7 a gallon for Organic milk at Safeway or any other major market. Where’s the milk bubble?

Here’s one primary factor for much of the cost increase in the Bay Area, government greed. Yep, local governments figured out that they could strong arm the builders to fund their socialist experiments in “low income” or even better, once they figured out that was a bit too much truth in advertising, “inclusionary” housing. The “impact fee”, is often $150K per unit. Do you have any concept of how much instant unaffordability that builds into the market? Some greedy local city decides to redistribute some wealth and suddenly every house in the city gets a $150K boost, minimum. So there it is folks, there is more than one reason for everything.

If you’re a simpleton, keep digesting tripe like burbed.com simple information and you’ll be happy. If you want to understand things, you have to be a bit more analytical about it.

In June, it re-listed with a different agent at $535k.

In July, it re-listed with a third agent at $515k.

I’m walking by it the other day, and the “$515″ is crossed out and “$500″ penciled in…

So that’s a 10% drop in asking price over the past in less than six months. Has the bubble popped yet?

There’s the problem right there.

No one wants to leave the Bay Area – it’s the most special and perfect palce on earth.

Actually you can dice that even further.
When Goog went public they only had some 3000 world wide? But thats ok too… No you really have to go back even further. Say 1998-2001 for fully vested options to take effect. Now we are talking around 500 employes per their S1 when they filed. It also depends on number of options granted. Some only get 1000 shares. No big impact. Read their Cap Table in S-1. As one news story pointed out back during the IPO only 300 or so benefited.

So ok, lets really ask these 300 or so how they felt when they Google Hit 300-400 per share.

I will tell you. Everythings changed. You wake up! Call you broker sell everything. Send an email to your new boss that was hired last month! ( You really cant stand this guy, because you know more and he came from a dead busted company) and give your notice. You go back to bed and sleep.

Next you move out of the Bay Area to LV or Miami where prices are 1/3 and homes are 2x bigger.

You dont even bother to stick around Bay Area. You see once the realtors in Palo Alto figure your from Google, which they ultimatly do via background check.
Your toast! They will jack up real estate prices 100%
And you can pay because your from Google. Everyone is like that! Your life has changed and you need to leave fast before you loose everything.

You leave for LV or Miami or SoCal … as far from BA as you can…
There is no sales tax or state income tax and you live on 5% of your cash. I doubt you will find anyone from IPO date working at Google. They are all gone just like the Yahoo and other dot.coms.

For full disclosure I worked for two tech companies that went IPO in 1994 and 1996. By 2000 I had $2.5M and that grew to $6M by 2006.

That’s only $46,548 or $41,376 a year in mortgage payments.

But just think, you would get $10k back in tax deductions. That should at least cover the property tax and insurance.