February 26, 2007

$2800 to rent a $1,201,541 house in Los Altos!

Available Rental Properties
1540 Ben Roe Drive
x-Street: Park Hills/Fremont
Rent: $2800 Deposit $30001540benroe_01.jpg3 Bedroom, 1.5 Bath House, Living Room, Family Room, Fireplace, Kitchen with Gas Range, Dishwasher (Refrigerator, Washer and Dryer are present but not warranted), 2 Car Garage, Large Yard – Great for Entertaining with Gardener, Cupertino Schools.
Terms: Year Lease
No smoking, No pets, Available now

Hm… let’s see – according to Zillow this house is valued at $1,201,541. So let’s see – assuming you put down a 10% downpayment, my mortgage calculator says:

  • $6,658 a month with a 30 year fixed
  • $5,805 a month with an ARM
  • $4,505 a month for an IO ARM

Hm… so let’s see… let’s say you decided to pay $1,705 more than rent to get an IO ARM. What would you get for $4505?

  1. Guaranteed 7% appreciation. (That’s what the famous Gary Watts said about the OC – and we all know that the Los Altos is more special than the OC)
  2. The ability to say you own a home, even though after 30 years you won’t.
  3. The abiltiy to change the house anyway you wany, even though you’re short $1705 a month.
  4. The ability to do your own maintenance – which is cost and time free.

Sounds like a great deal!!

So don’t throw your money away by renting – offer to buy this house today!

Comments (11) -- Posted by: burbed @ 5:38 am

11 Responses to “$2800 to rent a $1,201,541 house in Los Altos!”

  1. i8thekittypurr Says:

    Dude, I TOTALLY would pay almost double for the right to paint my walls turqoise!!!!

    and btw, this isn’t even Los Altos Hills. Frankly, the whole South Bay needs a severe haircut.

  2. JasonofsoCal Says:

    Ah, screw fun-damentals. Housing is a 100% sure fire investment. Why hell, as Kiyosaki said, 401ks are “risky”. Let your house be your 401k!
    ;-)

  3. IUnknown Says:

    Does anyone know somebody that can afford $2,800 a month in rent?

    I’m starting to see a lot of these $2000+ a month places on craigslist… the worst I’ve seen so far, aside from the $10,000 a month 4 bedroom, was $3,000 a month for a one-bed condo in South San Francisco.

  4. i8thekittypurr Says:

    OMG–look at the youtube mortgage brokwhore ad—this kinda sums up the sleaze and BS of the past 5 years:

    http://www.housing-boom.com/

  5. burbed Says:

    $2800 isn’t that much.

    http://www.dqnews.com/RRBay0207.shtm
    >>The typical monthly mortgage payment that Bay Area buyers committed themselves to paying was $2,804 last month, down from $2,828 the previous month and down from $2,812 a year ago.

    The median income here is $97,100 – so $2800 is only 35% of gross income.

    Given that people here don’t take vacations, buy fancy clothes, or eat out at fancy restaurants (look at the amazing growth of buffet restaurants in the South Bay!) – that seems appropriate.

  6. JasonofsoCal Says:

    “Does anyone know somebody that can afford $2,800 a month in rent?”

    That in itself is the other ironic twist. Rents are not exactly that cheap in the Bay Area and for the most part, people and couples that I know rarely spend more than $2000 per month on their rents. Mind you I am sure that there is always a greater fool out there willing to fork over a larger sum for his/her rent. But ultimately, there is an upper limit to that mechanism. So either rents will skyrocket to match housing costs or housing will retreat to match rents.

    I may be overly pessimistic, but not only do I think this housing situation will end badly, I think it will be far worse than anyone could have imagined. As more and more jobs get outsourced out of this country and more idiotic baby boomers will scramble for funds when in retirement (to cover their idiotic spending habits over the past 30 odd years), the pressure on the middle class in America will finally break and the mechanism will revert to the mean.

  7. Tim Says:

    BTW, the Bankrate calc says if you make $97,000, monthly “affordable” payment (zero expenses) is $2263 or a $377,000 house. (6% int)
    $2800 gives you a $467,000 house. (6% int)
    Sounds like roach infested ghetto land for all you big money-makers pushing 6 figures……..

  8. burbed Says:

    BTW, the Bankrate calc says if you make $97,000, monthly “affordable” payment (zero expenses) is $2263 or a $377,000 house.

    That’s using the old standard though. Because the Bay Area is so special, you can afford to spend more on housing.

    Personally, I actually think that the median income is skewed lower due to the number of Pre-Prop 13 people who live here and don’t need much an income since their $70k houses are paid off already.

    I have a feeling that the median income of the more recent purchasers is much higher.

  9. Michael Says:

    2800 rent isn’t expensive (for bay area) if you split it 3 ways [it does have 3 bedrooms, right?]. That’s ~$1K/person including utilities (and even cheaper if a couple split the rent on a bedroom). Nice one bedrooms apartments are somewhere between 25% and 100% more expensive than that to rent if you want the priviledge of no roommates.

    Now if you are a single individual making hte $97K or whatever then $2800/month for rent is a stretch. Doable, but a stretch. But I’d rather stretch to pay $2800/month that can’t go up during the year and that can’t have unexpected expenses like housing repairs/new roof/etc. than spend $4000+ on interest only morgage for the same house!

  10. jo jo Says:

    I already got the place moving in my 10 family members…let see thats only 280 a month each dirt cheap plus utilities.

    Whata a find…Burb your the best…You freakin rock

  11. Liz Says:

    $2800 a month rental is the norm here on Long Island. For some reason our housing prices arent as high as yours… although we make much less here. Affordability is the lowest here of anywhere in the U.S.

    But our rents are EXTREMELY high for some reason. An average one bedroom apt. is now about $1700 a month. Houses rent for upwards of 3k and up.

    liz


Leave a Reply

Please be nice. No name calling, no personal attacks, no racist stuff, no baiting, etc. Let's be nice to each other in the true Bay Area spirit! (Comments may be edited/removed without notice.)