Comments on: Good news, bad news for Real Estate in Silicon Valley http://www.burbed.com/2008/08/14/good-news-bad-news-for-real-estate-in-silicon-valley/ San Francisco Bay Area, Silicon Valley House Price and Mortgage Insanity Blog Thu, 09 Feb 2012 09:21:36 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: bob http://www.burbed.com/2008/08/14/good-news-bad-news-for-real-estate-in-silicon-valley/#comment-14210 bob Mon, 18 Aug 2008 15:49:56 +0000 http://www.burbed.com/?p=2214#comment-14210 SiO2, I guess I'm a little confused as to why you would be under more pressure to make an offer on a house if you were renting. If anything, it would actually enable you to take your sweet time finding a home that's within your desired price range. If you found one and lost the bid- oh well, its not like people don't sell homes in the RB all the time. Hell- people sell houses here like groceries. So by renting, the equation would be in your favor. Renting seriously isn't a death sentence. I've done it for over 10 years. Just imagine how many houses have sold since then. I look on Craigslist Nashville, Austin, and Raleigh every other week, and have done so for 4 years. Every single time I look, there are probably 5-10 houses that I could buy right now and are actually really cool houses. One was a 1860's two story log cabin with a large yard for $160,000. I was really tempted. But guess what? Every time I look, there's always a few that are also really awesome. So if there were cool houses 4 years ago for sale, there will be equally nice ones for sale in 4 more. The same goes for here: there's no rush. Take your time. SiO2,
I guess I’m a little confused as to why you would be under more pressure to make an offer on a house if you were renting. If anything, it would actually enable you to take your sweet time finding a home that’s within your desired price range. If you found one and lost the bid- oh well, its not like people don’t sell homes in the RB all the time. Hell- people sell houses here like groceries. So by renting, the equation would be in your favor. Renting seriously isn’t a death sentence. I’ve done it for over 10 years. Just imagine how many houses have sold since then.

I look on Craigslist Nashville, Austin, and Raleigh every other week, and have done so for 4 years. Every single time I look, there are probably 5-10 houses that I could buy right now and are actually really cool houses. One was a 1860′s two story log cabin with a large yard for $160,000. I was really tempted. But guess what? Every time I look, there’s always a few that are also really awesome. So if there were cool houses 4 years ago for sale, there will be equally nice ones for sale in 4 more. The same goes for here: there’s no rush. Take your time.

]]> By: Lionel http://www.burbed.com/2008/08/14/good-news-bad-news-for-real-estate-in-silicon-valley/#comment-14209 Lionel Sun, 17 Aug 2008 05:13:58 +0000 http://www.burbed.com/?p=2214#comment-14209 WG, I wrote that VC appears to be contracting. Hardly hyperbolic. What amazes me is that people in SV can't understand that, as the rest of the country falls into a recession, there will very likely be fewer consumers of software and hardware. RE was crowing about how much better SV was than Wall Street, citing recent layoffs in NYC. Who do you think is a primary consumer of computer products? Personally, I'd feel a whole lot better being short Google right before 3Q earnings come out than long. No hyperbole, just noting that we're in for rough times. WG, I wrote that VC appears to be contracting. Hardly hyperbolic. What amazes me is that people in SV can’t understand that, as the rest of the country falls into a recession, there will very likely be fewer consumers of software and hardware. RE was crowing about how much better SV was than Wall Street, citing recent layoffs in NYC. Who do you think is a primary consumer of computer products? Personally, I’d feel a whole lot better being short Google right before 3Q earnings come out than long. No hyperbole, just noting that we’re in for rough times.

]]> By: WillowGlenner http://www.burbed.com/2008/08/14/good-news-bad-news-for-real-estate-in-silicon-valley/#comment-14208 WillowGlenner Sat, 16 Aug 2008 16:47:09 +0000 http://www.burbed.com/?p=2214#comment-14208 Lionel and all, how about a real source for all your hyperbole? There are no IPOs, but there is more M&A than ever, even past the dot com era. So its not like nobody can cash out. In fact I would argue an acquisition is actually better than an IPO for a startup. http://www.bloomberg.com/apps/news?pid=20601170&refer=home&sid=aQZFFShsmkxk <i>Quattrone is plunging back into the fray at a dismal time for what he knows best -- IPOs. Through July 28, 383 companies went public worldwide, down from 702 a year earlier -- the slowest pace since 2003, according to data compiled by Bloomberg. There were no venture-backed IPOs in the U.S. during the second quarter, the first time in 30 years such a period passed, according to the National Venture Capital Association and Thomson Reuters Plc. Today, Quattrone's best opportunity lies in M&A advice. The U.S. technology industry has produced 60 deals of at least $1 billion apiece in the two and a half years ended on June 30, Bloomberg data show.<b> The deals sport an aggregate value of $280.5 billion, topping the glory years of 1999 and 2000 when companies carried out 83 like-sized transactions valued at $265.7 billion.</b></i> Lionel and all, how about a real source for all your hyperbole? There are no IPOs, but there is more M&A than ever, even past the dot com era. So its not like nobody can cash out. In fact I would argue an acquisition is actually better than an IPO for a startup.
http://www.bloomberg.com/apps/news?pid=20601170&refer=home&sid=aQZFFShsmkxk

Quattrone is plunging back into the fray at a dismal time for what he knows best — IPOs. Through July 28, 383 companies went public worldwide, down from 702 a year earlier — the slowest pace since 2003, according to data compiled by Bloomberg. There were no venture-backed IPOs in the U.S. during the second quarter, the first time in 30 years such a period passed, according to the National Venture Capital Association and Thomson Reuters Plc.

Today, Quattrone’s best opportunity lies in M&A advice. The U.S. technology industry has produced 60 deals of at least $1 billion apiece in the two and a half years ended on June 30, Bloomberg data show. The deals sport an aggregate value of $280.5 billion, topping the glory years of 1999 and 2000 when companies carried out 83 like-sized transactions valued at $265.7 billion.

]]> By: rick http://www.burbed.com/2008/08/14/good-news-bad-news-for-real-estate-in-silicon-valley/#comment-14207 rick Sat, 16 Aug 2008 06:09:00 +0000 http://www.burbed.com/?p=2214#comment-14207 WG, seriously, if you can provide some information of the cash positive opportunities you are talking about. That will help everyone, RE might finally be an investor, and some of us might shut up and even buy something. That is good information and educational. WG, seriously, if you can provide some information of the cash positive opportunities you are talking about. That will help everyone, RE might finally be an investor, and some of us might shut up and even buy something. That is good information and educational.

]]> By: DreamT http://www.burbed.com/2008/08/14/good-news-bad-news-for-real-estate-in-silicon-valley/#comment-14206 DreamT Sat, 16 Aug 2008 05:45:58 +0000 http://www.burbed.com/?p=2214#comment-14206 nomadic - luxurious? well your previous comment makes sense. I'm from a very modest upbringing as well but discovering exotic cultures and places is more appealing to me and much more of a treat than some lights and sparkles. My previous job sent me to the world's best hotels, and while it's a nice experience each time, I wouldn't call it enriching.:) You know what they say about luxury: you get used to it so quickly that you feel emptier after than before. nomadic – luxurious? well your previous comment makes sense. I’m from a very modest upbringing as well but discovering exotic cultures and places is more appealing to me and much more of a treat than some lights and sparkles. My previous job sent me to the world’s best hotels, and while it’s a nice experience each time, I wouldn’t call it enriching.:)
You know what they say about luxury: you get used to it so quickly that you feel emptier after than before.

]]> By: madhaus http://www.burbed.com/2008/08/14/good-news-bad-news-for-real-estate-in-silicon-valley/#comment-14205 madhaus Sat, 16 Aug 2008 03:08:19 +0000 http://www.burbed.com/?p=2214#comment-14205 No joy getting the loan info from Mr. Mortgage. He snippily told me that was covered in his previous articles and that I was asking too many questions for 1 email. NO. IT. WAS. NOT. COVERED. ANYWHERE. Not at the neighborhood level. <b>TNTinCA</b>, would your banker friend be willing to share some observations here about whether the RBA loans are any less leveraged than the cheaper zips? No joy getting the loan info from Mr. Mortgage. He snippily told me that was covered in his previous articles and that I was asking too many questions for 1 email. NO. IT. WAS. NOT. COVERED. ANYWHERE. Not at the neighborhood level.

TNTinCA, would your banker friend be willing to share some observations here about whether the RBA loans are any less leveraged than the cheaper zips?

]]> By: nomadic http://www.burbed.com/2008/08/14/good-news-bad-news-for-real-estate-in-silicon-valley/#comment-14204 nomadic Sat, 16 Aug 2008 02:01:47 +0000 http://www.burbed.com/?p=2214#comment-14204 It's a bit out of date, but here's some of the VC data you may be interested in: http://www.viewfromsiliconvalley.com/id112.html It’s a bit out of date, but here’s some of the VC data you may be interested in:

http://www.viewfromsiliconvalley.com/id112.html

]]> By: nomadic http://www.burbed.com/2008/08/14/good-news-bad-news-for-real-estate-in-silicon-valley/#comment-14203 nomadic Sat, 16 Aug 2008 01:53:35 +0000 http://www.burbed.com/?p=2214#comment-14203 DreamT, I wasn't disparaging your vacations (#37). To me, exotic also means luxurious. Coming from a rather modest upbringing, that is foreign to me as well. Given that I take a "real" vacation every five years or so, I make sure it's a treat (by my definition). :-) DreamT, I wasn’t disparaging your vacations (#37). To me, exotic also means luxurious. Coming from a rather modest upbringing, that is foreign to me as well. Given that I take a “real” vacation every five years or so, I make sure it’s a treat (by my definition). :-)

]]> By: WillowGlenner http://www.burbed.com/2008/08/14/good-news-bad-news-for-real-estate-in-silicon-valley/#comment-14202 WillowGlenner Sat, 16 Aug 2008 01:12:49 +0000 http://www.burbed.com/?p=2214#comment-14202 <I>They care *a lot* if their $1M home falls to $900K, because now they’ve been wiped out. </i> Sure of course everybody cares if they lose $100K on a house, but they still have a place to live and a mortgage payment that is probably only slightly more than they'd have to pay to rent here. They care *a lot* if their $1M home falls to $900K, because now they’ve been wiped out.

Sure of course everybody cares if they lose $100K on a house, but they still have a place to live and a mortgage payment that is probably only slightly more than they’d have to pay to rent here.

]]> By: SiO2 http://www.burbed.com/2008/08/14/good-news-bad-news-for-real-estate-in-silicon-valley/#comment-14201 SiO2 Fri, 15 Aug 2008 20:12:18 +0000 http://www.burbed.com/?p=2214#comment-14201 Bob and DreamT, thank you for the advice. I'm not actively buying right now as the "RBA" target areas have not gotten cheaper. for now at least my neighborhood in SJ still has houses going pending in one month as long as they are reasonably priced, but I definitely am keeping an eye on this in case RBA falls in price and there's a buying oppty. The other drawback to the sell then rent strategy is that I would feel more pressure to win the bidding war for a particular house. Which in the long run would probably be ok but would make me unhappy while signing the papers. nonetheless it is well thought out advice, thank you. Bob and DreamT, thank you for the advice. I’m not actively buying right now as the “RBA” target areas have not gotten cheaper. for now at least my neighborhood in SJ still has houses going pending in one month as long as they are reasonably priced, but I definitely am keeping an eye on this in case RBA falls in price and there’s a buying oppty.

The other drawback to the sell then rent strategy is that I would feel more pressure to win the bidding war for a particular house. Which in the long run would probably be ok but would make me unhappy while signing the papers.

nonetheless it is well thought out advice, thank you.

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