Comments on: Properties for $400,000 – The New York Times http://www.burbed.com/2009/07/12/properties-for-400000a/ SF Bay Area Real Estate, Home Price and Mortgage Insanity Blog - Burbed.com Sun, 14 Mar 2010 07:34:33 -0700 http://wordpress.org/?v=2.9.2 hourly 1 By: bob http://www.burbed.com/2009/07/12/properties-for-400000a/#comment-48648 bob Fri, 17 Jul 2009 01:59:27 +0000 http://www.burbed.com/?p=3662#comment-48648 A better comparison would be showing what the typical 50's working class home in Palo Alto costs, which seems to be somewhere around a million bucks and what the same kind of house costs in Houston/Atlanta/Raleigh/ or anywhere else. I was looking on Craigslist the other day. 3 and 4 bedroom houses in Memphis goes for under 100k. In Austin TX it might be 150k. Atlanta, probably more like 200k. But compared to Palo Alto, the difference is staggering. Sure- perhaps the Bay Area has nice weather. But it comes at a steep price. The truth is that humans are adaptable. When I was growing up in the humid South, I never thought about it. When I moved here all I heard from people was how AWFUL our weather was in the South and how great it is here. Yet at the same time, traffic in the Bay Area is awful, house prices are outrageous, unemployment is rampant, the state its in is going broke and will eventually starve itself of public services. So the conclusion is that neither regions are what anyone could call paradise. Lastly: RE, if you're counting on on a home sale to supplement your financial well-being, then you're obviously using flawed logic to plan your finances. Seeing as how you continually flout your home as your primary investment vehicle, all one has to do is see the overall decline in Bay Area housing to see that it wasn't necessarily a wise choice. Meanwhile "losers" like me just keep right on saving and saving, not encumbered by a now embarrassingly overpriced, outdated mortgage. Attaching such financial importance to a house shows lack of monetary comprehension. Then again, a lot of people in the BA go down that track, hence why most people on the BA are broke. A better comparison would be showing what the typical 50’s working class home in Palo Alto costs, which seems to be somewhere around a million bucks and what the same kind of house costs in Houston/Atlanta/Raleigh/ or anywhere else.

I was looking on Craigslist the other day. 3 and 4 bedroom houses in Memphis goes for under 100k. In Austin TX it might be 150k. Atlanta, probably more like 200k. But compared to Palo Alto, the difference is staggering.

Sure- perhaps the Bay Area has nice weather. But it comes at a steep price. The truth is that humans are adaptable. When I was growing up in the humid South, I never thought about it. When I moved here all I heard from people was how AWFUL our weather was in the South and how great it is here. Yet at the same time, traffic in the Bay Area is awful, house prices are outrageous, unemployment is rampant, the state its in is going broke and will eventually starve itself of public services. So the conclusion is that neither regions are what anyone could call paradise.

Lastly: RE, if you’re counting on on a home sale to supplement your financial well-being, then you’re obviously using flawed logic to plan your finances. Seeing as how you continually flout your home as your primary investment vehicle, all one has to do is see the overall decline in Bay Area housing to see that it wasn’t necessarily a wise choice. Meanwhile “losers” like me just keep right on saving and saving, not encumbered by a now embarrassingly overpriced, outdated mortgage. Attaching such financial importance to a house shows lack of monetary comprehension. Then again, a lot of people in the BA go down that track, hence why most people on the BA are broke.

]]> By: Old Pro http://www.burbed.com/2009/07/12/properties-for-400000a/#comment-48614 Old Pro Thu, 16 Jul 2009 15:13:05 +0000 http://www.burbed.com/?p=3662#comment-48614 This looks awfully like that $5M colonial on Waverley. This looks awfully like that $5M colonial on Waverley.

]]> By: SiO2 http://www.burbed.com/2009/07/12/properties-for-400000a/#comment-48552 SiO2 Tue, 14 Jul 2009 14:40:38 +0000 http://www.burbed.com/?p=3662#comment-48552 Alex, Thanks for the tip. No, not really. I guess there is an Intel facility in ABQ, but otherwise not many job options for me. Basically, I'm fortunate to be able to afford to live here, and I'd rather have a smaller house here than a larger house elsewhere. It's a choice that everyone makes for themselves. Alex,
Thanks for the tip. No, not really. I guess there is an Intel facility in ABQ, but otherwise not many job options for me.
Basically, I’m fortunate to be able to afford to live here, and I’d rather have a smaller house here than a larger house elsewhere. It’s a choice that everyone makes for themselves.

]]> By: steve http://www.burbed.com/2009/07/12/properties-for-400000a/#comment-48505 steve Mon, 13 Jul 2009 16:54:44 +0000 http://www.burbed.com/?p=3662#comment-48505 is the green zone saved? ;) <a href="http://bits.blogs.nytimes.com/2009/07/13/facebook-employees-and-investors-can-finally-unload-stock/" rel="nofollow">Facebook Employees and Investors Can Finally Unload Stock</a> is the green zone saved? ;)

Facebook Employees and Investors Can Finally Unload Stock

]]> By: Alex http://www.burbed.com/2009/07/12/properties-for-400000a/#comment-48504 Alex Mon, 13 Jul 2009 16:07:52 +0000 http://www.burbed.com/?p=3662#comment-48504 SiO2, ever considered Albuquerque? 4 distinct seasons. Mild winters. Dry summer heat to 95 degrees tempered by a quick afternoon rain shower. Cheap real estate. Laid-back, friendly people. (On the downside, some social problems and generally poor state). SiO2, ever considered Albuquerque? 4 distinct seasons. Mild winters. Dry summer heat to 95 degrees tempered by a quick afternoon rain shower. Cheap real estate. Laid-back, friendly people. (On the downside, some social problems and generally poor state).

]]> By: SiO2 http://www.burbed.com/2009/07/12/properties-for-400000a/#comment-48502 SiO2 Mon, 13 Jul 2009 15:03:54 +0000 http://www.burbed.com/?p=3662#comment-48502 Check out this quote from the related article, about the Houston house: "and a game room with a skylight (sectioned off from the other upstairs rooms, so, in the words of the listing agent, “you can’t hear the little Indians up there”)." So I guess they are seeing a lot of South Asian immigration in Houston nowadays? :) http://www.nytimes.com/2009/06/17/greathomesanddestinations/17gh-what.html?_r=1 Check out this quote from the related article, about the Houston house:
“and a game room with a skylight (sectioned off from the other upstairs rooms, so, in the words of the listing agent, “you can’t hear the little Indians up there”).”

So I guess they are seeing a lot of South Asian immigration in Houston nowadays? :)

http://www.nytimes.com/2009/06/17/greathomesanddestinations/17gh-what.html?_r=1

]]> By: SiO2 http://www.burbed.com/2009/07/12/properties-for-400000a/#comment-48501 SiO2 Mon, 13 Jul 2009 14:58:16 +0000 http://www.burbed.com/?p=3662#comment-48501 you know, I was thinking about different areas of the US yesterday as we enjoyed a nice 75 degree day. Houston does get that, but in the winter. Going outside in the summer is not very pleasant. Is that worth 2x-3x? That's a question that everyone has to answer for themselves. Continuing on this thought, there's hardly anywhere in the US with a better climate than coastal CA. (SF to San Diego, north of SF is chilly). The closest I could think of - Austin. (Nod to Austindweller). But it's hotter in the summer. And I think they get some ice in winter. Denver. Winters are not as bad as say Chicago, many winter days are sunny and reasonably warm. But still there's plenty of cold days. Mountain area of North Carolina. Not so many jobs though. So, that's why I am willing to pay a premium and/or live in a smaller house here. Plus of course there's not as many SiO2 jobs in other parts of the US. (not zero, just not as many). you know, I was thinking about different areas of the US yesterday as we enjoyed a nice 75 degree day. Houston does get that, but in the winter. Going outside in the summer is not very pleasant. Is that worth 2x-3x? That’s a question that everyone has to answer for themselves.

Continuing on this thought, there’s hardly anywhere in the US with a better climate than coastal CA. (SF to San Diego, north of SF is chilly). The closest I could think of -
Austin. (Nod to Austindweller). But it’s hotter in the summer. And I think they get some ice in winter.
Denver. Winters are not as bad as say Chicago, many winter days are sunny and reasonably warm. But still there’s plenty of cold days.
Mountain area of North Carolina. Not so many jobs though.

So, that’s why I am willing to pay a premium and/or live in a smaller house here. Plus of course there’s not as many SiO2 jobs in other parts of the US. (not zero, just not as many).

]]> By: Real Estater http://www.burbed.com/2009/07/12/properties-for-400000a/#comment-48499 Real Estater Mon, 13 Jul 2009 07:54:00 +0000 http://www.burbed.com/?p=3662#comment-48499 >>BTW, the cost to build a new (average) home in the bay area used by appraisers is $165/sf. Build cost hasn't dropped much since the recession. I'm hearing $300/sf in my area, and I'm still seeing new projects getting starting. >>BTW, the cost to build a new (average) home in the bay area used by appraisers is $165/sf.

Build cost hasn’t dropped much since the recession. I’m hearing $300/sf in my area, and I’m still seeing new projects getting starting.

]]> By: Real Estater http://www.burbed.com/2009/07/12/properties-for-400000a/#comment-48498 Real Estater Mon, 13 Jul 2009 07:51:13 +0000 http://www.burbed.com/?p=3662#comment-48498 Huge difference with Palo Alto. If you sink $1.5M into a Houston home, may God help you if you ever decided to sell. Your realtor better be well connected with the NBA. On the other hand, every other tech manager is looking for a $1.5M home in Palo Alto. Huge difference with Palo Alto. If you sink $1.5M into a Houston home, may God help you if you ever decided to sell. Your realtor better be well connected with the NBA. On the other hand, every other tech manager is looking for a $1.5M home in Palo Alto.

]]> By: steve http://www.burbed.com/2009/07/12/properties-for-400000a/#comment-48496 steve Mon, 13 Jul 2009 05:34:37 +0000 http://www.burbed.com/?p=3662#comment-48496 a fairer comparison to PA might be the River Oaks neighborhood. They are asking $1.55M for this: <a href="http://www.realtor.com/realestateandhomes-detail/4005-Chatham-Ln_Houston_TX_77027_1106779228" rel="nofollow">4005 Chatham Ln, Houston, TX 77027</a> 4 Bed 4 Bath 5,114 Sq Ft on 0.2 Acres (8,800 Sq Ft Lot) MLS ID #790723 seems comparable to a recent construction $3.5M PA house, so maybe PA is only 2-3x better? a fairer comparison to PA might be the River Oaks neighborhood. They are asking $1.55M for this:

4005 Chatham Ln, Houston, TX 77027
4 Bed
4 Bath
5,114 Sq Ft on 0.2 Acres (8,800 Sq Ft Lot)
MLS ID #790723

seems comparable to a recent construction $3.5M PA house, so maybe PA is only 2-3x better?

]]> By: nomadic http://www.burbed.com/2009/07/12/properties-for-400000a/#comment-48495 nomadic Mon, 13 Jul 2009 04:33:12 +0000 http://www.burbed.com/?p=3662#comment-48495 Wow, that looks like a house you could buy in Palo Alto. For $2.4M, which makes it 6x better than Houston. BTW, the cost to build a new (average) home in the bay area used by appraisers is $165/sf. Wow, that looks like a house you could buy in Palo Alto. For $2.4M, which makes it 6x better than Houston.

BTW, the cost to build a new (average) home in the bay area used by appraisers is $165/sf.

]]> By: anon http://www.burbed.com/2009/07/12/properties-for-400000a/#comment-48493 anon Mon, 13 Jul 2009 02:19:55 +0000 http://www.burbed.com/?p=3662#comment-48493 Right on bob! You won't be able to afford a maid because you'll have very little income and have spent all your savings on the house, but that sounds sweet! Right on bob!

You won’t be able to afford a maid because you’ll have very little income and have spent all your savings on the house, but that sounds sweet!

]]> By: Woody Guthrie http://www.burbed.com/2009/07/12/properties-for-400000a/#comment-48491 Woody Guthrie Mon, 13 Jul 2009 00:43:04 +0000 http://www.burbed.com/?p=3662#comment-48491 Houston has no zoning laws, whereas the RBA has highly restrictive zoning. Because of Prop 13, RBA cities prefer commercial zoning so they can collect sales taxes. Residential zoning does not make sense to municipalities in the RBA because the new residents require services but the Prop 13 property tax base shrinks after inflation. Houston has no zoning laws, whereas the RBA has highly restrictive zoning. Because of Prop 13, RBA cities prefer commercial zoning so they can collect sales taxes.

Residential zoning does not make sense to municipalities in the RBA because the new residents require services but the Prop 13 property tax base shrinks after inflation.

]]> By: Bob http://www.burbed.com/2009/07/12/properties-for-400000a/#comment-48490 Bob Mon, 13 Jul 2009 00:13:31 +0000 http://www.burbed.com/?p=3662#comment-48490 This is how much homes are supposed to cost! I am going to move into a house like this someday, and it will be fully paid off. I'm sure even the maid house is bigger than the places some of you are renting. This is how much homes are supposed to cost! I am going to move into a house like this someday, and it will be fully paid off. I’m sure even the maid house is bigger than the places some of you are renting.

]]> By: Jojo http://www.burbed.com/2009/07/12/properties-for-400000a/#comment-48489 Jojo Mon, 13 Jul 2009 00:09:42 +0000 http://www.burbed.com/?p=3662#comment-48489 What are these unique designs and quality materials. How dare they use such things and not quadruple the price like here. What are these unique designs and quality materials. How dare they use such things and not quadruple the price like here.

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