Burbed readers are a fascinating bunch. One of them has put together some Bay Area-specific buying calculators, and wants you, the Burbed readership, to have a look. Since you’re all so hard to please and think everything out there sucks, this is your opportunity to ask the author to make it suck less.
Please welcome Burbed reader PKamp3 and the Don’t Quit Your Day Job blog, introducing lots of boring math, charts, and stats. Some of you should just go back to sleep, while others should start a second pot of coffee and get ready to dig on in.
Here’s an article I wrote with 2 RBA calculators attached. I wrote it kind of in a Burbed mindframe: “who the hell can afford RBA prices”?
Here’s a preview:
I can tell you before you click the link… using my default assumptions:(20% DP, 4.5% Interest, 30 Year Mortgage, 31% front end DTI. You can change everything there.) 43% of Bay Area Households have the income to make the payment. That’s 746,463, in the RBA 4… since I count Alameda County.
Might be interesting… now that I wrote the code I’m having fun looking at listings and running the numbers. Maybe you can help come up with better house-hunter ranks? I don’t want to spoil it, but based on home prices the rank changes.
Given how willing PKamp3 seems to be in helping make this tool more useful, please play with it and complain at length in the comments below. I’ve already groused about the inability to put a cash amount rather than a percentage amount in the down payment, and noted that Alameda County’s presence in the dataset pretty much poisons the well of “Inner Bay Area” buyers. It might be “Inner” but it’s not particularly Real.
Some of the limitations are due to what’s available. Some cities have been removed from the dataset. I felt that the RBA should be limited to San Francisco, San Mateo, and Santa Clara counties, with the possible addition of Marin. Alameda County? That’s a fine joke someone is playing on us. Once those losers are removed, then we can talk about limiting the universe some more. I would assume San Francisco residents probably don’t want to buy this crapbox in Mountain View, but you never know.
Head on over to the calculator and let us know what you think of this tool and how useless it is it could be improved. Plug in some other home values and assumptions and see how many buyers you’re up against. So, what do you think? Do you see a use for this? Or are you going back to sleep?