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Home › Forums › Closed Forums › Properties or Areas › San Diego Inventory Sucks… › SmellsFeeshy wrote:Yeah, it

December 20, 2012 at 2:11 PM #756689
an
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[quote=SmellsFeeshy]Yeah, it seems the market up here recovered much faster than down in SD (maybe 1-2 years sooner). I guess that’s what happens when jobs are plentiful. Based on my observations 2x-3x would seem a bit high. I would say a more fair comparison would be comparing a condo in UTC to a comparable condo in Redwood Shores, Foster City or Mountain View. If the former sold for $450k a similar condo in the latter would sell for around $600k (which is a little over 30% more) so the numbers are actually pretty close if income is 30% higher.

Similarly a 200-300k condo in Mira Mesa would be worth about $300-400k in somewhere like Milpitas.[/quote]
$450k for a 2/2 UTC is an exception. Most 2/2 in UTC are 200-250k (<1000 sq-ft) or $300-$350k(>1000 sq-ft). How big are the 2/2 in Redwood Shores? So, the $600k in Redwood Shores, Foster City, Mountain View are 2-3x more.

Besides UTC, you also have option like CV. Where in that area would be w/in 5 miles from major high tech jobs and have the kind of school CV does. Then there’s the cost of a condo in CV: http://www.sdlookup.com/Real_Estate-Carmel_Valley-Condos_For_Sale-92130. You can get 2/2 low $200k in CV. For $450k, you can get a 3/3 in CV. CV school is more in line with Palo Alto, Los Altos, Cupertino and not Redwood Shores, Foster City or Mountain View. Even MM schools would embarrass Redwood, Foster, Mountain View schools.

WRT to MM vs Milpitas, schools in MM is better. I can get to major tech companies in 3 miles while Milpitas is at least 10 miles to Mountain View and if you work around Palo Alto, then it’s much further. Then we get to the price. A 4/3 in Milpitas is currently going for $700-850k. Similar house in MM goes for $450-530k. It’s much easier to come up with $90-100k than $140-170k. Wouldn’t Milpitas distance to big high tech companies would put it more comparable to San Marcos, Escondido, Santee? Then there’s also the fact that, if I have $170k, I rather buy a $500k house and use the remaining $70k to buy a couple investment properties that have CAP rate of 8-10%.