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Rent Dropping

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Well I make a lot more than I would in Canada. Also because I own my home at a low interest rate I do ok. My mortgage + tax is $3200 a month. You can't even rent a 1 bedroom for that.

Also here I work for a prestigious school, I'd have no guarantee of that kind of work in another state.
 
mikev said:
I should email this thread to my landlord. She just told me she's raising my rent $200/month.
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Email her the news link in the OP. Maybe find a few articles. Request, instead, that she lower your rent by $200/month. Compromise by leaving the rent alone. Profit! :cool
 
Yakoo752 said:
Murphy street has always been busy even during the construction however the condo's on mathilda still aren't occupied and the vacant lot is still vacant. Once the lawsuits started everything stopped.
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Lawsuits are only tying up a part of the area. Probably double that amount of space is new since 2012 or so. What used to be a run down Town & Country village is now 1st level shops with 4 floors of new condo's above them. Yes, Murphy street has always been busy, but it seems significantly more now. I've been there on a couple Wednesday nights to play pool league and the sidewalks were packed with outdoor dining, and the only available parking was all the way to the Target store

Check google street view and see the difference between 2011 and now
 
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I've always heard "East Palo Alto" was not nice, but Palo Alto is pretty nice and expensive, is that area still "bad"?
 
My question is will rents go down long run, or is the article right about them going up effectively forever?

Thanks for the article!
 
mikev said:
I should email this thread to my landlord. She just told me she's raising my rent $200/month.
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Unless you're already paying a ton thats a huge % increase.
If it were me and in a tight situation I might be tempted to negotiate some chores for leaving things as they are, if thats an option.
 
This is probably a bad time to bitch that my rent went up 10 dollars.
 
HappyHighwayman said:
My question is will rents go down long run, or is the article right about them going up effectively forever?

Thanks for the article!
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I think it's cyclical and a ceiling eventually will be found, with increases for inflation obviously. I think the era of homes going for multiples over ask it practically over unless the Bay Area finds a new form for growth.

It's a complex equation driven by 100s of factors.

Will we see growth like we did for the last 30-50 years? I'd wager it's impossible ($50,000 homes now selling for $1,000,000 would roughly equate to $1,000,000 homes selling for $20,000,000). If the average median salary in the bay is $150,000 it would have to go up similarly. Not sure I see the average SW guy making $1M annum.
 
CuriousMike said:
As a simpleton, I would ask this same question.

I mean, I think its a good thing... for the renters.

My assumption is ... while not a good thing for the landlords... at least the landlords are still making ludicrous cash. Just... less ludicrous cash.
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Who knows what landlords are "making", cause we're not privy to what their basis in the property is, nor their annual expenses. Certainly you can guess at what kind of equity they're building, though.

This market is softening likely due to a glut of supply in the marketplace, coming from two places; new apartment projects and bank liquidation of REO's. REO sales are largely. coming to an end, but the foreclosure stuff is still winding out. Like all boom cycles, large fund/ pension money has gone into apartments and built the shit out of everything they can find. Those with single family investor property are lucky, but they'll still be partially affected. Those with apartment investments may have a longish haul for awhile. This happens every cycle be it with commercial, retail, industrial, residential or apartments/ condos. Thank god the commercial hogs aren't out here.

The best strategy for anyone renting anything is to keep it occupied at any cost. Even if you have to feed the thing 20% of the mortgage, there's still equity being made on the other side (more/ less depending on the date of finance). I don't understand people who sell to realize a few hundred thousand dollar gain in an up market with no replacement plan. DUBS! This market is not a bubble, IMO. The fundamentals in single family are very good. Apartment, not great, but sustainable. The goal with residential investment property is to clear the note, or cash flow enough to add another property with equity built, etc. Selling is not adding to a portfolio that someone else is paying the load on.

Yakoo752 said:
funny thing is commercial pricing started coming down 6+ months, this following is no surprise
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Commercial office, Matt? We just saw a HUGE jump in two months with our commercial/ office rents. Things have been moving up significantly and quickly lately. Or are you meaning apartments? Seems to be a glut of those in the market...

Ducky_Fresh said:
What is there to know? Calling you soon.
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My phone still works great!
 
Holeshot said:
Commercial office, Matt? We just saw a HUGE jump in two months with our commercial/ office rents. Things have been moving up significantly and quickly lately. Or are you meaning apartments? Seems to be a glut of those in the market...!
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In SF? Peninsula? Commercial office space is sitting vacant because they can't get the rents they want. Lots of properties on 237 and in SF can't get rented. SFDC is sitting on a few hundred thousand sqft they won't rent because it'll soften the market too much. Interesting you're seeing rents rise. It's truly supply and demand in this instance. No reason to put your sqft on the market if it won't be a profit center.

APTs as well though. I haven't seen them drop rates near me but I live in H1B land and those always go for a premium.
 
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Yakoo752 said:
In SF? Peninsula? Commercial office space is sitting vacant because they can't get the rents they want. Lots of properties on 237 and in SF can't get rented. SFDC is sitting on a few hundred thousand sqft they won't rent because it'll soften the market too much. Interesting you're seeing rents rise. It's truly supply and demand in this instance. No reason to put your sqft on the market if it won't be a profit center.

APTs as well though. I haven't seen them drop rates near me but I live in H1B land and those always go for a premium.
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That just sounds nuts to me. Sitting on it to... :loco. What is SFDC? Would it not be prudent to sell and put the $$ to good use? I guess that's why I'll never be a CEO, but it just sounds inefficient.
 
MrIncredible said:
Just don't fall for the fallacy I keep seeing of you need to stay in SF because you make more-I swear no one looks at total cost of living.

https://hired.com/blog/candidates/where-engineer-salaries-pay-highest-standard-living/
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+1

i lived in Marin>SF>Florida>Minneapolis>NJ-NYC. i have a normal to good income for my age group.


so whoever wrote this article is in the right direction but not even close to the truth.
the picture is the same for SF and very similar for Minneapolis witch isn't as bad but in order for me to move to northern mid-west for good is only achievable with a good money factor.

If anybody considers moving to one of the big powerhouse cities do not even think about living as a single in the city at an income lower than 200k. the quality of living would be so bad, money can be spend so much better. whats the point of living there if you have to sacrifice for basic things.

Ive been to a girls place in a good part of Manhattan and the place was still a dump. the amount of $ she spend was only to justify with a 10 minute commute and a great location.

when i lived in Florida, had large one bedroom in luxury skyscraper in downtown, 15 commute, 20 min to the beach, 15 min to airport, cost of living was ok, safety was excellent, secure parking, my bike, 3 cars, whole foods around the corner, road were impeccable compare to the rest of the country i visited so far.

the only places (as single guy) i could afford to live a good enjoyable life (that is without living next to/in projects or 1,5h commute) was Florida or now NJ.
Even NJ/Bergen County is a stretch cause it very much similar or more expensive than Marin County for that matter. could never ever afford a house at my current income level.

i give you an example> there is NO WAY that you can find a decent place to live with a 39 minute commute and get away with 125k salary in NYC.... NOOOO WAY.
Even in shitty part of NJ you got to pay min. 2-3k per month to live in an area without "urban issues". if you lucky and you find that unicorn place you don't even make it trough the tunnel in a 39 minute commute. add another hour to get to your workplace in midtown.
finding you own place for 550k:rofl maybe in some dump next to LIE, but might as well live in Stockton......at least the weather is nice and traffic doesn't suck.property tax is INSANE in most places. in general you can add another $500 to $1K to your mortgage each month to cover property tax depending on the place.

don't even start with roads and infrastructure, if Trump has one fact right its the third world airports and roads in the north east. phuck me dead, have you ever been to Newark or JFK?? its a disgrace ffs, thats what it is.
if you fly in from a foreign country and thats your first impression of the USA its a shame.


so to sum it up its all about the cost of living and how willing you are to sacrifice on your standards. for me its pretty clear, i have no desire to go back to SF or NYC other than for visit.
 
We're over in East Bay. Interesting that people are willing to let stuff sit empty. Wonder if there's more to it (refit costs, etc)? Free rent, etc is the trick to get guys in at the higher rates. The problem with unrented footage in a project: it drags on the profitability of the rented stuff.
 
I'm not in the property business, but there are multiple new office projects under construction in Sunnyvale and I'm not seeing empty office space.
 
SM610 said:
That just sounds nuts to me. Sitting on it to... :loco. What is SFDC? Would it not be prudent to sell and put the $$ to good use? I guess that's why I'll never be a CEO, but it just sounds inefficient.
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Salesforce dot com

Holeshot said:
We're over in East Bay. Interesting that people are willing to let stuff sit empty. Wonder if there's more to it (refit costs, etc)? Free rent, etc is the trick to get guys in at the higher rates. The problem with unrented footage in a project: it drags on the profitability of the rented stuff.
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Yeah but in a multi level building it's hard to determine what's available and what's not. I'm sure it's for more reasons then I even understand. When you have significant sqft you let some sit to ensure return on the rest.

mlm said:
I'm not in the property business, but there are multiple new office projects under construction in Sunnyvale and I'm not seeing empty office space.
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Where? I'm seeing companies putting up their own buildings for expansion. I'm not seeing rentals coming available
 
Matt, I'm thinking the refit costs are something they don't want to shoulder, maybe?
 
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