Something something avocado toast
“Just learn to kiss some ass. That man has the power to fire you! When he says come in on Saturday, show up on Sunday also too!”
– My Silent Gen parents, every goddamn day
You ever see the prices for a condo in the bay area? Its just as much as a house in some instances
My friend’s monthly condo HOA fees in Mountain View are more than I used to pay on rent.
is your friends rich, how much was the hoa fees?
I don’t recall the exact numbers, but he owns a condo in Mountain View and he and his partner both work for Big Tech.
I mean it’s mountain view. Could be worse, could be redwood city. Either way they get to eat at los gallos, one of the best taco huts in the bay
Every time I’m back there I stop at El Chacho. I’ll check out Los Gallos in a few weeks.
ooo, i haven’t been to el chacho. that might be dinner/midnight snack on the way home from the garlic festival
La Victoria’s famous orange sauce and a carne asada burrito
Wait they have a location? THANK YOU we all use la victoria salsa on tacos here. I haven’t been able to find green hot since 2020
Oh damn I forgot about that orange sauce
And they use the 3mil to buy a nice small house and outbid a working class family that currently live in a 2 room apartment
Nah they get tricked by fox news ads into some business investing scheme that ends up triggering triple tax on themselves. They blame the immigrants about it.
As a rental, obviously. No way they’d actually live there like poors.
My landlord recently told me how much they think the place I’m renting would sell for, and now idk why the owners even bother renting to me because the price is like 50 years worth of my rent.
Well you see, he can take a loan on the equity, you pay the loan for him and he doesn’t have to pay any where near as much in taxes. You’re just helping out a landlord in need.
Because he gets a steady supply of money and then in 10-20 years it will be worth 100 years of your rent on top of the 10-20 they collected already.
The bubble could pop though and you lose out. The market has softened near us and there are people that have lost 100s of thousands in equity already, and are upside down in the mortgage
The bubble will inevitably pop as the boomers start dying and the housing supply relative to the population starts increasing. Plus no want wants to pay for the catchup work needed to address 30 years of deferred maintenance, so a lot of houses will go for cheap.
Exactly. Example: my dad’s house needs 3 new bathrooms, a new roof and repaint. Also new basement lighting and a new family room carpet. What people will be buying is the closeness to grocery, Costco, the highway, rural views, a lake, and a major airport.
This. I was going to mention the depracating property. Our place needs a new roof soon. I have seen people skip it as well as lots of other outside water shielding maintenance and the place is a rotten mess 50 years later
I feel like “lose out” is an overstatement. There are/were still steady rent payments even if the whole bottom falls out.
Of course, but a generation of homeowners grew up learning that, barring short disruptions, home prices always go up. Nevermind that this was largely due to interest rates steadily dropping since the 80s, reaching basically 0% during Covid.
Since there isn’t really room for interest rates to drop anymore people shouldn’t expect home prices to rise faster than incomes rise, but it’s going to be hard to undo 30 years of observation.
It’s because your landlord never paid for it. The bank did. You’re paying the interest on his loan.
I don’t think you know how loans work.
I think I do. I’ve been managing properties for some 20 years. Mostly commercial.
What I’m saying is that in order to understand why the landlord doesn’t just cash in on 50 years of rent, you first need to understand the difference between the profit/loss and assets/liabilities sections in a financial statement.
The tenants (income) are not paying for the building (asset). They only need to cover the interest (cost) from the loan (liability) in order for the the landlord to make money (profit).
The only time it makes sense to compare the rental income to the value of the asset is for the annual asset evaluation.
If the landlord waves the evaluation and rent around like OP says, it just shows that the landlord doesn’t understand it either and is just throwing numbers into the air to impress people.
They mean if they sold it now they’d have 50 years of rent now, instead of waiting 50 years to accumulate that amount. All that money now is worth more then getting it later.
Don’t forget taxes. All they have to do is “move in” for a year or so to get a massive tax savings on the sale.
I know what they meant.
Renting out properties is not about making tenants pay the same amount as the property is worth over any period of time.
It’s about having someone else cover the cost of borrowing the money while the property increases in value by itself until they decide to cash in.
Right. I had to get up in the morning at ten o’clock at night, half an hour before I went to bed, eat a lump of cold poison, work twenty-nine hours a day down mill, and pay mill owner for permission to come to work, and when we got home, our Dad would kill us, and dance about on our graves singing “Hallelujah.”
But you try and tell the young people today that… and they won’t believe ya’.
Nope, nope…
A Monty Python reference? In this economy???
Kill capitalists… I mean…ism…
So…
“Kill capital
istsism”
Not much different in Germany either. What once was needed to buy a decent house is now merely enough for a tiny apartment.
I just recently sold one of my houses for 900k. Which I bought for 300k 25yrs ago. And it even was due for major renovations. Well, could have. Actually sold to them for 500. Didn’t wanna be an idiot but also didn’t want to rip them off. I did nothing of value to justify that gain. And they were very happy. Still unfair…
The market is broken.
I just recently sold one of my houses for 900k. Which I bought for 300k 25yrs ago. And it even was due for major renovations. Well, could have. Actually sold to them for 500. Didn’t wanna be an idiot but also didn’t want to rip them off. I did nothing of value to justify that gain. And they were very happy. Still unfair…
300,000 euros in 2001 is, inflation-adjusted, 512,000 euros in 2026. If you sold at 500k euros, you sold for slightly less than you bought it for in real terms.
It was still the same sum though. I got money, they got a house way cheaper than they planned for. Everyone’s happy. I see no problem?
“one of my houses”
Have you considered that you are the problem?
I have a friend with five. He’s a traveling physician and has five practices each at least a hundred miles away from each other. I don’t entirely see him as part of the housing problem because he has a use for these houses that isn’t vacation.
Folk are mostly friends on here, so can you ease off the attack please?
Why? Unless you’ve got hundreds of millions or more, you’re just another poor sobbing bastard for the elite. Just a bit less poor than the others. Insignificant in everything.
Also, I paid double market-average for employees, with come-and-go-as-you-please and profit-sharing. Everyone.
I rent the houses/apts dirt-cheap. At the legally allowed minimum but with hidden added boni or paybacks or whatever else I come up with. Free power, free water etc. I don’t want to profit of someone else’s inability to own. I want to be able to look in the mirror without disgust.
And also I work for free in a shelter-thingie for abused or broken people, I help where I can.
If everyone would do that, we’d all be better off, wouldn’t we be?
What do you do to better society with the given means? Considering I’m the problem and you’re not? Egocentrism, narcissism, missing empathy and machiavellism (so basically the dark triad) are the root sources that rot the world (while being highly rewarded), not money.
Who paid $3m… wouldn’t that be a huge part of the problem too?
It’s San Jose. That is chump change there.
likely to rent it our, airbnb it. one of our cousins rented thier old whole house like 10+years ago for 3500/month. most people wont touch sec 8 applicants. we had 1-2 neighbors that are suspected to rent it out airbnb style or to students(roomates)
The oldest sale I could easily find was 1988, when it sold for $338,000 or about $956,400 today. In 1960 when it was built it likely sold for $15,000 and $22,000 so about $249,077 today.
Thank you for doing this research! It’s the first thing I thought of as well.
You’re welcome. I was curious. Pretty fucked. I redid the calculation for the median income of the area and the house is still 30x the annual yearly income. From 3x to 30x in 65 years is not good.
San Jose is not considered Southern California. It is Silicon Valley.
visits silicon valley
no silicon in sight
mfw
Was there a valley at least?
It’s more of a bowl really.
Its all under the skin
Updated
Fuck me dead that is not a three million dollar house.
Who knows all of these boomers scolding anyone? I’ve never heard one say that. Do I only know or am I only related to nice boomers?
- It’s corporations buying up all of the extra housing
- It’s price fixing the rentals and housing through software they bought up.
You have nice boomers. Mine understand the inherent changes in the market since they were our age, but they still blame us for not doing what they did.
There’s a middle ground somewhere between the extremes… I was lucky that I got out of school at a still good time. But it still took sacrifice to get what you wanted.
Like sometimes I was cutting mold off the bread to make a sandwich for work, and only home cooked food, and no budget for entertainmentn expenses. It got us a two bedroom house for the, baby, plus car and motorcycle. That was on one salary, but I realize that ain’t happening today.
But also I have seen family members of the young generation order a smoothy on skip, purchase $300 concert tickets, while racking up debt…while complaining of cost of living.
They aren’t getting a 2 bedroom house on one salary with 5% down, but they certainly could be saving for one by making some spending adjustments.
yeah i don’t have any realistic way of saving the 20% down they want before i die.
And if that is the situation, at least skip some pleasantries and contribute to a fund that has growth so you can afford rent later in life. That’s the issue I see, people with get to 65 and have a tiny government pension that won’t cover groceries and such, let alone rent
Oh yeah, we’ve got one of the best government plans still available since my wife is a teacher and I’m fancy. We were a touch late for pensions (defined benefit), but we are right in time for defined contribution. Hoping we can use the money/die before it bottoms out
Some loud Boomers aren’t all Boomers. There are so many I know who still need to work as they can to cover rent.
Not all boomers! 🤣🤣🤣
probably not most of them.
Maybe it’s fun to compare, so here’s what prices are like in frozen/sweltering prairies for those curious. Edmonton Area (Satellite city) in Northern Alberta also keep in mind these are in Canadian Dollars. A bi-level now is around $470k. My bi-level is 1200sqft (Alberta doesn’t count the basements) and was $325k in 2016 for an idea of the rate the prices are going up here.
1925 build, oldest part of the city is the cheapest I found here before getting into trailers, shipping container apartments, and tiny in-fills:
Duplex prices:
Bungalow:
Bi-Level:
Larger/Newer:
I wouldn’t want to live in Alberta anyway
Same
Where did a boomer say that?
They all say that.
