Right next to cupertino. It’s a $120k house on a $2.9million dollar lot
Fuck me dead that is not a three million dollar house.
The expense is land. Often, land location matters more in pricing than what’s on the land.
>Asking 2M
Ok
>Sold 3M
Ok
>Over asking 1M
What? Isn’t that overpaying 1M instead? Am I just stupid and don’t get it?It’s shorthand for “we sold this particular home for 1.02m over (more than) the initial asking price!”
It’s advertising that it’s a hot market and this realtor will get you a ton of money, even more than you will initially ask for. Probably due to multiple bidders.
I see, I should’ve noticed it reads over asked and not overasked. Thanks.
Perhaps ‘Over Asking [Price]’
“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
$3M for 1,300sqft (120m²)…
That’s absolutely insane. You can get a proper mansion for that here in Scandinavia…
This area of San Jose is in commuting distance to Silicon Valley offices, where you can get very large pay packages upwards of $400,000/year (average for L5 at Google in the Bay Area).
Artificial housing scarcity (the zoning restrictions in San Jose are very strict) combined with the massive incomes in the area has led to the situation we see today.
Well, to be fair this in an insanely overpriced area of the United States. If Scandinavia was the size of pretty much the entirety of Europe you’d have price extremes as well.
For example if you look up a similar house in the Midwest of the United States (Illinois, Missouri, Wisconsin, Iowa, ect) this house would be under $200,000.
We have overpriced places to, just look around the capitals. That doesn’t have to do with sizes.
Asking 2 got 3. Did a corporation buy that?
The implication is that multiple buyers put in offers on the house, and someone placed a 3 million offer to make sure they were the winning one.
Housing crash when?
It’ll never crash again. Private equity will buy every home and rent them back to us. Forever.
Then make sure private equity goes out of business
How?
Hopefully, violently.
The french have some interesting machine solutions
At this point, not without a bloody upheaval.
Not that I’m encouraging that. It sounds horrible. But still.
THERE were two “Reigns of Terror,” if we would but remember it and consider it; the one wrought murder in hot passion, the other in heartless cold blood; the one lasted mere months, the other had lasted a thousand years; the one inflicted death upon ten thousand persons, the other upon a hundred millions; but our shudders are all for the “horrors” of the minor Terror, the momentary Terror, so to speak; whereas, what is the horror of swift death by the axe, compared with lifelong death from hunger, cold, insult, cruelty, and heart-break? What is swift death by lightning compared with death by slow fire at the stake? A city cemetery could contain the coffins filled by that brief Terror which we have all been so diligently taught to shiver at and mourn over; but all France could hardly contain the coffins filled by that older and real Terror—that unspeakably bitter and awful Terror which none of us has been taught to see in its vastness or pity as it deserves.
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.
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.
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.
It’s because your landlord never paid for it. The bank did. You’re paying the interest on his loan.
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.
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.
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.
our nearby neighbor a few years ago thought they got lucky, because they were a new family or whatever bs they bought into. thought they thought it gave them priority over a bid that was 1.5+mil(this from overhearing them) then they spent months renovating the house which as you know its 100k+, and they said they would never been able afford it if thier Parents dint chip in with the renovating after the main contractors did thier part. i was thinking no, you dint have a foreign rich person or a even more well off person outbid your home by offering several million upfront, or a buyer that only purchases home to airbnb it. eventhough your tech salary should be able to afford it.
i only know one working class family that bought a house below market value, because thier COUSIN owned the house and they sold it to them to be a mult-generation home in our city, since ou parents family are immigrants we rent way low to other immigrants and they used that low cost to save up money to buy the house from thier cousin.
As a rental, obviously. No way they’d actually live there like poors.
Something something avocado toast
You should all come to my town middlesbrough in the uk my 3 bedroom was just £91k in 2018.
We have like 9 jobs… so you have to share mind…
Mom says it’s my turn to pretend capitalism works for anyone but the rich!
How’s the internet? Asking for a friend
We are just getting the good stuff, 1GB speeds. If you mean Mobile Internet then its much more patcy…
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. So from 1960 to 1988 it increased by 3.84x and from 1988 to now it increased by 3.16x. Wages increased by around 5.2x from 1960 to 1990 and about 2.4x from 1990 to 2025. In 1988 the house was 10.5x the average American families gross annual income. In 1960 it was 3.9x the income and today it’s 36x the average American families gross annual income. I didn’t really account for the area so the last part should really be done for California. Even today it’s not fair to lump in the economics of somewhere like West Virginia or Mississippi with California. Either way it’s probably more accurate to use the median instead of average.
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.
The music video: https://www.youtube.com/watch?v=_cZC67wXUTs
Its all under the skin
Updated
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???
You still can! You just gotta really lower your standards for what a “house” is
Home Depot special.
Yup. I’m down with a toy hauler rv (If I decay much more I’ll need a ramp) and my favorite apartment was 500 square feet. I found a decent plot of undeveloped land near where I want to retire. An rv could get us started, and we can use our camping gear for an extra “indoors” room.
Can you legally live in an RV there? i have some vacant rural land, but the county laws dont allow camping or RVs. They also ban structures until you build a dwelling of at least a certain size.
Not even allowed to be poor on your own land
it’s out in farm country. If they outlawed RVs, they’d be fucking over their labor force (at least where I am, half the folk in the migrant camp are in RVs, half are in modular homes).
that doesn’t mean i wouldn’t put it past them, but they grow better food there than we do here, and it’s just a couple hundred miles.
Are the RVs the only domiciles on the land? Here we can placr an RV after we build a house
At first it would be, since it’s undeveloped land. No electric, no water. All the neighboring lots are developed, so idk what’s wrong with the land that it’s so cheap
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.
