Home Buying in Santa Clara>Question Details

Alex, Home Buyer in Santa Clara County, CA

Is Shea Boulevard still a good value, even though they raised their prices, including BMRs?

Asked by Alex, Santa Clara County, CA Sun Jun 3, 2012

I qualify for the BMR program in Santa Clara. The 1600 sq ft 3br 3 1/2 bath is selling for $495,000. I have to pay back the difference between the purchase price and the appraisal when I sell, but get to share in an increasing amount of future appreciation beyond that, the longer I stay in the home.

Does this place have long term potential? It is very well appointed, but I am concerned about the location of the unit inside the subdivision. It is a perimeter property adjacent to a commercial property (dentist office, accountant, etc). It is also only one building from Scott. Do I have much chance of recognizing some appreciation in the next 10-15 years?

$495,000 would be our maximum purchase outside of the BMR program. We can't do any better than this, right?

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Answers

2
Tina Lam’s answer
Alex,
The homes at Boulevard are in a desirable location (near Santa Clara University) and are priced accordingly. Prices are going up due to increased demand from buyers and a severe shortage of new construction inventory around the Bay Area. The property value offered by that unit for the price is very compelling. For that price, I can't find a bigger new unit.

As for your question about long-term appreciation, it'll take a crystal ball to answer accurately. But, you can take comfort in knowing that new construction units tend to perform as well or better than the general housing market. Being a long time resident of Santa Clara County, I don't see any significant deviations from the long-term growth trend. We had a hiccup in 2008-2010, but we seemed to be back on track again. So, if you're looking at 10-15 years, you'll very likely get many folds in return on your initial investment.
Web Reference: http://www.archershomes.com
1 vote Thank Flag Link Mon Jun 4, 2012
The beauty of the BMR is that the program exist today and can help you to get into home ownership. These programs are not always available due to availability of funding. The negative are the rules associated with them. It is my understanding the counselors do a good job of explaining the program to the recipients.

As for long term appreciation, Tina said it well. We don't have a crystal ball but in looking at what appears to be a recovery in the market we are hopeful that the values will be stable and appreciate realistically.

The rule of thumb in real estate is to purchase the lowest price home in the highest neighborhood. This means that you get into an appreciating community, surrounded by higher priced units but pay less and therefore, you should gain appreciation because of it.

Have an amazing day!
Web Reference: http://www.terrivellios.com
0 votes Thank Flag Link Wed Jun 6, 2012
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