Don't buy in downtown San Jose. Your competition for the sale of this home in four years will be the thousands of condos that are currently being built. As far as the downtown development, I worked at San Jose State for several years in the late 1980's and looked at buying in downtown because the downtown was going to be a destination place. That was 20 years ago and downtown san jose still isn't a destination place. I would look to other areas that have the lifestyle that you want (campbell, west san jose, mountain view etc.)
If you really have to buy there, try 5/6/7th, Hedding or Taylor, quieter and a little bit better neighborhood, but still, not recommend you to buy there now.
The 1st/Hedding area is in the Japantown neighborhood of downtown San Jose. It's a lovely neighborhood with a lot of wonderful folks living near by and very active neighborhood associations in Japantown, the Hensley Historic District and Vendome.
There are a lot of real estate agents who will tell you that buying in downtown San Jose is a mistake, they are wrong. Many of us had to convince our agents to show us places downtown and those of us who were successful at this have very happily moved downtown. There are a lot of young families here and very active neighborhood associations which provide a lot of resources for activities, social networking and information about the area.
That area is lovely and if you find something there in your price range go for it. You are in walking distance to Japantown and light rail is a hop to the downtown center - biking is always an option as well. There is a lot to do with theatre, sporting events, concerts, live music, opera, movies and many fabulous restaurants.
You will not regret moving downtown, those of us who have adore our community.
One question....Have you tried to sell your downtown home and how successful were you or any friends that you know who tried to sell? Also...How successful will you be in selling your home when all the highrise condos are built out (and remain 60% sold)?
I could see the house being attractive to an investor in future years for rental income... but who knows? But I do agree that school scores (sadly) do affect the values (read:demand) of homes in a given area. Better schools is a better indicator of future resale value...
Make sure to exhaust all your other options, and put your wants and needs list in order so you don't end up with Buyer's Remorse. If you are this apprehensive about it, then maybe it's not the right home for you.
Personally I think it's best to invest in a house in a good school district.When you sell your house you will have a larger pool of buyers.It's true that you will have to live in the house for at least 5 years if you want to see any returns.
If your holding period is only 4 years, now is not the time to buy. Any honest Realtorâ„¢ would tell you the same thing. Your equity would be better off in a high yield CD or demand account.
In an environment marked by falling prices, tight credit, soaring foreclosures and declining employment youâ€™re better of renting. Every economic indicator and RE market index is pointing towards continued weakness in the housing sector.
Owning is better if you plan on staying long enough to ride out this storm. 4 years isnâ€™t going to do it.
Donâ€™t be swayed by emotional arguments like â€œrenting is like throwing money awayâ€ or â€œbuying is always better then renting.â€ These are true only when the market is going up and/or you can sit on your purchase for 10+ years.
Google â€œrent-buy decision.â€
But our first priority is a good neighborhood and good resale value. We are considering this property because we've been told downtown is a up & coming area due to the Downtown Development project. Please let me know what you think.
Cheryl, its a 2bed/2bath deal with 2 garage spaces and yes,price is constraint but location is more imp. Thanks.
Buying in downtown San Jose is definitely more of a risky investment. One of the best ways to hedge against a volatile market is to buy in a good school district, even if you don't have children. However, the area that you are looking into is a very nice area with easy access to freeways and shopping. The best advice we can give you is to have your agent show you the property's history and the comparable sales for the neighborhood in the last three months. If the house is priced right and you are not planning on flipping this property, are in it for the long haul, you should be fine.