I completely agree with the other repondants. If you can afford it, DEFINITELY go for the house in the better school district! One day you may want to sell it, and you will want a large buyer pool... including those with children. Even if the buyers don't have children, they will likely be thinking about resale value for when it's THEIR time to sell.
Bay Area market trends tend to rise in the long term. For the short term, no one can know for sure. BUT, you can check out Mission San Jose's price movement here: http://www.trulia.com/real_estate/Mission_San_Jose-Fremont/6
Hope this helps! Let me know if I can be of further assistance!
Realtor, Short Sale Specialist
Hi Lisa, realestate is always a good investment. For some people it is the most important investment they have. So yes I think it is a good idea to buy a home live in it a while and when you have equity to buy another by all means, buy another you can never go wrong owning land especially in california where statistically property has doubled in value every ten years..... Feel free to contact me if you have any other questions
"I am considering if the following is a good option. Buy a house first. In the future, (3-5 years), rent it out, and buy a second house. If it's a good option, which area should I buy for the first one?"
Regarding the plan to rent-and-then-buy in 3-5 years, I'm not so sure this would work out for you. There are equity requirements that must be met for the exited property in order to use the rental income for qualifying on a new loan/purchase. I believe this currently ranges from 20% to 30% equity in the property being departed. Financing underwriting guidelines continue to move in a credit-restricting direction.
Personally, I would take a conservative position until the market turmoil eases by purchasing in the MSJ. School performance is a primary decision factor for families with children, MSJ can provide relative stability. Plus, eventually, the Irvington BART Station will be built, allowing convenient access down to San Jose, Santa Clara, Oakland, and San Francisco job centers further adding to the demand/benefits of the area.
I would like to know what your financial plan is? Are you planning to buy for investment or you want to a nice and comfort house to live in? There are different options to choose from depending on what your real financial goal is. Mission San Jose area has been a good area for family with kids going to school from K1- to K12. Also a college has emerged in the neighborhood makes the area to be more attractive for concerned buyers. Therefore, the value of the properties in that area is likely going to a positive trend rather than to the opposite. Whenever an area with good school system and quiet neighborhood like Mission San Jose will most likely increase the value over the time. For that reason, you can look around the Fremont area you can locate several good area besides MSJ. We have Northgate, Forrest Park , Weibel, or Irwington areas that offer great properties with decent prices for you to invest in. Debbie has made a good point about Union City. With lots of improvement for Bart transportation, it will be a good place to live in for easier commute to the Bay Area for many resident in UC area. That will drive the new buyers who works across the Bay to come in and settle in Union City.
Buy a house first. In the future,(3-5 years),rent it out, and buy a second house.
If it's a good option, which area should I buy for the first one? Thanks again.
I really do not see an issue with parents/environments that drive their children to succeed; after all, the world is certainly not becoming less competitive. If I had children, I would rather have them academically challenged even if they were not perfect â€œStraight Aâ€ students - sometimes defeat teaches better than victory!
Whether or not you have, or plan to have kids, think of the marketability of your property if/when you decide to re-sell. Of course, good schools are always a primary consideration not only for parents but for people who are cognizant of the effect of good school districts.But with all the talk of re-districting, what is a good school may change over the years as well.
But there are other things that will come into play: affordability is a biggie. For example, Piedmont is much in demand, but property values there are in the million plus/minus range. Not too far away is Alameda, also good schools, but not quite as high priced. Then there is Castro Valley -- somewhere between Piedmont and Alameda in terms of cost, but with more house for the money in terms of living space and lot size.
Then there's the commute--- as we get greener, the need for shorter and more efficient commuting increases.
As for whehter Mission San Jose will rise more than say Union City or Fremont...who's to know? You can certainly take a look at all the maps., graphs, statistics and trends, and be as informed as any one else.
When it comes down to it --- what can you afford to buy? A long time ago, Life's Little Instruction Book said "Buy the best house you can afford". That seems like conventional wisdom and maybe, conventional financing, too :)
Congratulations on wanting to buy a home, it's a great time to buy.
Since the schools are very good in the Tri-City area, you might start with finding your price range. Then see what area and city will get you the type of home you are looking for in your price range. If the Mission area is in your price range it would be a good investment due to the fact that prices are typically very stable in better school areas. If you plan to have childern in the future, you would want to have your kid(s) go to good schools. Since there are many good / great schools throughout the Fremont area, you should have many choices.
So, what are you looking for? Good schoolsâ€¦A house that is your dream houseâ€¦A starter house from which you plan to advance to a grander house in few yearsâ€¦A good commute locationâ€¦a combination of the foregoing?
And, what can you afford?
Buying a house is a big decision. I congratulate you on making the decision to buy. Now you need to make another big decision and that is â€“ what are you looking for in a house?
For most, if you can buy the home in a good school district, it will provide two-fold benefits. The benefits to your children, to be sure, but also in resale value. Much as you are seeing now, homes in good school districts cost more. While you may pay this now, the future buyer for that same home will need to do likewise if they also preferred a good school for their family.