Schools in Fremont>Question Details

FremontBuyer, Home Buyer in Fremont, CA

Instead of buying in MSJ/Warm Springs, I can save $100,000 in other parts of Fremont. Do you have any suggestions for private middle/high schools?

Asked by FremontBuyer, Fremont, CA Mon Dec 12, 2011

I have one kid in 5th grade and another in kindergarten. Currently I've narrowed down my search to MSJ and Irvington high school districts primarily for the middle and high schools. But now I'm thinking that instead of paying a premium to buy a house there, another option is to buy in any other neighborhood with a good elementary school, and try out the middle/high school for that area for some time. If it doesn't work out, then I can use the savings on the purchase of the house ($100,000 - $200,000 when compared to MSJ/Weibel) to pay for private secondary school. But the big question is, are there private secondary schools comparable to MSJ/Irvington High either within Fremont or outside of Fremont with a reasonable commute? If there are, please let me know which ones.

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FremontBuyer:

"Using a 4.25% interest rate, 30-year loan, and 20% down, a total of 360 payments for a $600,000 house would be $1,075,072, compared to $1,433,429 for an 800,000 house. That's a difference of ~$350,000."


Just to confirm:

A 600K home (480K loan) held over a standard 30-year loan amortization would be a total outlay of $850,073. The 800K home (640K loan) would be 1,333,428; a difference of $283,355. Using your private school estimate of $216,000 provides a $67,355 difference.

Assuming a $600k/800k loan comparison total payments are $1,062,590 and $1,416,786; a $354,196 difference. Using your private school estimate of $216,000 provides a $138,196 difference.


"I am not sure if my calculation makes sense. If it does not, please advise."


Your calculation makes sense; however, assuming you can deduct generated mortgage interest and a conservative 25% tax bracket, the 800K loan provides a $154,197 tax benefit with the 600K loan providing $115,647 (obviously there is also a delta regarding deductible property taxes, currently running at 1.132% of the County Assessors annual valuation.


The Truth of the Matter:
The decision process for buying a home is both: 1) Quantitative; measured in the case of past performance and/or current pricing along with a speculated x-year future valuation, and 2) Qualitative; experiential through visual, spatial, and auditory observations.

As Real Estate professionals those of us who have commented below have experienced Clients going over a "set-in-stone budget" after physically visiting a property. After all, it’s up to the individual to place a value on a tree-lined quite street, friendly neighbors who have occupied their home for decades, a serene view, or uncongested street parking, as an example.

One exercise you may want to consider to appease your quantitative needs is to perform a multi-year historical sales report for a specific housing population. For example, all 3-bed, 2-bath, 1800-2300sf, detached single family homes within the geo-bounded Mission/Irvington school attendance areas sole over the last 7 years. This will likely demonstrate the relative resiliency between these two areas. Shoot me an email if you are interested (no obligation of course).

-Steve
0 votes Thank Flag Link Sat Dec 17, 2011
Carl and John, thanks for the comments. You both have valid points. But often times you can only have one and not the other, which is why it's a difficult decision to make.
0 votes Thank Flag Link Sat Dec 17, 2011
You do not seem to be considering the resale value of your home. If you pay more to be in a more expensive area you should get more when you eventually sell and leave that area. While you live in that area your children will benefit from an excellent public school education. While Carl Medford’s comments are certainly pertinent, a decision made on ROI should lead to the purchase of a home in the best performing school attendance area.
0 votes Thank Flag Link Sat Dec 17, 2011
There’s another factor to consider as well … although every parent wants their kids to excel in school, great students are far more often the product of the parents than of the school. Many Bay Area leaders and entrepreneurs did not go to stellar schools, yet turned out quite well. In fact, many kids bitterly complain about the unrealistic expectations and peer pressures that come with the high-achieving schools – and it’s been suggested that teen suicide rates are the highest in the schools with the greatest academic pressure.

In contrast, all of our kids grew up in the Fremont Tri-Cities area – one of our children is a physician specializing in para-natal robotic surgery … who never spent a day in a Fremont Unified School.

I’m beginning to see families push against the idea of insisting on top performing schools – which, in many cases, can even have very narrow cultural distinctives – who are choosing to focus instead on schools where their children will still get a great education (Brookvale and Parkmont are two great examples) AND be able to mix with the greatest possible number of cultures, enabling them to be world class citizens.

And, last time I looked, homes in Brookvale are considerably less costly than MSJ.
0 votes Thank Flag Link Wed Dec 14, 2011
Thanks for all the responses. Steve, I took your idea a bit further, and ran some numbers at http://www.mortgagecalculator.org/. Using a 4.25% interest rate, 30-year loan, and 20% down, a total of 360 payments for a $600,000 house would be $1,075,072, compared to $1,433,429 for an 800,000 house. That's a difference of ~$350,000.

On the other hand, using a rough average of $3,000 per month for two kids' private schooling (adjusting for inflation a bit), the entire secondary schooling will cost $3,000 * 12 * 6 = $216,000, which is still a savings of ~$135,000 in the long run. If I replace the middle or high school portion of it with public school, then the savings is even more.

Of course, the spectrum would change depending on the actual difference between the prices of the houses in MSJ/Weibel and other places.

I am not sure if my calculation makes sense. If it does not, please advise.
0 votes Thank Flag Link Tue Dec 13, 2011
I would also add Challenger School to Steve's list. it goes to 8th grade, and Monreau High school.
Web Reference: http://www.sunilsethi.com
0 votes Thank Flag Link Tue Dec 13, 2011
FremontBuyer:

You have a choice of 19 Private Schools in Fremont. Here is all of the information for each of them:
http://docs.Steven-Anthony.com/FremontPrivateSchools2011.pdf

Your commute direction would be needed to consider private schools outside of Fremont.

Now, a quick “reality check” looking at breakeven points on this decision. Theoretically, you would be saving $100K-$200K in price; however, at today’s rates (assume a 30-year @ 4.25%) we are really talking about adding $492-$984 per month in mortgage payment (not deducting for the mortgage interest write-off) if you buy in MSJ/Warms Springs.

So, does not the question then become whether you will you be able to find an acceptable Private School at these monthly tuition levels?
See: http://www.fremontchristian.com/admissions/tuition.cfm

-Steve
0 votes Thank Flag Link Mon Dec 12, 2011
Fremont Christian School on Thornton Avenue in Fremont, offers an excellent program and actually goes from kindergartent through High School. I would definitely recommend visiting this school and can highly recommend it as my son has gone there from kindergarten and is now a Junior there.
0 votes Thank Flag Link Mon Dec 12, 2011
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