Home Buying in Cupertino>Question Details

Pvm, Home Buyer in Cupertino, CA

Buying a new townhome/Condo in cupertino - Is this a good idea

Asked by Pvm, Cupertino, CA Fri Apr 18, 2008

I am a first time home buyer... and am torn between buying a new townhome/condo in cupertino at around 500K or going towards San Jose/Sunnyvale for a bigger or more affordable TH/Condo
We don't have any kids. Going by trends, what would be better in the future from an investment perspective?

Also, How well does a new townhome/condo appreciate vis-a-vis an older single family home?

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Answers

6
Pvm, There are no condos or townhomes in Cupertino for $500k. But there are plenty of other areas in Santa Clara county where you could find one. In 95129, there are San Jose condos, but with Cupertino schools. People buy where they can afford to live, so if you buy a home in a pretty good location with decent schools you should not have any trouble selling in the future. Good luck.
1 vote Thank Flag Link Fri Apr 18, 2008
Pvm,
The idea behind being a home owner is the improved quality of life and pride of ownership. This is where you'd love to live, to be close to places and people you care about, features you'd like to have in your home, ... Now, if the notion of quality if life is mixed with the notion of investment then something has to give. This is something you have not decided yet, hence you're torn between choices. You have to make that decision first.
As for rate of appreciation, new condos will appreciate faster in the first few years. Single family homes, historically, have had the best appreciation. Recently areas with better schools have appreciated more than other areas.
Sit down have a heart to heart with your Realtor, it'll help you see things a lot more clearer.
Hope this helps!
1 vote Thank Flag Link Fri Apr 18, 2008
If you can find a 500K new town house with CU address jump at it. It will not stay long. The used 1 br 1 ba condo starts at that or higher price. TH/Condo appreciate quite well in Cu city compared to sfh. I have CU area sfm, condo/town charted and calculated from 1998 q1 and on. As the price is still eroding people still fight to purchase properties in better schools as they are less sensitive to the declining market. If you wish to take a little risk move east of West SJ, the market is depressed and bargains are everywhere. In this area there is no bad investment as long as you hold it for 5 years or longer. The same philosophy applies to any investment( e.g. stocks, bonds). Sam Shueh
0 votes Thank Flag Link Wed Aug 20, 2008
Taxes are high in Cupertino, lots of school bonds. SFR is usually a much better financial investment
0 votes Thank Flag Link Thu Jul 31, 2008
Pvm
What is your motive in buying a home? Just my viewpoint - Appreciation wise, a condo/Townhome in Cupertino will appreciate well, than a single family home in SJ, specially certain parts of SJ. If you even buy in SJ-95129, which has cupertino schools, you are doing good, you cant really go wong!....long term investment wise+ enjoying a beautiful City and neighborhood. Need to discuss options in detail? Call me. Thanks,
Nina Daruwalla, CB, 408-7773823
http://www.ninadaruwalla.com
0 votes Thank Flag Link Thu Jul 31, 2008
Bay Area Newsgroup. “Economist Christopher Thornberg said that prices falling across the coastal Bay Area is the last part of the housing bubble bursting. Unfortunately, that area has been most resistant to the idea that their values may drop.”

“‘It’s not only Marin and San Mateo counties having this illusion that it won’t happen to them, it’s also Newport Beach,’ Thornberg said.”

“Instead, Thornberg said that the first signs of the housing bubble started in inland areas and are slowly moving outwards to the Pacific. ‘You can’t have plummeting prices in San Joaquin and East Contra Costa counties that don’t affect Western Contra Costa and Alameda counties,’ he said. ‘And you can’t have plummeting prices in Alameda and Contra Costa counties that don’t affect San Mateo and Marin.’”

“Foreclosures have become a larger part of the market in the Bay Area, making up 76.2 percent of home sales in San Joaquin County, 49.7 percent in Solano, 26.1 percent in Alameda and 12.3 percent in San Mateo.”

“Kari Clouse, a certified mortgage planning specialist in Benicia, said that although government-sponsored loans now exist, their terms aren’t very attractive. Still, without 10 percent down, most potential buyers won’t be able to afford a home.”

“‘Right now you need more money down and we live in a state where people don’t save,’ Clouse said.”

“‘People don’t have the money to get these jumbo loans,’ she said. ‘Who has 10 to 20 percent down on a $500,000 to $700,000 house?’”

The Marin Independent Journal reports from California. “The median price of a single-family home last month was $862,500, down from $965,000 a year earlier, and just 110 single-family homes were sold - about half as many as the 218 sold in March 2007, DataQuick reported. Sales totals ‘were easily the slowest March in Marin,’ said John Karevoll, a DataQuick analyst, who noted the research firm’s records date back to 1988.”

“‘This is a pitifully low sales count is more of an illustration of what is not going on, rather than what is going on,’ Karevoll said, noting March figures were a record low for the Bay Area as well.”

“‘Sellers are still trying to overprice their homes and nobody is falling for it any more,’ said real estate agent Celine von May.”

“The county’s inventory of 1,401 homes for sale is up from the 1,087 properties on the market at this time last year, said Levi Swift, president of the Marin Association of Realtors.”

“Buyers remain hesitant, Swift said. ‘They want to make sure they’re not catching a falling knife.’”

“The 213 properties in default in March is up 14 percent from February and 167 percent from a year ago, according to ForeclosureRadar.”
0 votes Thank Flag Link Fri Apr 18, 2008
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