Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: Lizzie Tudor who wrote (6068)	10/17/2002 3:07:17 PM
From: David Jones	Read Replies (1) \| Respond to of 306849

...I am renting a SF house for $2100. which would have gone for $3500. in 2000 easy... Don't guess. trivalleyherald.com Article Last Updated: Thursday, October 17, 2002 - 7:58:14 AM MST Apartment rents slump Summertime apartment rents remained stable in most major Western markets except California, where prices at the two ends of the state continued to shift in distinctly different directions, according to a report to be released today by RealFacts. Bay Area rents were down to their lowest levels in three years, while the Los Angeles and San Diego markets emerged as the hottest rental market in a quarterly survey covering nine Western states. As of Sept. 30, rents in the Oakland area were down 8.9 percent from a year ago to an average $1,232, while San Francisco rents fell 12.8 percent to $1,632. In Santa Clara County rents were down 15.5 percent to $1,427.

To: Lizzie Tudor who wrote (6068)	10/17/2002 3:08:29 PM
From: Wyätt Gwyön	Read Replies (3) \| Respond to of 306849

I am renting a SF house for $2100 what would the approximate sale value of that house be? i found in Honolulu there were rentals in that price range which would have a sale value of approx 530K--that is for a condo, on which the landlord must pay $500/month or so maintenance fee. in contrast, the rule of thumb i've heard here in Austin is the sale value should be no more than 1% of the monthly rental price. so $2100/month would equate to $210K house value. that formula used to work pretty well here, but i doubt it will as houses have gotten more expensive (nothing like SF of course, but expensive by texas standards), and now that loans are so cheap, lending standards easy, and down payment requirements low. i don't see how high housing prices can be attractive to prospective landlords, as there's only so much the market will bear on rental prices.

To: Lizzie Tudor who wrote (6068)	10/17/2002 4:14:51 PM
From: nextrade!	Read Replies (1) \| Respond to of 306849

I am renting a SF house for $2100. which would have gone for $3500. in 2000 easy. Amazing...thanks, wow

To: Lizzie Tudor who wrote (6068)	10/17/2002 9:25:56 PM
From: XBrit	Read Replies (1) \| Respond to of 306849

Yes $2100/mo for an $800k house is quite a lot cheaper rent/marketValue ratio than applies in the South Bay. One of the houses in my San Jose-area complex was rented a few months ago at $2000/mo, and the current market value is like $500k. I actually think rents are pretty good value round here now.

To: Lizzie Tudor who wrote (6068)	10/18/2002 2:05:35 AM
From: MSI	Read Replies (1) \| Respond to of 306849

I kept a small business apt in SF on Franklin near Lafayette park after 4 years, with rent control it stayed at $1,100 until I let it go 6 months ago... Rent immediately went to $1850... and I've heard now to $1,400. Much more reasonable, but still expensive for what you get. I could not find anything that would pencil out as a buy. Still can't... Reminds me of a friend's house in Palo Alto, $2 million appraised value, renting out for only $2,500/mo. Where's the economic sense in that?