"Upscale" Living in Mill Valley
Just lovely. Well worth the $989,000 asking price. According to the write-up "South facing one level home in move in condition. Light & bright with several skylights. Freshly painted with new capeting and window coverings." I guess "new window coverings" means the venetian blinds that can be seen in all of the photos. Yeah, sure, venetian blinds and paint make this worth every penny.
posted by Marinite at 1/27/2006 02:07:00 PM
11 Comments:
What do you think it would rent for?
Here's some stats:
4BR/2BA, 1776 sqft on .152 acre.
Built 1953, average ranch tract home.
Listed 1/24/06
30 yr fixed @ 6.2 = $4800/mo + taxes, possibly $1240 more = ~ $6K/mo.
$6000/mo is the estimated rent based on present sales price? What do you think it would actually rent for today?
The cheapest 4bed in MV I could find was $2700.
Based on experience with my rental comp (a 3bed house in SA @ $2800) and my parents (a 2200SF 4bed/3bath in Upper Lucas Valley that rents for $3200) I would be very surprised if this place fetched more than $3500.
$6000/mo is the estimated rent based on present sales price?
No, I just provided an estimated monthly mortgage on purchase--to compare against whatever MV rent estimates.
So if rejunkie's estimate is in the ball park then MV houses rent for roughly 50% of what the mortgage would be assuming 20% down/30y fixed.
I didn't see what neighborhood of mv, but if it is on the Horse Hill side of town, its "market rent" is probably around $2500, and I bet it would sit on the market for quite a while at that price. Notice that I didn't say "should rent for"....that would be about $1500.
There is a similar such home over here in tib that has been unrented for 7+ months. It started at 3400 and is down to 2950 now. I haven't seen much interest. I don't understand the owner/landlord psychology.
"So if rejunkie's estimate is in the ball park then MV houses rent for roughly 50% of what the mortgage would be assuming 20% down/30y fixed."
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At this point in my life given these figures, I think I'd rather be renting, all things considered.
[Well, maybe not *this* place specifically.]
If house prices are not appreciating, or specifically if MV homes are going to be the same or less in price in five years (a large assumption, no question; not to mention where rates or the economy might be headed in the meantime) - what could one do in the meantime with that 20% "not down" and the "extra" 50% pocketed each month?
marinite -
I hope you don't mind that below is something from Ben's blog.
I did this because I think it captures well the feeling that even with people who can make "crazy" money - they "honor" value as well at this point in the housing cycle.
The last sentence is my favorite.
[Since Tiburon, Belvedere, MV and environs, etc. are sorta some of SF's "Wall St Towns"]
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"Exactly one year ago in January I saw a house on the market I insisted my husband and I should buy. We live in a "Wall St Town" just outside NYC. He thankfully refused my urgings and referred me to articles written by Yale economist Robert Shiller and Merrill Lynch's economist David Rosenberg....
We know many young Wall St traders who made a killing in bonuses this year, but they REFUSE to buy into this market. Funny thing- someone with enough money to spend $2 mil on a house is also smart enough to look at the value fundamentals and RUN."
sf jack -
I don't mind at all. I cross post stuff all the time. The truth belongs to no one.
First of all, I challenge anyone to tell me when in the past 30 or so years, including after Loma Prieta and 9/11, have southern Marin real estate prices ever declined? They may level off from time to time, but drop? The Chronicle today reported that house resale prices might drop to a gain of only 7 percent this year, instead of the double digit increases we have seen since 2001. Where in a bank right now or any money market fund can you make 7 percent? Sounds pretty good to me.
I am a Marin homeowner and yes, I find it outrageous what we have to pay to live here. The whole Bay Area is insane. Renting is just as much of a rip off and you are paying off someone else's interest only loan while they make there 7 percent for the year. So I say buy whatever you can, even these POS's, and try to be happy. At least you aren't feezing your ass off in Buffalo, NY or somewhere.
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