The average Silicon Valley Homeowner used to be able to leave his home to his children as part of his estate planning. There were tax advantages just as there are for inherited 401k plans. Many parents hope to create a family home or business that will help their children and possibly their grandchildren. Proposition 19, promoted as "Home Protection... (for) ... Victims of Wildfire" had the more significant impact of making it difficult to create an inherited family home as…
The news media has reported both tech companies and venture capital firms leaving Silicon Valley. Indeed the percentage of all US venture capital activity has declined in the Bay Area over the last decade. However end of year 2020 venture capital data (from PitchBook) shows over 2,500 VC deals completed in the Bay Area which is over that of 2019, with more data still expected.Over the last five years, over $151 billion of fundraising has happened in the Bay Area…
Perhaps now is a particularly good time for first time home buyers to buy a condo.In our 2021/01/09 webinar & our 2021/01/10 Chinese webinar we pointed out a difference in Silicon Valley real estate trends for houses vs. real estate trends for condos. House prices have been climbing a little faster than condo prices.Santa Clara County House Prices (per sq.ft.) Santa Clara County Condo Prices (per sq.ft.) The incoming Biden administration has talked about a $15,000 tax credit for home…
When deciding to fix or replace a property line fence, you need to understand the California Good Neighbor Fence Act. It makes both neighbors equally responsible for the cost of repairing or replacing a property line fence. A key requirement is that you have to notify your neighbor(s). Most people would talk with their neighbor but few would normally follow the steps specified (30 days’ prior written notice to each affected adjoining landowner).
The incoming Biden administration has talked about a $15,000 tax credit for home buyers. The home prices in Silicon Valley are high enough that the credit will be more meaningful for condo buyers. With the difference in price between houses and condos recently increasing, and a potential tax credit driving up demand, buying a condo now could prove to be an even better than the normal choice for first time home buyers. Rent vs. Buy considerations, and low mortgage interest rates, make owning any home significantly better than renting for most Silicon Valley residents.
Condo owners are typically younger and more mobile than the average home buyer. The spread in house vs. condo prices is probably a short term reaction to the pandemic.
Very long term trends are still likely to favor homes with yards over homes without yards. New construction in Silicon Valley is nearly always townhouses and condos because of the high cost and limited availability of land. The expected increase in homes with little or no yard probably won't keep up with demand, so all prices are likely to rise, but the number of homes with yards is likely to decrease as older housing is replaced with newer housing. Your own private outdoor space is slowly headed towards becoming an expensive luxury.
Buying a condo now should be an excellent path towards owning a bigger home in the future.
