This past year has changed the lives of so many renters in the Bay Area since the tech companies have taken over.
Corporations owning huge apartment complexes are jacking up the rents so high just because they can - they don't give a damn about we, who have lived here for many years and worked in the jobs that help keep the Bay Area going.
We deserve a decent place to live without being gouged for high rents that we can't afford and will have to leave this area. People who own duplexes are jacking the rents up too high too. Who is going to cut their hair and clean their houses and gardening? Does any one care out there?
Greed is driving people like me away from a life of living here after 52 years. Where am I going to go? I can't start over somewhere else at this point in my life.
Please help! I know these owners want to make all the money they can, but where does it stop? Do they understand that most of us can't afford to live here because of this greed?
Home prices have escalated to a point causing owning rentals to not make any business sense. Investors will not invest in something that does not bring a profit so that s/he can stay in business. Furthermore, the investor's expenses have increased year in and year out with increases in; property taxes, fire insurance, up keep, maintenance, and add on expenses like the parcel tax that was passed last November. I understand how difficult it is for the current renters. What's going on is the law of supply and demand. With many ex-homeowners coming into the rental market, (from their homes being foreclosed on), there is an increase of demand hence the raising of rents across the board. Good news is this is only temporary as Redwood City and several builders across San Mateo County are building apartment housing at a record pace, which will increase the supply and rents will stabilize or soften. Until then rents will continue to rise. See my previous blog post on how rents are going to continue to spike in Redwood City.
It's not Facebook who's the only culprit. There is several corps moving into Redwood City, i.e. Stanford Hospital, Evernote, and Shutterfly. You are 100% correct all this new building will bring more traffic, pollution et al with it. The other side of the coin would be rents doubled or tripled from where they are currently. It's a double edge sword. I fear the best solution to your plight is to buy a home. With low interest rates and some very good options out there for first time buyers and some inexpensive homes you might want to research other options other than being a renter. I believe if you jump into the ownership realm, at least you’d have a fighting chance. As for write offs, yes expenses on rental properties are able to be written off. However, a landlord has to take cash out of their pockets to pay expenses. At tax time they get roughly $0.25 on the dollar in return. Here's a post of mine on rents and where they are going: http://redwoodcity-woodside.patch.com/blog_posts/expect-the-same-for-2013-spiking-rents
As far as the developments being required to provide housing on their developments/ campus is a brilliant idea. This is something that needs to be address at the planning and city counsel stages of our City government. With workers being close to work they can walk, ride their bikes, or Pogo stick to work everyday with ease. Low impact on the environment, traffic flow, and housing costs. Stanford does it for their Professors so why shouldn't Facebook?
My comment was for Linda who indicated she wanted a cottage or small duplex. I believe she does not have school age children to worry about and really only want a basic element of life…shelter. Today on MLS Broker’s Tour there is a condo in San Carlos, off of Crestview Dr. at 3295 La Mesa Dr. #3 (Good safe area). It’s a one bedroom, one bath, with a 1 car carport and is listed for sale at $299,000. It seems Linda may fit into this home nicely based on the criteria she mentioned in her posts. So what would it take for Linda to buy this condo provide she liked it? I have crunched the numbers and this is the best ESTIMATE for purchase of this home. End of part 1 of 2 on this topic...
$1,262 - Principle and Interest $ 300 - Taxes $ 40 – Insurance (ALL FIGURES ARE ESTIMATE ONLY) $ 300 - Mortgage Insurance Premium (M.I.P.) $1,902 = Total P.I.T.I. and M.I.P.* *This ESTIMATE doesn't include the Home Owners Association Dues or any additional costs such as inspections or a home protection packages. For Linda it may be possible for her to get out from under her landlord’s thumb. For you Sarah that may be a different story. I don’t know. There are other ways to buy a home beside the method mentioned above. Lease option is one way. Joining or starting an investment club who sole purpose is to buy homes low, fix them up, and sell high until all the members have their own homes. The real estate market in Redwood City has been one with an upwards trend. Read what has happen the past 10 days in Redwood City. Go here for an explanation: http://SFBayHomes.com. End of 2 of 2
One again these figures are only ESTIMATES. (After 37 years in the business I know I am pretty darn close though.) Speak with your accountant or CPA for your accurate number.