Greetings from the Bay Area, hoping to FIRE by mid-2030s

[Major Tom]

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Originally Posted by FIREd I see. Thank you. We are currently looking in the South of Market / South Beach / China Basin area. It seems like the most convenient location for us.

Your commutes from those areas will be pretty quick.

[explanade]

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Originally Posted by Major Tom Precisely. Oakland in particular gets a bad rap with people who haven't visited, but there are some very nice residential areas there. The Temescal, Rockridge, Lake Merritt and Piedmont Ave areas are pleasant, for example. One thing the East Bay has that The City doesn't (unless you're near GG Park) is lots of trees and green.

Rockridge and Piedmont aren't exactly low-income housing areas, are they? Or at least they didn't used to be?

In the '80s, Oakland and East Bay was rising and SF was hurting. Lot of people of means opted to live in the Oakland hills, where you had a great view of SF and the bay. Dot com boom brought a lot of young professionals to the City, as well as startups. Oakland meanwhile stagnated as far as attracting businesses.

SF is definitely overpriced now. Companies like Apple and Google have made it real easy for their employees to live in SF, offering them free shuttles with Wifi, eliminating commuting costs and allowing them to be able to get some work done on the 1-hour ride each way.

$150k condo would have to be way out of the area, like south of Gilroy, way north of San Rafael and east of 580, out towards Stockton.

There are people who will commute 2 hours each way into the City or to Santa Clara Valley.

[FIREd]

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Originally Posted by explanade In the '80s, Oakland and East Bay was rising and SF was hurting. Lot of people of means opted to live in the Oakland hills, where you had a great view of SF and the bay. Dot com boom brought a lot of young professionals to the City, as well as startups. Oakland meanwhile stagnated as far as attracting businesses.

Based on this article from the San Francisco Chronicle, it does look like people of means (millionaires for the purpose of the article) tend to live on the eastern and southern side of the Bay. There are surprisingly few millionaires living in the City itself.

[Major Tom]

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Originally Posted by explanade Rockridge and Piedmont aren't exactly low-income housing areas, are they? Or at least they didn't used to be? In the '80s, Oakland and East Bay was rising and SF was hurting. Lot of people of means opted to live in the Oakland hills, where you had a great view of SF and the bay. Dot com boom brought a lot of young professionals to the City, as well as startups. Oakland meanwhile stagnated as far as attracting businesses. SF is definitely overpriced now. Companies like Apple and Google have made it real easy for their employees to live in SF, offering them free shuttles with Wifi, eliminating commuting costs and allowing them to be able to get some work done on the 1-hour ride each way. $150k condo would have to be way out of the area, like south of Gilroy, way north of San Rafael and east of 580, out towards Stockton. There are people who will commute 2 hours each way into the City or to Santa Clara Valley.

I haven't checked prices, but a 150K condo in Rockridge or Piedmont might be pushing it, yes. The Adams Point area, which is very close to Lake Merritt has some nice quiet residential streets, and small condos going for around 150K.

If you want a big 1 bedroom or a 2 bedroom condo for that price, you most likely will be looking further out, as you say.

I tend to forget that people often want more than 400 sq feet

[explanade]

Crime is more of an issue in Oakland and much of the East Bay. So I can see where Oakland has stagnated in terms of property prices, especially in the flat lands.

Space is an issue in SF. But you might have someone like Larry Ellison with a compound in Woodside but a bachelor pad in the City. Sea Cliff, Nob Hill and Pacific Heights are very expensive.

House Hunters on HGTV have featured a couple of properties in SF proper.

[Major Tom]

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Originally Posted by explanade Crime is more of an issue in Oakland and much of the East Bay.

True. The main crime in SF is the housing prices

[2035]

Third generation San Franciscan. It's very expensive here. I'm lucky to pay 1400 per month for a small one bedroom facing a brick wall.

[2035]

I'm investigating housing through the Mayor's "Below Market Rate" housing program. It's not Section 8, it helps modest income earners by property at a reduced rate or helps with the downpayment. You should look into it, if you qualify.

[2035]

How do I reply to a specific person...I thought I was doing that but it didn't work...sorry :-(

[REWahoo]

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Originally Posted by 2035 How do I reply to a specific person...I thought I was doing that but it didn't work...sorry :-(

Click the "quote" button on their post. Type your response after the last [ /QUOTE].

[2035]

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Originally Posted by RockMonkey Hey I'm targeting the 2030s too! Specifically January 2032 For me, which is the first month of the year I will turn 55, in late December. Should be a year or so after my youngest is out of college too, so things line up nicely. So I'm a few years younger than you, and have a little more saved up in 401k and Roth IRA. I have no pention, and not planning on SS. If I get some SS payout it will be a bonus (and I bet I will, but I am not making my plan based on it). I expect to live quite comfortably from my savings alone. I do live in a lower cost of living region than you. Congrats on your 100k! You're lightyears ahead of "normal"!

Thanks!

[2035]

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Originally Posted by haha Out of curiosity, where in the Bay Area are you seeing condos<=$150K? Ha

San Francisco

[Major Tom]

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Originally Posted by 2035 San Francisco

Are these properties in the "Below Market Rate" program you were mentioning earlier? I haven't looked at properties in SF recently, but 150K strikes me as particularly cheap for a condo in SF.

I'm also quite surprised that your income of around $70K would qualify you for such a program. I know that $70K may not be a lot in that city, but it's not exactly peanuts.

I might have to look into that program myself and consider a move from the East Bay back to SF if I can buy property that reasonably there.........

EDIT - Just did some very quick Googling. Looks like the income threshold in 2008 was $50,050 for a one-family household and resale values are limited by the program. It's also for first-time home-buyers only (very reasonable of course.) Looks like a good idea to keep middle-class earners in SF.

[mb]

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Originally Posted by explanade Rockridge and Piedmont aren't exactly low-income housing areas, are they? Or at least they didn't used to be? .

I sold my 2 bedroom condo in that area for $150k . . . . in 1988!

[Huston55]

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Originally Posted by FIREd Yes, I would be interested too! I will be moving to BA shortly and I am looking for bargains!

Alameda is also worth a check. Not as exciting as The City but, on the water, safe and easy commute (ferry or bus).

[panacea]

Still w*rking but there will be no pensions here. We expect that there will be Social Security in some capacity but it won't be necessary to make it work. SS=more fun. Currently, we're saving a bit more than 30% of gross toward retirement, but should be able to step that up soon. If we can get some cooperation from the markets everything should work out great, if not... a couple more years of w*rk might be necessary. Sniff...

[explanade]

Just did a quick search there on Zillow.

Lot of million dollar properties in Rockridge:

Rockridge Real Estate & Rockridge Oakland Homes for Sale - Zillow

[Major Tom]

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Originally Posted by Huston55 Alameda is also worth a check. Not as exciting as The City but, on the water, safe and easy commute (ferry or bus).

Alameda Island is nice - has that feel of being a little separate from the rest of the East Bay which of course, it is.

[FIREd]

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Originally Posted by Huston55 Alameda is also worth a check. Not as exciting as The City but, on the water, safe and easy commute (ferry or bus).

Yes, Alameda looks very nice. However, that's where most of DW's colleagues live and we want to do our own thing. After spending 10 years in suburbia, I am ready to move back to the city.

[tmm99]

Here is the list of condo's for less than 150K in San Jose (south bay)...
Real Estate Search | Redfin
Most parts of San Jose aren't that nice, but I don't think you have to go to East Bay like Oakland (much higher crime rate) to get a 150K condo.