by tovarichpeter ➕follow (6) 💰tip ignore
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We're certainly experiencing a apartment-building boom here in Sunnyvale. Traffic, noise, congestion, get worst by the month.
But if you had bought a year ago and sold today you would have made exactly zero.
The article makes a false assertion here:But if you had bought a year ago and sold today you would have made exactly zero.
The true assertion is that if you had bought a year ago and sold today, you would have lost 6% or more on commissions and fees.
Prices don't have to fall in order for buyers to lose money. And 6% of the price of a Bay Area house is a lot of money.
Oakley...that wonderful place on the Delta where the mosquitos are so damn big they rape the chickens!
The article makes a false assertion here:But if you had bought a year ago and sold today you would have made exactly zero.
The true assertion is that if you had bought a year ago and sold today, you would have lost 6% or more on commissions and fees.
Prices don't have to fall in order for buyers to lose money. And 6% of the price of a Bay Area house is a lot of money.
That 6% is not 6% of your investment. It’s 6% of the selling price!
BayArea saysThat 6% is not 6% of your investment. It’s 6% of the selling price!
Thanks @BayArea I hadn't thought about that.
So say you buy a $1M house and put 20% ($200k) down. The next day you sell it and have to fork out 6% of the selling price. That’s 30% of your $200k investment vaporized to a pair of realtors.
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