3 ms·
I really like this tool. It also helps highlight one thing that I think Sal really underplayed: it doesn't necessarily matter what long-term historical rates ha
by tansey 13y ago
I really like this tool. It also helps highlight one thing that I think Sal really underplayed: it doesn't necessarily matter what long-term historical rates have been.
If you assume that Silicon Valley is going to be hot for even just the next 5-7 years, with both purchasing and rental prices increasing by 5% per year, then it very quickly becomes smarter to buy and sell the house within that 5-7 year window.
At some point it all just comes down to your prior belief on the growth rates of the two markets.
- seanmcdirmid 13y agoAnd your nuts if you think even the SV market will grow forever. The key is to recognize value where others don't, and to otherwise realize that the market is efficient and all bubbles pop one way or the other eventually. My SV landlady talked about how hard the early 90s were, they almost didn't make it.