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Author: Watty56 Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 126961  
Subject: Re: Is it crazy to try to buy in the Bay Area no Date: 5/23/2005 6:17 PM
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… What do you mean by "not a normal economy?" … still having "kids and a life." We won't buy if those things are at risk.

There are at least two problems that I saw the high housing prices causes with the economy in the Bay Area even back when I lived there.

1) The people that are needed for the infrastructure will have difficulty living in the Bay area because of the housing prices. If you have kids, where will their teachers be able to afford to live in the Bay Area? How about the janitor that cleans the school? The receptionist at the doctor's office?

2) Once your kids grow up, they will probably not be able to afford to live near the Bay area and be forced to move away.

When I lived in Sunnyvale I saw this happen a number of times with older coworkers. Ask your older coworkers where their kids that are in their 20's are living now. Sure lots of kids will go to college and naturally move away but there are lots that either will not go to college or only make it part way through before dropping out. From what I have seen these are the kids that end up most needing ongoing support until they get established. I am not just talking about financial support, the emotional support and being a safety net is difficult enough when they live nearby but if they have to move 500 miles ways to be able to afford a shared apartment on a waiters salary (in a town they do not know), things get risky. It is also not usually a good situation(for them or you) to have them still living at home when they are 25 because they can't afford a place of their own.

Greg
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