Along the same line of inquiry (not sure if best to start new thread):
If the ROI is insufficient for buying a home to live in in the Bay, what about buying a rental outside of the bay? Or outskirts of bay? Is Bay Area RE so overpriced that anywhere commutable to SF is overpriced?
I'm looking to buy a rental (that i Would not live in, b/c I don't want to commute more than 6-15 mi)
I'm age 38, single, work in Berkeley, can save maybe $30K/yr, rent in Richmond ($700/mo + all util./yard =&850
I have $76K cash, $40K in stocks, am about 40% en route to savings goal to enable me to live off $30K/yr as my 4% draw (so target retirement is 53-55, depending on market performance, savings rate changes, spending rate changes eg $30K/yr is based on a US (west coast) retirement spending rate.
Like the author of the original post, what to do do w our savings if not able to purchase Bay Area home? I am considering buying a duplex or condo or house in Sacramento, Reno Nevada because I've heard the tax advantages are better in Nevada, or communities outside of the bay area within 1 to 2 hour's drive. Any thoughts?
Goals w/a rental are tax savings, land/property appreciation, future rental income once house is paid off (15-yr mortgage plan).