Ultimate Guide To Bay Area Real Estate

Blog Post Image
Real Estate

Here is a compilation of all the things I have said on YouTube in the last few months. 

Don't drink the water!

It's important to change your water filters in your water purifier on a regular schedule. You can find out when it's time to replace your filter by looking at the side of the box it came in, or checking out the manufacturer's website for the model that you have.

If you're not sure where to find your water purifier's manual or where it is exactly that you need to change the filter in, don't worry! Your best bet is probably just asking someone who lives in your house where it is. If they don't know either, try looking on Google Maps or asking Siri (if you're into that kind of thing).


Is it the landlord's fault?

Landlords, you own the property. You own the door that has the wobbly door knob. You own the sink that is backing up! The renters also pay you to live there! You are a landlord and a property manager. And you know what that means? That means you have a responsibility to make sure your apartment is livable. Own up to your responsibilities by keeping the place clean and running smoothly. If you have a bad landlord, then call out your bad landlord! 


Here's why you need to invest in real estate ASAP!

How to get the most bang for your buck when it comes to real estate. The best thing you can do is buy as much real estate as possible as early as possible.

Once you get your paycheck, don't spend it all on cars, shoes, clothes and a high lifestyle. Instead, buy property—for example, you could buy a 4-plex and live in one of the units while renting out the three others. This will virtually render you rent-free once you move out (and it's a great way to build equity). Once this property becomes profitable, sell it for two times its value. And if that doesn't float your boat? Try investing in private market real estate. You can start with as little as $10 with Fundrise! Just remember that your money is locked in for five years! Don't forget to turn off reinvesting the dividends at the 5 year mark! 


They should have taken the real estate wholesale offer!

The other day, I came across a property owner who had bought a property in Phoenix for $5500. When they got the highest cash offer of $180k, they still rejected it because it was below the list price. Clearly, they didn't want to sell the property because the deal was great!

But think about it: if they had accepted that offer and sold their house right away, they would have made a profit of $174k! That's a lot more than what they're going to get if they keep waiting around for something better to come along. And guess what? It won't!

So homeowners, take advantage of the opportunity that's right in front of your face and sell your home today!


If you're moving to or out of the Bay Area, I'd love to help!

Hi, my name is Nagaraj Annaiah. If you want to move in or move out of the Bay Area, give me a call! I'm a realtor in the Bay Area who can help you move. We'll talk about your needs, and I'll find the best property for you.

It could be a new construction home—or maybe an existing one—and it could be anywhere in the Bay Area: San Francisco, Oakland, Berkeley… whatever suits you best. We'll have fun looking at houses together! I'll be happy to help you find the right place for your needs and budget. And if you want to know more about what's happening in the real estate market right now, let's sit down and chat!


You can't check every box while buying a house

You can't check every box while buying a house, because houses aren't made for everyone.

You might think that you want a big yard, but then realize that you don't have time or energy to maintain it yourself. Or maybe you thought having an open floor plan would work for your family, but then realized that your kids are always fighting over who gets their own space. 

The best way to learn about what features matter most for your family? Talk to people who have been through it before and have some wisdom to share with you!

The biggest mistake people make is not being honest with themselves about what they can and can't check off their list of requirements when buying a house.


Don't leave your cords exposed at home

It's really important to keep your cords safe at home. If you don't take care of your cords, then they might not work properly, which could cause a fire or electrocution or even a trip or fall.

So here's what you need to do: First, make sure that all of your cords are covered by furniture or other items so they're not easily accessible. You can also use cord covers and cable sleeves on your existing cords as well as on new ones when you buy them. That way, if there is an accident involving a cord, it won't get damaged as badly as it could have been otherwise!

If any of your cords look old or worn out—or even if they just look like they need some love—replace them ASAP! And remember: this goes for computer cables too! They can be dangerous if they aren't working properly.


Garage door maintenance

If your garage door is making too much noise, there are some things you can do to make it quieter. The first thing to check is whether or not the springs on your garage door are broken. If they are, you'll need to replace them with new ones. If not, check that there aren't any loose bolts or screws holding your garage door together—this can also cause it to make a lot of noise when it opens and closes.

If neither of those things apply to your situation, then try lubricating the hinges with WD-40 or some other kind of lubricant so that the opening and closing doesn't cause as much friction between metal parts inside the mechanism.


Consider this before choosing the black finish faucet!

Black faucets are a great choice, but you should consider your water before making the decision.

If you have hard water, it may leave stains on your new black faucet. 

Soft water is recommended for a better result and better appearance.


Do you run out of hot water?

Have you ever run out of hot water? If so, you're not alone. This happens to almost everyone at some point or another. Why does it happen? It's simple: mineral deposits build up in your tank and restrict the flow of water, which means you have to wait longer for a hot shower.

Luckily, there's an easy fix! You can drain the tank and get rid of all those minerals that are clogging up the system. You'll want to do this every few months, because they'll build up fast if you don't keep it clean.

Another thing you can do is replace your rod if it's super corroded—just make sure it fits with whatever kind of tank you're using, because all tanks are different!


Buying "a home as is", what you need to know!

When you "buy a home as is" in California, you're taking on all of the risk for the property. You don't get the benefit of an inspection and you can't negotiate repairs with the seller. So, before you buy a home as is, make sure you know exactly what's wrong with it and if those issues can be fixed.

If you decide to buy a home as is, be sure to get an inspection from a qualified professional to assess what needs to be repaired or replaced. Then hire a contractor or handyman to do the work so that it will be done right. The seller is not bound to make any repairs or credits. The buyer can inspect and ask you to make the repairs. If you say 'no', the buyer can cancel the sale and get their deposit back.


How to increase the value of your property? 

There are two ways: by improving the property, or by increasing the demand for it.

Improving your property will increase its resale value because it will make it more appealing to potential buyers. Things like adding new fixtures or flooring can help make your home more appealing to buyers, but there are also other things you can do as well—like improve your landscaping or add some architectural details like iron gates or railings around your porch. 

Increase demand by advertising what makes your property unique: maybe it's your outdoor seating, green cover, pool, and so on. Make sure your photos show off all the things we talked about—especially if they're new additions or upgrades—and remember: no one wants a house with no bathroom or kitchen!


Real estate can be dangerous

Real estate is a dangerous game. We're talking about things like pest infestations, mold, and even termites. Then there are problems with the foundation or even the roof that you might not notice until it's too late. And then there are all the health hazards—like volatile organic compounds (VOCs) in paint or carpet glue, or formaldehyde in insulation—that can make you sick if they're not handled properly. So if you're thinking about buying a home right now, get an agent to help you find the right place.


With $1000, you can invest in real estate

It's easy to invest in real estate with just $1000 through REITs. First, you need to open a bank account. You can do that online or in person at one of the bank's branches. Once you have an account, you can start investing by buying shares of a REIT. A REIT is a company that owns and manages real estate, so when you buy shares in a REIT, you essentially own part of the business. When it comes time to sell your shares, you'll be able to sell them on the market just like any other stock or bond. Just remember that publicly-traded REITs are liquid, meaning you can access your money when you need it, while private REITs are illiquid. Warren Buffet invests in REITs. So why shouldn't you?


How much money do you need to buy a $300,000 house?

How much money do you need to buy a $300,000 house? Well, it depends. If you make a 5% downpayment, pay 3% in closing costs and $500 for home inspection, it'll cost you $24500. It's that simple! But remember, if you put less than 20%, you'll have to pay higher interest rates. That's because lenders are taking more risk on your behalf when you put less money down.


People Moving Out of the Bay Area

The Bay Area may be known for its great weather, but it's also one of the most expensive places to live. And that's pushing people out of the region.

The Bay Area had the largest net outflow of any large metro area over the last three months, Redfin says, and that appears to be driven by the region's high housing costs and the ability people have to work remotely.

Almost 50,000 more people moved out of the Bay Area than moved in, according to Redfin's data. People are thinking twice about buying a home in the Bay Area because they are too expensive.

Sacramento, Los Angeles and San Diego were among the top destinations for people leaving the Bay Area.


What is a Housing Market CRASH?

What is happening to the housing market? Is there a housing crisis? And what does it mean for you?

Do 30-40% price drops mean a housing market crash? And a 20% crash is a housing market correction, but not a crash? These are the confusing signals being circulated in the realty market. I believe that even a 15% price reduction is a housing market crash. If home values go back to Q1 of 2021, we are in a housing market crash. I already see housing values going down by 20%. So we are in a housing market bubble, guys! If anyone says that it's a housing market correction, not a crash, don't believe them! 


Rich people hacks that you can do

You're a busy person. You've got a lot on your plate, and you need to make sure you're running your business well. But there's one thing that can help you run your business even better: getting a loan in your LLC.

It's tax-free! And it's easy to get approved for one of these loans—just go online and apply. You can use that money as down payment on a house, or use that asset as leverage to buy another house and list it as short term rentals like on airbnb. The cash generated from those rentals will be enough to pay back that loan, then rinse and repeat until you have enough assets to do whatever it is you want to do with them!


Why only a few people make it to the top

Let me tell you a secret: only a few people will make it to the top. It's just how life works. But that doesn't mean that YOU can't be one of those people! One thing that can really help you succeed is knowing what kind of revenue is the most sustainable.

Seasonal revenue is when your sales depend on a specific time of year—like Christmas or Black Friday sales. Constant revenue, on the other hand, is the kind of revenue that comes in consistently all year round—like subscriptions or monthly payments.

Why am I talking about this? Because if you want to build a successful business, it's important to make sure your revenue is consistent so that you can have a predictable income and grow.


4 things to know about the housing market today

First off, the housing market is looking up this year, with more inventory and less competition. But there are still lots of things you need to know before you take the plunge.

Despite increasing inventory, there are still fewer homes on the market than we'd like to see. There are over 1 in 7 homes on the market with a price cut—that means you can get a good deal on your dream house if you're willing to look for it! And as always, make sure you pay attention to local conditions—the housing market in Santa Clara might be different than it is in River Islands.

And finally: make sure YOU'RE financially ready to buy! It's important to understand how much house you can afford so that you don't end up getting into too much debt or making an ill-advised purchase.



What was the mortgage rate in 1987?

You've probably seen that rates soared to 5.78% on June 16th, up 0.55 percentage points from 5.23% seven days earlier. In April 1987, rates skyrocketed 0.84 points in a week, jumping to 10.27% from 9.43%.

What does this mean for you? If you're looking to buy a house right now, it's going to be more expensive than it would have been a year ago—and even more expensive than it would have been two years ago! So if you can wait until later this year or early next year, that's probably your best bet at the moment!

But even if you do find yourself in the market for a home right now, there are still plenty of options out there for getting financing. 

Build more houses! Use less water! Possible?

We have a drought in California. So the question is: How can you build more houses and use less water at the same time? Officials say it's possible, but sceptics aren't so sure. But there is one solution: recycling and desalination. Desalination is the process by which saltwater is converted into fresh water through distillation. This process can be used to convert seawater into drinking water or even for irrigation purposes. The technology has existed for decades, but it's only recently become cost-efficient enough to be widely implemented throughout California due to advancements in technology like reverse osmosis membranes and energy-efficient pumps. 


How to become wealthy in 3 steps!

Work hard by willing to put in the time it takes to make money. You can't expect to get rich by sitting on your butt all day doing nothing. The next step is working smart. This means making sure you're putting your time into something worthwhile—something that will pay off for you in the long run—like starting a business or investing in stocks or whatever else floats your boat. And finally: working in the right direction means making sure that whatever it is you're working toward is something good and positive—not just something that makes money but something that uses your unique skills, values and passions to make a positive difference in the world. This will not only help you feel more fulfilled but also ensure that whatever it is that you're working toward has long-lasting value.


Stocks vs real estate. Which is better?

So what's better? Owning stocks or owning a home? Here's an example. If you had bought a house in San Jose for 700k in 2012. Today, that home would be worth 1.6M even after you sell at 15% below market value. So what does that mean, we turned 36k downpayment into 900k+.

If I had put that 36k into an index fund@100 in 2012, it would have earned me 4.5x that amount at 162k. So any day, I would go for home ownership first.


50% of homes could get a price cut!

The housing market is going to be pretty good for most of the country. But not every region is going to see a 5.9% increase in home prices between April 2022 and April 2023. In fact, CoreLogic found that 45 markets had a greater than 50% chance of seeing local home prices decline over the next 12 months. Last month, only 26 markets fell into that camp.

In Provo, Utah, 47.8% of home sellers cut their list price in May—and according to CoreLogic's analysis, this means that homes are currently undervalued compared with other cities around the country. The same goes for San Jose, San Francisco and other Bay Area cities: there could be some room for improvement in their home prices over time—but not by much!


How to calculate affordability
When you're shopping for a home, it's easy to get caught up in the details: the number of rooms, how close it is to your job, how much it costs.
But what about the big picture? What's the financial picture that comes with buying a home?
Lenders pay close attention to your debt-to-income ratio (DTI), which is a comparison of your total monthly debt payment to your monthly pre-tax income. It's a ratio that tells you how much of your income is going to paying off debt.

So let's say, for example, that you have a monthly debt of $2,500 and a monthly gross income of $7,000—that would give you a DTI ratio of about 36 percent. In general, your monthly housing costs shouldn't be more than about 28% of your income, though you may be approved with a higher percentage. 

Tips to buy a house in today's Bay Area housing market
One of the biggest mistakes that people make when buying a home is waiting until they have a 20% down payment saved up. But here's the thing: You don't need that much money to buy a house!
1. Do 10% downpayment instead of 20%
2. Go with 7/1 ARM or 10/1 with downpayment assistance
3. Opt for 40-year-loan instead of 30

It's so easy to get approved with these programs—and they can really help make your dreams come true!

Should you buy or rent a house in the Bay Area?

If you're looking for a good time, rent. If you're looking for a long-term investment, buy. But wait, here are the other differences to help you with your decision.

1. Greater short-term flexibility
2. Real estate sales are high friction
3. Down payment can be invested elsewhere
4. Landlord liable for maintenance and repairs

1. Real estate price beats inflation
2. Adds to family stability
3. Fixed-rate loan payments are static
4. Emotional benefits (sense of satisfaction)
How the rich avoid paying taxes

If you want to know how the rich avoid paying taxes, look no further than an irrevocable trust.

An irrevocable trust is a way to put your money into a legal entity that you can't touch again. That's right: once it's in there, it's gone!

The most common way that this happens is when someone sets up a trust for their children or grandchildren with the intention of giving them money when they reach adulthood. But since these kids are still minors, and their parents are still alive, the parents have control over how much money goes into the trust and how much comes out. So if you want to get around paying taxes on your income, just set up an irrevocable trust!


Why are interest rates going down?

Interest rates have been dropping all over the place. So what's going on?

Well, there are several factors that have contributed to this trend. First off, less consumer spending means there's less demand for goods and services—and that means less inflation. And with less inflation comes lower interest rates (since inflation tends to increase when there is high demand). With less inflation, the government doesn't need to take such drastic measures like increasing interest rates—and so they don't!

Additionally, mortgages tend to come down when we're headed into recession. You see, during recessions, people tend to pay off their debts more quickly than usual—which means they don't need as much money in savings accounts or other investments where they could earn interest.


Is it risky or safe to buy a house on H1B visa?

Buying a house in the US is an investment, independent of your visa situation. If you're on H1B, buying a home can be a great way to establish yourself in the country and build equity for the future. That's why non-US resident foreign buyers invested an average of $48 Billion per year between 2016 and 2020 in US residential real estate due to the high rental yield.

But if you have to leave the country due to visa issues, you can continue to legally own the property in the US as an investment property and generate rental income. The availability of H1B mortgage options for US Newcomers with no or thin US credit and specialist H1B mortgage lenders makes H1B homeownership easier and more accessible than ever before. 


Top 4 reasons why you should consider buying a house on an H1B visa

First off, owning a home has been proven to improve your quality of life in the US. You have more security and stability in your life, which leads to better mental health and happiness.

Second, buying a house is a safe and secure way to build wealth for H1B visa holders. You can deduct mortgage interest payments from your income taxes, so it's like getting an interest-free loan from the government!

Third, owning a home is generally cheaper v/s renting on an H1B visa. This is especially true if you buy in an area where property values are rising quickly—the rent-to-own strategy lets you lock in these low rates!

Fourth, mortgage payments are less volatile than rent payments: if your income goes up or down during the year, it won't affect your ability to make payments on time.


Mortgage home loan options for H1B visa holders with established US credit

Whether you're an H1B visa holder with an established US credit score looking to purchase a home, or you're thinking about refinancing your current mortgage, there are options available to you.

But how do you know which is right for you?

The answer depends on a number of factors: how much house you can afford, how much money you're willing to put down as a down payment, and how much money your lender is willing to lend. In addition, some lenders specialize in servicing the needs of H-1B visa holders, while others treat them like any other borrower.

If nothing else, it's important to work with a lender who understands the unique circumstances and documentation that are required when applying for an H1B mortgage. H1B visa holders can apply for all types of mortgage home loans in the US, including FHA loans, conventional mortgages, and jumbo mortgages.


7 Requirements for H1B Mortgages

On an H-1B visa, most lenders will decide the status of a mortgage applicant on a case-by-case basis by utilizing the information available to them. The following is required by most lenders...


Valid work visa

2 years US credit history

2 years US employment history

Good credit score, ideally over 670

US income that you expect to continue for at least 3 years

If you are applying for an FHA loan, you will need an Employment Authorization Document (EAD) from the USCIS.


FHA loans for H1B visa holders

If you're an H1B visa holder, you're probably wondering if you can buy a home with an FHA loan. The answer is yes!

FHA loans are government-backed mortgages insured by the Federal Housing Administration. They require lower minimum credit scores and down payments than many conventional loans, making them especially popular with first-time homebuyers and H1B visa holders.

For an H1B visa holder, the eligibility for an FHA loan depends on the borrower meeting the following guidelines: 

  1. The property will be the Borrower’s Principal Residence;

  2. The Borrower has a valid SSN, except for those employed by the World Bank, a foreign embassy, or equivalent employer identified by HUD;

  3. The Borrower is eligible to work in the United States, as evidenced by the Employment Authorization Document issued by the USCIS; and

  4. The Borrower satisfies the same requirements, terms, and conditions as those for U.S. citizens.


How much downpayment for H1B Visa holders?

It depends on your situation. If you want to get a conventional loan and have good credit, you can put as little as 3% of the purchase price down. But if you don't have enough savings and can't afford private mortgage insurance, it's better to have at least 20% equity in your home when buying it.

If you're looking for an FHA loan, most common among first-time buyers, then 3.5% of the purchase price will cover things with a credit score of 580+, while 10% will cover things with a credit score of 500-579. If your credit score isn't quite so great, then some lenders may require that you put down as much as 25% of the purchase price. 


Bought house but H1B visa denied?

Even if your H1B visa or extension gets denied, you have a few options. Here are three ways that buying a house while on an H1B visa could work out for you in the long run:

#1 Rent your house in the US if your H1B visa gets denied. When this happens, you can rent out your house and avoid the hassle of selling it. This will allow you to keep living in the US even after leaving your home country or moving elsewhere.

#2 Sell your house on an H1B visa if you have to return to your home country or move elsewhere. If you decide to sell your house and leave for good, don't worry—you can still sell it! If someone buys it from you, they'll pay off the mortgage so that nothing defaults when you leave America behind.

#3 Allow your family or friends to live there as well.


6 most vulnerable markets in New Jersey

If you live in New Jersey, you may want to pay attention to a new report from ATTOM, which ranks the 10 counties most vulnerable to a downturn.

The study looked at the highest concentrations of the most at-risk markets in the first quarter of 2022 — and six of them were in New Jersey. The report considered factors like foreclosure rate, mortgage balances that exceed property values, unemployment rate, and average local wages required to pay for major home ownership expenses on median-priced single-family homes. Here they are...