How To Live In Silicon Valley When You Can't Afford To Buy Here

Real Estate Agent with eXp Realty of California Silicon Valley Probate, Trust, and Investment Sales B.R.E. 01191194

Silicon Valley Real Estate Agent


Many young, well paid Professionals and Tech workers come to the Silicon Valley for good jobs, its wonderful weather, and incredible cultural and family friendly amenities. But they get here and find that the cost of Silicon Valley housing is prohibitive, or impossible to buy buy to the competition in their price range.

Another issue that comes up all the time is that a young buyer can afford to buy a home, but does not want to live where or in what he or she can afford in the Silicon Valley.

Added to this is the new tax bill which severely limits the amount of mortgage interest which is deductible and the substantial decrease in property tax and state income tax detectability. These changes make housing even less affordable for the average Silicon Valley resident

When faced with this dilemma many are choosing to rent in the Silicon Valley instead of purchasing a home in the Silicon Valley.

I know there is a better way, because I have done it myself.

My solution is this:

Buy a rental property and rent your primary residence in the town where you want to live. When renting in the Silicon Valley you can almost always pay less than you would have to to purchase the same home on a monthly basis. You can probably live in a nicer place than you could afford to buy.

However, over time prices go up, so the amount you have for a down payment should be put into Silicon Valley real estate so that you can keep up with housing appreciation and grow your wealth.

In the last 5 years average sales price in Santa Clara County has risen from $800,000 to $1,600,000 for single family homes.

Santa Clara County housing prices


If you purchase a rental property in a less expensive area with at least a neutral cash flow, and spend your monthly housing budget on a rental property you will see the following advantages:

1. If you buy wisely your equity will grow. You should hire an experienced Silicon Valley investment property Realtor to help you pick what makes the most sense.

2. Speak to your accountant but things which are not a tax deduction for a Silicon Valley primary residence, or are severely limited, such as HOA dues, all interest on mortgages, not just up to $750,000, all property taxes, not just the 10K combined state and local taxes, and depreciation. This makes owning rental property very attractive to Silicon Valley investors.

3. The renter will pay your expenses and pay off your mortgage while you get to live closer to work, in a neighborhood with great schools and amenities, in a house that you like.

4. If you buy your rental properties with cash you can use the rent money to pay for your Silicon Valley Rental while reaping the benefits of your rental property.

My rental properties are in Santa Cruz and I encourage my Silicon Valley investor clients to buy there. 


 Marcy Moyer

eXp Realty of California


Specializing in Probate, Trust, and Investment Properties



Posted by

Marcy Moyer eXp Realty of California  Specializing in Probate and Trust Sales, and Rental Investment Properties



This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Home Buying
California Santa Clara County Palo Alto
Posts to Localism
Dedicated Bloggers
The Ninety-ninth Percentile
Club Chaos
silicon valley homes for sale
silicon valley rentals
silicon valley realtors
silicon valley investment properties
silicon valley investment real estate agent
silicon valley rental properties
silicon valley days on market

Post a Comment
Spam prevention
Spam prevention
Show All Comments
Myrl Jeffcoat
GreatWest Realty - Sacramento, CA
Greater Sacramento Real Estate Agent

That is some bold thinking, Marcy.  And, interestingly, I can see it working.  Another thought is for single homebuyers working in Silicone Valley, they could buy a nice home with several bedrooms, use one bedroom, and find roommates who will help make house payments to occupy the other bedrooms.

Jan 07, 2018 04:06 PM #1
Marcy Moyer
eXp Realty of California Silicon Valley Probate, Trust, and Investment Sales - Mountain View, CA
Probate, Trust, and Investment Specialist


Thanks for your thoughts. Many young homeowners who do manage to buy a house with more bedrooms than they need do rent out rooms. The problem is so many who do not qualify for homes big enough to rent out rooms to others in the area where they want to live. I am on a misson to try to convnince someone to buy what they can afford even if it is not where they want to live, and use it as a rental.


Jan 07, 2018 05:10 PM #2
Post a Comment
Spam prevention
Show All Comments

What's the reason you're reporting this blog entry?

Are you sure you want to report this blog entry as spam?


Marcy Moyer

Probate, Trust, and Investment Specialist
Ask me a question
Spam prevention

Additional Information