> Based on rule it should be 10k to make it interesting for the investors (buy and rent to make some profit). The only reason I didn’t sell it is the hope that prices will go up in x years, but right now I technically subsidizing people living there + waiting on possible rent increase in couple years.
Maybe the market is telling you that SF house prices are wildly overvalued. Maybe the best move is not to wait for ever higher prices, but sell now.
People seem to be programmed to buy high and sell low, making the old truism to do the opposite very difficult in practice. Your description isn't uncommon, but is very characteristic of the physiology of a top.
They are not overpriced. When eng with 10 years of expirience can make 250base + 500k in stock per year (or 4 years can get 1M in pre IPO lyft stock), it is hard not to see why Bay Area houses are so expensive. Area with money coming in will become more expensive to live in.
Housing price in SF are tied to valuation of tech companies. Valuation goes up, house prices go up.
Those companies have to pay this much only because otherwise employees wouldn't be able to live there. And even then, the 750k per year is an outlier even in SF. Divide it by 2 to get the more realistic pay.
Maybe the market is telling you that SF house prices are wildly overvalued. Maybe the best move is not to wait for ever higher prices, but sell now.
People seem to be programmed to buy high and sell low, making the old truism to do the opposite very difficult in practice. Your description isn't uncommon, but is very characteristic of the physiology of a top.