Although normally I prefer to take photos than be featured in them or in videos, many of my Realtor friends from across the country have been telling me that our blog readers would like to see us on video (and not just read our typed words). So I’m caving in – and saying hello! Hope you enjoy this 4 minute video, shot from my home office in Los Gatos.
A few days ago I read the article below in the San Jose Mercury News, penned by Vivek Ranadivé, on the topic of discrimination in Silicon Valley. I loved his striking analogy to Florence, Italy, during the Renaissance – a place where I studied in college – and thought that this piece had a lot of merit. The one caveat, though, is that in my experience there is certainly a very pronounced, impossible to miss age discrimination in Silicon Valley among the high tech companies. Anyone more than 50 or 55 years old may feel that his or her job may be cut at any time and handed to a younger, less expensive employee. Once this last holdout of bias is gone, then perhaps the correlation with exquisite Florence will be exact. The article below is republished with permission. – MPH
Discrimination in Silicon Valley is a Myth, by Vivek Ranadivé
Lately, I’ve been hearing criticism about diversity in Silicon Valley that deeply saddens me. Some people seem to think that gender and race discrimination in the Valley are still roadblocks to career advancement, preventing some people from pursuing opportunities given to others.
I disagree with this completely.
It’s no secret why scores of foreigners flock to Silicon Valley each year. It’s home to some of the best universities, some of the world’s most innovative companies and some of the brightest minds in history. It’s a region that prides itself on disrupting the status quo and pushing the envelope.
What I’ve witnessed in my 30 years in the valley contrasts starkly with recent criticisms.
Since day one, it has welcomed me, and many other Indians, with open arms. And not just Indians — any ethnic group willing to pour their hearts and minds into developing the “next big thing.” Take a walk through the hallways of any business in Silicon Valley and you’re likely to witness a melting pot of young intellectuals from every corner of the world. Silicon Valley not only embraces ethnic diversity, it highly encourages it. That’s what has made this region so successful.
I like to compare Silicon Valley to Florence during the Renaissance. Led by some of history’s brightest and most progressive minds, Florence was the world’s epicenter for art, music, politics and technology. If you wanted to make a name for yourself in the early Renaissance, Florence was where you had to be. The parallels to Silicon Valley are clear — from the Traitorous Eight to the late Steve Jobs to the Google and Facebook guys, so many of the most innovative and intelligent people of the past half-decade have lived and flourished here. As a result, the valley continues to attract the best and brightest from all over the world. Continue reading
Is it a good idea for newcomers to Silicon Valley to rent for a year, or smarter for them to purchase right away? Normally, I would suggest deciding where you want to live generally (example, Almaden area of San Jose 95120) and renting there for a bit first just to make sure it’s where you want to be. This is especially true if you have children who will be in public schools, as it can be rough on them if they change again once you’ve been here for awhile. Renting first enables you to learn the area and takes some pressure off. Also, it can take some time to move money from overseas for your down payment, so the little extra time can help there, too.
However, many people want to buy immediately and will make several trips here before the move to find and purchase a home. Often this is because they see the value in owning (tax benefits, getting kids into certain schools). I’ve had many people tell me that it helps them to establish themselves in their new community faster if they buy rather than rent.
Right now interest rates are very favorable. Lawrence Yue, the chief economist for the National Association of Realtors, recently stated at our annual conference in San Francisco that he’s expecting interest rates to go as high as 5.4% by the end of 2014 (as of right now, it’s hovering between 4.125 and 4.25%).
What does this rise in interest rates mean in terms of housing affordability?
$500,000 mortgage, 30 year fixed at 4.25% = monthly payment of $2459
$500,000 mortgage, 30 year fixed at 5.4% = monthly payment of $2807
Difference = $348, or a 14% increase in the monthly payment
Or, let’s look at it in terms of buying power.
$2500 mortgage payment, 30 year term at 4.25% = loan amount of $508,192
$2500 mortgage payment, 30 year term at 5.4% = loan amount of $445,211
If the interest rate goes up to the 5.4% that the NAR chief economist expects, that cuts into the buying power of a $2500 payment to the tune of almost $63,000.
For most people, the cost of waiting is a significant factor in this buy vs rent decision. My concern is that many people who elect to lease or rent for a year do not understand the risk that may accompany waiting. For most folks relocating to the San Jose or Peninsula area, the hardest thing to manage is the cost of housing. This could become substantially worse by putting off the purchase for a year, so right now I cannot recommend doing that. The low interest rates are a gift that won’t be around forever.
Want more info? Please see my Valley of Heart’s Delight blog, with the related article
How will rising interest rates impact your home buying power?
It can be really challenging for people moving to Silicon Valley to get a sense of pricing for home buying. So to compare “apples to apples”, let’s take a hypothetical case of a 4 bedroom, 2 bath home of approximately 2,000 SF house (appx 185 square meters) and see how the cost looks in one are versus another.
Tonight I compared several areas and cities using the same formula: homes of 1800 – 2200 SF, 3-5 bedrooms, 2-3 bathrooms, on lot sizes of 6000 SF to 10,000 SF. Here’s how it shakes out in the “west valley areas” along the Highway 85 corridor. What areas are most affordable? One way of analysing this is the “price per square foot” figure. How competitive is it? Have a look at the DOM or “Days on Market” figure. All of these days on market are short, but they range from low to heart-skippingly fast.
In most cases, the most expensive and desirable places have either the best schools or shortest commute location. Had I ranked these for school scores, you’d find that Cambrian is fairly high up and a good “bang for the buck” location – though not a super short commute for folks who work in Mountain View (though not so bad for people working in Cupertino). None of these is especially close to North San Jose (Cisco). Continue reading
If you are new to Silicon Valley, you may wonder what the customs are around Halloween, which is always October 31st. It’s pretty simple. Kids get to dress up in costumes and go door-to-door in residential areas (houses, usually, but also condos, townhouses and apartments) and say “Trick or Treat” and receive the treat, which normally is candy.
People in homes are expected to have candy of some sort to give away if they have their lights on, a jack-o-lantern burning or any Halloween decor. If the house is dark or unlit, it should be skipped. Most houses will have a jack-o-lantern, meaning a carved pumpkin with a candlelight (or something similar) in it.
In some areas, such as the Almond Grove area of Los Gatos, homes may get as many as 200 kids in an evening! In other areas, where homes are spread out or for some other reason it’s not so popular, there may be 20 or less.
Finally, parents should accompany children as they go door to door. Candy is not given to adults – it is tacky for grownups to come with a bag or even in costume to collect sweets. Don’t do it, you’ll appear greedy and uncouth. It is also uncool for trick or treaters to expect candy if not in costume.
Have fun and be safe!