"I am 34…." Option A - BMR Housing
As you already know, home prices in the Bay Area are literally through the roof. It is beyond the reach for most of the local citizens. So, what is the city's solution? BMR Housing.
BMR stands for "Below Market Rate". Every new building complex that gets built must have a certain number of units designated as BMR units. There are no strict restrictions on which units the builder can choose as BMR units. So, I have seen BMR units that look just like any of the other units in the complex. And, then, I have seen BMR units that are not even located in the same building! That builder built the BMR units on a batch of land next to the retail-priced units.
As the name implies, BMR Housing is quite affordable. The price is set such that the homeowner who earns a certain median income would be able to afford to buy the unit. The last one I looked at had prices ranging from $238,000 for a studio and 1 bath 550 sq ft unit to $298,000 for a 2 bed and 2 bath 1200 sq ft unit. The retail-priced units had prices ranging from $595,000 to $720,000. So, the retail-priced units were twice the prices of the BMR units. I think I can afford to move out now.
Not surprisingly, everybody else wants these BMR units. To become an eligible buyer, the buyer has to be a first-time homebuyer (defined as not having any interest in a dwelling unit within the last three years) and earn less than 100% of the city's median income.
But, hundreds and hundreds of prospective buyers still show-up for the dozen or so BMR units available for sale. As usual, the lottery will determine who gets the right to buy these precious few BMR units. So, this gives new meaning to winning the lottery.
Oh, one other thing. In case you think that this is a fantastic way to make hundreds of thousands of dollars overnight, it is not. Just like there is a price restriction on the most that you have to pay for the BMR unit, there is a price restriction on the most that you can sell the BMR unit for.
The number of first-time homebuyers who can afford to purchase a median-priced (about $660,000) home in the Bay Area has steadily declined for years. The percentage is now in the teens. Given the high cost of a median-priced home, most first-time homebuyers are forced to ... Read
While it would be nice to live in a $600000 home for the cost of a $300000 home, not everyone is going to get the opportunity to live in one of those BMR housing units. For the rest of us, there are other housing programs ... Read
So, what is it like to be 34 and still living at home? In short, it is both good and bad. On the one hand, I am definitely building a nice pool of money for a future down payment on a house. On the other ... Read
One (and there were several) of the things that I learned from the whole CyberRebate saga is that I need to stand up for myself. You could probably say that I was a bit wussy. I did write the credit card company to dispute the ... Read
