We’re down here in Marin this week. It is where I grew up so there is a certain affinity to it. It has changed but is still the same. Property prices are still crazy and the house listed for $1.095M down the street sold for $1.2M. At the same time the 6 o’clock news reports over 100,000 houses in default since January in the Bay Area. A comment in a past post pointed out that Marin may not be the best indicator of the Bay Area as a whole but I do find the following interesting.
My mom had marked an article in Marin Magazine: Tim Porter’s Four R’s (Reading, ‘Riting, ‘Rithmetic & Real Estate). He places much of the property value in southern Marin’s school system. A private school starts at $20,000 a year in the Bay Area and if you can put your kid into a public school that rates as high as the private schools.
Does it apply to Portland’s high price neighborhoods? Dunthorpe and the Riverdale school system come immediately to mind. Ainsworth and Chapman Elementary are in high dollar neighborhoods and are always highly rated.
Rob Lee, executive vice president of California Mortgage Advisors in San Rafael, crunches the numbers: a family who spends $20,000 a year on private school tuition could use that $1,600 a month to finance an additional $240,000 home loan. At $30,000 in tuition, the mortgage capacity grows by $400,000.