What Half A Million Dollars Buys In California
Thirty years ago, half a million dollars was a lot of money. With that kind of capital, you could buy a mansion and still have change left over.
Today though, thanks to the growth of the real estate market, that’s no longer the case. These days, spending $500,000 on real estate won’t get you as far.
The situation is particularly grievous in California. Here, house prices have seen longer and more dramatic sustained increases than anywhere else in the country. The state has become an economic powerhouse of the world, not because of Hollywood (although that plays a role), but because of the spectacular growth of the tech sector, particularly in San Francisco, and that’s leading to rapid rises in property valuations.
These days, even if you have half a million in the bank waiting to go on property, you can’t buy a great deal with it, depending on your location.
Realtor Ben Kruger showcases some of the mansions available in the area for buyers with the money. Those with a cool $20 million can afford views overlooking downtown LA, with multiple swimming pools, jacuzzis and underground garages for car collections.
These homes, though, represent the pinnacle of lifestyle in the state -- and you’ll pay for the privilege. $500,000, though, buys a lot less.
Fixer-Uppers In Silicon Valley
It’s almost impossible to buy a house for less than half a million dollars in Silicon Valley. Demand for accommodation in the area is so extreme that even condos sell for more than a million.
If you do want a property for less than that, you’ll have to accept an abode in an extreme state of dilapidation.
Some people, though, have found a way through. Buyers, for instance, are now converting burnt-out properties. They’re buying derelict buildings for under half a million and then doing them up, sometimes DIY. What’s more, because of the sheer demand for housing in the area, they’re often able to sell them for large profits. A home might only fetch $300,000 at auction, but sell more than $900,000 after spending $150,000 on repairs.
Large Suburban Homes In Sacramento
The story in Sacramento is different again. Here it’s possible to buy a large suburban home that’s fit for a family on a budget of half a million dollars. For many buyers, that seems more reasonable, which is one of the reasons why the city’s population is now well above 500,000. Cheap accommodation is encouraging people to move to the area. It’s currently the fastest-growing major city in the whole of California.
Reno, Nevada Offers Big Homes, But Not That Big
Reno isn’t in California, but it has long been a haunt for those trying to escape the high prices across the border. Many people from the Bay Area have moved to the region to look for homes with lower asking prices.
The median price for a single list home was $300,000 in 2015 but is more than $420,000 today. Prices will likely go up further as California’s influence continues.
