Tips for Tech Millennials Who Want to Buy in Silicon Valley

If you didn’t already notice, there’s a social media battle between two generations raging right now. But the classifications are a little wonky. Younger people are using the term “boomer” to describe anyone older who represents the status quo. Older people are using the term millennial to describe anyone younger who challenges their perceptions, whether they’re millennials or not. Here’s the catch, boomer and millennial have actual meaning and they describe two very specific generations. Millennials are turning 40, and the myths about how they earn and spend their money have been largely debunked. Many of these professional millennials have found their way to Silicon Valley though the tech industry and are now thinking about buying homes in the area. Silicon Valley can be expensive, but it’s not impossible. Here are some tips for tech-savvy millennials who want to live in the area.

The Silicon Valley Housing Market

Multiple sources throughout 2019 have shared the information that the housing bubble in the Silicon Valley area is about to burst. We don’t know how far the market will crash, but it does appear that housing prices throughout Santa Clara county are dropping.

The cities in Silicon Valley, including Cupertino, Los Altos, Palo Alto, San Jose, and Sunnyvale, haven’t become what we could call affordable and we’re not certain that’s on the horizon any time soon. However, with many of the world’s major tech companies having a presence in the area, the ability to buy a home here for young tech employees would be a great investment.

How to Save to Buy a Home

The Mercury News suggested earlier this year that the income needed to buy a median-priced home in Silicon Valley is $255,000. And while that feels like an unattainable goal, for millennials working in the tech space in California, it’s not impossible.

It’s not unusual for tech companies in the Area to pay employees salaries of $200,000 or more annually. And, even with a slightly lower salary, you can make healthy financial choices to help you save to buy a new home in Silicon Valley and around the Bay Area.

To start saving to buy your dream home in Silicon Valley, consider these things:

•         Are you at a stage in your life where buying makes the most sense?
•         Have you calculated your home budget based on the rent you currently pay?
•         Can you manage your current expenses to save more money every paycheck?
•         Can you expand your choices for surrounding areas to get a better deal?

We recommend you talk with Zachery Adam of GoPrime in California today to establish your home buying budget.

Bay Area Resources for First Time Home Buyers

Many cities and states have first time home buyer programs, and California is no different. In fact, Santa Clara county has launched their own down payment assistance program to help first time home buyers in the county afford to buy their dream home.

The program, called Empower Homebuyers, provides assistances of up to 17% of the down payment for homes priced at $800,000 or less in Santa Clara county. The participating buyers must make no more than 120% of the median income, which is currently estimated at $150,000 annually for a family of four. And the buyer must contribute at least 3% of the down payment in the process.

If you want to know if this or any other assistance is right for you in and around Silicon Valley, call GoPrime today.

Living Outside of Silicon Valley

Of course, not every young tech employee will be able to or even want to afford a home in Silicon Valley. The entire surrounding Bay Area is a completely reasonable alternative. There are several cities you can find in this list of areas around San Francisco with the lowest cost of living. As always, do your research to determine what neighborhoods fit best with your future goals.

It looks like there are several areas around Oakland and San Jose that may be a good fit if you’re looking to be close enough to Silicon Valley but find a home in a more modest budget.

To learn about buying a home anywhere throughout the Bay Area, we recommend you talk with Zachery Adam of GoPrime in California to figure out your home buying budget.

Contact the team at GoPrime Mortgage of California to learn more about buying your next home in the Bay Area. Contact Zachery Adam and the team at GoPrime.