Saturday, May 05, 2007

Cupertino rent update

I just noticed on craigslist.com that someone is renting condos in brand new Villagio and Metropolitan complexes. Renting 2 bedrooms and 2 bathrooms would cost $2095 in Villagio and $2250 in Metropolitan. I was a little bit surprise on the prices, because Villagio schools - Eaton Elementary (API score - 955), Lawson middle (API 958) is much better and located much closer to community than Metropolitan ones - Sedgwick Elementary school (API 876), Hyde middle school (API 828). Perhaps location of Cupertino High school and newly opened "AMC Cupertino Square 16" in one step from Metropolitan condos raises the rent price.

Update:
Mike asking in comments:
I wonder how can they cover the mortgage by renting 2 bedroom for only $2100 at Villagio since 2bed selling price at Villagio is more than $600,000. How much downpay they have to make?

The median sales price for two-bedroom condo units in Metropolitan (19503 Stevens Creek Blvd, Cupertino) community is $600,000. The similar unit in Villagio (20500 Town Center Lane, Cupertino) is a tad pricier - $650,000. The condo owner need to put as down payment at least $300,000 to cover interest only mortgage and HOA fees (Villagio - $410, Metropolitan - $350) , but still it would take a few year to get positive cash flow.

1 comment:

mike said...

I wonder how can they cover the mortgage by renting 2 bedroom for only $2100 at Villagio since 2bed selling price at Villagio is more than $600,000. How much downpay they have to make.. 200,000 or more I guess.. not a good investment if home price doesn't appreciate 10% per yr.. Curious.. Guess they will believe the home selling price will go up very high again so after two yrs.. these flipper will get to sell it with higher price..