Buying in the Bay Area. Insane?

[Tyler D.]

Hey BP,

I'm a primarily OOS investor living in San Francisco. I have been renting bedrooms for exorbitant prices and considering the possibility of buying a home here, and I want to know if it makes sense or I if am out of my mind.

As I see it, the benefit is clear: There is a huge demand here for property, that won't go away anytime soon barring a total exodus or collapse of the tech industry. Even then the weather is great, so people will still want to live here. 

The downsides however are numerous. The huge and growing homeless problem, coupled with a buy-in price that seems unsustainable for most people. Only the rich can afford to buy a home here, and that may mean a decrease in prices if we have in fact hit a top. There is also rent control, and anti-landlord politics that I would have to deal with if I decide to rent it out or go multifamily. As I intend to live in it for now, I wouldn't have to deal with that for some time, though.

As it stands, I have about 200k in cash, and plan to live here for at least 3 more years. Do you think it would be a smart idea to buy a house here, or should I put my money elsewhere?