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Always wonder - what's a problem buying house in SF? Awesome 3br in luxury part of SF costs ~500k, if you and some of your friends just try to find money for in

by ex3ndr 10y ago

Always wonder - what's a problem buying house in SF? Awesome 3br in luxury part of SF costs ~500k, if you and some of your friends just try to find money for initial payment (say 100k) then you could just pay only 1-2k$/month.

moultano 10y ago
I would be amazed if you could find a property of any type at all available in SF for 500k.
- mateo411 10y ago
  There are probably a few studios available for 500K.
imh 10y ago
An awesome 3br in a luxury part of SF is definitely not going to be ~500k. This search [0] puts them in more of the 1.5M - 3M range. [0] https://www.redfin.com/city/17151/CA/San-Francisco/filter/min-beds=3,max-beds=3,viewport=37.80588:37.76315:-122.38502:-122.45085 https://www.redfin.com/city/17151/CA/San-Francisco/filter/mi...
- ex3ndr 10y ago
  Ok, i hyperbolated a little, but you still can buy a apartment and pay much less than renting it. Only issue is first payment, but this is no a very big problem for good software developers (they can find extra 100k in first 3 years of career). I believe that Software Engineer can find 1m$ in 30 years.
  - imh 10y ago
    Taking a typical track, a dev might start working at 22 and start a family around 30, leaving 8 years to save 300k (20% down payment on 1.5M), meaning they have to save $37.5k/year. Add to that a $2-3k/mo rent for those 8 years, and you basically double that. Including income tax, that's about $110k/yr just towards housing. Let's say they have $500-1k/mo of other expenses (food, gym, discretionary) and add the $5.5k annual IRA contribution, and that's ballpark $130k/year average every year. That's without a lot of the fun things you should do in your twenties and an irresponsibly low contribution to retirement. Oh, and with the other 80% as a loan, there's a requirement that the payments aren't over 40% of your income, so a $1.2M loan at 3.92% for 30 years means you need to make more than $170k/year. You're right that lots of good software devs make that, but this is a crazy amount above the area median. And that's the lowest end $1.5M from the $1.5-3M range for a 3br in those areas. Hyperbole is not quite the way to spin it.
    - ex3ndr 10y ago
      As we had some posts about salaries in google there was information about stock options and they usually exceed 300k in 4 years. You can make such initial payments only by selling your google's stock.

by ex3ndr 10y ago

moultano 10y ago

I would be amazed if you could find a property of any type at all available in SF for 500k.

mateo411 10y ago
There are probably a few studios available for 500K.

imh 10y ago

An awesome 3br in a luxury part of SF is definitely not going to be ~500k. This search [0] puts them in more of the 1.5M - 3M range. [0] https://www.redfin.com/city/17151/CA/San-Francisco/filter/min-beds=3,max-beds=3,viewport=37.80588:37.76315:-122.38502:-122.45085 https://www.redfin.com/city/17151/CA/San-Francisco/filter/mi...

ex3ndr 10y ago
Ok, i hyperbolated a little, but you still can buy a apartment and pay much less than renting it. Only issue is first payment, but this is no a very big problem for good software developers (they can find extra 100k in first 3 years of career). I believe that Software Engineer can find 1m$ in 30 years.
- imh 10y ago
  Taking a typical track, a dev might start working at 22 and start a family around 30, leaving 8 years to save 300k (20% down payment on 1.5M), meaning they have to save $37.5k/year. Add to that a $2-3k/mo rent for those 8 years, and you basically double that. Including income tax, that's about $110k/yr just towards housing. Let's say they have $500-1k/mo of other expenses (food, gym, discretionary) and add the $5.5k annual IRA contribution, and that's ballpark $130k/year average every year. That's without a lot of the fun things you should do in your twenties and an irresponsibly low contribution to retirement. Oh, and with the other 80% as a loan, there's a requirement that the payments aren't over 40% of your income, so a $1.2M loan at 3.92% for 30 years means you need to make more than $170k/year. You're right that lots of good software devs make that, but this is a crazy amount above the area median. And that's the lowest end $1.5M from the $1.5-3M range for a 3br in those areas. Hyperbole is not quite the way to spin it.
  - ex3ndr 10y ago
    As we had some posts about salaries in google there was information about stock options and they usually exceed 300k in 4 years. You can make such initial payments only by selling your google's stock.