4 ms·

You kidding right? 100k down? 2K mortgage? These are insane numbers that very few people can afford even in the tech community.

adventured 9y ago
A $2,000 mortgage is not insane. A lot of people in the US can in fact afford a $2k mortgage. The median full-time job in the US pays near $45,000. The median household income is near $60,000 today. There are 127 million full-time employees in the US. Or put another way, approximately 39% of all people in the labor force (~161 million) are earning at least $45,000 per year. If you're in the top 1/3 of all full-time earners (40+ million people), you can afford a $2,000 mortgage by yourself. If 40+ million people in the US can afford something, it's not insane. Two people with a full-time job, earning only the median, can very safely afford that $2,000 mortgage. The typical full-time median income person in the US will commonly not even have a four year degree, so this isn't a stretch premise in terms of requirements. If you want to hit $4k per month (the parent's scenario), the top 1/3 of households can manage that (tens of millions of people fall under that umbrella). If you want to get into insane mortgage territory as it pertains to the median income, you're talking much higher. $8k-$10k+ style mortgages.
- taysic 9y ago
  I’ve heard housing should ideally not cost more than 1/3 of your income to live comfortably. That would mean you’d have to make 72k after taxes a year to afford such a mortgage. I think it is crazy that two high earning people would be spending possibly 50% or more of what they make on housing.
- alistairSH 9y ago
  The problem isn't that a $1 million home is insane (or not). Or, even a $2000/month mortgage. Yes, a well compensated professional can afford those numbers. The problem in the Bay, and increasingly in other popular areas, is there are few options for less. Especially in places like the south bay, where it isn't really urban - it's a giant suburb that lacks dense, affordable housing options. An average employee shouldn't have to live hours away from their job. Or spend 50% of their income on housing.
baddox 9y ago
Nearly all software engineers in San Francisco will be able to afford $2k a month, even if it's tight. They'll be doing close to that anyway in rent. I'm not arguing it's not insane rent/mortgage in absolute terms, but relative to software engineer salaries, it's doable.
- StreamBright 9y ago
  They all do have 100K up front? Most software engineers I know have this much in student debt.
  - baddox 9y ago
    Of course most would need to save for at least several years, but I think that’s the case for most people.
    - deleted 9y ago
      [deleted]
WalterSear 9y ago
No, these aren't insane. However, they are much lower than reality.
FireBeyond 9y ago
He's not even talking about a 2K mortgage. He's talking about a 2K/PERSON/mo, and him and his partner paying somewhere north of $4K to 5K a month in payments, PMI etc.
- cobookman 9y ago
  No Pmi needed. And it’s 4-4.5k total all in.
askafriend 9y ago
$2k mortgage per month is nothing. Renting a studio or a decent 1 bedroom alone will cost that much in SF.

adventured 9y ago

A $2,000 mortgage is not insane. A lot of people in the US can in fact afford a $2k mortgage. The median full-time job in the US pays near $45,000. The median household income is near $60,000 today. There are 127 million full-time employees in the US. Or put another way, approximately 39% of all people in the labor force (~161 million) are earning at least $45,000 per year. If you're in the top 1/3 of all full-time earners (40+ million people), you can afford a $2,000 mortgage by yourself. If 40+ million people in the US can afford something, it's not insane. Two people with a full-time job, earning only the median, can very safely afford that $2,000 mortgage. The typical full-time median income person in the US will commonly not even have a four year degree, so this isn't a stretch premise in terms of requirements. If you want to hit $4k per month (the parent's scenario), the top 1/3 of households can manage that (tens of millions of people fall under that umbrella). If you want to get into insane mortgage territory as it pertains to the median income, you're talking much higher. $8k-$10k+ style mortgages.

taysic 9y ago
I’ve heard housing should ideally not cost more than 1/3 of your income to live comfortably. That would mean you’d have to make 72k after taxes a year to afford such a mortgage. I think it is crazy that two high earning people would be spending possibly 50% or more of what they make on housing.
alistairSH 9y ago
The problem isn't that a $1 million home is insane (or not). Or, even a $2000/month mortgage. Yes, a well compensated professional can afford those numbers. The problem in the Bay, and increasingly in other popular areas, is there are few options for less. Especially in places like the south bay, where it isn't really urban - it's a giant suburb that lacks dense, affordable housing options. An average employee shouldn't have to live hours away from their job. Or spend 50% of their income on housing.

baddox 9y ago

Nearly all software engineers in San Francisco will be able to afford $2k a month, even if it's tight. They'll be doing close to that anyway in rent. I'm not arguing it's not insane rent/mortgage in absolute terms, but relative to software engineer salaries, it's doable.

StreamBright 9y ago
They all do have 100K up front? Most software engineers I know have this much in student debt.
- baddox 9y ago
  Of course most would need to save for at least several years, but I think that’s the case for most people.
  - deleted 9y ago
    [deleted]

WalterSear 9y ago

No, these aren't insane. However, they are much lower than reality.

FireBeyond 9y ago

He's not even talking about a 2K mortgage. He's talking about a 2K/PERSON/mo, and him and his partner paying somewhere north of $4K to 5K a month in payments, PMI etc.

cobookman 9y ago
No Pmi needed. And it’s 4-4.5k total all in.

askafriend 9y ago

$2k mortgage per month is nothing. Renting a studio or a decent 1 bedroom alone will cost that much in SF.