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Mortgage payments: $60,000 $60K / year isn't going to pay for the mortgage on even a small house in Silicon Valley.

by mikek 7y ago

jedberg 7y ago
Sure it will. That's a $1.2M house with 20% down. There are plenty of 2-3 bedroom 1200-1500sq ft houses around here in that range. Sure, it would be an average school district and maybe have a bit of a commute, but you can find stuff in that range for sure.
- kec 7y ago
  How many folks actually have $250k they can just drop on a mortgage downpayment?
  - jedberg 7y ago
    It would be $200K, but 20% is a pretty standard down payment. Yes, it would take a while to save up that much, which is why housing around here isn't affordable, but it's also pretty standard.
    - kec 7y ago
      $1.2M * 0.2 = $240k. No one I know in the Bay Area who has bought a home in the last ~8 years has been able to scrape together 20%, everyone puts down less and gets PMI.
      - rapsin4 7y ago
        Anyone working at FANG 250k is trivial.
deleted 7y ago
[deleted]
ctvo 7y ago
What does this have to do with the article about the couple living in NYC feeling average on 500k a year? In another separate market, in another region in the country... they'd pay more? OK.
mijamo 7y ago
Are you really sure about that? 60 000$ mortgage payment is probably more than 1 million in loan, and the property value can be double the loan (appreciation since they bought + initial payment outside of the loan). I don't exactly know the prices of houses but I guess 2 million dollar should buy you a house?
weaksauce 7y ago
Million dollar 30 mortgage is approximately 5k / month which is 60k / year. Are small homes substantially more than that?
yumraj 7y ago
Depending on the down payment that is 1.25M home +/- 250K. SV is huge. You can definitely get a home for that. Note: property tax is extra. I'm in San Jose, with pretty good school district. In this area ~1400 sq.ft. townhomes are about $1.0xM.
kangnkodos 7y ago
From another article with more details on this couple: "$5,000 a month in mortgage expense bought this family a ~$1,500,000, 3/2, 1,700 sqft apartment in Brooklyn a couple years ago." https://www.financialsamurai.com/scraping-by-on-500000-a-year-high-income-earners-struggling/ https://www.financialsamurai.com/scraping-by-on-500000-a-yea...

Mortgage payments: $60,000 $60K / year isn't going to pay for the mortgage on even a small house in Silicon Valley.

by mikek 7y ago

Mortgage payments: $60,000 $60K / year isn't going to pay for the mortgage on even a small house in Silicon Valley.

Sure it will. That's a $1.2M house with 20% down. There are plenty of 2-3 bedroom 1200-1500sq ft houses around here in that range. Sure, it would be an average school district and maybe have a bit of a commute, but you can find stuff in that range for sure.

kec 7y ago
How many folks actually have $250k they can just drop on a mortgage downpayment?
- jedberg 7y ago
  It would be $200K, but 20% is a pretty standard down payment. Yes, it would take a while to save up that much, which is why housing around here isn't affordable, but it's also pretty standard.
  - kec 7y ago
    $1.2M * 0.2 = $240k. No one I know in the Bay Area who has bought a home in the last ~8 years has been able to scrape together 20%, everyone puts down less and gets PMI.
    - rapsin4 7y ago
      Anyone working at FANG 250k is trivial.

deleted 7y ago

[deleted]

ctvo 7y ago

What does this have to do with the article about the couple living in NYC feeling average on 500k a year? In another separate market, in another region in the country... they'd pay more? OK.

mijamo 7y ago

Are you really sure about that? 60 000$ mortgage payment is probably more than 1 million in loan, and the property value can be double the loan (appreciation since they bought + initial payment outside of the loan). I don't exactly know the prices of houses but I guess 2 million dollar should buy you a house?

weaksauce 7y ago

Million dollar 30 mortgage is approximately 5k / month which is 60k / year. Are small homes substantially more than that?

yumraj 7y ago

Depending on the down payment that is 1.25M home +/- 250K. SV is huge. You can definitely get a home for that. Note: property tax is extra. I'm in San Jose, with pretty good school district. In this area ~1400 sq.ft. townhomes are about $1.0xM.

kangnkodos 7y ago

From another article with more details on this couple: "$5,000 a month in mortgage expense bought this family a ~$1,500,000, 3/2, 1,700 sqft apartment in Brooklyn a couple years ago." https://www.financialsamurai.com/scraping-by-on-500000-a-year-high-income-earners-struggling/ https://www.financialsamurai.com/scraping-by-on-500000-a-yea...