4 ms·

Okay though, if you joined Big Co now and made $400k/yr, you'd be taking home $260k post-tax. Anyone can live even in the bay area on half of that, extremely co

Okay though, if you joined Big Co now and made $400k/yr, you'd be taking home $260k post-tax. Anyone can live even in the bay area on half of that, extremely comfortably. In 2-3 years you'd have your $300-400k for a down payment - thats 30% of a $1.2mm house. 2-3 years to buy a median priced place. Thats not bad. Also, prices in say, Santa Clara CA have gone -5.5% YoY, and are forecasted by zillow to go another -8% in the next year. It sucks for anyone who doesn't work at BigCo right now who isn't already wealthy from the previous work.

deleted 7y ago
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bradlys 7y ago
It's $230k after tax. > Anyone can live even in the bay area on half of that, extremely comfortably. You really might want to expand on "extremely comfortably". We all have very different definitions. I'd like a home with AC, good transportation, close enough to SF to actually make it up on weeknights (30-40 min drive), a retirement plan that works with the assumption I live in this area indefinitely, and a <=20 minute commute. I will not have that for $115-130k/yr net income. Just isn't available in the rental market we have. I'm not even getting into the part where I'd like to live in a nice neighborhood with good schools.
- taurath 7y ago
  $115k/yr is $9600/mo. You can spend $5k/mo on a rental with all of those properties, and have $4600/mo for food, utilities, bi-annual trips to europe, the payment for your porsche, and a housekeeper, all whilst saving half of your income to buy a house in the most expensive region of the US in 2-3 years. You can literally have all of those things.
  - cdkee 7y ago
    After taxes 115k is more like 5-6k a month, depending on how much you’re putting into retirement accounts, healthcare, etc.
    - borski 7y ago
      Parent was already talking about net, after taxes.
  - bradlys 7y ago
    Where is this $5k/month house with AC within 40 minutes drive of SF and 20 minutes drive of work? (Menlo Park to Mountain View generally being work area) It basically limits you to San Mateo to Mountain View. I haven't seen anything for $5k/month with AC there. If you find it, let me know. I'm in the market - lol. I have seen one show up here and there but it's almost unequivocally in a terrible neighborhood and/or near the train tracks. Both are dealbreakers. I ain't listening to trains go by at midnight or blast horns at every intersection. Lived that life - done with it.
    - borski 7y ago
      I spent 3 minutes searching: https://www.padmapper.com/apartments/36746960/3-bedroom-2-bath-apartment-at-3925-nelson-dr-palo-alto-ca-94306 https://www.padmapper.com/apartments/36746960/3-bedroom-2-ba... https://www.padmapper.com/apartments/13951431/3-bedroom-2-bath-apartment-at-2062-rialto-ct-mountain-view-ca-94043 https://www.padmapper.com/apartments/13951431/3-bedroom-2-ba... Point is: the trope of “nobody can live in the Bay Area on 125k net” is total bullshit, tired, and flat-out untrue. Is it harder than living on 125k elsewhere? Absolutely. Are you “poor” and unable to afford a great house? No, not at all. There are plenty of great places.
      - bradlys 7y ago
        > https://www.padmapper.com/apartments/36746960/3-bedroom-2-ba.. https://www.padmapper.com/apartments/36746960/3-bedroom-2-ba.... > https://www.padmapper.com/apartments/13951431/3-bedroom-2-ba.. https://www.padmapper.com/apartments/13951431/3-bedroom-2-ba.... These are apartments - not single family homes.
        borski 7y ago
        I mean, I’m not actually a realtor, but here’s a home for you: https://www.padmapper.com/apartments/35506914/3-bedroom-2-bath-apartment-at-251-chiquita-ave-mountain-view-ca-94041 https://www.padmapper.com/apartments/35506914/3-bedroom-2-ba... My search space was Mountain View, so expand and you’ll find more. Point is there are plenty of options, you just have to look for them. And, to be fair, I only searched PadMapper, which is an apartment rental website, so my results weren’t even focused on SFH.
  - base698 7y ago
    Eh, twice that ($230K) after 401K, insurance, and taxes is barely over $10K a month. Not sure how you got $115K being $9600.
    - joshuamorton 7y ago
      They're talking about net, not gross.
    - PenguinCoder 7y ago
      Do people really bitching about ~barely~ over 10k USD a MONTH? There's a lot of people living on that or barely double that, for a year. Yes, even in/near SF. Quit with the damn entitlement.
      - closeparen 7y ago
        You need $8-10k/mo for mortgage and property tax payments on a median home, so yes, the "barely" part is your entire discretionary budget.
      - base698 7y ago
        Wasn't bitching, just not understanding how one could get $9600 from $115K.
    - taurath 7y ago
      We were talking net, after taxes, and after saving half of the net on a $400k salary. $115000 / 12 months === $9583.33
  - closeparen 7y ago
    >You can spend $5k/mo on a rental This is the key to happiness in the Bay Area, honestly. The rentals are just fine if you're willing to shell out. Sure you're not building wealth but you have plenty left over to invest, even in a kickass high-rise apartment. It's specifically a desire to own that will screw you over, no matter your compensation.
- esoterica 7y ago
  Unless you want a 5BR SFH you can definitely have that on much less than 130k/year.
- deleted 7y ago
  [deleted]
ehsankia 7y ago
I honestly never understood all my peers constantly complaining about not being able to afford $2M house, as if that's what happiness is all about. You can still rent a very fancy apartment, max out your 401k, have a top car and live a great life, but just because they don't own a house they are always unhappy. I guess it's true that money != happiness. There's always more you could have.
- pm90 7y ago
  It might be hard to understand if you've not grown up in America, but homeownership is considered a part of adult life, of demonstrating you're seriousness and a gateway to adult life. This is sort of changing recently, but only because many millennials are straddled with student debt and jobs that won't pay enough to afford the down payment. But every single American friend I have either has a home, or dreams of home ownership in the suburbs. And it makes sense, if I grew up in a home with a yard, I would probably want something similar for my children too. That kind of emotional connection is hard to overcome.
  - deleted 7y ago
    [deleted]
  - warp_factor 7y ago
    Yes, Home ownership is seen as the pinnacle of social status. This is stupid and people should rethink this preconceived notion. In the bay area for example it doesn't make ANY sense to buy right now (Price to rent ratio, google it) but still people are flocking on every shitty apartment on sale. That's because they want to feel that little ego boost when they say they are "homeowners".
    - fizzbuzz123 7y ago
      So the Tax advantages and building equity are worthless and play no part in peoples desire to buy instead of rent. Ok
      - 7y ago

deleted 7y ago

[deleted]

bradlys 7y ago

It's $230k after tax. > Anyone can live even in the bay area on half of that, extremely comfortably. You really might want to expand on "extremely comfortably". We all have very different definitions. I'd like a home with AC, good transportation, close enough to SF to actually make it up on weeknights (30-40 min drive), a retirement plan that works with the assumption I live in this area indefinitely, and a <=20 minute commute. I will not have that for $115-130k/yr net income. Just isn't available in the rental market we have. I'm not even getting into the part where I'd like to live in a nice neighborhood with good schools.

taurath 7y ago
$115k/yr is $9600/mo. You can spend $5k/mo on a rental with all of those properties, and have $4600/mo for food, utilities, bi-annual trips to europe, the payment for your porsche, and a housekeeper, all whilst saving half of your income to buy a house in the most expensive region of the US in 2-3 years. You can literally have all of those things.
- cdkee 7y ago
  After taxes 115k is more like 5-6k a month, depending on how much you’re putting into retirement accounts, healthcare, etc.
  - borski 7y ago
    Parent was already talking about net, after taxes.
- bradlys 7y ago
  Where is this $5k/month house with AC within 40 minutes drive of SF and 20 minutes drive of work? (Menlo Park to Mountain View generally being work area) It basically limits you to San Mateo to Mountain View. I haven't seen anything for $5k/month with AC there. If you find it, let me know. I'm in the market - lol. I have seen one show up here and there but it's almost unequivocally in a terrible neighborhood and/or near the train tracks. Both are dealbreakers. I ain't listening to trains go by at midnight or blast horns at every intersection. Lived that life - done with it.
  - borski 7y ago
    I spent 3 minutes searching: https://www.padmapper.com/apartments/36746960/3-bedroom-2-bath-apartment-at-3925-nelson-dr-palo-alto-ca-94306 https://www.padmapper.com/apartments/36746960/3-bedroom-2-ba... https://www.padmapper.com/apartments/13951431/3-bedroom-2-bath-apartment-at-2062-rialto-ct-mountain-view-ca-94043 https://www.padmapper.com/apartments/13951431/3-bedroom-2-ba... Point is: the trope of “nobody can live in the Bay Area on 125k net” is total bullshit, tired, and flat-out untrue. Is it harder than living on 125k elsewhere? Absolutely. Are you “poor” and unable to afford a great house? No, not at all. There are plenty of great places.
    - bradlys 7y ago
      > https://www.padmapper.com/apartments/36746960/3-bedroom-2-ba.. https://www.padmapper.com/apartments/36746960/3-bedroom-2-ba.... > https://www.padmapper.com/apartments/13951431/3-bedroom-2-ba.. https://www.padmapper.com/apartments/13951431/3-bedroom-2-ba.... These are apartments - not single family homes.
      - borski 7y ago
        I mean, I’m not actually a realtor, but here’s a home for you: https://www.padmapper.com/apartments/35506914/3-bedroom-2-bath-apartment-at-251-chiquita-ave-mountain-view-ca-94041 https://www.padmapper.com/apartments/35506914/3-bedroom-2-ba... My search space was Mountain View, so expand and you’ll find more. Point is there are plenty of options, you just have to look for them. And, to be fair, I only searched PadMapper, which is an apartment rental website, so my results weren’t even focused on SFH.
- base698 7y ago
  Eh, twice that ($230K) after 401K, insurance, and taxes is barely over $10K a month. Not sure how you got $115K being $9600.
  - joshuamorton 7y ago
    They're talking about net, not gross.
  - PenguinCoder 7y ago
    Do people really bitching about ~barely~ over 10k USD a MONTH? There's a lot of people living on that or barely double that, for a year. Yes, even in/near SF. Quit with the damn entitlement.
    - closeparen 7y ago
      You need $8-10k/mo for mortgage and property tax payments on a median home, so yes, the "barely" part is your entire discretionary budget.
    - base698 7y ago
      Wasn't bitching, just not understanding how one could get $9600 from $115K.
  - taurath 7y ago
    We were talking net, after taxes, and after saving half of the net on a $400k salary. $115000 / 12 months === $9583.33
- closeparen 7y ago
  >You can spend $5k/mo on a rental This is the key to happiness in the Bay Area, honestly. The rentals are just fine if you're willing to shell out. Sure you're not building wealth but you have plenty left over to invest, even in a kickass high-rise apartment. It's specifically a desire to own that will screw you over, no matter your compensation.
esoterica 7y ago
Unless you want a 5BR SFH you can definitely have that on much less than 130k/year.
deleted 7y ago
[deleted]

ehsankia 7y ago

I honestly never understood all my peers constantly complaining about not being able to afford $2M house, as if that's what happiness is all about. You can still rent a very fancy apartment, max out your 401k, have a top car and live a great life, but just because they don't own a house they are always unhappy. I guess it's true that money != happiness. There's always more you could have.

pm90 7y ago
It might be hard to understand if you've not grown up in America, but homeownership is considered a part of adult life, of demonstrating you're seriousness and a gateway to adult life. This is sort of changing recently, but only because many millennials are straddled with student debt and jobs that won't pay enough to afford the down payment. But every single American friend I have either has a home, or dreams of home ownership in the suburbs. And it makes sense, if I grew up in a home with a yard, I would probably want something similar for my children too. That kind of emotional connection is hard to overcome.
- deleted 7y ago
  [deleted]
- warp_factor 7y ago
  Yes, Home ownership is seen as the pinnacle of social status. This is stupid and people should rethink this preconceived notion. In the bay area for example it doesn't make ANY sense to buy right now (Price to rent ratio, google it) but still people are flocking on every shitty apartment on sale. That's because they want to feel that little ego boost when they say they are "homeowners".
  - fizzbuzz123 7y ago
    So the Tax advantages and building equity are worthless and play no part in peoples desire to buy instead of rent. Ok
    - 7y ago