4 ms·

You are absolutely right. I live in the Bay Area now, which everyone knows has absurd rental prices. In my home town, I can rent a comparable sized apartment

You are absolutely right. I live in the Bay Area now, which everyone knows has absurd rental prices. In my home town, I can rent a comparable sized apartment to what I have now for around 1/3 what I currently pay. But, there's no way I could earn 1/3 the income I make as a Bay Area software engineer working at a non-remote job in my home town. Even making 1/4 what I'm making would be highly optimistic. I just did a search on Google for "$HOMETOWN $HOME_STATE jobs," and pretty much everything I could qualify for was retail level jobs. In my home town, that means probably $10/hour, or, $20k/year, if you can manage to get full time hours. Even in retail management, it would be tough to hit 1/5 of what I make now. Add in student loans, which are a fixed expense, no matter where I go, unless I want to go to a repayment plan that depends on my income and never pay them off, and we see the advantage goes squarely to the Bay Area. Now, imagine starting in my home town and actually making it to the Bay Area. If you move with a job already lined up, you'll need to have at least 1 month's rent + 1 month security deposit saved up, plus moving expenses. First month's rent and security deposit will be at least $3500. Think about how long it takes to save up $3500 making $20k per year. Then, think about how this doesn't include moving expenses, which, even if everything you own fits in your personal vehicle, is going to amount to another several hundred for gas and probably at least one night in a hotel if you drive. Call it another $500. Oh, and I forgot to mention, at $20k per year in my home town, you're probably either spending 35-40% of your gross income on rent, or living with roommates. So, good luck saving up nearly 1/4 of your gross annual income just to GTFO.

criticaljudge 6y ago
Isn't that exactly what banks are for - so that you can get a loan? I would expect that you would qualify for a loan if you show evidence of your upcoming employment. Many companies also pay for moves. Of course if you do all that, and then your employment is suddenly canceled, you are stuck with some debt. I guess that happens to some people.
- pmiller2 6y ago
  A loan against what collateral? What does someone making $20k per year have to put up as security for a loan? You're also assuming this person has little to no debt to begin with, so their debt to income ratio can sustain another loan. Banks don't lend money out of the kindness of their own hearts; you have to qualify, and that's much easier with a higher income than a below median income.
  - criticaljudge 6y ago
    They have their work power - don't banks actually love it when people can't pay off their debt? If your odds of making your investment back are so bad that the bank won't give you a loan, maybe it is the wrong plan to begin with. The job of bankers in theory is to evaluate the risk of your plans and offer you credit accordingly. (Not that I claim they are all good at their job).

criticaljudge 6y ago

Isn't that exactly what banks are for - so that you can get a loan? I would expect that you would qualify for a loan if you show evidence of your upcoming employment. Many companies also pay for moves. Of course if you do all that, and then your employment is suddenly canceled, you are stuck with some debt. I guess that happens to some people.

pmiller2 6y ago
A loan against what collateral? What does someone making $20k per year have to put up as security for a loan? You're also assuming this person has little to no debt to begin with, so their debt to income ratio can sustain another loan. Banks don't lend money out of the kindness of their own hearts; you have to qualify, and that's much easier with a higher income than a below median income.
- criticaljudge 6y ago
  They have their work power - don't banks actually love it when people can't pay off their debt? If your odds of making your investment back are so bad that the bank won't give you a loan, maybe it is the wrong plan to begin with. The job of bankers in theory is to evaluate the risk of your plans and offer you credit accordingly. (Not that I claim they are all good at their job).