4 ms·

80% of my Bay Area salary is significantly higher than the local payment for my area. I’m just hoping these inflated salaries last. I’m nervous to buy a home b

80% of my Bay Area salary is significantly higher than the local payment for my area. I’m just hoping these inflated salaries last. I’m nervous to buy a home because even if I make $$$ now, if I ever get fired and need to find a local job I won’t be able to meet my previous salary.

ithkuil 5y ago
That worry would technically still apply if you could move while keeping 100% of the salary as a remote worker, right?
- jleyank 5y ago
  Trust me. Buying a house when you can't easily change jobs is a risk - in down times, a forced move might/will lose you some money as the market will weaken if there's layoffs, etc. Remote work is a great help towards (significantly?) reducing this problem.
  - ithkuil 5y ago
    My point is that this is true regardless if the pay is cut a bit. If you work for Google and move to work remotely, you may need to worry that when you need to change jobs you may not find some other SV giant hiring you remotely with the same conditions.
paxys 5y ago
This isn't a Bay Area problem but rather applies everywhere in the world. The risk adverse solution is to save for a home rather than take on a large mortgage.
- antisthenes 5y ago
  No, the risk adverse solution is to live below your means while paying the mortgage, so that you have money left over if you ever have to take a pay cut.
- pc86 5y ago
  Even in MCOL areas with an average-to-high non-FAANG tech salary, "just save 250-500k for a house" is not realistic advice. Even with a FAANG salary that's doable with concerted effort but not if you already have a family.
  - hawaiianbrah 5y ago
    Who is saving that much for a house? Does anyone actually put 20% down these days?
    - pc86 5y ago
      20%? Absolutely. PMI is just setting piles of money on fire and except in the highest of high COL areas, you're almost always better off saving more or buying smaller than wasting years of PMI. Enough to have something that doesn't qualify as a "large" mortgage? Rarely.
      - hawaiianbrah 5y ago
        Seems worth it to pay PMI and get a place rather than wait another 1-5 years to have enough saved up to me, but I live in one of those highest of high COL areas and the market has appreciated so much more in the past few years that you lost out if you were waiting to have 20%.
        pc86 5y ago
        Rapidly appreciating housing prices certainly change the math, and depending on your specific mortgage, may help get rid of PMI sooner.
- 8note 5y ago
  The problem with saving for a house I that rent prices are set to get your savings as close to 0 as possible
s1artibartfast 5y ago
This is exactly why the company has the leverage to revisit your compensation,full stop.

ithkuil 5y ago

That worry would technically still apply if you could move while keeping 100% of the salary as a remote worker, right?

jleyank 5y ago
Trust me. Buying a house when you can't easily change jobs is a risk - in down times, a forced move might/will lose you some money as the market will weaken if there's layoffs, etc. Remote work is a great help towards (significantly?) reducing this problem.
- ithkuil 5y ago
  My point is that this is true regardless if the pay is cut a bit. If you work for Google and move to work remotely, you may need to worry that when you need to change jobs you may not find some other SV giant hiring you remotely with the same conditions.

paxys 5y ago

This isn't a Bay Area problem but rather applies everywhere in the world. The risk adverse solution is to save for a home rather than take on a large mortgage.

antisthenes 5y ago
No, the risk adverse solution is to live below your means while paying the mortgage, so that you have money left over if you ever have to take a pay cut.
pc86 5y ago
Even in MCOL areas with an average-to-high non-FAANG tech salary, "just save 250-500k for a house" is not realistic advice. Even with a FAANG salary that's doable with concerted effort but not if you already have a family.
- hawaiianbrah 5y ago
  Who is saving that much for a house? Does anyone actually put 20% down these days?
  - pc86 5y ago
    20%? Absolutely. PMI is just setting piles of money on fire and except in the highest of high COL areas, you're almost always better off saving more or buying smaller than wasting years of PMI. Enough to have something that doesn't qualify as a "large" mortgage? Rarely.
    - hawaiianbrah 5y ago
      Seems worth it to pay PMI and get a place rather than wait another 1-5 years to have enough saved up to me, but I live in one of those highest of high COL areas and the market has appreciated so much more in the past few years that you lost out if you were waiting to have 20%.
      - pc86 5y ago
        Rapidly appreciating housing prices certainly change the math, and depending on your specific mortgage, may help get rid of PMI sooner.
8note 5y ago
The problem with saving for a house I that rent prices are set to get your savings as close to 0 as possible

s1artibartfast 5y ago

This is exactly why the company has the leverage to revisit your compensation,full stop.