5 ms·
It works if you live by yourself in a 1BR. To pay the mortgage on a family home you probably need to sell RSUs. It is also super risky to to buy a house you nee
by closeparen 4y ago
It works if you live by yourself in a 1BR. To pay the mortgage on a family home you probably need to sell RSUs. It is also super risky to to buy a house you need RSUs to hold on to - exactly the kind of risk that is unreasonable if you have a family.
- bradlys 4y agoMost people in SV do this. So, it’s pretty normal actually.
- closeparen 4y agoThen there's going to be a lot of foreclosures soon.
- nr2x 4y agoYup, I think the housing market got totally overheated on the back of RSU values going through the roof. Now that even Apple and Google are well off peak, I’m super curious what happens next.
- nradov 4y agoThat's just totally disconnected from reality. The majority of Silicon Valley homeowners don't receive any equity compensation. You should walk around and talk to regular people sometime. (The numbers may be different if you look solely at recent buyers in a certain limited set of neighborhoods.)
- closeparen 4y agoThose are the "already mega-wealthy." Their mortgage bills are low because they have enormous home equity.
- nr2x 4y agoAnd property taxes pegged to the value of the home in 1985!
- nostrademons 4y agoIt's not impossible to afford a house in the Bay Area on just cash compensation, if you're a dual-finance/tech/legal/medical couple and both partners have risen to mid-levels in their organization. L6/E6 cash compensation is about $225K, two of them is $450K, figure 50% out for taxes/401k/benefits and you're taking home about $225K/year or about $18K/month. PITI for a $2.5M home (20% down) is about $14K, so you've got $4K/month to spend on everything else. That's just barely enough - it's like someone making $48K/year but having no housing expenses, which is tight but lots of people do it.