4 ms·

A person who only makes $400k TC at Meta won't even have a first home in the Bay Area, much less another one in Aspen.

reducesuffering 2y ago
Plenty of people with $400k TC at Meta have Bay Area homes. $400k TC doesn’t mean “I just got the job where’s my $2m house.” But over a career (Facebook is 20 years old) it does.
ac29 2y ago
The median home-owning household in the bay area doesnt make anywhere close to $400k/yr. Its expensive, but not that expensive.
- jeffbee 2y ago
  I don't think that's a good way to view it. How about the median home buying household? In my town the median sale price this year has been $1.6 million, considering interest rates and property taxes that amounts to $10k/mo housing costs, which is over half the take-home pay of a $400k gross income in California. This is not even to mention the fact that nobody will lend you a mortgage based on the equity portion of your TC, they will usually only count the salary portion and discount the equity portion.
aprilthird2021 2y ago
Napkin math: $400k * 0.6 = $240k post tax $240k - $36k rent = $204k $204k - $50k annual expenses = $154k So if you just work that job for 3-4 years you'll easily have a heavy down payment for a house, assuming no promo, no raises. If you work the job for 7-8 years you can buy a house (more like a townhouse) all in cash. Not going to be the best house on the market, but it's doable. This is all not considering investing in the stock market, raises, being frugal with your expenses, living with roommates to save up a bit, etc. there's lots of ways to parlay more money than most other people will ever make annually into a home
- jeffbee 2y ago
  Your belief in stationary housing prices is charming.
  - aprilthird2021 2y ago
    Read the last part of my comment. I left out many natural ways one's earnings and investments and savings could increase over time also. The math still maths

Plenty of people with $400k TC at Meta have Bay Area homes. $400k TC doesn’t mean “I just got the job where’s my $2m house.” But over a career (Facebook is 20 years old) it does.

ac29 2y ago

The median home-owning household in the bay area doesnt make anywhere close to $400k/yr. Its expensive, but not that expensive.

jeffbee 2y ago
I don't think that's a good way to view it. How about the median home buying household? In my town the median sale price this year has been $1.6 million, considering interest rates and property taxes that amounts to $10k/mo housing costs, which is over half the take-home pay of a $400k gross income in California. This is not even to mention the fact that nobody will lend you a mortgage based on the equity portion of your TC, they will usually only count the salary portion and discount the equity portion.

aprilthird2021 2y ago

Napkin math: $400k * 0.6 = $240k post tax $240k - $36k rent = $204k $204k - $50k annual expenses = $154k So if you just work that job for 3-4 years you'll easily have a heavy down payment for a house, assuming no promo, no raises. If you work the job for 7-8 years you can buy a house (more like a townhouse) all in cash. Not going to be the best house on the market, but it's doable. This is all not considering investing in the stock market, raises, being frugal with your expenses, living with roommates to save up a bit, etc. there's lots of ways to parlay more money than most other people will ever make annually into a home

jeffbee 2y ago
Your belief in stationary housing prices is charming.
- aprilthird2021 2y ago
  Read the last part of my comment. I left out many natural ways one's earnings and investments and savings could increase over time also. The math still maths