WhitePony wrote:
Why would people prefer renting?
Seems like most people would want to get to a place in life where they could own their own home instead of just giving someone else rent money.
How are you going to own a home without giving someone else money? What is the threshold for renting (monthly rent) being cheaper than owning a home (buying a house + housing tax)?
TrackCoach wrote:
The area was "Ever" something, close to the main highway to Monterey. It wasn't a great area, decent and livable. My brother use to have several investment properties in that area. I guess I should have added this was about 7 years ago.
Seems like more farming community than San Jose. It's not farming community any more.
Did someone post the link
http://sanfrancisco.cbslocal.com/2017/08/30/silicon-valley-home-221k-salary-hsh/
asdfasdfa wrote:
WhitePony wrote:Why would people prefer renting?
Seems like most people would want to get to a place in life where they could own their own home instead of just giving someone else rent money.
Why do you want to be tied down by an expensive house instead of having the freedom to move when you want? Because you have been brainwashed by real estate marketing?
Neither one is better or worse than the other. You pick the one that meets you needs the best.
We own a house and Monterey that we rent out. We rent in the South Bay. Win-win.
Yikes I'm not a Scientist wrote:
The top 2 Median Priced Housing markets are San Jose and Frisco
I don't make that much, but since WHEN is $221K an "astronomical salary"? You are a fool.
Doesn't sound bad at all to me!
Where I live, in the English Provinces, a decent family home costs around £450,000. That's maybe $800,000?
Engineer salaries are around £60,000 unless you work in sales. In sales, you can reputedly earn over £100,000 a year. Also local authority managerial jobs are ridiculously well paid and don't usually require university degrees but I have no idea how you get into them. I don't do sales. Teacher salaries are around £40,000 a year. Expenses and taxes are high. I don't know how people can afford that £450,000 mortgage and I expect most of them don't but are given money by their parents or relatives, or inherit it. I have a £350,000 house that was a wreck when I bought it that I'm slowly doing up myself. I know people on similar salaries to me that live in £200,000 houses that aren't in nice areas and are really too small, because that's all they can afford, despite having a well paid career in engineering.
Plenty of £800,000 plus new builds are getting built around here and the average annual salary is something like £24,000 a year in this area. Again, I have no idea who is buying them but clearly someone is. The driveways tend to be full of works vans, for plumbers, plasterers, drain surgeons, tree surgeons, whatever. Obviously there are people that run businesses but we are in the middle of a recession and business rates hike and I can only assume that its much easier to throw down a wad of cash deposit if you do so as they can get paid in cash and not pay tax for some proportion of the work they do. Pity I can't in my field.
£450k = $575k.
We are not in the middle of a recession that is a ridiculous (and easily disproved) assertion
Harambe wrote:
old farts wrote:Only the old farts that will be aged out of the Bay Area soon care about Median housing prices. Everyone else prefers renting. In 15 years 80% of Bay Area homes will be rentals.
With any luck they will stop voting in elections and we can actually get decent zoning and development policy in the area.
The largest hypocrisy on the left is this:
1) I support immigration and open my arms to people making a new life in America.
2) I aggressively back zoning and development restrictions that skyrocket my property value and prevent anyone out of my tax bracket from moving near me.
It's a classic case of do-as-i-say-not-as-i-do. SF is sadly the poster child -- thankfully people are waking up. Far too late to fix the issue in a reasonable time, though.
Agreed- that's always been one of my favs too. If you sit them down and explain it to them though, they'll usually admit it is hypocritical (I've done it several times).
Add this giant hypocrisy from the left as well:
1) I support immigration and open my arms to people making a new life in America.
2) I support legalizing the $15 minimum wage... which is completely undermined by illegal immigrant workers, since these two groups are essentially fighting for the same jobs.
Ohhh, and circling back to your example- the fact that the $15 minimum wage doesn't allow those workers to live anywhere near those folks anyhow.
I know someone in San Mateo who's currently trying to negotiate a non-managerial work-from-home job in a new career field and is hoping to get 150k.
My point is that salaries are ridic high out there. Don't compare San Jose to where you live and what you make.
DMulvee wrote:
£450k = $575k.
We are not in the middle of a recession that is a ridiculous (and easily disproved) assertion
Depends on what you classify as a recession mate.
Salaries stagnant for the past few years?
Houses on the market for 18 months and not selling and only 1 or 2 viewings?
People unable to find jobs in their field years after graduating because there just aren't any opportunities out there?
The pound losing value against the dollar and the euro?
Theres some kind of recession going on. You believe what you are told if you like, but try going outside your own little protected niche and the economy isn't doing all that well. Call that recession if you like. I've got friends who can't sell their houses with children who can't jobs under constant threat of redundancy. Its not quite what it was like even 12 years ago.
A Dogs Dawg wrote:
What about aspen co
Ha! Glad you asked! Average Condo and Single Family home sales have averaged around $1,300/sq. ft. over the last decade. Additionally, if you want to come buy a "home" here, the average Single Family Home price in Aspen City Limits:
2015: $7.667M
2016: $6.633M
Now, before you pass this off as "ridiculous" realize that about 4,000 of us 7,000 year-round residents live in the subsidized and protected employee housing program. This program is funded by a real estate transfer tax on all the mansions sold. I live in a 1000sq ft, 3yr old LEED Gold condo for $150k that was subsidized another $450k by the program. If this didn't exist none of us could live here and the town would become a ghost town.
In regards to the OP - there are many people making $200k+ living within this program. That's staunchly middle class here.
A recession is two consecutive quarters of falling GDP. That is the definition. It isn't some made up thing you can use to apply to other scenarios, it has a strict definition. No it isn't happening.
Here is the data:
https://www.ons.gov.uk/economy/grossdomesticproductgdp
The pound has gained against the US dollar in the past year, so I am not sure what point you are trying to make. Even six months ago it bought 1.21 USD now it buys 1.30, so again you are wrong.
House prices are rising. Again there were more figures out today proving this (from today):
Unemployment is 4.5%. So again I think that you are wrong:
https://www.ons.gov.uk/employmentandlabourmarket/peoplenotinwork/unemployment
Sure some people don't get to work in the fields they wish to because they lack skills (lots of people want to be professional footballers, but not all can), however making things up about the current state of the current is silly, when all of your comments can be so easily disproved.
This is the big problem with the economy today. They will pay people lets say $150,000. They then indicate your monthly income is $12,500 however you see $6,250 and they wonder why you are struggling. I don't make a lot I make $65,488 which is $5,457.33 a month. On paper that seems somewhat decent for my income. However after taxes and deductions not even including bills yet my take home is $2,978.00 a month. Which means my existence is working to make it to the next bill cycle with none left over. The worst part is I got hit last year and owed $2,500 on taxes but made practically barely enough to get by. This country is suppose to be the American Dream but with how expensive things are becoming and how high taxes are it is becoming the American nightmare. The economy is the reason why nobody wants to work or even try anymore. What's the point when retirement is a fat mortgage that you are still paying on and a fulltime job at 65 years of age at your local Home Depot.
My Monthly Breakdown:
Rent: $1,200 (Cheapest I can Find for a family of 4)
Car's: $390 (Two vehicles mine and my wife's both modest older and almost paid off)
All other expenses: $1,327 (Utilities, Car Insurance, Day Care, Food and all other things).
Leisure: $0.00
Cable: $0.00
Total: $2,917 (A month)
I save a whopping: $61.00 a month which keeps me right where the Gov't wants me Struggling and stressed.
I understand that people are going to suggest find a new job if it was that easy I would. Academically I have a Master's degree so does most of the economy now.
RealityCheck wrote:
This is the big problem with the economy today. They will pay people lets say $150,000. They then indicate your monthly income is $12,500 however you see $6,250 and they wonder why you are struggling. I don't make a lot I make $65,488 which is $5,457.33 a month. On paper that seems somewhat decent for my income. However after taxes and deductions not even including bills yet my take home is $2,978.00 a month. Which means my existence is working to make it to the next bill cycle with none left over. The worst part is I got hit last year and owed $2,500 on taxes but made practically barely enough to get by. This country is suppose to be the American Dream but with how expensive things are becoming and how high taxes are it is becoming the American nightmare. The economy is the reason why nobody wants to work or even try anymore. What's the point when retirement is a fat mortgage that you are still paying on and a fulltime job at 65 years of age at your local Home Depot.
My Monthly Breakdown:
Rent: $1,200 (Cheapest I can Find for a family of 4)
Car's: $390 (Two vehicles mine and my wife's both modest older and almost paid off)
All other expenses: $1,327 (Utilities, Car Insurance, Day Care, Food and all other things).
Leisure: $0.00
Cable: $0.00
Total: $2,917 (A month)
I save a whopping: $61.00 a month which keeps me right where the Gov't wants me Struggling and stressed.
I understand that people are going to suggest find a new job if it was that easy I would. Academically I have a Master's degree so does most of the economy now.
Just think about once your kids are in school and the cars are paid off how much you are then able to sock it away. Daycare, even if part-time, is a can be a major expense each month, but it is temporary.
Lastly. You mention only your salary and note that after expenses (including daycare) you have $61 left. But, if your kids are in daycare, that implies that your wife works. Any earnings she makes is extra cash you can stash away. Keep living within your means like you are doing now and that extra cash each month will start to add up.
I guess you can look at the cup as half empty or half full if you want. I prefer the positive.
1) Don't live there or
2) Make more $
WhitePony wrote:
old farts wrote:
Only the old farts that will be aged out of the Bay Area soon care about Median housing prices. Everyone else prefers renting. In 15 years 80% of Bay Area homes will be rentals.
Why would people prefer renting?
Seems like most people would want to get to a place in life where they could own their own home instead of just giving someone else rent money.
The cost of monthly rental is an expense whether you are "giving" money to your landlord or "giving" money to the bank every month. In addition, as a homeowner you are "giving" money to state and local governments every year in the form of property tax, and "giving" money to contractors every time something breaks. Also, you are "giving" money to your real estate agent every time you move. On the flip side, depending on your tax bracket and AMT status, there can be a considerable tax advantage to home ownership.
There are pros and cons to each. Historically owning residential real estate has been a fantastic avenue to building wealth, but that comes with risk and illiquidity. If you rent, you have the option of leaving at anytime with minimal financial implications, and you bear little risk (beyond negligence) to the condition of the property.
Yikes I'm not a Scientist wrote:
The top 2 Median Priced Housing markets are San Jose and Frisco
If you haven't gotten it by now, don't call it "Frisco".
Frisco, IL
Frisco, CO
Frisco, NC
Frisco, TX
(maybe even) Frisco City, AL
But don't call San Francisco, "Frisco".
jSKI wrote:
RealityCheck wrote:This is the big problem with the economy today. They will pay people lets say $150,000. They then indicate your monthly income is $12,500 however you see $6,250 and they wonder why you are struggling. I don't make a lot I make $65,488 which is $5,457.33 a month. On paper that seems somewhat decent for my income. However after taxes and deductions not even including bills yet my take home is $2,978.00 a month. Which means my existence is working to make it to the next bill cycle with none left over. The worst part is I got hit last year and owed $2,500 on taxes but made practically barely enough to get by. This country is suppose to be the American Dream but with how expensive things are becoming and how high taxes are it is becoming the American nightmare. The economy is the reason why nobody wants to work or even try anymore. What's the point when retirement is a fat mortgage that you are still paying on and a fulltime job at 65 years of age at your local Home Depot.
My Monthly Breakdown:
Rent: $1,200 (Cheapest I can Find for a family of 4)
Car's: $390 (Two vehicles mine and my wife's both modest older and almost paid off)
All other expenses: $1,327 (Utilities, Car Insurance, Day Care, Food and all other things).
Leisure: $0.00
Cable: $0.00
Total: $2,917 (A month)
I save a whopping: $61.00 a month which keeps me right where the Gov't wants me Struggling and stressed.
I understand that people are going to suggest find a new job if it was that easy I would. Academically I have a Master's degree so does most of the economy now.
Just think about once your kids are in school and the cars are paid off how much you are then able to sock it away. Daycare, even if part-time, is a can be a major expense each month, but it is temporary.
Lastly. You mention only your salary and note that after expenses (including daycare) you have $61 left. But, if your kids are in daycare, that implies that your wife works. Any earnings she makes is extra cash you can stash away. Keep living within your means like you are doing now and that extra cash each month will start to add up.
I guess you can look at the cup as half empty or half full if you want. I prefer the positive.
jSKI is right. Not much has changed. I was exactly in your shoes when I was younger ... kids in daycare barely making enough to cover the bills but kept plugging away and bought a condo then a house then a better house then a cheap rental condo that now provides about $7-800 /mo net income, magically the kids grew up, through college, married and, hey now, my house got paid off (how'd that happen?) stopped buying cars on loans and now with zero debt my paycheck pretty much gets thrown on top of the big pile of money I've acquired over the years. I can and should retire now though I'm 56. I live in the Frisco Bay Area.
NYC/Manhattan Resident Here,
The general rent equation for expensive areas is Monthly Rent = Monthly Net Pay X .5
So if you make 221k/year (At 45% tax rate) =~5,000/month for rent - Which is EASILY doable in the Bay
Bring it down to 100K a year and that's still 2,291 - Again very doable in the Bay or Manhattan, so this article feels a bit misleading.
Here is how I break down FYI
3,700 Net Pay/Month
1850 Rent
1000 Groceries/Food
200 Retirement
100 Cell Phone
200 Entertainment/Outings
128 Metrocard
200 Credit Card Debt Payments
If you notice, what the media calls "unaffordable" real estate markets are precisely those where employees have a large share of their income from stock options, grants, and capital gains.
These affordability studies miss that huge source of hidden income and assets that drive the real estate appreciation in those areas.