Feels like it. Both wife are in non-tech roles. Our household TC is ~$400K, but homes in good school districts just seem so out of reach for anyone not making Software Engineering salary. Can't find any homes in decent shape, with a semblance of a backyard, in good neighborhoods for less than $1.7-1.8M. Where are non-tech people buying homes in the Bay Area these days?
Texas
Big, has yard, nice quality, reasonable commute. Pick 2.
You forgot price
Non working spouse, I work in Tech and a kid. We’ll never be able to afford anything in or near peninsula. We’re considering to move to East coast closer to family.
What’s your tc? My wife no working n baby on the way but I have 280k saving, so doesn’t look unachievable to go for 800-900k house-in sjc
It’s around $250K (most of it been pre-ipo equity) and have saved up $350K in non retirement savings. I think I’m risk-averse.
At 400k Tc without kids if u have 20% down there is no issues with buying a 1.6M home
Is this some kind of a rule of thumb? As long as you can put down 20%, you can afford a home 4 times your TC?
28/36 rule. As in your monthly mortgage payment should not exceed 28% of your gross monthly income. So you can easily afford it technically. Just depends how comfortable you feel about it.
Nontech, peninsula.
They don’t. Have to let go of the idea of single detached home ownership.
My rule is simpler: See what you are paying for rent. Don't buy a home unless interest+taxes+hoa+insurance is less than you were paying for rent (overall payment may be more by the amount going to principle). If renting is cheaper keep saving until owning is cheaper. Edit: also subtract net tax deduction from the home cost, net being the amount over the standard deduction you otherwise might have gotten
they rent
And then vent.
Even most SWEs are priced out