Okay. How do you honestly buy a home here in the Bay Area? I make 195k TC but don’t have the 300-400k to make a down payment on a $1.3 million dollar home without depleting my retirement (I’m 38 yrs old so I’d rather keep my retirement savings). I also have two kids. How the hell do people do this? If you have a home, what sacrifices have you made to afford payments and still save for retirement? Do you have wealthy parents that fronted you the money? Are you parking your overseas money here since you are a wealthy foreigner? Are you all married and making over $400k per year as a household? Is this all just fake and the media making me feel like everyone is buying? Please be honest.
You need to look at 900k homes. You put 10% down. You empty some of your retirement savings.
I think it's crazy. With family / kids, and 10% down, I don't see how he can pay mortgage on 900k home.
You move to a less ridiculous city
You Missed the point.
That IS the point. If you want a comfortable lifestyle and not have to stretch your money tight, the Bay Area is not the place to live, unless you are making the really big bucks.
Live in an extremely cheap place for couple Of years, save up down payment and resume great life in your new home. You can also buy without putting down 20% and pay extra PMI for a few years then refinance with additional money down for lower payment. When doing so, buy a house that’s functional in a way that you could rent a bedroom out. That way it’s your primary residence and tax deductible mortgage payment for you plus your tenant helps pay a portion of the mortgage.
Interesting. I don’t know if I’m comfortable having a stranger rent out our place especially with kids. I see others who don’t need to do this so still confused how they do it. Is this what you did?
I don’t have kids but I make less than you atm and much younger and I was able to close a place at age 29 after living frugally for a couple of years with Bay Area salary. Once you get a house, you’ll realize how mortgage is much cheaper than rent if you pay more monthly in the end since it’s all tax deductible. But totally understand that with kids it’s tougher. If you and your partner are both working, over the next 1 year you both can plan to change jobs to increase income as well.
Move to Seattle, similar money but cheaper housing
Gap is quickly closing
It doesn’t take > $300k to buy a $1.3M home...
Is it realistic to get an offer accepted if you aren't paying all cash? I keep hearing about people getting massively outbid with cash offers.
Yes. I know 6+ people who have all had an offer accepted this year at list with 15-20% down
If you're indeed 38, you'll know fully well that Blind posters are not representative of the bay area. Look around, look at your colleagues, how many of them own bay area houses?
A lot actually. Some who are younger.
You need to find a higher paying job..meaning significantly higher..going by your age you are significantly under paid if you are a software developer or in product development/management roles. Software engineers with 5 yr experience average your pay in the bay.
Not SWE. But even if I make $300TC I would still say you are having to stretch.
Not everyone is at a FAANG. The majority of companies don't pay anywhere near what we expect.
To afford house in bayarea , your household income needs to increase to at least 300k. Without that you have to sacrifice some retirement now and put it in house. Later when you retire sell home and move to states like Florida and enjoy the money you made in bayarea.
If u don’t mind bad traffic in the morning, Look around San Jose near 101 & 280.
Buy a cheaper house
Where?