I just did a calculation that if I wanted to buy the house I live in at today’s prices and interest rate 1. I would need to have $1M in a stock portfolio, which after cashing out and paying Uncle Sam and mother CA their respective cap gains tax, would just be sufficient for a 20% down payment!!!🤣🤪 2. Wells Fargo jumbo mortgage rate today is 4.25%. At this interest rate, the PITI would be 90% of my TC!!! 🤣🤪 #mortgage #housing
@public2, you are at Meta (presumably). Easy for Meta elites to accumulate $1M in RSU in 1-5 years. But for folks in more traditional companies, there is no way one can accumulate $1M worth of stocks even in 20 years.
OP, the real question is if you own the house you live in, when you bought it and for how much.
Do you think demand is going down? There's your answer
I don’t know. Time will tell. If home prices are lower a year from now, then clearly it would be because demand went down while supply increased.
@yelp, you are right, there could be 2 scenarios: 1. Renter paying about $5k per month for the “privilege” 😂 of squatting in the home 2. Bought the home several years ago, and/or got into the home ownership ladder long ago when down payments were relatively small. Either way, just pointing out the imbalance facing today’s average engineer or tech worker
The plan is for L6 and above to own homes and L5 and under to rent bunk beds in a community living pods.
Double tech income can afford almost all the homes in bay except may be estates in atherton and Los Altos hills
Depends on what that double tech income is - if it is $600-700k and higher with significant RSU component, you may be right. But if dual income comes in below $400-500k without much RSUs then difficult to accumulate the $1M portfolio needed for down payment
Bubble
BUUUUUUBBBBLE
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Biden meant “illegal” immigrants, right?
1) yep, but putting together 1m today requires 1 to maybe 5 years. 2) will continue to go up. 4% is crazy low.