House Cost in Bay Area
For TC 200-300K, what house price do you afford? Family of 4 includes 2 kids under 4 Only income #google #Apple #Meta #startup
Is spouse working, are kids going to pre school?
Spouse not working, 1 kid daycare, another one stay home 1yr old
Why day care if mom is at home?
My TC is 200 (after stock drop) and my partner is 200 TC so 400 TC total and we are just barely getting by with 2 kids, mortgage and childcare. Unless the housing market cools significantly it would be tough on one income if you TC is only 200.
What’s your monthly mortgage?
I would suggest renting for some more time - 6 mos to a year for housing to cool down, before you think about buying. Your TC will be tight to make ends meet in pricier Bay Area locales, but will go Ok in East bay. If ur wife is not working, you can save some $$ by not sending the kid to day care.
Unlikely to be able to afford any SFH homes here, even if home price bottoms-out in 3-5yrs time as the likelihood of you losing your jobs will also be higher if SFH price really go low. Not unless you did what I did in 1990-2020s; by side-hustlin. Sadly during my time there’s no DoorDash, Lyft, UT, Patreon or PrawnHub or OnlyFans. VHS / DVD paid too little (I am too fat). So most of my SJSU CS ‘89 cohorts have to side-hustle to become cabbie, pizza delivery, home renovations, eve shifts at Walmart/Costco/Safeway and plumber. I side-hustled alternative investments with what little $ we can scrimp by investing in vintage trading cards, comic, bourbon, whisky, sneakers, musket, stamp, coin, painting, bag, watch, clock, compass, kimono, katana, cars, old currency notes, letters, journals. The reward is huge. I was able to afford 10BR 8,000sqf MFH to home my 10kids in Palo Alto, so they can attend 10pointer public schools here, in a much safer hood away from SJC
If you have the 20% down payments. Rough approximate is 4x of your household income. So ~800k-1.2m
It depends if your cash on hands. I bought a $2.5M multi family (3units) in SF and I’m literally living for free. Both rents are paying P+I + property tax TC 250
rent first. We are in a very similar situation (family of 3 and one more to come also similar TC ranged both from both incomes). Mortgage rate now is crazy and also there are other house related expenses including HOA, tax, insurance, maintenance (>1% per year). If you plan to send both kids to daycare/preschool, that is another significant expense. As a single income source, it is not time to risk your family. (Unless you have >50% down sitting in your bank...)
Does not seem sustainable for bay area, sorry
Any huge upside on income? If not, buy some property elsewhere and rent in the Bay. Look for opportunities to leave
Worst advice..OP can double their income in few years by living in bay area
That’s why my first question is whether there’s huge upside. I don’t doubt people can double their income but can OP do it in the tough market ahead of us