How do people afford a house in the bay?

Pfizer cqOD23
Nov 10, 2019 74 Comments

Let's say I want to buy a starter home in Sunnyvale for $1.4m, how do people pay for this??

Even with a 300k downpayment, the mortgage would be almost 8k a month, that's several thousand more than my take home pay a month after taxes..

I've always heard that housing shouldn't be more than 30% of your income, does that mean that everyone who owns a house here makes 25k a month?

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TOP 74 Comments
  • Microsoft
    muleking

    Microsoft

    PRE
    Taco Bell, Campbell Soup, Jack in the Box
    mulekingmore
    It’s really easy. Just have two incomes three side businesses and driver Uber in the nights.
    Nov 10, 2019 3
    • Credit Karma 🐨Koala
      And your significant other does the same, he/she delivers doordash for better tips
      Nov 10, 2019
    • ICU Medical / Mktg
      user3.0

      ICU Medical Mktg

      BIO
      Trying my own thing but doing something for someone else. 🤷🏼‍♂️
      user3.0more
      Clearly OP doesn't have it together.
      Nov 10, 2019
  • Veritas dogyear
    I don’t know how u get a monthly cost of 8k lmao
    Nov 10, 2019 1
    • Essential zKmO16
      About $7k including property tax and insurance
      Nov 10, 2019
  • New / Eng gncaiye
    That's BS.
    Average tech salary for Eng and Managers are around 150k which means your take home will be 101k which is $8400 / month.

    So it's not possible unless the wife would have a take home salary of 5k in which case then it would be barely possible.
    Nov 10, 2019 7
    • Twitch gadgetry
      You aren’t smart enough if you don’t make at least a million as new grad
      Nov 10, 2019
    • Facebook public2
      You could argue that sure but money isn't what every new grad is after and even for the some that are they don't all have side hustles that will net the other 700k. So again don't exaggerate, this is rare, not the norm.
      Nov 10, 2019
  • Facebook ⭕w⭕
    How tf did you come up with $8k? It should be closer to $5.5k, which is a big difference.
    Nov 10, 2019 3
    • Facebook ⭕w⭕
      Your math is wrong, principal and interest alone for 1.4M w/ 300k down, 4.1% 30 year fixed is $5,315.
      Nov 10, 2019
    • New / Eng
      annon1234

      New Eng

      BIO
      Hvac engineer.
      annon1234more
      You’re right. 7.1k includes escrow. Tax, insurance
      Nov 10, 2019
  • Apple aleG37
    Back in the days, we started with a starter home. For example, my spouse and I started in East Bay. When we accumulate enough equity, we rented our house and bought our first 1M+ house in a prime property. When we accumulate more, we upgrade some more.

    These days, I am not sure. People seem to think that if they work in tech, they have to own a house in prime property and stretch themselves thin. You work your way up.
    Nov 10, 2019 1
    • ForRent / Eng 🌀⛈️
      This seems like a good idea.
      Nov 10, 2019
  • Apple %<~}?,~|
    Ways in which people in the Bay Area afford 8k a month on mortgage:
    * make 16k month take home.
    * make 12k a month take home but believe that putting most of your money into mortgage is a no brainer.
    *“Borrow” from parents for down payment so monthly payments are smaller.
    *Buy cheaper condos.
    *Don’t put money into 401k, put it into the down payment on a home (more common than you might imagine)
    *Live like refugees for 3–4 years to save for down payment
    *Sell a fraction of the millions of $ of company stock you own.
    *live house-poor for a few decades, till the mortgage is paid off.

    My own story is dumb luck. Bought in 2012.
    Nov 10, 2019 0
  • Apple ijyA68
    You are doing it wrong. In the Bay Area a “starter home” is a condo in a bad neighborhood.
    Nov 10, 2019 0
  • Credit Karma 🐨Koala
    That's why you move to Seattle or low CoL places
    Nov 10, 2019 4
    • Expedia Group nowwhat
      You can find for under $1mm, but not much under that
      Nov 10, 2019
    • Dell LUHV04
      Got it

      Thanks
      Nov 10, 2019
  • Siemens cMsH53
    Households with both husband, wife in tech can easily make 700k. Should 8k per month be too much for them ?
    Nov 10, 2019 3
    • Citadel Securities bluetiger
      What? Prove what?
      Nov 10, 2019
    • FLYR hQJf32
      Assuming both spouses are engineers from top tech companies.. then yea they can “easily” make 700k. But I wouldn’t define that as easy for the majority haha
      Nov 10, 2019
  • Uber zzzz5
    If you're buying a house "in the bay", you've got a few problems:
    1. There are few places on the water. Are you buying a sailboat to live on?
    2. The bay is not actually for sale. Pretty sure it's owned by the govt.
    3. You might by mixing up the plot to Sleepless in Seattle with real life
    Nov 10, 2019 0

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