I don’t get it. People earning 400k HHTC, top 2%, worked so hard to make it in life and made it, and they end up trading it all for a 1.5M shack. No early retirement, lavish vacations, just trade it all to a middle-income boomer (no offense meant) for their worn down house they are done with. If a little shack is what you are laboring all your life for, what was the point of high TC in the first place? 😂😂😂😂
Assuming you are in Bayarea? Why not spread out a bit and find a place little outside bay area . Most of are companies are remote these days. Agree with you , house should not cost so much that it would 30 /40 years to fully own it.
Buddy, there is no fun is not buying a certain thing you want when you hit 40s. High TC is important.
A post like this with no TC? You are the problem
This sounds and smells like a Bay Area comment, exactly why I took my HiTC remote ass somewhere else in 2020 and bought a sick house with 1/4 of my NW. Btw some of those “tier 3 cities” are fucking cool and have much better standard of living
don’t tell them. it’s better for us in the long run that they burn themselves out in the rat race in the bay or get taken out by many of the social failures like stepping on a street needle or getting shanked by a homeless man
🫠
Yep, a lot of people think like you, OP. That's why the Bay area loses people every year since the pandemic started and this trend is likely to continue. You can afford a very nice house in NC, Texas, and pretty much anywhere else in the South for about a third of what you pay in the Bay. Your base salary may go down by like 10%, but the cost of living will go down much more, so you are significantly better off.
It's a leveraged bet. You pay more for housing (an inelastic necessity), but you earn more TC, especially at the upper end of the distribution. If you make it to L7 and earn 400k-500k after-tax TC, the 1.5M house doesn't take long to pay off, and then you're still making 400k-500k after-tax TC. It's pretty hard to earn that much TC outside of a few hubs. Where it sucks is if you're an L4 and don't advance quickly. Yeah, you're making great TC by the standards of most of the country, but most of that's going to housing. If you don't see yourself making it to higher levels, you really should move to somewhere with lower COL.
Looks like he said 400kHHTC which is 200k per person, not a lot for HCOL. Probably closer to $150k salary per person which is definitely not enough for a $1.5MM home. HCOL areas are unfortunately only for this who really make a lot or own their own businesses. As long as you are working for someone else, you will never be rich. You can be comfortable, but no one on Blind will ever experience what it’s like to be the truly wealthy.
A $1.5m house is a 1940 shack in a bad school district. Earning $500k after tax and living in a 3bd that’s 100 years old is insane. This is exactly OP’s point
You know that that 1.5m shack is also seen as an investment, right? It can be sold in the future to move to a low cost area and retire early.
Well OP nobody should be doing that, but I guess there’s always Bay Area folks. Nonetheless there are many ways to skin a cat. I for example live in a 5k sq ft home with several acres (even still in one of the more expensive counties in the nation), 2 fun cars, have several children, take 4 vacations per year, and enough in the bank for investments and other hobbies. Max TC 400-500k (2022 and 2019) average over 5 years 330k…current TBD.
Best move is to rent where you work, and then buy vacation / investment properties elsewhere
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What’s the alternative? Lavish vacation and early retirement (and here I mean maybe 5 years early at most) but live in a 1 BR in a third tier city the whole time? Oh, and pay your rent to a boomer which essentially is the same thing as buying from them?
People in bay area and NYC thinking the rest of the country is a wasteland is why they'll always feel poor lmao can't help some people when the brainwashing works so well Yup, the rest of the country is devoid of culture and the approximately 30-ish cities outside of California and New York with populations over 500,000 have nothing to do. Best to stay put and be bled dry.
Give me any city in America and Ill tell you where in NYC you can do that thing, eat that food, feel that experience. Its all here, concentrated in just a few dozen square miles. Its not that it does it better necessarily, but its that the number of experiences at your finger tips drops dramatically in other cities. If you dont care for those things, a city like Minneapolis or NOLA or Raleigh is fine. LCOL and has enough distractions