affording a house
please excuse my igorance (1 yoe 170k tc), but what are the reasons those of you making significant tc (300k +) cannot afford a house? after tax you’re left with 200k, where is all the money going? it seems like if you save up for a few years youll be able to put 500k down towards a house even in bay area.
Kids are black holes for $$$
Pay more for childcare than for housing
Sorry what is the question here? 300k is not enough to buy a house in a desirable area. Other's prefer to rent even if they could afford it for a variety of reasons.
How much money does one need to save to purchase a house in a desirable area?
In SF, start at about $1.5M for the home with at least 20% down. Then there are additional limitations on debt to income and total debt. But, be prepared to lose out to all cash offers.
Home prices increase faster than one can save for a down payment. In many markets it is also cheaper to rent a nice place than to buy a shitbox.
Never have kids: - overpopulation - expensive - the world is gonna end soon as it did in 2012
Plenty of reasons. People may not have been around the Bay Area very long making that kind of cash. Usually the 300k plus will be for more senior engineers with kids and family which incur substantial costs (see cost of daycares). Rents might suck up the ability to save. Substantial education costs to cover. Etc
You’re saying total comp, not all of which is liquid. Total target may be 300+, but that’s in stock that takes time to vest, bonuses that are taxed at 48%, etc. It’s not all take home pay. Also some people have medical issues, college debt, kids and other things to pay for. Sorry - I can’t excuse your ignorance.
Monthly mortgage: 3.6k Monthly daycare payments for 2 kids: 5.5k The first one includes everything related to the property: mortgage, tax, hoa, etc. The second one doesn't include anything else related to the kids, like clothes that you have to buy at least twice a year (once for winter, once for summer), because they outgrow them fast, etc.
Is there daycare < 1.5k per month? What they will look like if there are?
Usually home cares (family daycare) are less expensive, because it's not a whole facility with curriculum, etc.
Ever heard of families? Kids are very expensive to maintain.