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Tech elites leaving San Francisco threaten Silicon Valley's supremacy

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Re: Tech elites leaving San Francisco threaten Silicon Valley's supremacy

#891
post #857

Earlier quoted context omitted.

Different situations. If you’re a VC you’re simply buying preferred shares. Shouldn’t be owing anything until you sell. And if your residence for that tax year is somewhere else I don’t know of any reason why California could claim capital gains tax simply because you invested in a pre-IPO company and selling post IPO. The reason some people are surprised by tax bills when they move is because they vested their share…

If you held the preferred shares while you were a resident of California, why shouldn't you be subject to California CGT when you realize the gain in proportion to the length of your residency, just like if it were deferred employment compensation (taxed by CA in proportion to workdays in CA vs workdays elsewhere) or real estate (taxed in full by CA)? Why should VCs get a tax preference employees don't get?

when you own shares as a VC it’s because you’re an investor. when you receive equity as an employee it is because it’s compensation.

when you get equity as an employee you’re taxed when you vest and when you sell. you shouldn’t be taxed when you sell by California if you’re out of state.

Re: Tech elites leaving San Francisco threaten Silicon Valley's supremacy

#892
post #459

Earlier quoted context omitted.

Depends on how much you value housing size / quality. You can't get a big house in the Bay Area but if you opt for something smaller you get a lot more disposable income to spend on other luxuries.

Uh...not really. Tiny piece of shit houses built in the 60s still go for a million plus in much of the SFBA. The problem is there's a real housing shortage so there's untenable minimum prices for houses. At a million dollars you need a fairly large household income to afford luxuries beyond your house. Even putting down 25% on the house with a good 30 year fixed rate loan you'd be looking at just under $4k a month fo…

> After utilities you're easily over $4k a month. If you scrimped you could maybe keep your other household costs under $500 a month (realistically you're looking at $1k). So you're looking at a take-home of $4.5-5k to just stay afloat

This is more than accessible to tech workers at public companies. A 150k income is going to be ~7k a month after taxes. Tier one employers pay significantly more than that to new grads, and pretty much everyone reputable in the bay pays more than that to experienced people. So yeah, single income can absolutely afford a home.

Obviously someone with student loans can't do that as quickly, but otoh a dual income family could put $2M down in cash before they turn 30 given moderate success. (Or another way of looking at this is a moderately successful mid-20s SWE can bank 100k/yr after all expenses and retirement savings, without budgeting strictly. That's ridiculous)

Re: Tech elites leaving San Francisco threaten Silicon Valley's supremacy

#893

How many times can SV, SF, the Bay Area, California die? How many of these articles will be written? How many 400+ comment meltdown threads about the end of Silicon Valley will we see? Our economy is cyclical, so is the technology industry, and so is the technology industry within the Bay Area. It seems to me a large cohort of the HN community has reached an age where they'd typically move to suburbs, "back home", or…

As a perennial SF-complainer (mostly about housing) who also really likes SF, I'm convinced half the bay area haters have never even lived there, and judge the entire area based on hearsay or a single experience where they took BART from SFO to Civic Center.

Re: Tech elites leaving San Francisco threaten Silicon Valley's supremacy

#894
post #857

Earlier quoted context omitted.

Different situations. If you’re a VC you’re simply buying preferred shares. Shouldn’t be owing anything until you sell. And if your residence for that tax year is somewhere else I don’t know of any reason why California could claim capital gains tax simply because you invested in a pre-IPO company and selling post IPO. The reason some people are surprised by tax bills when they move is because they vested their share…

Well, this point specifically applies to options. Per FTB-1004 ( https://www.ftb.ca.gov/forms/misc/1004.html ) you will be taxed whenever you exercise, whether you're a resident or a non-resident. Doesn't matter if you're out-of-state for a particular tax year. It is not really correct to cast this in terms of owing taxes on income in the state that you earned it because options are not income. There is a non-symmetr…

Ok but tech elite here aka VC investors aren’t getting options when they invest.

So this tax question doesn’t apply to them. Rabois can move to Miami now and if he sells his IPO shares next year he owes California nothing.

Re: Tech elites leaving San Francisco threaten Silicon Valley's supremacy

#895
post #787
post #74

The major obstacle to living in SV is the insane cost of homeownership that puts the (pretty commonplace) aspiration of living in one's own home with a nice yard out of reach of all but the richest (even being in the top 5% of incomes in the nation is no guarantee of being able to own a house in Palo Alto, for example.) With the recent passing of Prop 19, things get even worse: people who are looking to inherit homes…

For Proposition 19, if the house is in a trust that the beneficiaries can “share and share alike”, then the trustee can give the house to one sibling (the one who will live in the property) and give cash to the other siblings to avoid reassessment. Or you can transfer the property before February 16, 2021; see https://blog.yonathan.org/posts/2020-11-proposition-19-paren...

Thank you for that excellent resource! Much food for thought.

Re: Tech elites leaving San Francisco threaten Silicon Valley's supremacy

#896
post #677

Earlier quoted context omitted.

Chicago and NYC do car-free better than the Bay Area, where not owning a car is really only viable in SF and a few small surrounding communities.

And Boston and DC. I wouldn't live in SF without a car unless I was a biking enthusiast. Also I find that many people who proudly refuse to own a car in SF just end up ubering everywhere.

Idk. Pre-covid, I probably used Uber/Lyft two days a month.

Some people do "Uber Everywhere", but I mostly biked/baywheels/muni.

Re: Tech elites leaving San Francisco threaten Silicon Valley's supremacy

#897

Earlier quoted context omitted.

> The Bay Area is very walkable but that’s mainly SF. The tech burbs of Palo Alto , Menlo Park are not super walkable and you are relying on the BART and other public transport . Even SF is not very walkable compared to Chicago, DC, Philly, Boston, etc. (All significantly cheaper than SF.) Even by American standards, the BART is a pretty second-rate metro. (And that's not even counting the fact that nowadays it's ess…

To push back a bit: SF proper must have the best bus system of any city in the US. It's possible to get pretty much anywhere in a reasonable amount of time, even late at night, with just a quick bus ride or two. I won't say MUNI is perfect but it's doing a lot of things right. Anyone who thinks BART is synonymous with SF's inner city transportation is really not making their way around the city by transit.

I don’t live in the US but have been to a few US cities for work. San Diego was horrendous without a car. DC was very good, even though when I travelled there had been heavy snow.

I’ve been to SF twice in the last three years. My impression of SF’s public transport (and to be honest, walking around parts of it too) was that I did not feel very safe using the MUNI buses, especially at night. I saw on the news that a British guy got stabbed near my hotel a week after I left the first time.

On one occasion I also witnessed a bus driver drive past a guy in a wheelchair in the middle of the day. Someone on the bus challenged them on that and I vividly remember that she said “I ain’t lettin no cripple pee pee all over my bus.”

The BART was much better but obviously is more limited in where it goes.

Re: Tech elites leaving San Francisco threaten Silicon Valley's supremacy

#898

Earlier quoted context omitted.

Yeah I don't get it when people say SF is "walkable". No, Toronto is walkable. It's flat, dense, everything is close by, and clean. I'd be content to walk 45-50 mins to get somewhere. In SF, I dread having to walk, bike or take public transit anywhere. It's unpleasant, unsafe, smells horrible and there's rampant petty crime. And not just one district, it's like that in most of the areas you need to go to

But it cold in Toronto!

Climate change will fix that!

Re: Tech elites leaving San Francisco threaten Silicon Valley's supremacy

#899
post #702

Earlier quoted context omitted.

You can make a lot of things work in a lot of places. I have lived in both Dallas and Houston without a car, for example (but also Berlin, Santiago, Tokyo, so I have comparison points). If you don't have kids, and have the freedom to plan a bit around where you live and work, you won't really feel like you're missing anything. I would take a trip via Lyft twice a month to some venue that's further away than the bike/…

What’s a good neighborhood or two in Houston where it’s possible to do this?

The easiest in terms of pure transit is the corridor in Midtown along the Red Line. From about Alabama up to Downtown. Second is Montrose which for some people will have a cooler vibe.

Within Midtown, the further North you go, there are a few more bars/clubs that make noise at night, so either live further South, live a few blocks East or West of the rail, or both. Huge amounts of apartment stock just came online in the last 3 years there, so you might get a solid rent deal somewhere? For me personally, being able to walk to a grocery store is always key anywhere in the world: shop every 2-3 days on the way home from work, only buy what I need, less waste. That area has two grocery stores: Randall's and Whole Foods.

Montrose is the other top spot. For me it is the #1 example of how Houston's lack of zoning can shine (versus other areas where it is a detriment). Fantastic local retail interspersed among every-other residential block. Montrose is a large-ish area and every half mile can be a slightly different "feel", but there are great options to rent newer apartments, older apartments, or rent spacious, cheap, historical houses close to things like Menil Park, or the big restaurant scene along Westheimer. Sadly the Kroger at Hawthorne is closing, but the huge HEB is dead-center of Montrose. East a bit and you're near Trader Joe's. If you're anywhere along Westheimer, the 82 bus goes to to Midtown Whole Foods and if you're along West Gray the 32 bus goes to the Kroger near River Oaks. The whole area always has things happening (check the pinboards at Inversion or Black Hole), and is next door to Midtown for even more.

If Downtown would get a larger grocery store with slightly more affordable staples (no offense to Phoenecia), and have it close-ish to where the rail lines meet, the entirety of Downtown would immediately become more viable (imo). I have friends both in Downtown, and in the Heights (solid bike culture there), but they eat out more than I do. The Heights started getting expensive ten years ago and doesn't look to stop, but it's still an option.

In about 5 years I think the Greater East End will be another great walkable/bikeable region (the actual East End, not EaDo), so depending where along the gentrification curve you prefer to live (before, during, after) it might be worth checking out now.

Re: Tech elites leaving San Francisco threaten Silicon Valley's supremacy

#900

Earlier quoted context omitted.

Yeah I don't get it when people say SF is "walkable". No, Toronto is walkable. It's flat, dense, everything is close by, and clean. I'd be content to walk 45-50 mins to get somewhere. In SF, I dread having to walk, bike or take public transit anywhere. It's unpleasant, unsafe, smells horrible and there's rampant petty crime. And not just one district, it's like that in most of the areas you need to go to

But it cold in Toronto!

Not if you're Canadian :)
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