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$100k/year still might not be enough to buy a home

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Re: $100k/year still might not be enough to buy a home

#301

Earlier quoted context omitted.

Ive thought a lot about this. For many residents, building more housing and letting more people in would irreparably change the “character” of the neighborhood. This can mean more crime, traffic, and pollution. Past a certain density automotive transportation becomes unfeasable and people will be forced to rely on public or other alternative forms of transportation like walking or riding a bike. Reducing housing cost…

I'm not fond of the slippery slope argument, particularly when it comes from NIMBY's that bought their houses when markets were at a low because nobody wanted to live in these cities. Bay area residents, Seattle residents, etc need to get over themselves and accept reality for what it is. They aren't protecting anything but their own sense of self-worth and the "theory" that bad things will happen if a 3 story apartm…

Reality is what we choose to make it through government. Higher density is not inevitable - it is a choice made by urban planning. That applies to employment as well as housing. I see no problem with a new 3 story apartment complex in my neighborhood, and I find the crime argument silly. On the other hand, if we continue to increase the density and population without corresponding improvements to infrastructure (particularly transportation), then the quality of life will decline for those who live here already. That has already been observed by those of us who have lived in the bay area for a long time. The commute time in San Jose has gone from 51.6 minutes in 2008 to 67.6 minutes this year (https://sf.curbed.com/2019/8/16/20808814/san-francisco-commu...). This was in spite of a 6.3% drop in employment in 2009.

Increasing density will actually benefit homeowners more than the status quo, because then their land becomes even more valuable. If you tear down a million dollar house and put up a four unit condo complex each costing $500K, then you essentially double the value. Holding onto a house that nobody can afford has less investment value than converting your land to higher density. The fact of the matter is that people are more motivated by preserving a lifestyle than they are by money.

Of course not everyone agrees on what an ideal lifestyle is, and some people strongly desire higher density. Ultimately voters will decide what type of growth is desirable.

Re: $100k/year still might not be enough to buy a home

#302

Earlier quoted context omitted.

Once you hit 22% of the principle paid off, the PMI must be automatically ceased. Once you have hit 20%, even if that is ahead of schedule, you can request that it be cancelled[1]. In many cases, however, if property values have gone up, or you have done work to the property, you can get the property reassessed, and refinance into a new loan based on the newly assessed value, and get rid of the PMI even faster than t…

For FHA loans you can't cancel the PMI (since 2013 I think), it's there for the length of the loan.

Once you are below 80% LTV, refinancing without PMI should be easy.

Re: $100k/year still might not be enough to buy a home

#303
post #98

I am 34 years old working remotely as data scientist, making $107k TC. My wife who I've been married to for 13 years is a stay-at-home mother as we have two children in grade school. Since they are in the school she is turning in our half-acre into a sustainable garden with chickens. We own our home, are financially comfortable while saving $1500 a month, and travel. We were planning a 2-month trip to Japan this upco…

Is it possible they also like you because your TC is low? Nothing better than a compliant employee who doesn't demand market pay rates. IMO, in the optimal situation, both parties are a little unhappy.

That is a good possibility. I complete the work assigned to me while being able to get a 1.5-hour workout at the gym and my wife does a 20 to a 50 mile bike ride every day. TC might be low but my and my family's health appears far better than most of my peers. Less money, but our health is a better long term investment.

Re: $100k/year still might not be enough to buy a home

#305

Earlier quoted context omitted.

Ive thought a lot about this. For many residents, building more housing and letting more people in would irreparably change the “character” of the neighborhood. This can mean more crime, traffic, and pollution. Past a certain density automotive transportation becomes unfeasable and people will be forced to rely on public or other alternative forms of transportation like walking or riding a bike. Reducing housing cost…

I'm not convinced. Rising housing prices are already dramatically changing SF. If you want to let residents maintain their way of living, I don't see how thats achieved by pricing poorer residents out of the city entirely. I'm sure most residents would prefer to live in apartments in SF than move to another city entirely. As for transport, cars are already pretty unfeasable in SF with the population as is. Whats so b…

>As for transport, cars are already pretty unfeasable in SF with the population as is. Whats so bad about investing more in public transit and biking?

Simple: Americans hate public transit and biking, and want to stick with cars no matter how infeasible it is. They'd rather commute two hours, each way, in gridlocked traffic than get on a train. And they don't mind becoming fat because of this lifestyle.

>As for crime and traffic, most larger cities in Europe are much cleaner and safer than SF.

That's true, but I will point out that because of Europe's use of diesel, most European cities reek of diesel fumes, and this is bad for public health there.

Re: $100k/year still might not be enough to buy a home

#306

Earlier quoted context omitted.

If you want to be mind-numbingly bored, sure. Despite the cost of living in a city, I (and others who enjoy city life) would much rather pay to enjoy amenities like public transit and being able to walk to a bar.

I don't think its fair to say that living outside a city has to be boring. Many value and enjoy being among nature. My ex-coworkers who live in rural areas seem to have a good time on their quads, tending their gardens that sometimes approach small farms, hiking/biking, boating on the lake in summer, ice fishing in winter, hunting, camping, etc. Your Friday night at a bar is their Friday night around a fire with thei…

>Many value and enjoy being among nature. My ex-coworkers who live in rural areas seem to have a good time on their quads,

Listening to an extremely noisy engine for hours on end is not my idea of "enjoying nature".

I've lived in rural areas. They generally suck, even for nature. In America, all the wooded land is "POSTED" (no trespassing), so you can't go there, and will probably be shot if you do; you have to find a park instead. If your rural house is located near a park, great, but otherwise you're out of luck.

Re: $100k/year still might not be enough to buy a home

#308

Earlier quoted context omitted.

Ive thought a lot about this. For many residents, building more housing and letting more people in would irreparably change the “character” of the neighborhood. This can mean more crime, traffic, and pollution. Past a certain density automotive transportation becomes unfeasable and people will be forced to rely on public or other alternative forms of transportation like walking or riding a bike. Reducing housing cost…

I'm not convinced. Rising housing prices are already dramatically changing SF. If you want to let residents maintain their way of living, I don't see how thats achieved by pricing poorer residents out of the city entirely. I'm sure most residents would prefer to live in apartments in SF than move to another city entirely. As for transport, cars are already pretty unfeasable in SF with the population as is. Whats so b…

> I'm not convinced.

It doesn't matter if you are or not. The majority of people influencing city council and other legislative bodies believe it.

Re: $100k/year still might not be enough to buy a home

#309
post #233

Earlier quoted context omitted.

How does your total comp fare relative to Seattle? I’m living in downtown Seattle now working for Amazon. I’ve been here almost 8 years. My TC is north of $300K, but the mental strain this fucking company has had on me has me constantly on the edge. I’m thinking about leaving to join another FANG company or drop out of big tech all together.

My TC is significantly lower(half) but we aren't public and not a FAANG so. Living in Seattle on two high incomes(maybe not relative to you, but still) and having no kids was amazing. Paid off about 80k of student loans in a short amount of time. However, the prospect of having a massive 500k-1m mortgage in a boom or bust town was just too much for me. Here, If the housing market flipped upside down and my house magi…

Seattle is booming but I don't see that big of a bust coming, even though I kind of wish it would. I've lived here 25 years and people thought there would be a real estate bust in 2000 and again in 2008. It was only slightly down for housing in 2000 and in 2008 even some programmers lost their jobs. In my area in 2008 the 2 million dollar houses went down to 1 million for about 6 months, and then under a year later were back up to where they were. Less expensive houses didn't move as much % wise.

In 2008 it was systemically threatening, I don't see it happening this time. Yet, I'm a little bit like you, I am hoping prices will go down, because I want to buy a condo or 4 unit duplex as an investment and I've been waiting for prices to go down. For years ;-)

In Seattle there doesn't seem to be enough new housing to make prices go down on sale purchases. Unless Amazon goes down I don't see demand lessening. The only thing I see easing is apartment housing. And we need an easing so that people not in "the industry" an afford to live here. Theoretically more apts should lower prices for condos eventually. But it hasn't happened.

Re: $100k/year still might not be enough to buy a home

#310

We rented while making good money because it's easier to rent. We're now buying a house. I genuinely like fixing and maintaining houses, so it makes sense for us. However, most people don't. For them, it makes a lot more sense to rent. If you're rich and have a stable source of large income, it's almost always better to rent all your stuff. Not only is rented stuff of higher quality (because you can always have new s…

You don't have to take on any of the risk if anything breaks by forcing them to have renter's insurance. It's something that a lot of newer apartment buildings are doing these days.
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