God, Aren't You Glad You Ain't Starting Now?

I sure heck am and glad our parents were smart enough to buy so long ago…

Here is a parting shot to all the Redfin bears like Lexa…you can’t wait out the BA bull…

BTW, my dad had no business sense…Had a government guaranteed pension…didnt care about investments…knew enough to buy a house young and trade up a couple of times…All you have to do is get on the BA real estate express and hold on and enjoy the ride…Sure it will get bumpy…But beats the hell out of the stock market. .My mom was a much riskier investor. .She inherited her mothers Berkeley $100k house sold it and bought AOL stock…it was worth $1m when she died…we quickly sold it before it crashed…Now of course that Berkeley house is worth $1m and AOL stock is still worth a lot less

Btw AOL was the best performing stock in the nineties

Should have swapped them for AMZN :grinning: or AAPL :grin:

This article is full of bullshit.

“We have a two-income family — we both make good money — but it seems like every month, the expenses keep rising,” said Nicole Tembrevilla, a recruiter for an East Bay tech company. Together, Tembrevilla and her husband, who own a home in San Ramon, make in the low $200,000 range.

“It’s hard to save money,” said Tembrevilla, who lives in San Ramon with her husband and two children, one in high school and the other in middle school. “It’s home improvements, the car, car insurance, tuition — it’s overwhelming. And we’re trying to save up for college.”

These people own their house. They are not paying rent. What’s mortgage payment for a typical San Ramon house? Let’s say they paid 20% down for a 1M SR house. Mortgage on 800K is around 4K. And you are telling me couple making over 200K can’t afford 4K a month?

Maybe if both of their kids are going to private schools and they have a month long globe trotting vacation every year.

Zeyen works about 30 hours a week in behavioral therapy and receives financial help from her father to boost her income to roughly $25,000 annually.

This lady is making about $16 an hour, and that includes financial help from her dad. They don’t seem to have kids. So what to do? HOW ABOUT WORKING MORE HOURS?? Or better yet, get another job that pays more or retrain to get other skills?

Martin said he and his girlfriend, a preschool teacher, hope to buy a house in Mountain View, Sunnyvale, Santa Clara or San Francisco. They want to avoid the grind of commuting from the Central Valley or other outlying areas, but the harsh reality of home prices in the $800,000, $900,000 or even $1 million range has jolted them.

“It’s crazy how expensive homes are,” said Martin, 26. “I don’t know too many people my age who can afford the homes here.”

Is there a rule saying you have to buy a 1M house right off the bat at age 26? Have they heard of a thing called condos? Because last I checked some are selling for 400K in San Jose.

If that’s the best examples this awful reporter can find about the housing crisis, we are doing very well then.

Buying a house is not easy in Bay Area. It has never been easy. Many have done it though. How? Just hunker down, have a goal and work on it.

These people are weak sauce.

You say that but those same people are the type that will vote to make you pay more taxes and vote for rent control on your investment properties. They aren’t thinking of retraining or upgrading skills. They feel being born in America entitles them to everything.

Reporters are notoriously underpaid, hence their socialist bent…But the reason they are underpaid is they know nothing and add little to no value…A dying profession. .

Instead of whining and whining, these people should spend their time thinking about how to make more $$. Time to grow up.

Well, with 200K combined income, I guess their net income is around $10,000 per month (after max contribution to 401K).
Their mortgage+propery_tax = $5000.
Both of them are working and their child_care/activity expense can easily be $2000 (especially summer camps for middle/high school students are very expensive in this area for full time working parents!).
With two kids with tuition saving (at this income range, they have to pay full tuition without any grant.), I don’t think $3000 is enough to make extra saving. I am actually curious how they can save enough money for their kids college tuition + living expense. For UC, it is about $30,000 per year, for private or out-of-state universities, it is over $60,000 per year.
Frankly, $200K combined income in age range with high school kids (probably over 40 years) is not enough to make extra saving including college tuition. They should be very careful on their spending to make any saving.
Our tax bracket is based on average income range across country.
Living expense in Bay area is way way more expensive than rest of the country.
Thus, seemingly high income people struggle here.
(Don’t get me wrong. I don’t support tax cut for the wealthy, though.)

Property tax and mortgage interests deduction about cancel each other out, in my own experience. So there can potentially be 1K savings there.

Why do you need 2K a month for middle and high school kids? What is the legal age requirement to leave kids at home by themselves? I get that summer camps can be good learning experiences for the kids, but they are far from being necessary. Many kids grow up fine without expensive summer camps I think.

Finally do we now automatically assume parents will pay 100% of the kids’ tuition nowadays? In the old days kids were supposed to get financial aid, scholarships or work part time jobs to support themselves. If they can’t 100% do it by themselves, parents can bridge the shortfall. It seems now people just price in 100% tuition support for 4-5 years automatically?

Personally even if that were my intention all along, I wouldn’t want my kids to take it for granted. IMO kids are better served to know the price of things. If they know they need to sacrifice and do hard work for their degrees, they are less likely to choose some useless (to me personally) degrees like art history or women study.

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I considered interest deduction when I said “$10,000” net income per month.
However, it is really rough calculation based on my personal experience. Probably, I am off a bit.

People usually spend less money on day care as their children grow.
If their kids were baby or toddler, day care expense would be easily $4000 in Bay area.
Hence, $2000 is reduced a lot from peak spending time.
Of course, spending on kids can vary a lot. Thus, it is really personal choice.

As for college tuition, starting your life with such huge debt is just too harsh in my opinion…
College tuition in this country is insanely high along with health care expense.

BTW, if paying college tuition by themselves are norm in this country, I am not sure why financial grants are determined based on parents’ income. One of my colleague has very rich dad (who is divorced with his mom and didn’t raise him) and he was not qualified for any financial grant although his dad didn’t pay single dime for his tuition. He ended up with huge student loan and couldn’t go to graduate school simply because of student loan. If my kids can get financial/merit grant regardless of my income level, then I will consider to let them pay their tuition on their own. Otherwise, I feel obligated to some degree.

There are a lot of less expensive options in day care. When my oldest girl was around 4 we put her in a family-based pre school in Sunnyvale. That was around 1200 or 1300 a month. Now she’s in primary school that’s an extra 100 bucks or so a month to have her stay in school after hours. Frankly the $2000 per kid per month looks high for a high school kid.

Parents want the best for kids. I understand that. But with over 200K income I find it distasteful to complain about money publicly. There was a lawyer in Chicago who complained money being tight at over 400K income. Now if I looked at his budget I would have to agree money is indeed tight. He sends kids to private schools after all. But that’s his want, not need.

If 2K a month for high school kids is necessary I don’t know how lower income folks: people making say $80K, which is a lot in rest of the country, live here. With median income around 70 or 80K in Santa Clara county, half the people make less than 80K.

For colleges, I agree they are too expensive here, especially for so-called public colleges like UC that charges over 30K a year. We need more funding for public colleges. It boils down to: do we want a first rate public college or not? If we do, and I strongly think we do, we need to pay up.

For clarification, I do NOT complain about my life at all. I always feel blessed how I immigrate to US and find good paying job here. I totally understand expense which comes with many high paying jobs in this area and happily accept that.
I just tried to point out that I can understand the couple’s claim on their seemingly high income cannot fall into real high income range in this area given living expense. I don’t think they are complaining how poor they are or something. Their point is even with $200K income, your budget is tight due to high living cost here. The article brought up this case to highlight how expensive this area is. The main theme of the article is not “complaint from high income family in Bay Area” but “high living cost in Bay Area”. I don’t understand why this couple is criticized so much here.
In addition, my estimation of $2000 was for two middle/high school kids, not per kid.
$4000 day care was the number for little kids.
I googled “day care expense in bay area” and one website says average monthly cost for day care (infant and toddler) is $1900 in bay area.
I searched for tuition of day care my kids went (non-profit organization funded by city). Full time monthly tuition is $2300 for infant/toddler. It was cheapest option I could find at that time and it was not even close to high end day care.
Thus, average $1900-$2000 per infant/toddler for day care in Bay area makes sense to me.
You may be able to find cheaper family based home care but when we discuss social issue, I guess we’d better use median/average number.

That’s my generation. Is also your generation?

No, I didn’t mean you personally complain. I was referring to the couple in the article.

Yeah, my gen too. Maybe not the next gen?

Gee, did you see @hoapres in the comments?

hoapres • 2 days ago
hoapres’ 2017 predictions for tech employment.

For those of you that remember me from the old now long gone Dice discussion boards, I basically made the right call in 2007 with the tech meltdown.

To be fair, I got some things wrong but not many.

So here it goes.

2017 is going to be a tech employment MELTDOWN.

  1. The days of just throwing up a useless app throwing away millions of dollars and getting no return are coming to an end. At some point you have to make money and if you don’t then you are toast.
  1. The 2nd round of 2000+ companies e.g. UBER, etc. get a BIG REALITY CHECK. Come on Now, is Uber really worth $20 Billion when it has never made a profit. At some point, you actually have to go out and get REAL investors that ACTUALLY expect a RETURN on their investments.
  1. More unicorns than Theranos get destroyed. One that comes to mind is UBeam, so sorry Ms. Perry but you can’t rewrite the laws of physics. Maybe wireless power really goes somewhere but she hasn’t delivered the goods. With Theranos, nothing more needs to be said.
  1. Google and Facebook are under a hiring freeze. Yes, they really are. With the definition of “hiring freeze” as follows with the exception of someone that the company really needs along with (possibly) a bunch of OPTs and newbie college graduates, hiring is FROZEN.
  1. Wages have peaked and are going DOWN big time. The competition for tech jobs is FIERCE and getting worse. If an employer is looking for a generic software engineer then he is going to get 100+ qualified applicants within a week. (Don’t come back now complaining about being unable to find the nonexistent “purple squirrel”[looking for a software engineer with 20 years of experience on a language that only existed for 5 years])
  1. HP, Yahoo, Cisco (and to a more limited extent EBay) are about to have a MAJOR layoff. We are talking about 40%+ of their technical staff. Since these companies are so heavily h1b infested, not many Americans will be affected.
    4 • Reply•Share ›

Bad news for landlords :joy:

House prices about to plunge?