What's the income profile of people buying $3M properties in south bay?

I have seen few Sunnyvale, Mountain View, Cupertino properties go for more than $3M. I am wondering what type of people buy them. Are they people with total income more than $600K per year, or is it all money from RSUs so they pay lot of money down? Even if they have the money do they make huge down payments? It looks like even with rates around 4.5%, they are just paying 1.5% if you factor in inflation of 3%.

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There are both. I know someone bought 3.7m property but put more than 1m down to bring payments to the level they can manage.


Most of these people who buy 3M+ are 2nd or 3rd time home buyers and have considerable downpayment and are tired of living in old/dated homes. There is new building boom going on in SV where these people want to live in beautiful homes.

Only one of the Brand new builds so far was bought a first time home buyer…some time Last year , I sold a brand new build to a 26 year startup founder single guy .


What’s the typical mortgage amount for these price range?

Maybe @LbJW would have an idea for aggregates.

20% down is 2.4M, my friend has about 2.7 for her 3.7 home.

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Must be those old enough that have experienced the dotcom bust.

Not sure what you mean? She’s maybe only 6-7 years older than i am. She worked at spotify but didn’t use spot stock for down. they have it saved up, and probably some stocks from their prior life.

Some people saved 200k cash a year just from pay stubs. Too much money is flowing. Will this last?

Income growth in Silicon Valley is too fast

People who never want to FIRE.

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That’s like your opinion man.

Some people love their job and they don’t like FIRE

FIRE people never take out 2M mortgage. Unless you are up there like MarkZ. Actually Mark doesn’t want to retire either. QED.

Got so much cash at that age? Must be as lucky as wuqijun, from an IPO.

they are two earners, so not that hard actually?

@tomato’s type of profile, except he hasn’t pulled the trigger yet.

@tomato has a math problem: how to FIRE with a 2.5M mortgage + property tax on a 3.5M house.

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: ) worst case, they sell and downsize. it’s ok.

Property tax becomes significant at that price point. It’s hard to justify $3M + $3k/month in nondeductible property tax for a place that you could rent for $7k/month. You need some serious appreciation and/or inflation for it to make sense financially. I get the appeal though – stability, pride of ownership and quality of life.


There’s no such thing as pride :slight_smile: i don’t think there’s anything to be proud about :slight_smile:

I am insulted. I didn’t make my money by being “lucky”. Ok, maybe only 50% of it… :rofl: