alt Hacker NewsOk, I made my other comment before seeing this but I find it very difficult to believe you can't find something reasonable for far less.
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qurren • yesterday at 5:45 PM
Nah it's the reality here. I'd say minimum income to safely own housing here is $100K-150K/month. OR cash already saved for the home, in which case income doesn't matter.
Yes, lots of households make that much, especially people at e.g. Nvidia with unvested appreciated RSUs.
Yes, the US economy is that badly fucked.
And the people on mortages were brainwashed into buying something they can't afford, and in for a foreclosure disaster when the economy corrects.
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It’s untrue. Unstated assumptions are the quality of housing desired and location desired. In practice, because of the rent/price ratio being low here in SF most people will be taking a downgrade when going from rent to 1.25x that as mortgage after putting down $300k for a $1.5m.
It is true that the marginal rate can be very high, though, so heuristics based on pre tax income break down at these numbers. The place we live in costs $7k/mo but to buy it we’d have to spend $450k and then $9.5k/mo.