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1   ThreeBays   ignore (0)   2018 May 14, 7:18pm   ↑ like (2)   ↓ dislike (0)   quote   flag        

That's so unfair that minimum income earners can't live a middle income life!
2   marcus   ignore (4)   2018 May 14, 7:53pm   ↑ like (0)   ↓ dislike (0)   quote   flag        

It is amazing that so many working class folks stay in California. Presumably this means that the pay is enough better in California compared to other states to justify the higher cost of living. Otherwise, working class folks would be leaving in droves to go to lower cost situations.
3   lostand confused   ignore (0)   2018 May 15, 3:22am   ↑ like (0)   ↓ dislike (0)   quote   flag        

Why is Alaska so high-is the cost of heat thrown in?
4   Tenpoundbass   ignore (11)   2018 May 15, 9:04am   ↑ like (2)   ↓ dislike (0)   quote   flag        

When I was kid housing was not supposed to take up more than 25% of your budget.
The rate we're going one day they'll be saying 60%. Because sustainability and all!
5   HeadSet   ignore (1)   2018 May 15, 9:44am   ↑ like (0)   ↓ dislike (0)   quote   flag        

Looking at Virginia, that chart has some real flaws.

First of all, there is a huge difference in housing costs in the DC suburb counties and the rest of the State.
Secondly, two bedroom houses are rare here. Even small houses are usually 3 bedroom. The two bedroom houses I have seem are the two master bedroom condos targeted at retirees. Unless they included mobile homes, I doubt they had a very large sample of two bedroom homes to survey.
6   APOCALYPSEFUCKisShostikovitch   ignore (33)   2018 May 15, 10:03am   ↑ like (4)   ↓ dislike (0)   quote   flag        

If anyone can afford to live indoors the market is underpriced.
7   pkennedy   ignore (0)   2018 May 15, 10:05am   ↑ like (0)   ↓ dislike (0)   quote   flag        

marcus says
It is amazing that so many working class folks stay in California. Presumably this means that the pay is enough better in California compared to other states to justify the higher cost of living. Otherwise, working class folks would be leaving in droves to go to lower cost situations.

4
 



lostand confused
 
8   SunnyvaleCA   ignore (0)   2018 May 15, 10:42am   ↑ like (0)   ↓ dislike (0)   quote   flag        

The original article mentions 30% pre-tax incoming going to housing. I assume 2000 hours/year working.

$30.92 is the average across the entire state of California. That implies a rental price of $1546/month. (30.92 x 2000 x 0.3 / 12 = 1546) If there were a breakdown by county, though, I think you would see enormous differences within the state.

A 2-bedroom house within 45 minute commute of Silicon Valley (if you can find one) probably goes for about $2500/month, implying $50/hour. Hilariously, that same house would sell for north of $1M, implying income of $83/hour just to pay 4% interest on the loan and 1% property tax. Add in upkeep on the 50 year old shack and you're probably looking at $90/hour. Add in actually paying the thing off over 30 years and you're looking at $110/hour. Nice work if you can get it!

If you consider that payroll and income taxes on $220k/year salary, you'll find out that 30% pre-tax income spent on housing really means well north of 50% post-tax income spent on housing.

Here's a house that sold for less than a million; too bad it has suffered severe fire damage...
https://www.mercurynews.com/2018/04/19/burned-shell-of-a-home-sells-for-more-than-900000-in-san-jose/

Then there's this lovely Sunnyvale 2/1 with 848 square feet and a single-car garage. Just sold for $2M. Yay!
https://www.mercurynews.com/2018/03/02/sunnyvale-home-shatters-new-record-with-enormous-price-tag/

In certain neighborhoods, you'll see 4 or 5 cars & trucks for each small house. Probably this is because there are at least that many adults living in that single house. If you live frugally, you can save up quite a bit of money.
9   ForcedTQ   ignore (0)   2018 May 15, 2:49pm   ↑ like (0)   ↓ dislike (0)   quote   flag        

Tenpoundbass says
When I was kid housing was not supposed to take up more than 25% of your budget.
The rate we're going one day they'll be saying 60%. Because sustainability and all!


If you want to live "sustainably" it would be good to heed this advice.

Pay no more monthly than 25% of your take home pay to housing costs. If you buy a mortgage, limit the term to 15 years, with a minimum of 20% down. Individuals who don't heed this advice keep pumping the market up due to buying with debt and overextending themselves.




The Housing Trap
You're being set up to spend your life paying off a debt you don't need to take on, for a house that costs far more than it should. The conspirators are all around you, smiling to lure you in, carefully choosing their words and watching your reactions as they push your buttons, anxiously waiting for the moment when you sign the papers that will trap you and guarantee their payoff. Don't be just another victim of the housing market. Use this book to defend your freedom and defeat their schemes. You can win the game, but first you have to learn how to play it.
115 pages, $12.50

Kindle version available


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