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by mikek 2597 days ago
Mortgage payments: $60,000

$60K / year isn't going to pay for the mortgage on even a small house in Silicon Valley.

6 comments

Sure it will. That's a $1.2M house with 20% down. There are plenty of 2-3 bedroom 1200-1500sq ft houses around here in that range. Sure, it would be an average school district and maybe have a bit of a commute, but you can find stuff in that range for sure.
How many folks actually have $250k they can just drop on a mortgage downpayment?
It would be $200K, but 20% is a pretty standard down payment. Yes, it would take a while to save up that much, which is why housing around here isn't affordable, but it's also pretty standard.
$1.2M * 0.2 = $240k.

No one I know in the Bay Area who has bought a home in the last ~8 years has been able to scrape together 20%, everyone puts down less and gets PMI.

Anyone working at FANG 250k is trivial.
What does this have to do with the article about the couple living in NYC feeling average on 500k a year? In another separate market, in another region in the country... they'd pay more? OK.
Are you really sure about that? 60 000$ mortgage payment is probably more than 1 million in loan, and the property value can be double the loan (appreciation since they bought + initial payment outside of the loan). I don't exactly know the prices of houses but I guess 2 million dollar should buy you a house?
Depending on the down payment that is 1.25M home +/- 250K.

SV is huge. You can definitely get a home for that.

Note: property tax is extra.

I'm in San Jose, with pretty good school district. In this area ~1400 sq.ft. townhomes are about $1.0xM.

From another article with more details on this couple: "$5,000 a month in mortgage expense bought this family a ~$1,500,000, 3/2, 1,700 sqft apartment in Brooklyn a couple years ago."

https://www.financialsamurai.com/scraping-by-on-500000-a-yea...

Million dollar 30 mortgage is approximately 5k / month which is 60k / year. Are small homes substantially more than that?