> What about your expenses? Well, if you do the math, the above comes out to $79,200/year. You now have $46,000/year to save towards a house... which oh by the way, costs $1.5M at present day for a shack in Fremont. Oh, and forget about having kids too.
$46,000/year is a decent pre-tax annual household income in most of the country, and saving 20% of your income is doing very well for yourself. If you're putting that much away even after those inflated expenses (are you seriously paying $50/working day for your commute?) you're in no position to complain about your tax rates. The bay-area housing situation sucks, but that doesn't mean you're entitled to take out of the tax fund.
> If you're putting that much away even after those inflated expenses (are you seriously paying $50/working day for your commute?) you're in no position to complain about your tax rates.
Ahh the classic “well you aren’t poor so you don’t get to complain”.
Can we not aspire to have a middle class in this country?
I would consider being unable to purchase a rundown house in a mediocre location after 30 years of saving from a high income to be pretty bad. You obviously aren't poor but it's not exactly a good situation to be in.
$46,000/year is $3833/month, which if you go by this calculator for mortgage payments [1] is less than an $800k house. If you live in the Bay Area, you know that you can't buy a shack for $800k unless it's in the Tenderloin.
The mistake you made was using the future value of the saved money to pay for the present value of a home. Home prices in the Bay have also historically appreciated about as quickly as the stock market, but even if we assume they appreciate at 5% and you could get an 8% return investing money, you get taxed on the extra returns of your investment in the range of 30% after LTCG and state taxes, so your post-tax return discounted by the house price appreciation is basically 0.
A lot of words to say that your calculations are wrong and even if you take on a relatively high amount of risk+reward by investing in the S&P 500 you probably still won't save enough for a house in a region with good schools in 30 years. Which I think if you're making two hundred fifty thousand dollars a year, is pretty unreasonable.
> $46,000/year is $3833/month, which if you go by this calculator for mortgage payments [1] is less than an $800k house. If you live in the Bay Area, you know that you can't buy a shack for $800k unless it's in the Tenderloin.
They were including $4,000/month rent in the original calculations. If you're talking about buying on a mortgage then you should be using $7833/month.
$46,000/year is a decent pre-tax annual household income in most of the country, and saving 20% of your income is doing very well for yourself. If you're putting that much away even after those inflated expenses (are you seriously paying $50/working day for your commute?) you're in no position to complain about your tax rates. The bay-area housing situation sucks, but that doesn't mean you're entitled to take out of the tax fund.