To all +100k guys out there: Share your success path (San Jose: short sale, apartment complexes)

[5thgenSF]

Originally Posted by rimmerama

That better not be run of the mill, sounds pretty high.

it sounds high to me too. that one with the lakes in the middle on stierlin rd. was expensive but it was a horrid place.

[SportyandMisty]

Become familiar with:
Fama
Articles
http://www.ifa.com/12steps/step8/step8page4.asp

[shadowyman]

Originally Posted by SportyandMisty

Become familiar with:
Fama
Articles
Investment Risks - Pg 4 - 12-Step Program for Active Investors

This is definitely a lot to read haha. I've received Millionare Next Door and I will read it when I have time. Thanks!

[TheGreatCurve]

Originally Posted by MediocreButArrogant

Every BSCS college new hire we hired last year was offered over 100k starting salary. Your experience is hardly unique or special or worth discussing.

And people wonder why housing is so ridiculously expensive here in the Bay Area when kids just coming out of college are already making six figures. How can this be sustainable? It just seems like something's wrong here.

[exploringtim]

Originally Posted by TheGreatCurve

And people wonder why housing is so ridiculously expensive here in the Bay Area when kids just coming out of college are already making six figures. How can this be sustainable? It just seems like something's wrong here.

+1

It's a self-perpetuating problem. It only takes one or two of the large firms to decide they need a new division, and start to recruit like crazy and then prices for every become artificially inflated as they jostle for talent (who in turn jostle for housing etc). If I could earn my bay-area salary in the UK, I would really be utterly laughing all the way to the bank... SV seems to have its own bubble economy for sure.

[TheGreatCurve]

Originally Posted by exploringtim

+1

It's a self-perpetuating problem. It only takes one or two of the large firms to decide they need a new division, and start to recruit like crazy and then prices for every become artificially inflated as they jostle for talent (who in turn jostle for housing etc). If I could earn my bay-area salary in the UK, I would really be utterly laughing all the way to the bank... SV seems to have its own bubble economy for sure.

I just don't see how all these companies that pay these ridiculously high salaries can continue to compete on a global basis and still maintain their profit margins when their cost of labor is so high? To cover the high cost of all of this manpower, they would have to charge much higher prices for their products or services. How can they remain competitive with companies located all over the world going forward? Something has to give.

[shadowyman]

Originally Posted by TheGreatCurve

And people wonder why housing is so ridiculously expensive here in the Bay Area when kids just coming out of college are already making six figures. How can this be sustainable? It just seems like something's wrong here.

The reason is simple incurable demand-supply equilibrium which includes all types of people. Someone may arguably assert a worker with 20+ experience making six figures is also a part of wrong-doing. Justifying the reason why those "kids" make six figures is not through questioning their rightfulness of making such amount, rather a simple economics term "the law of demand". So if I need talent and the demand is low for that demand (lack of highly qualified "kids"), the reward will be essentially higher. Similarly, "kids" plus "hard-earned workers" with six figures demanding housing means short of supply, hence the high housing prices. So when you look at the overall picture, those "kids" are hardly the reason of housing hikes in the area. They are just a small set of all other going factors. Bay area has always been known for its high cost of living. This was not because some kids jumped into the game and started earning these figures without deserving them. I am sorry that a "kid" is more qualified than you and makes six figures in his first year, but it's rather your deficiency than his. Maybe the problem is you not earning six figures, not the kid making that much? Hard to swallow? I thought so, try mixing olive oil in your water next time when you are going to spit some speculation here. It makes it easier to digest.

Originally Posted by TheGreatCurve

I just don't see how all these companies that pay these ridiculously high salaries can continue to compete on a global basis and still maintain their profit margins when their cost of labor is so high? To cover the high cost of all of this manpower, they would have to charge much higher prices for their products or services. How can they remain competitive with companies located all over the world going forward? Something has to give.

Simple answer, they don't. Companies who are not strong enough to accommodate talent with high compensation will also fail to survive in the "big arena". Because that talent will simply go to another company that can afford his price and in the long run, the company will lack its biggest asset, qualified workers, causing it fail. Or alternatively, you simply outsource, change regions and afford cheaper slavery through third world countries. So successful companies are the ones which manage both of these in a balance.

[TheGreatCurve]

Originally Posted by shadowyman

The reason is simple incurable demand-supply equilibrium which includes all types of people. Someone may arguably assert a worker with 20+ experience making six figures is also a part of wrong-doing. Justifying the reason why those "kids" make six figures is not through questioning their rightfulness of making such amount, rather a simple economics term "the law of demand". So if I need talent and the demand is low for that demand (lack of highly qualified "kids"), the reward will be essentially higher. Similarly, "kids" plus "hard-earned workers" with six figures demanding housing means short of supply, hence the high housing prices. So when you look at the overall picture, those "kids" are hardly the reason of housing hikes in the area. They are just a small set of all other going factors. Bay area has always been known for its high cost of living. This was not because some kids jumped into the game and started earning these figures without deserving them. I am sorry that a "kid" is more qualified than you and makes six figures in his first year, but it's rather your deficiency than his. Maybe the problem is you not earning six figures, not the kid making that much? Hard to swallow? I thought so, try mixing olive oil in your water next time when you are going to spit some speculation here. It makes it easier to digest.

Rents have gone up significantly in the past couple of years. Young people just out of school tend to rent apartments rather than buy houses. So, yes, there is indeed a correlation between the rapidly escalating compensation paid to new workers just out of school and the rapidly escalating rents in Silicon Valley.

And what makes you think you are more qualified than I am? (Hint: You're not by any stretch of the imagination.) You don't even know who I am. But since you're only 23, I'm going to give you a pass on your lack of maturity.

Originally Posted by shadowyman

Simple answer, they don't. Companies who are not strong enough to accommodate talent with high compensation will also fail to survive in the "big arena". Because that talent will simply go to another company that can afford his price and in the long run, the company will lack its biggest asset, qualified workers, causing it fail. Or alternatively, you simply outsource, change regions and afford cheaper slavery through third world countries. So successful companies are the ones which manage both of these in a balance.

Paying high compensation, and thus having high operating costs, can also cause a company to fail. Especially in a competitive market. It makes it much harder to maintain profit margins.

[MediocreButArrogant]

Originally Posted by TheGreatCurve

And people wonder why housing is so ridiculously expensive here in the Bay Area when kids just coming out of college are already making six figures. How can this be sustainable? It just seems like something's wrong here.

FWIW, my employer is making far fewer offers to new grads now compared to ten years ago, and we've slashed positions in North America and western Europe while massively hiring in India, China, and Eastern Europe. The way I describe it is we're still willing to pay top dollar for the skill positions (architects and leads for example) and will pay market price, regardless of where the talent is located, while for the other 80% of positions, that aren't critical to the company's success, we hire in regions with lower labor costs as long as the competency level is sufficient. So we're still pursuing the top talent coming out of school in the USA, but completely stopped hiring for non-critical positions, thus skewing the offers towards the high-end.

[Azmordean]

Originally Posted by rimmerama

That better not be run of the mill, sounds pretty high.

Nope, run of the mill. No granite or luxury stuff, though it may have in unit w/d which I do not consider anything approaching a luxury but I guess people in CA do. Course its a good location (w/I 3-4 mi of Google and bikable and closeish - biking distance - to downtown MV is my main criteria). I've looked for cheaper, and darned if I can find one. 2600-3000 for 2br 1ba seems to be the going rate.