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Old 11-01-2013, 11:05 PM
 
Location: "Silicon Valley" (part of San Francisco Bay Area, California, USA)
4,375 posts, read 4,070,925 times
Reputation: 2158

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Quote:
Originally Posted by zombocom View Post
I'd rather look at statistics, than craigslist. Average rent for a two bedroom is over 2,300:

Bay Area apartment rent increases slowing, report says - San Jose Mercury News
Well, if it is technically the average, that would mean that most are that expensive, but actually, in the context of real estate, "average" usually refers to the median, which would mean half are above that figure and half below (the problem with using the actual arithmetic mean is, doing it that way, a property with an extremely high value would distort the result).

Look at all these 2 bedroom apartments in Silicon Valley under 2300 (1,298 of them, 328 of which are between 1100 and 1800).

Quote:
Half are under, so you're saying everyone should rent the bottom half of available apartments and leave the rest vacant?
I'm not making a judgement on who should be able to afford what (that's a wider political discussion), however, I do think people should be fiscally conservative. Take your take home pay (net pay deposited in your account each time) and divide that by three. The money you spend on housing should be less than that number, significantly less is preferred.

So, is it impossible to afford a two bedroom dwelling (a couple and one child), in Silicon Valley, when your net pay per month is 4702.50, as described in the first post of the thread? I say no. If your net pay is 4702.50 your housing payment should be 4702.50/3 or 1567.50 per month. As I demonstrated above, many two bedroom dwellings are available in the area (Santa Clara County) for that price. Plus you can always live in San Francisco or the Peninsula and commute to work from there also. So you should have about $1500 or left over if you have the expenses outlined in the original post, and a rent/mortgage of about 1567.

And, I did identify a place in Evergreen that has under 2000 as the estimated monthly mortgage payment. I do not think Evergreen is a slum or "ghetto".
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Old 11-03-2013, 09:04 AM
 
1,614 posts, read 2,072,494 times
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The average household income in San Jose is about 90,000 dollars - so someone making 90,000 dollars (if they are single, or in a single income household) is exactly average in San Jose.

It's simply not a lot of money in this region, and years of under development coupled with the current .com boom (bubble?) means that demand has surged.

Luckily, San Jose is on track to build more housing this year than the last 4 years combined, so we are on the right track.

I'm not saying a person can't survive on 90k a year and have a nice life here, it's just not going to be anywhere as nice a life as 90k will buy you somewhere else, and if you have to support a family on 90k, it's going to be tight.
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Old 11-03-2013, 07:41 PM
 
Location: "Silicon Valley" (part of San Francisco Bay Area, California, USA)
4,375 posts, read 4,070,925 times
Reputation: 2158
Quote:
Originally Posted by zombocom View Post
The average household income in San Jose is about 90,000 dollars - so someone making 90,000 dollars (if they are single, or in a single income household) is exactly average in San Jose.
I cannot remotely afford to spend $1100 or $2000 on rent. $2000 is more than I make in a month. I make $1312 per month, net pay after all deductions. So compare that to someone who makes 5416 per month, net pay after all deductions (90k = 5416 net). Imagine what someone in my situation must think when they read people who make five times as much as him complaining that they are barely getting by! Clearly, those higher income people need to spend less.

1312/3 = 437 available for housing.
5416/3 = 1805 available for housing.

The 90k person can afford a two or more bedroom apartment/condo/house, such as this four bedroom one in the Evergreen area, an excellent neighborhood in San Jose with "high performing" schools ($399k, 1533/month mortgage), or this 3 bedroom apartment in west San Jose (also good area) for $1580/month, whereas the minimum wage guy can afford one room in an apartment shared with others.

Nothing to complain about there, in my opinion.

Quote:
I'm not saying a person can't survive on 90k a year and have a nice life here,
A little late, but at least you finally admit that. Yes, 90k a year, 65+ after taxes, is a very good income.

Quote:
if you have to support a family on 90k, it's going to be tight.
lmao uh, no. Not "tight". There are people who support a family on minimum wage. The friend at work I mentioned earlier had to do that. When he got out of the Navy, he worked as a machinist, and was very skilled at that, and did it for 20 years, but lost his job in the recession and never got another job in the field. He had to support his wife and daughter (he has six other daughters, some from another marriage, all are adults now) on the HUD VASH program, which reduced his rent to $700 (or something like that) for a three bedroom, which, as you can see above, is half his income at minimum wage. So if he could do that, others should be able to get by quite well on five times the income. If they can't, they are making fiscal management mistakes.
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Old 11-04-2013, 11:28 AM
 
1,614 posts, read 2,072,494 times
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Quote:
Originally Posted by neutrino78x View Post
I cannot remotely afford to spend $1100 or $2000 on rent. $2000 is more than I make in a month. I make $1312 per month, net pay after all deductions. So compare that to someone who makes 5416 per month, net pay after all deductions (90k = 5416 net). Imagine what someone in my situation must think when they read people who make five times as much as him complaining that they are barely getting by! Clearly, those higher income people need to spend less.

1312/3 = 437 available for housing.
5416/3 = 1805 available for housing.

The 90k person can afford a two or more bedroom apartment/condo/house, such as this four bedroom one in the Evergreen area, an excellent neighborhood in San Jose with "high performing" schools ($399k, 1533/month mortgage), or this 3 bedroom apartment in west San Jose (also good area) for $1580/month, whereas the minimum wage guy can afford one room in an apartment shared with others.

Nothing to complain about there, in my opinion.

Why not? The cost of living here is such that the lifestyle 90k buys is much less than what 90k buys in most other parts of the U.S.

A little late, but at least you finally admit that. Yes, 90k a year, 65+ after taxes, is a very good income.

I never denied it, what I have issue with is your assertion that it is a lot of money. It isn't, not here. That income isn't even enough to afford the mortgage on a median priced house (and as someone looking at houses, you'll be hard pressed to find a nice SFH under 600k, especially if you want good schools, odds are we're going to have to spend 800k on a house that would probably go for 250k in many other places).

To which I am sure you will respond - buy something cheaper. Of course, but the point remains that an income of 90k is not that much here in the south bay.


lmao uh, no. Not "tight". There are people who support a family on minimum wage. The friend at work I mentioned earlier had to do that. When he got out of the Navy, he worked as a machinist, and was very skilled at that, and did it for 20 years, but lost his job in the recession and never got another job in the field. He had to support his wife and daughter (he has six other daughters, some from another marriage, all are adults now) on the HUD VASH program, which reduced his rent to $700 (or something like that) for a three bedroom, which, as you can see above, is half his income at minimum wage. So if he could do that, others should be able to get by quite well on five times the income. If they can't, they are making fiscal management mistakes.
People on minimum wage get free health care, subsidized housing, free food, subsidized utilities (power, cell, internet, cable tv, etc), not to mention things like earned income credit. Making it on minimum wage isn't really can't be compared to the middle class. The middle class is stuck paying for themselves and the person on minimum wage.

In fact, many people have observed that in many parts of the bay area, you have to either be poor or rich to afford to live there, the middle class gets squeezed out.

San Jose is one of the least affordable city in the United States, when income is compared to cost of living.

10 least affordable cities to buy a home - San Jose (6) - CNNMoney
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Old 11-05-2013, 11:56 AM
 
Location: "Silicon Valley" (part of San Francisco Bay Area, California, USA)
4,375 posts, read 4,070,925 times
Reputation: 2158
Quote:
Originally Posted by zombocom View Post
People on minimum wage get free health care, subsidized housing, free food, subsidized utilities (power, cell, internet, cable tv, etc), not to mention things like earned income credit.
The only one of those things I get is free health care and only because I earned it risking my life for this country. Most people making minimum wage don't get free health care unless you count the ER. Food stamps, well if you have a full time job on minimum wage you don't qualify. Subsidized housing, sure but not to the point that you can afford it as easily as someone making 90k, or 65k after taxes. Richard got a three bedroom house through HUD VASH but he was still paying half his income. Someone who makes 90k can pay for a three bedroom with less than 1/3 of their income and no subsidy.
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Old 11-05-2013, 01:52 PM
 
1,614 posts, read 2,072,494 times
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Quote:
Originally Posted by neutrino78x View Post
The only one of those things I get is free health care and only because I earned it risking my life for this country. Most people making minimum wage don't get free health care unless you count the ER. Food stamps, well if you have a full time job on minimum wage you don't qualify. Subsidized housing, sure but not to the point that you can afford it as easily as someone making 90k, or 65k after taxes. Richard got a three bedroom house through HUD VASH but he was still paying half his income. Someone who makes 90k can pay for a three bedroom with less than 1/3 of their income and no subsidy.
I'm not saying it's as easy or nice. I'm saying that you can't compare a subsidized lifestyle to a non-subsidized lifestyle.
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Old 11-05-2013, 04:04 PM
 
Location: Silicon Valley, CA
13,561 posts, read 10,359,245 times
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Quote:
Originally Posted by zombocom View Post
People on minimum wage get free health care, subsidized housing, free food, subsidized utilities (power, cell, internet, cable tv, etc), not to mention things like earned income credit.
10 least affordable cities to buy a home - San Jose (6) - CNNMoney
Free health care? Do tell. I wouldn't necessarily call going to the emergency room a freebie.

Subsidized housing? If you're talking Section 8, there is a very long waiting list for that.

Free food? Well, if you're talking about TANF, it just got cut.

Yes, there are some assistance available for people on low incomes, but I hope you're not insinuating that it's a gravy train or a picnic in the park for poor folks...because it's definitely not, even with the assistance programs, which are meager and getting more so.
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Old 11-05-2013, 05:24 PM
 
Location: Boulder Creek, CA
9,197 posts, read 16,845,334 times
Reputation: 6373
Quote:
Originally Posted by silverkris View Post

Free food? Well, if you're talking about TANF, it just got cut.
SNAP took a blow from Congress:


Quote:
The Nov. 1 benefit cuts "will be close to catastrophic for many people," said Ross Fraser, a spokesman for Feeding America, the nation's largest domestic hunger-relief charity, which estimates that this week's SNAP reduction will result in a loss of nearly 2 billion meals for poor families next year.
Millions on food stamps facing benefits cuts - CBS News
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Old 11-05-2013, 05:31 PM
 
1,614 posts, read 2,072,494 times
Reputation: 804
Quote:
Originally Posted by silverkris View Post
Free health care? Do tell. I wouldn't necessarily call going to the emergency room a freebie.

Subsidized housing? If you're talking Section 8, there is a very long waiting list for that.

Free food? Well, if you're talking about TANF, it just got cut.

Yes, there are some assistance available for people on low incomes, but I hope you're not insinuating that it's a gravy train or a picnic in the park for poor folks...because it's definitely not, even with the assistance programs, which are meager and getting more so.
No, I was pointing out that when you say a person lives on minimum wage, that's not necessarily the whole picture, once government benefits and tax credits are factored in.
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Old 11-05-2013, 06:34 PM
 
1,263 posts, read 4,010,335 times
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Many apartments have mandatory affordable units. That just pushes the regular rent higher for people who don't qualify. So yes, it makes a difference whether you are subsidized or not.


Quote:
Originally Posted by silverkris View Post
Free health care? Do tell. I wouldn't necessarily call going to the emergency room a freebie.

Subsidized housing? If you're talking Section 8, there is a very long waiting list for that.

Free food? Well, if you're talking about TANF, it just got cut.

Yes, there are some assistance available for people on low incomes, but I hope you're not insinuating that it's a gravy train or a picnic in the park for poor folks...because it's definitely not, even with the assistance programs, which are meager and getting more so.
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