Guy makes $160,000 and barely making it month to month...

[ironchef]

Ah since when? Property tax is deductible from what exactly? Income tax? That sounds very new to me. But I am all ears. Mortgage interest tax deductible? Care to elaborate? All else you said I agree with but does not change the fact that the bottom line looks very similar for either choice, even in the US according to quite a number of authors and researchers. At least that's what I remember from when I read up on the topic a while ago.

You should consult your tax accountant. Not only are property tax and mortgage interest (up to $1 millions) deductible but up to $500,000 of your gain in home appreciation is tax free and you can do that every 5 years. What is there not to like?

 

[aquarian1]

California is a big state. NY is a big state. However, if you job is located in a high cost area, let's say midtown Manhattan, your choices are pretty limited and the definition of "comfortable" is relative. I don't know about the guy in subject, but I can take my example since my base is very similar. For starters, out of my 150k base I get to keep about 7.5k a month after taxes (federal plus state plus city, my marginal tax rate is over 50% actually).

I work long hours and my job requires concentration, so I can't afford a lengthy commute that would cut into work or into sleep. So I bought an apartment in Manhattan. I bought my place cheap in 2008, but these days, a reasonable 1-bedroom costs a buck, a two-bedroom from 1.5. My HOA charges are 1.5k a month, my real estate taxes are 11k a year. That's actually not that bad, as these things go. Renting a place like that would be five grand a month, plus you have to pay a real estate agent to rent the place (two monthly rents is a standard fee) and constantly run the risk of having them hike the rent in your face. My parking spot is 500/month.

Once you own, you are local, so you end up paying crazy mark-up for everything, because the supermarkets are paying crazy for real estate. Eggs at a supermarket? From $5 a dozen unless there is a sale. Wanna get lunch while at work in mid-town? From $12, but most probably $15 and we not even talking anything good.

There is also "perceived wealth" - everyone thinks that since I am living here I must be loaded to the gills. Every service I might need - plumbers, contractors etc they all think "well, this guy can afford it". I had a plumber who wanted to charge me 500 dollars to open a stuck valve on my patio.

I am not saying that I am poor, but I certainly don't feel rich given my lifestyle. This is despite the fact that my base salary would be considered great income in many parts of the country.

1. (You're marginal rate might be 50% but your average is 41% if you quoted accurately "about 7.5K")

2. If you live in NYC and close to work cannot you use the subway and walk?

$500/mo parking = $6000/yr
Car insurance $1,500?
gas $50/wk *52 = $2,600/yr
depreciation ($40,000-$10,000 trade-in)/8yrs =$3,750
repairs, tires, maintenance =$1,500?

Car costs: $9,350
Parking : $6,000
Total after tax cost $15350
Before tax cost at marginal 50% = $30,700

(percentage of base 150K= 30700/150000=20.4%)

 

[jj90]

Wait, some of you guys didn't know mortgage interest is tax deductible in Anglo countries?

And I'm with @Turveyd fuck it all, let's have a good time.

 

[Turveyd]

You are seriously messed up in your head. That's all I can say

I'm happy to not think like most, but I consider this a good thing, you consider it bad, but there is no real way to tell which is better.

Mine

 

[vanzandt]

I'm happy to not think like most, but I consider this a good thing, you consider it bad, but there is no real way to tell which is better.

Mine

If its any consolation Turvey......
At least you have one Yank that likes ya.

 

[Turveyd]

If its any consolation Turvey......
At least you have one Yank that likes ya.

People either love my free thinking or hate me cause of it.

I find the womanizing is a great distraction for what people think lol

 

[Sig]

This is false. There are many spots along the peninsula in San Mateo county that are *not* more expensive than the city proper.

You cannot take Palo Alto, Menlo Park, etc and represent them as the peninsula because they are outliers.

My wife and I live just outside of SF and through frugal living / hard work / not buying unneeded bullshit, have been able to save up quite a bit of money. I'm also the only high wage earner in the family unlike these tech DINKs with an advantage who can't seem to not let a dollar go unspent. Been here for 20+ years and this is yet another typical SF/Bayarea bubble that will end in tears.

Stop eating out all the time.
Stop buying things you don't need.
Stop buying things on credit and creating liabilities for yourself.

I lived on the Peninsula back when I was on a military salary, so I'm pretty up on both prices and how to save money. Your point in no way changes the fact that to have the same quality of life where you live costs 4X what it does where I now live, and no-where on the Peninsula could you get a stand alone house in any condition for less than twice what I paid for my current waterfront home.
If you live in an older, smaller, crappier house (more likely condo) in either a crappier place (sure East Palo Alto is cheap!) or a place with a longer commute and don't eat out and buy your clothes at Goodwill....You can have the "same quality of life" as someone living in Atlanta in a far nicer, newer, larger house in a much nicer part of town who gets to eat out on weekends and enjoy life without scrimping who makes half what you do. Price you pay to live in the Bay area, but as you know since you live there it's something out of towner's just can't seem to wrap their brains around.

 

[i960]

I lived on the Peninsula back when I was on a military salary, so I'm pretty up on both prices and how to save money. Your point in no way changes the fact that to have the same quality of life where you live costs 4X what it does where I now live, and no-where on the Peninsula could you get a stand alone house in any condition for less than twice what I paid for my current waterfront home.

The thing I was referring to as false was simply the cost of housing in the peninsula vs SF itself. Not the Bayarea vs the rest of the country. It's well known that the general CoL and real estate out here is over the top.

 

[sle]

1. (You're marginal rate might be 50% but your average is 41% if you quoted accurately "about 7.5K")

2. If you live in NYC and close to work cannot you use the subway and walk?

$500/mo parking = $6000/yr
Car insurance $1,500?
gas $50/wk *52 = $2,600/yr
depreciation ($40,000-$10,000 trade-in)/8yrs =$3,750
repairs, tires, maintenance =$1,500?

Car costs: $9,350
Parking : $6,000
Total after tax cost $15350
Before tax cost at marginal 50% = $30,700

(percentage of base 150K= 30700/150000=20.4%)

View attachment 171326

Yeah, not having a car would be convenient except that I also have a weekend house in Upstate New York, so I need a vehicle to get there. My 2009 Honda that I bought for 4K a year ago doesn't depreciate much though

 

[i960]

Yeah, not having a car would be convenient except that I also have a weekend house in Upstate New York, so I need a vehicle to get there. My 2009 Honda that I bought for 4K a year ago doesn't depreciate much though

Still though that's a ton of annual money just to pay for the convenience. Why not just park the car at the weekend house and take alternate transportation to it when needed?