patrick.net

FarmersWon says

The plan calls for building nearly 400,000 permanently affordable new homes

Slave cabins.

Anyone who couldn't see these types of things coming simply aren't thinking people imo. If you don't like it, figure out how to fix the income/wealth inequality problem. In fact, a ton of money is being made by putting other people out of work. I know that I don't want to live in a 3rd world country but, that is what we will become if a larger and larger % of people can't support themselves. This effects society as a whole because of all the social ills.

WineHorror1 says

Anyone who couldn't see these types of things coming simply aren't thinking people imo. If you don't like it, figure out how to fix the income/wealth inequality problem. In fact, a ton of money is being made by putting other people out of work. I know that I don't want to live in a 3rd world country but, that is what we will become if a larger and larger % of people can't support themselves. This effects society as a whole because of all the social ills.

I agree. I am trying o see what way things will go on economic side and best resource seems to be reading what non-media people has to say.
This guy has interesting problem.

https://www.teamblind.com/post/Can-I-afford-a-5m-house-and-is-this-foolish-TzSDV55q?source=patrick.net
Can I afford a 5m house (and is this foolish?)
.....
Need to upsize for the family and for a variety of reasons moving isn’t really an option. Also want to stay in the community we are in which happens to be horribly expensive.

—— Assets and Income ——

Net Worth: 9m
- 2m cash
- 2m crypto (stable coin)
- 3m equities
- 1m 401k
- 1m home equity

TC: ~1m = 50k/month take home after taxes (lumping RSU’s into this)

—— Projected Expenses (being conservative) ——
Total: 25k/month
- 7k/month miscellaneous spending and expenses
- 7k/month current mortgage (we’ll rent this out if we move so rent should cover most of this)
- 6k/month private school for 3 kids
- 2k/month margin loan interest (see below)
- 3k/month property taxes

—— Home Financing ——
- 3.5m cash (crypto + cash)
- 1.5m cash via margin loan on equities = 1.5k/month interest payment

*note* Will look to do a cash out refinance once we take possession of the home, and reinvest that back into the market

Need a sanity check here. Raw numbers seem ok, should be able to save 300k/year. Ok with being house poor for a while, with TC hopefully growing and loan payments staying the same, should be survivable?

Why would anyone who could afford to leave still live in California? That's the biggest question I ask anyone who disagrees with the California Communist agenda.

What's the upside?

Goran_K says

Why would anyone who could afford to leave still live in California? That's the biggest question I ask anyone who disagrees with the California Communist agenda.

What's the upside?

Family, weather, and home equity

BayArea says

Goran_K says

Why would anyone who could afford to leave still live in California? That's the biggest question I ask anyone who disagrees with the California Communist agenda.

What's the upside?

Family, weather, and home equity

1. This is valid, but how much are round trip tickets these days from any part of the country as long as you plan ahead? Maybe $450 max coast to coast? Much cheaper if you're flying over 2-3 states. I don't live in Miami beach, but I visit often enough that the local "Mega Pizza" people know me by name.

2. This is all personal opinion I suppose. I lived in California for decades and never got to see true seasonal weather. It honestly got boring. But I get it.

3. This one is valid, but I also feel like having a large amount of one's wealth tied up in their primary home is not the best wealth building strategy. Also equity gains in many markets outside of California have matched or exceeded even the Bay Area and Socal's gains (see Austin suburbs, North Miami suburbs).

Sure we can talk about plane ticket prices not being out of reach. However, my experience is that it starts with “of course we will visit and see each-other frequently” to an annual weekend or holiday visit if you’re lucky.

Life gets busy, families get busy, people don’t see each-other frequently if it isn’t convenient. I’ve lost contact with so many good friends and family members over my lifetime because proximity changed… relationship reduced to a Christmas card or birthday text…

Coastal CA has some of the best weather in the country.

And as far as home equity goes, it’s been easily my biggest wealth generating vehicle. Yes it’s on paper until I sell but it’s been incredible (who knows what’s to come)

BayArea says

Sure we can talk about plane ticket prices not being out of reach. However, my experience is that it starts with “of course we will visit and see each-other frequently” to an annual weekend or holiday visit if you’re lucky.

Life gets busy, families get busy, people don’t see each-other frequently if it isn’t convenient. I’ve lost contact with so many good friends and family members over my lifetime because proximity changed… relationship reduced to a Christmas card or birthday text…

Coastal CA has some of the best weather in the country.

And as far as home equity goes, it’s been easily my biggest wealth generating vehicle. Yes it’s on paper until I sell but it’s been incredible (who knows what’s to come)

Yeah, I guess it depends on life style. I average about 1-2 flights a month. Many are business related, and not for more than a few days, but that gives me 12-24 opportunities (all tax write offs), to visit family, friends in other states. But I realize that some people aren't frequent flyers.

Weather, and home equity, I'll grant.

How do you feel about the increasing "radical" policies that are coming down the pipe in CA? The taxes, illegal entitlement programs, vax mandates, etc. Do you factor any of that into your stay/flee equation?

Goran_K says

How do you feel about the increasing "radical" policies that are coming down the pipe in CA? The taxes, illegal entitlement programs, vax mandates, etc. Do you factor any of that into your stay/flee equation?

Personally, if you aren't free, money doesn't mean much to me at all.

Very good point and it has to be factored into the equation.

I live here in the Tri-Valley. I have young kids. If I turn off the news, I don’t notice most of all the woke extremist BS I see on TV.

The taxes are rough but have been more than offset by equity upside.

Covid? I don’t know about you, but it feels like it’s over.

I guess it’s a question of how bad things get in my locality and what impact that has on my kids.