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Old 07-02-2019, 09:40 PM   #61
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I agree, however more interested in the local bay area "tech" craze, that has undoubtedly created our housing crisis.

Trying to get people to generalize, housing has almost 2-3x and nobodies salaries except the few 2% have gotten a double or triple increase in their full career salaries since the recession.

Or have they - by doing xyz jumping jobs, or asking for specific performance raises etc?
speaking of tech, i always wondered where the money came from fueling the ability for so many to afford the crazy local real estate prices. having asked this question to a good friend in the wealth management banking business, was informed that many (most) of their highly (and even moderately) compensated clients in the tech industry immediately convert their vested stock to cash and buy ever increasing valued homes with it. as he put it - ‘they convert it, and consider it as part of their annual salary, rather than holding it as a long term investment ‘. that whole concept blows a rather large hole in any arguement to do with salaries. that said, seems short sighted to me. can’t help thinking - many holes dug deeper.
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Old 07-02-2019, 09:49 PM   #62
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speaking of tech, i always wondered where the money came from fueling the ability for so many to afford the crazy local real estate prices. having asked this question to a good friend in the wealth management banking business, was informed that many (most) of their highly (and even moderately) compensated clients in the tech industry immediately convert their vested stock to cash and buy ever increasing valued homes with it. as he put it - ‘they convert it, and consider it as part of their annual salary, rather than holding it as a long term investment ‘. that whole concept blows a rather large hole in any arguement to do with salaries. that said, seems short sighted to me. can’t help thinking - many holes dug deeper.
What you say is true. Along with Chinese capital flight, these are two major reasons the area got so expensive so quickly. Add to that that there are people willing to live in strange situations like a box in the living room or splitting the garage with two other randoms and its not hard to see why cost of housing is stupid around here. Then there is the general shortage of housing only made worse by more and more jobs moving in with little consideration to where those new people needed to work those jobs will live.
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Old 07-02-2019, 10:14 PM   #63
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What you say is true. Along with Chinese capital flight, these are two major reasons the area got so expensive so quickly. Add to that that there are people willing to live in strange situations like a box in the living room or splitting the garage with two other randoms and its not hard to see why cost of housing is stupid around here. Then there is the general shortage of housing only made worse by more and more jobs moving in with little consideration to where those new people needed to work those jobs will live.
the thing is - you end up with a lot of high end homeowners who are highly leveraged with no liquid assets. funny (bizarre) aspect is they’ve been afforded huge potential, but they’ve chosen instant gratification over long term security, even though it’s been laid at their feet. it’s almost biblical in its connotations ‘forgive them, for they know not what they do’.
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Old 07-03-2019, 02:17 AM   #64
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Originally Posted by FXCLM5 View Post
I agree, however more interested in the local bay area "tech" craze, that has undoubtedly created our housing crisis.

Trying to get people to generalize, housing has almost 2-3x and nobodies salaries except the few 2% have gotten a double or triple increase in their full career salaries since the recession.

Or have they - by doing xyz jumping jobs, or asking for specific performance raises etc?
They haven't, even most people in tech haven't seen as large an increase as people believe. Once demand even slightly exceeds supply, sellers can quickly suck almost every discretionary penny out of all the schlubs who were late to the game. So it's not that everyone is now a big earner, it's just that sellers have the license to soak everyone.

This guy wrote a simulation of engineers buying homes in silicon valley that is both amusing and informative.

Last edited by mercurial; 07-03-2019 at 02:18 AM..
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Old 07-03-2019, 06:03 AM   #65
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This guy wrote a simulation of engineers buying homes in silicon valley that is both amusing and informative.
I really enjoyed that, thanks for sharing.
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Old 07-03-2019, 06:53 AM   #66
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the thing is - you end up with a lot of high end homeowners who are highly leveraged with no liquid assets. funny (bizarre) aspect is they’ve been afforded huge potential, but they’ve chosen instant gratification over long term security, even though it’s been laid at their feet. it’s almost biblical in its connotations ‘forgive them, for they know not what they do’.
Making a ton of money does not automatically mean someone is good with money and financial planning. Even supposedly smart people. Horrible spending habits and financial sense applies to everyone, especially in the U.S. Myself included in my early years, I've improved since then .
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Old 07-03-2019, 10:43 AM   #67
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no. nothing against strippers. just have never completely trusted anyone in sales and marketing.
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Old 07-03-2019, 12:36 PM   #68
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They haven't, even most people in tech haven't seen as large an increase as people believe. Once demand even slightly exceeds supply, sellers can quickly suck almost every discretionary penny out of all the schlubs who were late to the game. So it's not that everyone is now a big earner, it's just that sellers have the license to soak everyone.

This guy wrote a simulation of engineers buying homes in silicon valley that is both amusing and informative.
Yeah, but the thing is Supply will NEVER catch up to demand. That is the whole reason that we have this problem in the 1st place. Existing Property Owners actively legislate to make sure you cannot build property in a way that will not flatten or devalue their investment.
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