Re:Is developer compensation becoming bimodal?
by mywittyname on Tuesday September 27, 2016 @12:51PM
(#12591006)
> So housing alone almost completely wipes out your extra income.
I guess it depends on ownership v. rent. Over the long term, housing is a forced savings account.
Even 20 years out, that $7,200 per month is going to be worth a lot of money. Sure, you paid $1.7M in mortgage payments, plus property tax and maintenance. But you also have a place that probably kept pace with inflation and at best, doubled in value. If value climbed at a modest (for SF) 4% per annum, that house would be worth $3.8M in 20 years.
So, in 20 years, you're looking at an additional $2MM (3.8M - 1.7M) increase in network by living in SF. This is assuming your compensation does not include stocks/options, which are rare in the midwest, but very common in SF.
I guess it depends on ownership v. rent. Over the long term, housing is a forced savings account.
Even 20 years out, that $7,200 per month is going to be worth a lot of money. Sure, you paid $1.7M in mortgage payments, plus property tax and maintenance. But you also have a place that probably kept pace with inflation and at best, doubled in value. If value climbed at a modest (for SF) 4% per annum, that house would be worth $3.8M in 20 years.
So, in 20 years, you're looking at an additional $2MM (3.8M - 1.7M) increase in network by living in SF. This is assuming your compensation does not include stocks/options, which are rare in the midwest, but very common in SF.