At least you have one!

I have a coworker who maintains miserly tendencies, even though he makes around the same money as everyone else in the office. His problem? He is what we would call “house poor.” Too much of him and his wife’s income go towards servicing the mortgage. But hey, at least he got in when the interest rates were low, and houses weren’t all above one million dollars around here. Imagine paying 7% on a 30-year loan! You can buy a whole other house in the midwest with the combined interest payments.

And at least the coworker has a house! I on the other hand have zero allusions about home ownership. There’s no way I can afford one on my salary, unless I meet a partner who makes vastly more than I do (and I make above the U.S. median household income already). If the potential partner makes around the same as me, we would be house poor just like my coworker and his wife. Definitely not a situation I want to dig myself into for 30 years.

For my lonesome, renting continuously is absolutely fine with me. I like the flexibility and optionality of not being tied down to the place (not that I plan to move from my current situation anytime soon). Renting prevents me from accumulating too much material things, because moving it all to the next location would be a huge chore. I’ve already made the decision to donate most of my books before I move next time. Everybody knows how much I read, no need to a have shelves full of books to show for vanity points.

While I may not be house poor, but I’m definitely car poor, and have been ever since I started making enough money to buy my own. A huge chunk of my income have always gone towards paying for and servicing the ownership of a car. But unlike my coworker who seem rather miserable in being house poor, I’m absolutely fine with spending money on cars. Because it’s the great passion of mine since I was young.

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친한친구.

Straight cash, homie

It’s always a bit nerve-racking when bringing a relatively large stack of cash to deposit at the bank. What if I get robbed before I get to the location? Lots of AAPI hate going around these days. What if I get pulled over by the police while I am still in the car? Civil asset forfeiture is a thing: I would have to prove to the authorities the cash is clean and kosher. Guilty until proven innocent - imagine that in America!

While waiting in line for the next available teller, a helper person asked me if I want to use the ATM instead. Heck no! Last thing I’d want to risk is the machine eating up the bills and causing a huge headache. I’ve also seen ATMs outright reject otherwise good bills. Any count above 10, it’s better to deposit with a real person. They’ve got those fancy bill counting machines that goes through a pile quickly and accurately.

A couple next to me was doing a wire transfer. They’ve just closed on a home, and were super excited. Their teller wished them congratulations, to which they replied, “Thanks! But now we’re house poor!” Indeed that’s the reality: there’s really no homes around here that isn’t above seven-figures. Anyone not making tech-bro money will be stretching to make the mortgage. Not to mention the exorbitant property tax every year - no prop 13 protection for you!

I have zero illusions that I can purchase a home in San Francisco any time soon, if ever. Not on this government employee salary! Besides, I don’t want the inflexibility of being tied down to a property for an extended period. It’s not that I plan to go anywhere; it’s because having a mortgage payment changes the calculus of how you approach employment. The stakes are higher: you can no longer afford to tell your boss to fuck off.

Those are the shackles!

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Against all odds.

I almost moved out?

One thing I’ve always had in mind is that when I do move out of the house, it has to be some place extremely close to work; close enough to get there in around 15 minutes, whichever the method of transportation. Living in the Bay Area I’m quite familiar with the horrid commutes many people have, and the last thing I want is to join that party. If my living situation is going to change, then decreasing the amount of time it takes to get to work is a must-have criteria. Otherwise, I don’t really see a point: there’s no good to having my own place if I’m miserable from the daily commute.

Problem is, obviously, it’s extremely expensive to rent a spot in San Francisco, much less on the west side of the city where the university is. And let’s not even speak of actually buying a house in the area, a downright impossibility, unless the housing situation changes dramatically, or I hit the lottery. That being said, I browse the rental ads on Craigslist periodically to gauge the market, and to see if anything will pop up that’s reasonably affordable, with superb proximity to work.

Last week, one such place did materialize. A mere 10 minute walk from campus, it was a newly refurbished in-law studio renting for $1,600 a month, all inclusive. Squeaking in at just under the 1/3 of income rule for a lease, the place was eminently affordable, somewhat to my surprise (I guess the market has soften a bit). Of course, the most alluring attribute is the closeness to campus; to be able to simply walk to work is an absolute dream. There’s a mall with a Target and Trader Joe’s only two blocks away, so it could not be more convenience in terms of living necessities, too.

Later that week I went and saw the place (it was indeed lovely), and then started on viability calculations before I officially apply. Unfortunately, the math did not rule in the favor of leasing: I can afford the place, but due to rental costs, I’d be saving very little every month (if at all) - house poor, as they say. The problem is the big financial purchase I made this January: my Porsche 911 GT3. Had I bought a way more sensible sports car, one that doesn’t cost four-figures to keep every month, I think I would have handed in the application this past weekend.

I did think about selling the 911, though that has its own conundrums and difficulties. I unconditionally adore the car, and letting it go would leave a huge gaping spot in my car enthusiasm. The GT3 is suppose to be the ‘forever car’, so selling it after only one year of ownership would be devastatingly irresponsible. Porsche cars hold their values well, but that doesn’t mean they don’t depreciate: my 911 have loss about $20,000 in value since January, a real, tangible decrease if I actually sell the car. Not to mention I’ll never get the five-figure in taxes I paid when I purchase the car back. Some States let you offset the tax if you trade for another car; communist California sadly doesn’t.

It seems I have to see that process through with the 911 until I can make another huge financial move. I wouldn’t call the car an albatross, but I think it would be wise to accelerate paying off the rest of it so I can have some flexibility. New years resolution for 2020, perhaps?

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Driving home to a beautiful light.