How do people afford $150,000 for a down payment on a house in the San Francisco Bay area? Do parents and relatives chip in? Does an FHA help reduce the down payment required?
To get together the down payment for a $800K home, which is about the entry point in early 2016 for the San Jose Bay Area, you should change your thought process and it'll get much easier. Rather than try a brute force attempt to save up $160K, you should break the process up into manageable steps. (BTW, plenty of people work in two income households and earn over $300K a year, allowing them to save $50-100K per year. That's how they can afford $800K homes as first time home buyers. Of course, those tend to aim even higher and buy $1.5M homes.)When you live in an area that has such high home prices and high appreciation rates, saving for an ever increasing downpayment is tough. And, I strongly advocate avoiding an FHA loan. Rather, an easier way is to save up $40K and buy a small condo for $400K at 10% down. (A few years ago when prices were about half, I helped some buyers start with about $20K.) After a few years, you can trade up your increased equity to a $600K townhome along with another $20-30K in savings. Do it again in a few years to a $800-900K homes and you're there, having saved only $80-100K total in 5-6 years. You get to leverage all the tax free gains as a homeowner. It's quite a sweet deal.EDIT (2-24-16): Based on the comments about the anticipated appreciation rates, I want to re-iterate that I'm assuming Bay Area home prices will continue to appreciate given the current dynamics. If you don't agree with that assumption, then the logical choice is to continue saving until you've put together the downpayment. Of course, who knows how long the current appreciation will last before the next correction. Still, for those home owners who are able to hold on for at least 5 years, buying a home in the Bay Area (in particular the peninsula and south bay) has not been a losing proposition for the past 40 years.
If someone put 1 million dollars in a bank account, what would they earn in interest in a year?
Interesting question, and as soon as I saw it, I did the math. Here’s the thing, though. You have to define “savings.” I’m going to assume the searcher meant “savings account.” But even then, are we talking regular brick-and-mortar bank savings account, or a high-yield savings account?Let’s assume you put the money in a savings account, and took out the interest every year to live on.$1,000,000 in a brick-and-mortar savings account, earning 0.02% a year (pretty standard), would earn only $2,000 – could you live on that?$1,000,000 in a savings account earning 5% a year would yield $50,000. How about $50,000 – could you live on that?Most banks offer an account that will pay you a higher interest rate if you keep a significant amount of money in the account – $1,000,000 certainly counts as a “significant amount.” For example, Bank of America offers a Money Market Savings Account that would pay 1.55% on $1,000,000 – thus yielding $15,500 on your cool million.What about insurance? Well, the Bank of America account says it’s FDIC insured “to the maximum amount allowed by law.” I’m not really sure how much that is, but I do know that most online high-yield savings accounts are insured up to $250,000. Maybe you should just spread your million out between savings accounts at four different banks!Still, the Bank of America money market account doesn’t give you as good of a rate as an online savings account: ING’s Orange Savings offers 2.75% APY on any balance – whether you’ve got $1 or $1,000,000 in there. On $1,000,000 that would be $27,500 a year – perhaps that’s a bit closer to money you can live on?Ideally, though, if you have a million dollars, you might want to look into investing it in something a little more aggressive than a savings account, especially if you’re young and you don’t have to live off the money.
Someone steals $50 from your store. Later they purchase an item worth $40 with the stolen money. The person receives the item and $10 change. How much money have you lost in all?
TL;DR: If you plan to rob a store, rather take items you need and not their cash for buying same stuff later.What happened here actually is this: Store owner (Lets call him Joe) lost £50 for theft at first, but then the culprit returns him £40 and steals an item instead of that. However, since he doesn’t just take it and leave without paying, Joe ends up with costs related to operating a retail shop, which the other answerers here neglected to notice. I’ll try to remedy this a little:Say Joe bought the stolen item for £20. Joe then adds various costs (store space, electricity, cleaning, bank charges, accounting service, staff salary etc. he has calculated this is around 20% of the buying price per item) to the price of all his items. Joe ends up with a £25 product. Because: £20/(100%-20%)I’ll have to make more assumptions since you didn’t provide all the details. Joe sells the item for £40 you say - Value added tax needs to be paid so Joe owes goverment what ever the VAT is. Say its 20%.Vat: £40*20% = £8Time to do math:+£40 gross sales-£8 Vat-£20 price of product-£5 (20% of price you paid for product) common costs= £7 net profitBut don’t forget Joe needs to pay corporate tax if he makes profit. In Finland it’s currently happens to be 20% so we use that as an example.£7 * 20% = £1,4 taxesOf £40 Joe’s company actually keeps £5,6 which he can use to pay himself dividends.Lost: £50 + VAT £8 + Corporate tax £1,4 = £59,4Gained: £5,6Net loss: £53,8Extra bonus: had the culprit only stolen the product itself and £10 from the cash,-£10 cash-£20 product since we assume replacing the item costs the same amount, not £25LOSS: £30, since VAT and corporate taxes are not applied and costs of running the store are not accounted.
How many mangoes are there in the basket?
Here,Let N represent no of mangoes.Then, analyzing the question we can write,N=2a + 1N=3b + 2N=4c + 3N=5d + 4N=6e + 5N=7fAdd 1 on both sides in all the equations. Then,N+1=2a + 2=2(a+1)Similarly,N + 1=3(b +1)N + 1=4(c +1)N + 1=5(d +1)N + 1=6(e +1)N + 1=7f + 1This means when that number is increased by 1,it is divisible by 3,4,5, and 6. The second least number divisible by 3, 4, 5 and 6 is 120. We ignore least no 60 as 59 is not divisible by 7. So the number N +1 should be 120x where x is any positive integer.Take least value of n so that N + 1=120So, N=120-1=119.So 119 is the answer.
What is the most profitable business you could start with only $5,000?
I started a business that grossed about US$300,000 some years ago with about US$3,000. I was traveling internationally quite a bit back then and came across a unique hand-crafted product that appealed to many in the gift and ethnic gift market.With a suitcase of product I spent $2500 on a trade show stall and about $500 on gas/hotel/food to attend the show. I didn't have a fancy booth and I lit my product with a few clip on lights that I had spray painted black. I also used black spray paint on cardboard that served as my displays. It may sound tacky, but it actually looked pretty nice and it helped my items stand out.So I loaded up my wares in my SUV and drove myself to the trade show. I booked a cheap motel that had free parking. I ate at burger places. I worked the two-day show by myself and made sure I was always standing and showing my goods while sharing the story of how my items were made, where they came from and what an impact the items had on the local community that made them. Since I didn't have any inventory besides what I had on display, I asked buyers to select a shipping date set for a future time that would allow me to acquire, label, pack and ship the product. I pre-booked sales of just under $30k at the show!With my pre bookings I borrowed another $5000 from family to put toward merchandise and I used credit cards for shipping materials (boxes, labels, scale, etc.) and setup shop in my garage.Within about a month I had a Fedex truck picking up from my home on a daily basis. I also put together a simply, but attractive and informative website on my own and followed up on every lead that I acquired from my initial trade show. Reorders started coming in, new orders from my follow through trickled in and before I knew it I had a real business that I was running out of my home.
Those who are under 30 and make $300k+ a year, what do you do?
I started my career in tax and audit making $36,000/year at 22 years old.It sucked.I lasted 8 months before I quit and moved to Asia to roll the dice and start a business.I tried affiliate marketing first. Lost money for 246 consecutive days then had a breakthrough. I worked 60+ hours a week for a few years. Many depressions, failures, setbacks… But also glorious triumphs.Wanted to get into a real product business and build a consumer brand. An email list of 100,000 customers who LOVE you is an asset that will last for years and no one can take from you. You can lose a job overnight, but you’ll not easily remove a brand people love from their hearts and minds…I had no experience in eCommerce. My business partner and I threw around ideas of what to sell. As a joke we thought, why not sex toys, HA. Its ultra competitive but we’ll try, learn a few things, probably fail quickly, then niche down and start an ACTUAL business.Well, we ended up sticking at it so long and figuring out a few secrets / building our site and product to such a level that we couldn’t quit. 14 months we lost money. At the worst moment, both of us had negative balances In our CHEQUING accounts. All our personal credit cards were already at collections.20 months in we hit 1 million in sales29 months in we hit 3 million in salesToday we’re around 5m/year. Our margin is around 18%. So i make well over 300,000/ year… But two years ago I was broke.I turn 27 soon. So it took me 5 years to achieve freedom. (the business day to day is auto pilot, we have 20 or so employees)I only take 52k/ year from the company. The rest is retained or paid out to my holding company as a dividend… Tax free!also, as a side note, income from other sources still comes in from hobby projects online (membership site, Affiliate links)Anyone can do it! I'm just a dumb guy with a hard work ethic. Good luck!