iBankCoin
CAPS LOCK IS CRUISE CONTROL FOR AWESOME
Joined May 7, 2012
150 Blog Posts

Priced out of California

Cost of living in California is spiraling upwards at a dizzying pace. I left in November of 2018 because even though I make Bitcoin sized returns California still seems insanely unaffordable. Sure, San Diego has perfect weather but housing and rents have doubled within a few years. This is not sustainable. I see a huge correction coming to “America’s Finest City”.

For rentals, how about $3,075/month for less than 600SF sound? Sounds ridiculous to me. This is near the median for 1 bedrooms in the Little Italy neighborhood. Don’t worry, if you have your heart set on paying $8,000 for a 1 bedroom Little Italy has you covered.

 

This neighborhood is mostly young professionals. “Excuse me sir, but what are you doing at 28 to afford a $5,000 apartment?” Sure, many people make lots of money but is everyone making the required $200k plus to be rolling in a neighborhood with those rents paying $14 for avocado toast snacks and $12 cocktails on the daily? I doubt it. I smell daddy’s money or insane credit card debt.

The only way the math works out is that everyone is going broke, fast. But their Instagram is lit AF.

To be clear, I *could* afford to live in California but at $3k for <600SF why would I? Add in that a burger, beer and fries is over $20 and it was time to move. I was eating my retirement one $20 burger at at time. Maybe it’s because I still have my midwestern roots and no matter how much I make I refuse to blow obscene amounts of money on a studio with a peak ocean view. Or, maybe I can just do basic math.

But wait, there’s more. As a trader, California is creeping up on the Fed for their share of your tax dollars. You think short term capital gains from the Fed are bad? Wait till you have a great year and with Fed and CA capital gains you are paying over 50% of profit in taxes. That’s right, you keep less than 50% of your profit. But hey, you get to take 100% of the risk so it evens out? That’s an example of the new California math.

I realize NY or SF may have more ridiculous rents. Great, if you live there I’m surprised you are smart enough to read.

I sold my home shortly after the last bubble. I may be a buyer during the next crash. It’s going to be a doozy.

 

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4 comments

  1. metalleg

    You moved to PR? If so, was that because of the cap gains tax benefit?

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    • CoinSpeak

      Yes. Google Act 20 and Act 22 Puerto Rico.

      My plan is to cash out FU money x10 in 2020. If it all works out I’ll pay no taxes as a bona fide resident of Puerto Rico.

      Had I stayed in CA I would have handed over half my profit in taxes. No brainer to leave.

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  2. Jason

    Uhhhhm class separation?

    Sounds like you couldn’t hang.

    Join the democrats and fight for equality.

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    • CoinSpeak

      I kinda love dumbass comments like this. It validates my thesis. Most of the world is full of chumps.

      You haven’t been keeping up on my blog. If you had, you’d see I destroyed everyone’s returns and won the iBC stock contest in 2017 (GBTC). Predicted Trump winning the election. Called Bitcoin at ~$500. Left the company I founded in 2015 and have been traveling the world ever since.

      Maybe if you listen to what I have to share for free you won’t be stuck in your job much longer.

      If all you get is that I can’t hang in California you miss the point. I CHOOSE not to hang there because it’s fucking stupid, no matter how much one makes.

      The world is a big place. To steal a line from Nomad Capitalist, “Go where you are treated best”.

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