HELP: Thinking about Moving to California

[Sharky]

Re: HELP: Thinking about Moving to California

Considerations for pay when moving into California from Texas:

Your experience in CA sounds a bit different than mine.

State income taxes rates are closer to 9%, particularly for someone earning six figures.

$400K for a house will put you in a very small home or a bad neighborhood. $600K+ is probably a more realistic low-end for 3 bedrooms. Have a look on zillow.com.

Rental houses with a yard tend to be pretty run-down and expensive. There are certainly decent apartments, condos and townhouses though.

Based on numbers reported by MSN Autos, gasoline prices for unleaded are about $0.32 per gallon higher in the Bay Area than in Houston ($2.29 vs. $1.97).

Property taxes run about 1.25%/yr of the value of the home and land. So roughly $7500/yr for a $600K house. (as compared to about 0.15% that I'm paying now in NZ)

The closest surfable ocean to Silicon Valley is in Santa Cruz. Not only is the water cold there, it's also polluted. You will probably need to go to Monterey, about 90 minutes from the Bay Area, to get water you can safely swim in (although many do swim in Santa Cruz, I personally wouldn't). There are a lot of people who live in Santa Cruz and commute to Silicon Valley. The drive "over the hill" on Highway 17 is a killer, though (both figuratively and literally) -- roughly 60 minutes during rush hour.

The skiing closest to the Bay Area is probably Dodge Ridge, although it's really only good for beginners. Tahoe is fabulous, but it's also 5 to 7 hours away, depending on weather and traffic. South shore is better than north shore, but it's even further away.

[CanuckinTX]

Re: HELP: Thinking about Moving to California

Funny, I was talking to a friend who moved from Austin to the Bay Area tell me the women are better looking in Texas. Problem is, I tend to run into too many women that are either already in a serious relationship/married, or just too psycho for my taste. Perhaps my choosiness will work better in SF :p

Your friend must be into blondes. I moved to Austin from So Cal a few years ago and I can't believe the number of blondes here. I swear I thought only the big haired blondes were from Dallas. The other problem with Austin is it's chock full of college girls - which is good if you're a college aged guy but not so good if you're older.

The diversity of the women in SF is much better if that's what you're into.

[phirang]

Re: HELP: Thinking about Moving to California

Hey all,

I've been in Texas for a good part of my life since childhood (and it is also where my parents live), yet despite itulips warnings about living in California, I'm currently interviewing for an engineering position out in the bay area. I don't plan to purchase real estate or necessarily stay there my whole life.

I have a fairly stable job where I am now in Central TX, and can save over 50+% of my take-home pay, but have had a personal want to live somewhere else that'll let me snowboard and surf on weekends, and enjoy my twenties before they disappear.

Anyways, what should I expect as far as compensation (for an undergrad engineer w/ 4 years experience)? Bankrate.com's cost of living comparison says I'll have to get a 64% increase in salary to keep the same cost of living, putting me into the mid-lower six figures for income. Should I expect to get an offer that high?

Should I just stay where I am in fear of SHTF?

Can some Bay Area Itulipers give me some info on how bad the situation is out there? Would you rather be living in Texas right now? :p

Comments appreciated

You're crazy.

[vanvaley1]

Re: HELP: Thinking about Moving to California

I'm gonna plug my community, Gilroy. Has a commute train to Silicon Valley. Is 45 min. to Monterey. Has two access roads to the Santa Cruz area that are not crowded. One dumps into Watsonville and another just south of Santa Cruz. A foreclosure about a half a block from us closed at near $400,000: 2500 sf, 3 car garage, 5 bdrms, 3 baths and in good condition. I live in this neighborhood and it's a good one.

But...if you're single, ya don't need that much room and Gilroy is not a 'hot spot' for dating or great nightlife. Prices will continue to fall out here. Suggest you wait to buy...but watch interest rates closely. Are you vet? Good Calvet program and VA is another way to put little cash down and save on closing cost.

Make sure your job is secure if ya plan to buy. Selling a property in this market is tough on sellers if ya get laid off. Software programing use to be a pretty good secure job. Think that's lost some of its sheen lately.

[Andreuccio]

Re: HELP: Thinking about Moving to California

I'm gonna plug my community, Gilroy. Has a commute train to Silicon Valley. Is 45 min. to Monterey. Has two access roads to the Santa Cruz area that are not crowded. One dumps into Watsonville and another just south of Santa Cruz. A foreclosure about a half a block from us closed at near $400,000: 2500 sf, 3 car garage, 5 bdrms, 3 baths and in good condition. I live in this neighborhood and it's a good one.

But...if you're single, ya don't need that much room and Gilroy is not a 'hot spot' for dating or great nightlife. Prices will continue to fall out here. Suggest you wait to buy...but watch interest rates closely. Are you vet? Good Calvet program and VA is another way to put little cash down and save on closing cost.

Make sure your job is secure if ya plan to buy. Selling a property in this market is tough on sellers if ya get laid off. Software programing use to be a pretty good secure job. Think that's lost some of its sheen lately.

You forgot to mention the Garlic Festival.

[c1ue]

Re: HELP: Thinking about Moving to California

plinko,

Property tax rates are as Sharky noted. But you probably can do the math: the product of average price of houses and tax rates - out of pocket property tax amounts are roughly equal between CA and TX.

Over time - assuming Proposition 13 holds (even money), CA gets cheaper in relation.

Sharky,

I don't think plinko is looking to necessarily settle down with a wife and kids.

Buying a house is expensive, but is hardly the only option. A condo or apartment in a hip but not snooty part of town isn't necessarily that expensive - and schools aren't an issue for a single guy.

Secondly the tax rates are certainly higher, but the rates aren't flat. As with the federal tax, you pay a graduated amount of taxes with deductions coming off the top. The data I posted shows what actual income vs. state tax percentages are overall; for myself I typically paid 7% of my AGI - and was in the mid to low six digits. This was WITHOUT a mortgage tax deduction.

For a mere $100K salary, the actual rate would absolutely be lower.

As for gas prices - unless you're living in Gilroy ;) it is unlikely that the delta to spending is more than a few hundred bucks.

[BK]

Re: HELP: Thinking about Moving to California

1. Your Wanderlust is normal

2. Sounds like financially - Texas has been good to you.

3. Why Not rent a weekend place in San Diego - fly ( you are 2 hr flight to San Diego) there as often as possible to enjoy the great weather and learn to surf and if you like it after 6 months or a year - Then investigate job opportuniities

4. You won't understand whats going on (financially) with the Company your interviewing with until after you take the job - Compared with the Complete knowledge you have of the organization you currently work for.

5. You can Travel and have a lot of fun when you live in an Area where you bank 50% of your Income - You are crazy to consider giving that up!

[plinko]

Re: HELP: Thinking about Moving to California

Thanks for the suggestions guys,

As for the reason for the job change, I'm trying to position my career a little bit more in the "green" bubble (we'll see if it happens), and the position itself will give me more exposure to Asia (see my earlier post about the "Jim Rogers" in me).

From the above posts I read, I'm already certain that I'm going to decline any offer if it's less than six figures. I've already taken a risk in having lower pay by working for a startup before, and would rather reinvest in myself by going to grad school than doing it again. I usually try to work for smaller companies to ease the process of understanding the organization.

As for chasing women, yes, texas has a lot of blondes, but if you look in the right places you'll find a few hot brunettes (typically hispanic).

If all else fails, I could always skip the surfing, and try looking for a job in colorado. There must be a bunch of "greenish" companies whatwith the rocky mountain institute located there and all.

[vanvaley1]

Re: HELP: Thinking about Moving to California

You forgot to mention the Garlic Festival.

You're right again. We have no vampire problem.

[ThePythonicCow]

Re: HELP: Thinking about Moving to California

Check out this latest report from the California State Controller's Office Statement of General Fund Cash Receipts and Disbursements
California State Controller John Chiang / Statement of General Fund Cash Receipts and Disbursements for April 2009.

It includes gems such as the following:

Compared to April 2008, General Fund revenue in April 2009 was down $6.3 billion (-39%). The total for the three largest taxes was below 2008 levels by $6.3 billion (-40.3%). Sales taxes were $452 million lower (-50.9%) than last April, and personal income taxes were down $5.7 billion (-43.6%).

Note that sales tax number. It is down over half in the last year.

California is cratering. Beware.

[lurker]

Re: HELP: Thinking about Moving to California

Your experience in CA sounds a bit different than mine.

State income taxes rates are closer to 9%, particularly for someone earning six figures.

$400K for a house will put you in a very small home or a bad neighborhood. $600K+ is probably a more realistic low-end for 3 bedrooms. Have a look on zillow.com.

Rental houses with a yard tend to be pretty run-down and expensive. There are certainly decent apartments, condos and townhouses though.

Based on numbers reported by MSN Autos, gasoline prices for unleaded are about $0.32 per gallon higher in the Bay Area than in Houston ($2.29 vs. $1.97).

Property taxes run about 1.25%/yr of the value of the home and land. So roughly $7500/yr for a $600K house. (as compared to about 0.15% that I'm paying now in NZ)

The closest surfable ocean to Silicon Valley is in Santa Cruz. Not only is the water cold there, it's also polluted. You will probably need to go to Monterey, about 90 minutes from the Bay Area, to get water you can safely swim in (although many do swim in Santa Cruz, I personally wouldn't). There are a lot of people who live in Santa Cruz and commute to Silicon Valley. The drive "over the hill" on Highway 17 is a killer, though (both figuratively and literally) -- roughly 60 minutes during rush hour.

The skiing closest to the Bay Area is probably Dodge Ridge, although it's really only good for beginners. Tahoe is fabulous, but it's also 5 to 7 hours away, depending on weather and traffic. South shore is better than north shore, but it's even further away.

Having lived in the bay area (embedded software engineer) from 97 to 2003 Sharky is right on the money. Don't move to the bay area for beaches and skiing. Driving to Tahoe to sky is such a royal PIA that it's better to take a week vacation and fly to Utah. Unless you like spending 10+ hours in the car for a weekend's skiing.

The beaches are beautiful, but NorCal surfing is for the brave and those that like very very cold water. For surfing you really need to head to San Diego.

But for city life San Francisco is terrific.

The east bay (Oakland down to Milpitas is boring, expensive endless generica).

Really I think San Francisco is the only really desirable place for a single person to live in the Bay Area, but if you live in SF and work in San Jose/Santa Clara buy a good car stereo because you'll be listening to it for at least 2 hours a day.

I now live in Boston MA and don't miss CA at all. However I have to say that this may be because I now have a family and CA is not a good place to raise children IMO.

[Andreuccio]

Re: HELP: Thinking about Moving to California

Check out this latest report from the California State Controller's Office Statement of General Fund Cash Receipts and Disbursements
California State Controller John Chiang / Statement of General Fund Cash Receipts and Disbursements for April 2009.

It includes gems such as the following:

Compared to April 2008, General Fund revenue in April 2009 was down $6.3 billion (-39%). The total for the three largest taxes was below 2008 levels by $6.3 billion (-40.3%). Sales taxes were $452 million lower (-50.9%) than last April, and personal income taxes were down $5.7 billion (-43.6%).

Note that sales tax number. It is down over half in the last year.

California is cratering. Beware.

Holy Cow!

[metalman]

Re: HELP: Thinking about Moving to California

Check out this latest report from the California State Controller's Office Statement of General Fund Cash Receipts and Disbursements
California State Controller John Chiang / Statement of General Fund Cash Receipts and Disbursements for April 2009.

It includes gems such as the following:

Compared to April 2008, General Fund revenue in April 2009 was down $6.3 billion (-39%). The total for the three largest taxes was below 2008 levels by $6.3 billion (-40.3%). Sales taxes were $452 million lower (-50.9%) than last April, and personal income taxes were down $5.7 billion (-43.6%).

Note that sales tax number. It is down over half in the last year.

California is cratering. Beware.

is there a site that compares states? like... which is the least f*cked?

[Jay]

Re: HELP: Thinking about Moving to California

Bag the new job. Sell all your crap. Buy a nice tent and camping equipment and a decent vehicle and travel across the US for a year. Get a pass to the US park system. Sleep in your tent when you can, your vehicle when you must, and meet plenty of people along the way. Follow your instincts and you won't regret it.

[c1ue]

Re: HELP: Thinking about Moving to California

Plinko,

As has been recommended, living in SF as a single guy is the best social and environmental plan.

Commuting south by car sucks though.

What I did when I still worked for a living was this:

Rented apartments near the Caltrain station at 4th and King, although you can also do the 22nd street (this is almost like the suburbs though).

Drive down from SF on Monday, leave your car parked in the Caltrain parking lot nearest your work during the week overnight, drive back on Friday.

You don't need a car almost anytime during the week - and taxis especially in the downtown area are ubiquitous.

Headache factor much lower. Plus there are now Caltrain expresses which get from SF to Mountain View in 45 minutes. You need the car down south as getting around there for lunch, to/from work, customer outside meetings, etc is a huge pain.

Plus your future employer may offer commuter checks which mean you can pay for the Caltrain tickets and parking with pre-tax dollars.