Would you leave Texas to move to the Bay Area? I have to decide soon, help!?

Question

I was offered a job in the Bay Area and I really want to take it. I think it will be a great opportunity (better than what I could have in Texas, I believe). I would be getting an 18% salary increase but in Texas we do NOT have a state tax so I guess with the CA state tax, I'm really only getting a 10% raise. Real estate here is literally 289% less than CA. My house here costs about $250K...in the Bay Area it would go for $1Million (which makes me laugh and cry at the same time).

I currently own a nice house in a great neighborhood so I'm really freaked out about selling my house (giving up my hard earned equity) and going back to renting (and paying double that of my mortgage payment).

So if you had a nice house would you sell it to go back to renting in the most expensive area of the country (and having a significantly smaller place) if you thought the job opportunity was great?

Also, is it possible to SAVE money living in the Bay Area? This is consuming me, seriously...

I would be living in the Sunnyvale/Mountain View area to start since it would be close to my job.

Answer 1

As some people have pointed out it basically comes down to two things;
1) Financially Texas is a much better choice
2) Socially and culturally the Bay Area is better overall.

There is a higher quality of life in the Bay Area and a lot more things to see and do. I grew up in the Bay Area but have lived in San Diego for six years now. Every summer tons of people from Phoenix and Tucson come and spend the summer in SD. They can afford to do so b/c they spend less on housing and other things living in AZ so they can afford to travel more, buy a big SUV instead of a Camry, and do other things. But they live in AZ and have to leave that place to go somwhere nice. People in San Diego can't afford those material things as much, but we dont have to take a vacation to go to the beach or somewhere nice. Hopefully you see what I am trying to say; you can either live in TX and have more disposable income to buy and do things. Or you can live in SF and have more things to do but less disposable income. So it's basically a trade off and you have to decide whats worth it for you. If you are single and younger, the Bay Area would probably be more in tune with your lifestyle. But if you have a family, financial security and owning a home is much more important than living in a desirable region with lots of amenities.

You'll have a much better experiance and quality of life in the Bay Area, but you'll have more $$ living in TX.

Answer 2

Take the job in San Fran if it is something you think you would really enjoy, but here's the thing.
DO NOT SELL your house!
Rent it out!
That way someone else pays your mortgage, you keep your equity and if you didnt like San Fran you always have the chance to move back to Texas into your home.
Owning property is the most important investment and by the sounds of it, buying something in San Fran is over your budget.

So, rent out your house in Texas, try Craigslist.org to do this, its a great free site, rent a small apartment in San Fran, and Id say, give it a year, if you love it, you can start to think about buying something in San Fran, and you could even use the equity of your house in Texas to do that, or sell your house in Texas if you really really know that you are done with Texas and buy in CA.

This gives you the chance to live in San Fran and figure out all the questions you have.

And about saving money in San Fran, the best way to save is to rent with a roomate, in CA you have to pay alot for a one bedroom and then it isnt necessarily the best location or the nicest place. If you rent with a roommate you are keeping your costs lower and you have the chance to live in a good area.

Also, do not use a car, this will save you big time, so try to find a place where you can walk to everything or take public transportation to work. This will be a huge savings too, and in a city like San Fran, not hard to do.
Youll also get more exercise! not a bad thing!

Answer 3

Do not do it.
Don't sell your home. Rent it out instead if you move here. Hire a property management company to look after the maintenance and to deal with tenant credit checks, paperwork and collecting rent.
People are leaving Nor-Cal and moving to your state because of better job offers and the chance to save money AND own a home at the same time.
Moving here, renting, you will have to downsize quite a bit to live somewhat comfortably. Groceries, gasoline, utilities, rent, are all very expensive here. Tack on bridge fares, parking fees or cab fare, muni pass, BART pass... it all adds up.
Are you ready for the culture/environmental shock? California is a whole other world than Texas and the Bay Area is the nerve center of it.
If you do chose to move here, I again implore you, DO NOT sell your home. If things do not work out in the Bay Area, you have some place and something to fall back on. If it does work out and you love it here, which I hope you do, use the rent from Texas income to help save for another home.
Sell your home only when you know for sure you don't want to live in Texas.

.

Answer 4

It really does depend on your ambition and risk-taking instincts. As some has already pointed out, California is a very fast paced environment. You either win hugely or you become one of the many embittered losers whom inhabit the Golden State.

If you succeed, the sky is the limit. Stories of former slackers coming here and becoming millionaire CEOs abound.

If you fail...well, you've probably noticed our homeless problem. Most of those folks weren't always homeless.

In terms of financial security. what you say is true... $650,000 in Dallas buys you a brand new mansion. In San Francisco, it buys you a little 200 year old apartment that looks like it hasn't been fixed up since Teddy Roosevelt was President.

But of course the drawback of safety and stability is that it doesn't lead you anywhere new. In Texas, your $250,000 house will probably still be worth roughly the same in 20 years -- adjusting for inflation. In California's more volatile market, it might bring you 5 times that...or fall to 1/2 of what you invested.

If you're thinking about reinvesting in real estate while you work, the Sacramento Valley and the Southern Desert are still within your price range. That might provide a bit of a safety net.

It's a tough decision. You have to weigh the opportunities against the potential pitfalls. But from your post, I sense that you are very conscientious and know what're doing. So, I would say trust in yourself!

Answer 5

Remember that San Francisco bay area is very, very expensive. The cheapest houses you will find here are probably not less than $400,000 and you wouldn't want to live there anyway. Rents are high also. Surely, you have checked the rental listings for the area? If not, do so now.

Of course you could rent your house, take the job for a year or so, and then leave if it proved too expensive.

Answer 6

it depends on which part of the bay area you are talking about. there are nice areas you could adapt to but there are alot of areas definatley to avoid. is it northbay southbay eastbay? some more expensive than others. the closer to san francisco the more expensive it will be. commuting is always an option but the traffic in areas is awful. if your company is close enough to where you can commute from sacramento (1 1/2 hours from san fran) i would suggest that. you still can get a decent area and home for around 250-300k there are nice areas in sacto but also some real ugly areas as well. research carefully. nowhere on the peninsula (san fran-san jose )can you get anything for less than 400k
you will need to make at least 25.00 an hour no matter where you live in the bay area.

Answer 7

I have lived in both areas so to best help you is to ask yourself questions and really research the pro's and con's.
1.Will the job benefit you more in the long run such as enhancing your career and skills?
2. What are you leaving behind and what are you going to gain?
3. Where are you at in life and where do expect yourself to be in the future?
I know there is more questions that can be asked but from my experience it was great. I got to learn new skills. My career took off. Got to experience the Internet Boom and Bust but I am very happy. As for TX, I lived in Plano and enjoyed the friendly people. Loved the cost of living best. In truth, financially TX is where I would stay, 18% is really not enough you'll need at least 30% just to get the same standard of living in SF. But the experience is priceless if you want diversity and culture. If your looking to be stable, I would stay in TX. SF is a fast pace world and much more open socially than TX. Hope this helps.

Answer 8

go to the bay!!!
it is very very very expensive ,but the amount of things to do are so vast that it will be worth it. so much history, great weather spring time year round with no snow ,very rare freezing tempratures, good transportation, wonderful schools,
i suggest living in oakland if you dont have kids ( the schools are terrible except charter ones) for the first year then move to a home that you could use forever. i suggest berkeley since it is like the coolest city in the world. in berkley a house with two bedrooms in a flat neighboorhood costs around 750000 dolalrs a house in the hills cost around 1750000 dolalrs .

the poverty line in the bay is 68 k . you need at least 100k anual salary to live comfy . dont live in sf . it is way way to expensive and you dont get much ( parks ,parking space, schools, trees , space) parking in sf is terrible. a parking space could be bought in a garage for 70k .
this area is realy really expensive .


BUT IF YOU HAVE A JOB READY FOR YOU GO FOR IT
YOU WONT REGRET THE FEATURES OF THE AREA.

Answer 9

Well, I live here and it is VERY expensive compared to where you live. Housing is a little easier to get as many homes have been sitting for a lot longer than they would have 5 years ago but a 25 year old 2000 square foot home is still going to cost you close to 1 million if you live in a nice city, but not anything fancy.

What do you want from life? Job success and growth? There might be more potential here but it depends what field you are in. Life is much different in California. If you like Texas you probably won't like it here.

Answer 10

Seriously, unless you are getting paid $80,000 (minimum) and up, don't bother giving up your home. I have a 1950's three bedroom, two bath, two car garage, small front and back yards in the cheapest neighborhood in the Bay Area, and I could sell it today for $600K. That is nowhere near what your house you already own is like, so you will be stepping down.

But, we don't have hurricanes. What the???