Should I relocate to Park Cities from California? (Dallas, Plano: hotel, buy)

[serger]

Originally Posted by EDS_

Here's why Texas/Dallas makes economic sense for everyone including wealthy people. Using COL index numbers.

Texas Cities v. California Cities:
100((91.8-128.1)/128.1) = -28.34% or Dallas is 28.34% less expensive than a California cities.

and 500,000x.2834 = 141,650.....500,000-141,650 = $358,350.

A $358,350 income in Dallas is equal in buying power terms to a $500,000 income in California and if we calculate state and local taxes the difference grows a little.



Texas Cities v. Hawaii Cities:
100((91.8-156.9)/156.9)) = -41.49%.

500,000x.4149 = 207,450......$500,000-207,450 = $$292,550

$292,550 income in Dallas = $500,000 in Hawaiian cities.



Texas Cities v. Arizona Cities:
100((91.8-101.9)/101.9) = -9.91%

500,000x.0991 = 49,550.....$500,000-49,550 = $450,450

$450,450 income in Dallas = $500,000 in Phoenix



So a family making a $X-big here can send do things their counterparts in other states can't given an identical income like fund a college education, save, send kids to private high schools, invest more etc.

It is a bit problematic to use COL numbers in calculating comparable incomes in different income ranges.
It is probably about valid for some average or around average but this calculation breaks down for very high income (and very low for that matter). In other words, proportions included in COL calculation are not representative of how people in high/low income ranges spend their income.
I think your 500k example is kind of getting outside of the range

[TheOverdog]

But, for me personally (for example), I'd rather pay the X more to be in Portland OR than here, because I value other things about Portland enough.

Well, there are several pages about people saying their piece about whether Dallas should be in consideration at all, now we're just trying to help them find the best part assuming it is.

[bencronin04]

You also have to factor in the amount A job pays in Dallas vs say San Francisco. I know I could, and have had offers, commanding a much higher salary for my same position in the Bay area, where as I'm already above "average" for pay in Dallas.

[EDS_]

Originally Posted by serger

It is a bit problematic to use COL numbers in calculating comparable incomes in different income ranges.
It is probably about valid for some average or around average but this calculation breaks down for very high income (and very low for that matter). In other words, proportions included in COL calculation are not representative of how people in high/low income ranges spend their income.
I think your 500k example is kind of getting outside of the range

I completely disagree.

[TR95]

Originally Posted by bencronin04

You also have to factor in the amount A job pays in Dallas vs say San Francisco. I know I could, and have had offers, commanding a much higher salary for my same position in the Bay area, where as I'm already above "average" for pay in Dallas.

Thanks for pointing that out. I mentioned this in the other thread on Dallas and COL. It is so very true. Of course, the Bay area is the highest paid in Ca on average. Of course, there is the stress factor on commuting, life, etc, depending on where you live and work in SF/SJ.

[EDS_]

Originally Posted by bencronin04

You also have to factor in the amount A job pays in Dallas vs say San Francisco. I know I could, and have had offers, commanding a much higher salary for my same position in the Bay area, where as I'm already above "average" for pay in Dallas.

I'll show you some SF data later. If you're not looking at 1.75 or 2x more you will lose out.

[LookingInRichardson]

People say Dallas is affordable because they've come from areas that are way less affordable. My sister in San Francisco pays twice my mortgage for her rent. She rents 600 square feet and I have a 2000 sf place in a nice neighborhood in Richardson. Having to make 2X the salary to live the same lifestyle is probably a very optimistic estimate.

[bencronin04]

Originally Posted by EDS_

I'll show you some SF data later. If you're not looking at 1.75 or 2x more you will lose out.

Absolutely. I was offered double a few years back, we even made a week trip to check out the area. I just couldn't commit to it at the time. A few years later we were strongly considering a job offer in Hawaii, and were in the final stages of getting together moving costs, shipping vehicle, etc. before finding out my wife was pregnant with our first born. Unfortunately with me as an only child, taking my parents first grand child that far away, was just not going to happen....LOL

[BigDGeek]

Originally Posted by synchronicity

Person A: "that house has all that for only $X much, and it's in Dallas! Why does it cost so little?"
Person B: "Because...you have to live in Dallas."
Person A:
Person B:

^^^^^^ This.

Originally Posted by LookingInRichardson

People say Dallas is affordable because they've come from areas that are way less affordable. My sister in San Francisco pays twice my mortgage for her rent. She rents 600 square feet and I have a 2000 sf place in a nice neighborhood in Richardson. Having to make 2X the salary to live the same lifestyle is probably a very optimistic estimate.

You're comparing one of the most expensive metro areas in the country (top 5 at least, if not top 3) to one of the cheapest major cities...and one of the less expensive major suburbs. Apples and oranges!

I sold my last house (prior to this one) for $406 USD per square foot. Shocking, right? That was in a small English city FAR outside of London's commuter belt. Same house in London? Easily triple that, probably more like 4x-896398653289658923658925235235352352 plus, depending on the neighborhood/tube zone. I don't even attempt to compare the cost of living in European countries to the COL here. The context is so wildly different that people here can't wrap their heads around it. Kind of the same story between DFW and SF IMHO. (London RE costs leave SF in the dust.)

[serger]

Originally Posted by EDS_

I completely disagree.

All I'm saying is that any COL calculation includes basket of goods, e.g. groceries, housing, transportation, etc. with % assigned to each. And these assumptions are not correct in the high/low income ranges. If you are making 10k a year, doesn't matter how much houses are either here or CA, if you are making 10 mil a year doesn't matter much either. Now, the state tax does make a difference, but that's about it for a very high income.