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Old Yesterday, 05:04 PM
 
3,661 posts, read 931,154 times
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Quote:
Originally Posted by CorporateCowboy View Post
A high-paying Ďso and soí in Mountain View would likely be able to rent an apartment on his own (or your idea of high pay is different than mine) and also may not care about a three bedroom house anywhere else. Not everyone would make the same choice; but the higher the level of talent (in tech or any professional business environment), the more likely the company will attempt to make it worth your while (through relocation packages, bonuses, perks, etc).

If one is making the decision to move on their own, however, it can be a completely different landscape - and then the need to compare oneís pay (and circumstances) to the COL by itself is, of course, absolutely necessary and contingent upon what someone does for a living as well. In the latter situation, there is a high probability the COL pay differential would not be worth the move (or the difference it would make in the personís standard of living) - but itís not meant to. Itís simply a way to attempt to make it Ďevení and more livable.
Just said this in another thread:

If two college grads can't buy a 3/2 house in 5 years of finishing school, you're not living in the right area. Bay Area is for A+ players who are in the tip top of their field. Sure, there are lower paying jobs that might work for people who have owned their home for 30 years and paid it off. But the roommate lifestyle into your 30's is a ludicrous "solution" for a very big problem.
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Old Yesterday, 05:33 PM
 
109 posts, read 24,263 times
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Quote:
Originally Posted by boxus View Post
But even at that you still have the "highly paid so and so" in Mountain View that can is living in a shoe box studio or a two bedroom with a roommate, because housing costs are so high, versus a run of the mill "average pay so and so" with their three bedroom house in Smithville USA.
A "highly paid so and so" with 10 years of work experience in Mountain View is only living in a shoe box studio if they are completely financially inept. Yeah you might have to live with a room mate for a few years out of college while your career is getting started and you're paying down some student debt. However, once you meet a partner and both of you are bringing in 6 figures you just hit the jack pot on the career/life trajectory.

I have cousins that live in rural, small-town Iowa. One is a linesman the other is a phlebotomist at the county hospital. They were able to get married and buy a house probably by the time they were 25/26. In their 30's they have 2 kids, a boat, some off road vehicle things etc. That's great for them.

My wife and I, on the other hand didn't get married until 29/31 and don't plan on having kids until 34/35 due to going to school for advanced degrees. We only could afford a townhouse and probably had to pay 2-3x as much for half the space and have had to delay starting a family. However, our earning potential is meteoric and by the time we are mid career will be out earning them by a factor of probably 5. Not saying that one way is right and the other is wrong, but it comes down to the choices one has available and making the best decisions possible.
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Old Yesterday, 06:11 PM
 
4,607 posts, read 4,767,803 times
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Quote:
Originally Posted by CorporateCowboy View Post
The guy in the Bay because he doesnít have to live in Kansas City! Joking aside, perceived desirability as to where one wants to work (and play) is a big factor in the HCOL equation.
Haha, definitely agree with that, especially among us millennials Most of my east and west coast friends don't want anything to do with the midwest. I worked with a few in my old gig, they last about 2-3 years then bounce back out to LA/San Fran, NYC, etc.

Quote:
Originally Posted by bad debt View Post
The guy in the bay area. He knows he can easily get a dozen offers from quality tech companies if things don't work out or he decides to try something different. There might be ONE job in KC that pays 200K for every hundred in the bay. Also if the guy in the bay area ever wants to go off on his own it will be way easier to pitch his start up idea to capital if he's already well known in as a player in the area.
While I can't comment on your last point specifically, if you are highly desirable where you work is less of an issue. I work remotely as a data scientist, travel about 6-8x a year to client sites and to corporate. Many people in software engineering can work remotely as well, especially later in their career. So the best is the guy working for a bay area company in a low cost of living city Remember some of us nerds prefer the outdoors to the common ideas of culture in huge cities. And...if you set it up just right you can find a low cost of living area with a ton of highly educated people. Basically everyone I hang out with has a PhD or a Masters with about 60% of those having PhDs. Not very common in low cost of living areas, but definitely possible.
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Old Yesterday, 06:17 PM
 
109 posts, read 24,263 times
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Quote:
Originally Posted by mizzourah2006 View Post
Haha, definitely agree with that, especially among us millennials Most of my east and west coast friends don't want anything to do with the midwest. I worked with a few in my old gig, they last about 2-3 years then bounce back out to LA/San Fran, NYC, etc.



While I can't comment on your last point specifically, if you are highly desirable where you work is less of an issue. I work remotely as a data scientist, travel about 6-8x a year to client sites and to corporate. Many people in software engineering can work remotely as well, especially later in their career. So the best is the guy working for a bay area company in a low cost of living city Remember some of us nerds prefer the outdoors to the common ideas of culture in huge cities. And...if you set it up just right you can find a low cost of living area with a ton of highly educated people. Basically everyone I hang out with has a PhD or a Masters with about 60% of those having PhDs. Not very common in low cost of living areas, but definitely possible.
I grew up in a major metro area and have zero desire to live in a low COL area. My wife would actually be paid probably 30-50% more for moving to a rural tumbleweed area because they are so desparate for physicians. But then we would have to live in a rural tumbleweed town and would be required to blow my brains out.

We will be just fine living in our high COL area making our high COL salary.
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Old Yesterday, 06:42 PM
 
4,607 posts, read 4,767,803 times
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Quote:
Originally Posted by bad debt View Post
I grew up in a major metro area and have zero desire to live in a low COL area. My wife would actually be paid probably 30-50% more for moving to a rural tumbleweed area because they are so desparate for physicians. But then we would have to live in a rural tumbleweed town and would be required to blow my brains out.

We will be just fine living in our high COL area making our high COL salary.
Not all LCOLs are rural tumbleweed towns, but to each his own. We have 3 fortune 500s here and offices for all major CPGs with around 600k people in the metro and growing at ~ 5-7% per year. We have good beer, great mountain biking (which is my major passion) and other great outdoors stuff. Plus like I mentioned the main thing that I tend to like about the cities like DC and San Fran are highly intelligent people in your circle, but where I am thatís taken care of. Plus everyone I work with (remotely) is a PhD as well, so I get my interactions with extremely intelligent people that push me and my ideas.
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Old Yesterday, 06:44 PM
 
Location: San Francisco
2,368 posts, read 550,305 times
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Quote:
Originally Posted by ddm2k View Post
Just said this in another thread:

If two college grads can't buy a 3/2 house in 5 years of finishing school, you're not living in the right area. Bay Area is for A+ players who are in the tip top of their field. Sure, there are lower paying jobs that might work for people who have owned their home for 30 years and paid it off. But the roommate lifestyle into your 30's is a ludicrous "solution" for a very big problem.
Iím not clear to what your point is - but the bottom line, per the thread, is base salary COL differential is not what determines if a highly talented business professional pursues/accepts an offer to relocate here or any HCOL area. Career mobility, potential advancement, salary offer, bonuses, visibility and even personal perception of desirability all play a part - as well as the terms of each individual offer (many of which make it worthwhile). For this segment, COL almost becomes irrelevant (and there is certainly no need to have a roommate). Not everyone views success as a suburban 3/2 house just anywhere either - some prefer luxury high rise condos or a home tucked away with beautiful views and few neighbors. Itís not always achieved in three to five years either (so your time frame is a bit constrictive); you are only living in the wrong area if you donít like where you live and/or donít like your job.
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Old Yesterday, 06:45 PM
 
3,661 posts, read 931,154 times
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Quote:
Originally Posted by bad debt View Post
I grew up in a major metro area and have zero desire to live in a low COL area. My wife would actually be paid probably 30-50% more for moving to a rural tumbleweed area because they are so desparate for physicians. But then we would have to live in a rural tumbleweed town and would be required to blow my brains out.

We will be just fine living in our high COL area making our high COL salary.
I'd love living in a tumbleweed town. So long as I'm within 2 hours of something to do on the weekend, I'm good. I'm not concerned to be a big fish in a little pond.

But yes, in order to stay "entertained" day in and day out in Small Town, USA - you're gonna need one heck of a s-- life!
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Old Yesterday, 07:08 PM
 
Location: San Francisco
2,368 posts, read 550,305 times
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Quote:
Originally Posted by mizzourah2006 View Post
Haha, definitely agree with that, especially among us millennials
Iím not a millennial - but hey, Iíll take it!
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Old Yesterday, 07:18 PM
 
4,331 posts, read 1,880,531 times
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Quote:
Originally Posted by mathjak107 View Post
even at 3% appreciation someone with lots of equity in a 700k home who relocates to a cheaper area has a lot more money then a local in cheapsville with a 200k home seeing 3% ..
That's a good point. But you also have to consider whether or not you can afford your living expenses month to month while paying a mortgage that may be double. All that appreciation is like retirement savings. Won't be available till you ultimately cash out. If one can afford the extra recurring expenses than no problem.
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Old Yesterday, 07:26 PM
 
15,778 posts, read 13,676,596 times
Reputation: 21706
Quote:
Originally Posted by CorporateCowboy View Post
A high-paying Ďso and soí in Mountain View would likely be able to rent an apartment on his own (or your idea of high pay is different than mine) and also may not care about a three bedroom house anywhere else. Not everyone would make the same choice; but the higher the level of talent (in tech or any professional business environment), the more likely the company will attempt to make it worth your while (through relocation packages, bonuses, perks, etc).

If one is making the decision to move on their own, however, it can be a completely different landscape - and then the need to compare oneís pay (and circumstances) to the COL by itself is, of course, absolutely necessary and contingent upon what someone does for a living as well. In the latter situation, there is a high probability the COL pay differential would not be worth the move (or the difference it would make in the personís standard of living) - but itís not meant to. Itís simply a way to attempt to make it Ďevení and more livable.
But I am speaking to COL allowance, the thread subject I thought, not two completely different jobs/careers. Maybe I should had been more specific.

I am meaning the highly paid one, due to the extra COL allowance for living in Mountain View, is still not going to make up for the high COL vs the dude in Omaha, or Smithville Iowa.

This is addressing COL only. Of course there are a thousand factors on why a person would be in a specific location regardless, I did my time in DC as well for reasons other than getting screwed on housing cost vs income, specifically the poor COL allowance.
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