Anyone plan to leave LA after a few years making decent money? (apartment, rent)

[yoyoma02]

I have lived in LA for the past year and a half. I moved out here for a job. While I don't make a ton of money, I'm making about $60k a year which is the most I've ever made in my life (I'm from a small town in the midwest).

While I love LA, it's so just friggen expensive. It really gets depressing thinking that I'll have to wait another 20 years to buy a basic starter house. Not only that, but if I were making $60k in small town Minnesota, I could basically afford to do anything I wanted...

Has anyone ever thought about taking the money they make on the West Coast, saving a bunch of it, and then moving to the midwest, where you could buy a house for pennies on the dollar as what it would cost out here?

Ahh.. just thinking about all the money I'm spending to live out here...

[Count David]

Or you could move somewhere, get a bump in income, and also a relief in COL....

[JohnG72]

Just stop caring whether you own a house or not and LA becomes instantly less expensive.

The entrenched nonsense that renting is like "throwing money away" is such noise. Renting allows you to live in neighborhoods you otherwise could not afford, allows you to put more money into investments, and gives you the option of moving whenever you'd like.

Purchasing a home in LA at the moment, particularly in areas stubbornly still bubble inflated right now(like the entire westside), is a huge albatross around your neck.

On your income, I'd either find an older apartment in a decent neighborhood at $1100/mo or so, or I'd have a roommate in a 2 or 3 bd apt in a nicer area. Just a couple weeks ago a clean, responsible, mature young professional in my building was advertising for a roommate. This is in a 1250 sq ft 2bd/2ba apartment in a nice, trendy, super walkable area. Asking rent was $1100/mo including utilities. At that price point, its 20% of your gross. Thats very very affordable. You get to live in one of the best areas of the entire country, in a neighborhood with a ton of young professionals, easy walking to shops, bars, restaurants, nightlife, and more, and its very affordable. Doesn't really get much better than that.

[drshang]

Originally Posted by JohnG72

Just stop caring whether you own a house or not and LA becomes instantly less expensive.

People say the key to happiness in LA is to live close to work...but this might be the other one.

If you want to live here, plan a financial future that doesn't involve buying a house. If prices drop to reasonable levels, you should have plenty of money to put money down. If they don't, you can still retire and meet your goals without it.

[BRinSM]

Originally Posted by drshang

People say the key to happiness in LA is to live close to work...but this might be the other one.

If you want to live here, plan a financial future that doesn't involve buying a house. If prices drop to reasonable levels, you should have plenty of money to put money down. If they don't, you can still retire and meet your goals without it.

^^^what he said

also, you probably shouldn't count on making $60k in BFE Minnesota.

[jaypee]

Originally Posted by yoyoma02

Has anyone ever thought about taking the money they make on the West Coast, saving a bunch of it, and then moving to the midwest, where you could buy a house for pennies on the dollar as what it would cost out here?

But then you'd have to live in the midwest instead of LA!
I'm only half serious ... you moved to LA for a reason/goal so have you done what you came out here to do? If so, it's probably valid to evaluate.

[Dunbar42]

In addition to what everyone else is saying it would take many years to save enough money to buy a house in the midwest on $60k/yr in LA. You sound young, most of the increase in income is supposed to come in the first 10 years of your career. So purely from a money standpoint the longer you stay out here the higher salary you could demand in midwest if you decided to move back there. I'm not saying you'll get the same salary in the midwest as you have in LA, just that your current salary has a big impact on what you can demand from another employer.

[eastontracks]

i moved out here earlier this year for a job with the dodgers and had another small part time job to supplement that income. although it's probably more than what i would've made back in texas, i'm re evaluating my options to see whether it's worth staying in LA. i love it and all but the cost of living is the biggest factor. decisions decisions lol

[yoyoma02]

Originally Posted by Dunbar42

In addition to what everyone else is saying it would take many years to save enough money to buy a house in the midwest on $60k/yr in LA. You sound young, most of the increase in income is supposed to come in the first 10 years of your career. So purely from a money standpoint the longer you stay out here the higher salary you could demand in midwest if you decided to move back there. I'm not saying you'll get the same salary in the midwest as you have in LA, just that your current salary has a big impact on what you can demand from another employer.

I think I gave the wrong impression. I love LA. I don't plan on moving anytime soon. I'm 28 and plan on being here for another few years.

However, once I get a bit older and established, I won't want to be living with roommates in my mid-30s...

Also, my point wasn't that I'd make the same money in Minnesota - I highly doubt I'll make the same money and there aren't nearly as good opportunities there either. I'm in sales, so it all depends on what I'm selling. Salaries range from $10/hr to $100k+ year in sales, based on the product and industry.

However, my money will go a lot longer there than it does here, that's all I was saying. So, if I could sock away $100k in the next five years and then move back to Minnesota, I could almost buy a house for cash.

[Dunbar42]

Originally Posted by yoyoma02

However, once I get a bit older and established, I won't want to be living with roommates in my mid-30s...

On a $60k/yr, and I'm guessing it's still going up, roommates are not a financial necessity.

However, my money will go a lot longer there than it does here, that's all I was saying. So, if I could sock away $100k in the next five years and then move back to Minnesota, I could almost buy a house for cash.

And my point was that it would be almost impossible to do that on $60k/yr in LA so there's no point in bumming yourself out about it.