Job offer in Costa Mesa. Where should I look for housing? How much should they pay me? (sales, mortgage)

[witchdr]

I'm still interviewing with this company, but I know they're going to make an offer. But when they asked me what my salary expectations were, I stalled. I said that I was still researching what number would make my current lifestyle possible in LA. That's where you come in.

Some data:

Current income: $70K
Current house: 1800 sq ft on .2 acre, in the suburbs
Mortgage: $180K
Home value: $225K (that would make it the cheapest 4 bedroom house in my town)
Debt: 0
Family: Wife, 17yo daughter, 3yo son and 1yo daughter.

Where should I look for homes if I work in Costa Mesa and want a comparable house to what I have now, with a reasonable commute?

How much should I say my salary needs to be?

Thanks in advance for your help!

[EscapeCalifornia]

$180k mortgage is 2.57x your annual income. Count on spending a minimum of $500k on a decent suburban house (probably smaller than you have now, and on a slightly smaller lot) in this area. Figure you can get maybe $30k out of your current house after commissions, so deduct that from the $500k *minimum* house price, leaving a mortgage of $470k. Divide that by 2.57 and you get an annual income of $182k.

[Charles]

Originally Posted by witchdr

Current income: $70K
Current house: 1800 sq ft on .2 acre, in the suburbs
Mortgage: $180K
Home value: $225K (that would make it the cheapest 4 bedroom house in my town)
Debt: 0
Family: Wife, 17yo daughter, 3yo son and 1yo daughter.

Where should I look for homes if I work in Costa Mesa and want a comparable house to what I have now, with a reasonable commute?

How much should I say my salary needs to be?

Thanks in advance for your help!

Fun question.

I know they are really rough estimates but did you try the salary tools like Salary.com Job salaries- Performance reviews- Compensation software Also, I think City Data or Moderator cut: link to a competitors site removed and probably several other financial websites (Online Investing: Stocks, Personal Finance & Mutual Funds at SmartMoney.com, Fool.com: Stock Market Advice | Stock Investing Advice) may have simple calculators.

A couple of things are playing here. Often you will get a raise, maybe a big one just by moving from one company to another. It worked twice for me big time.

Not sure I can help you with the salary though. Aerospace engineers only make 6.8% in LA than they do in CO, TX, and AL, but that is only one datapoint. What line of work are you in?

Do you want basically the same home as you have now, in a very good (> 8/10) school district? Then it looks like $300/sqft minimum. You can check yourself the recent sales from the main City Data website.

To find those good schools try this:

California School Performance Maps

So, 1800 sqft * $300/sqft = $480K. Rule of thumb is house no more than three times your income, so you need a salary of $160K, and a gigantic down payment. I wouldn't push it either with three kids (I have four kids).

Think the man is going to offer you that?

[BRinSM]

does your wife work? if she doesn't currently, would she consider getting a job after the move?

[Charles]

Originally Posted by BRinSM

...would she consider getting a job after the move?

So she can net $0.60/hr after paying for daycare for 17month, 1yr, and 3yr old kids.

[witchdr]

Great feedback!

Ok, to the questions:

I'm a Tech Writer IV (Sr. tech writer; 10 yrs experience), documenting software and hardware. The median salary for that position in LA is about 86K. The 75th percentile earns 95K I believe. (Got those from salary.com and dice.com.)

I think I need the same amount of living space in a house. We're a little crowded as it is. I can't imagine having just 3 bedrooms or less than 1800 sq ft. However I certainly don't need a .2 acre lot. It's a bit much anyway, especially now with the little ones to look after. But I do want some outdoor space for the kids to play in.

I would like to get the kids in a decent school.

My wife does work two days a week as a dental assistant. She earns about as much as a dental assistant can here in Utah; she has over 10 yrs exp. I am trying to figure out how to live without her working, at least until the kids are in school.

Basically it looks pretty bleak. I mean even if they pay me 100K, that's only 300K of house (according to the 3x income rule), and I've seen some of what that buys in OC. This gig probably won't work out.

[Charles]

Originally Posted by witchdr

I can't imagine having just 3 bedrooms or less than 1800 sq ft. However I certainly don't need a .2 acre lot. ...


This gig probably won't work out.

0.2 acres is only a 8700 square foot lot, not that big anyway.

I agree with your gig assessment.

[bhcompy]

costa mesa country club area would be nice and close. you can also check areas of irvine, huntington beach, fountain valley, newport beach, and tustin to stay relatively closeby and in areas where decent to great schools exist. i would also suggest the wife get a job. me and my wife make around 75k total and its not enough to afford everything that goes with a house in the area and have amenities in out lives.. you'll be making a bit more, but not that much more. perhaps if you generate enough profit from your old house you would be comfortable, but i dunno

[Charles]

Originally Posted by bhcompy

me and my wife make around 75k total and its not enough to afford everything that goes with a house in the area

With a $75K income you either put a lot down recently or bought a long time ago or didn't buy an 1800 sqft home, right?

[k374]

Originally Posted by witchdr

This gig probably won't work out.

well, you could always rent. Prices ARE coming down here. The rest of us are all not rolling in money that we can pay half a million dollars for a decent place to live and raise a family. It is a ridiculous situation that is temporary, it has never been like this in the past 50 years before the bubble, so why would you imagine it is permanent?