Moving from Cleaveland to OC- Cost of living comparison (Sacramento: sales, to rent)

[TroyIrvine]

We are planning to move from Cleveland OH to OC,California. The jobs I am interviewing are offering 10 to 20% more than I make now. But when I compare cost of living between the two places online using bankrate, CNNMoney, Best places.net are saying that I need to make 50% to 120% more than I make now to keep the same standard of living. I feel it is very difficult to get a similar or a litter higher profile job with 60% to 100% jump in pay.
I was assuming that housing will cost 10K more and other things like state taxes, gas may cost 5k more. Can any one suggest how much I have to make in OC to keep the same std of living. ? We are willing to rent and willing to downsize housing.
Pls share your experiences.
Thanks in advance

[buckeyenative01]

I'm guessing you have a wife/family/SO since you mentioned "we." I did okay on 30K renting out a bedroom in Orange (found on Craigslist) near work, but I'm in my 20s, single, economically conservative and had no major bills other than college loans.

Unfortunately, I have no idea what the housing market's like right now. Last I heard (and its been a while) the median price for a house was somewhere between 400K and 350K. 400K probably wouldn't get you much, especially in a bad part of Santa Ana with crappy schools.

Long story short, in what city will you potentially be employed (Irvine?)? Commute times suck if you live more than 5 miles from your house and have to use a freeway during rush hour.

Not trying to sound discouraging, just trying to be realistic.

[vdy1985]

Originally Posted by TroyIrvine

We are planning to move from Cleveland OH to OC,California. The jobs I am interviewing are offering 10 to 20% more than I make now. But when I compare cost of living between the two places online using bankrate, CNNMoney, Best places.net are saying that I need to make 50% to 120% more than I make now to keep the same standard of living. I feel it is very difficult to get a similar or a litter higher profile job with 60% to 100% jump in pay.
I was assuming that housing will cost 10K more and other things like state taxes, gas may cost 5k more. Can any one suggest how much I have to make in OC to keep the same std of living. ? We are willing to rent and willing to downsize housing.
Pls share your experiences.
Thanks in advance

I think it can work... as long as the bold is true.

[Charles]

Originally Posted by TroyIrvine

when I compare cost of living between the two places online using bankrate, CNNMoney, Best places.net are saying that I need to make 50% to 120% more than I make now to keep the same standard of living.


Can any one suggest how much I have to make in OC to keep the same std of living. ?

CNN did and you received a pretty believable and reasonable response. Suggest trying some other online comparison tools - they will probably provide a similar response (especially if they are pulling from the same database.)

Time is on your side. A lot of people think housing prices will continue to fall and housing prices are the overwhelming majority of the difference in cost of living.

[killer2021]

yup, it is true. Only the rich or high incomes should live in OC.

[Poptarts]

What is your definition of "standard of living"? Not being sarcastic, just everyone has different ideas. For me, I can manage sharing a room with my child to save rent, others would never consider this. Housing prices, IMHO, run from $400,000 to $700,000 for an average size home in an excellent neighborhood/school district.

Rent typically starts at $1300 or more for a one bedroom in a good neighborhood.

Am I understanding you correctly that it is your impression that the difference between Ohio and Orange County homes is about $10,000? What is the average cost of a home that meets your standard of living in Ohio?

In case you have not heard, our state just passed new tax increases. California now has the highest taxes in the U.S. You can calculate your anticipated tax at this website: Calculate personal tax impact of proposed budget - Sacramento News - Local and Breaking Sacramento News | Sacramento Bee.

[TroyIrvine]

For housing I pay $1400/month in Ohio for a 3 bedroom home. If I rented I would probably pay the same amount. I haven't built any equity on my home in Ohio even after paying mortgage for 7 years and putting 10% down. In OC, I see places like Irvine (need good schools for the kids) rent for 3 bedroom condos, houses range from $2200 to $2500/month So, I was hoping that housing will cost $10k to $12k/year more in OC than in Midwest. I dont mind renting and will not miss snow removal, cutting grass and constant work required to maintaining homes in Midwest. State income taxes are 4% more and sales taxes are 3%more. So these taxes take up another $5K+/year. If my spouse and I make around 120K/yearcombined in Midwest and get offer for $145K/year in OC, can we live a similar life?
We will shop in same stores like Costco, Target and Khol's.
Things like food, clothing, phones, utilities, cars, are going to cost the same and health insurance is paid by employers with little copay and public schools will not cost in both places. So, why do online sites say OC cost 50% to 100% more than Midwest. What am I missing?
Other benefits in OC:
- In OC we will save on heating cost (it costs $250/month for 6months during winter here in OH)
- Can go to beaches, parks year around and dont have spend to entertain ourselfs.
-

Thanks in advance.

[EscapeCalifornia]

Originally Posted by TroyIrvine

So, why do online sites say OC cost 50% to 100% more than Midwest. What am I missing?

Its all the little stuff that adds up quickly. You may not need as much gas to keep warm in the winter, but you'll need plenty of electricity to keep cool in the summer in Irvine. Our rates are among the highest in the country. So you could trade that $250/mo winter gas bill for a $150/mo summer and fall electric bill.

Car registration is very expensive too. I'm looking at close to $500/yr. Don't forget the most expensive gasoline in the county.

Any business you deal with will have higher costs in CA so they'll charge more. That goes for the washing machine repair man, the auto mechanic, the car wash, dentist, etc.

You'll pay all kinds of fees and taxes you probably never imagined. We have taxes on beverage containers, TVs and computer screens, tires and oil, etc.

Irvine schools are dominated by high achieving Asians who do anything to get straight A's. You should see how many tutoring places there are around town. You'll probably need to pay for tutoring for your kids too if you want them to keep up.

And while your wife and you are both working full time, who's going to watch the kids? That'll surely cost more here than in Ohio.

In your income bracket, you're considered rich by the state of California and are public enemy #1 at the moment. The 9.3% income tax rate kicks in at an AGI of $94k. Oh, and they just added a tax on the tax and raised the sales tax to 8.75%.

Don't dismiss those cost of living calculators so quickly.

[Count David]

Originally Posted by EscapeCalifornia

Oh, and they just added a tax on the tax and raised the sales tax to 8.75%.

OUCH!!!

I hadn't heard about that.

[EscapeCalifornia]

Originally Posted by David Aguilar

OUCH!!!

I hadn't heard about that.

Some cities in LA county are at 10.25% sales tax now. The state's also taking away the $200 per child tax credit over a certain income level too. The worst part is that the latest tax increases are based on tax revenue projections for 2009 that are already falling behind. I heard that February's shortfall is already $1B and the ink hasn't even dried on the budget. Its going to get A LOT worse unless the state can actually cut its budget.