Advice: Can I make it on 145,000 in SD? (San Diego, San Francisco: to rent, condo)

[derek10rr]

Pretty self explanatory topic. basically no major debt to speak of, Great credit, over 75,000 in savings. Can we make it on this amount in SD? Just me, wife, and one child. I'd like to buy a home eventually but am more than happy to continue to rent and save money.

This annual income of 145,000 is the maxing point however. I just want to know if it is possible to live comfortably in SD on this amount.


I'm also posting this in the CA main forums to get an idea of there is another area that may be better suited. For our work, it can be basically anywhere.


thanks in advance for any suggestions and hints.

[justsomeguy]

Hahaha. This question is a little silly. I wish I had the problem of trying to "make it" on $145,00 income and $75,000 in savings. Sheesh. I live by myself but I can scrape by on probably $32,000 income and $10,000 savings. So yes, I'm quite sure you can make it. Personally I think housing prices will continue to drop so San Diego should become even more affordable in the next few years.

The real burning question though is will the economy here hold up.....

[socketz]

The fact that your asking this question is exactly why the San Diego market will adjust back down to where it belongs, which is 2002-03 levels.

Nobody making 145k should be worried about buying an entry level home.

Your well over 2x the median family income in San Diego:
MONEY Magazine: Best places to live 2006: San Diego, CA snapshot

[norcalguy76]

no...try Oakland, California

[Woof]

I suppose you could survive, but it would involve eating a lot of home-cooked rice and pinto beans ..... maybe you could scavenge a few wilted vegetables at the grocery store dumpsters. It would take a lot of creative problem-solving to avoid being evicted from some shabby little room into the cold, hard streets of San Diego ......

.... oh wait, you said $145,000 .... I thought you wrote "14,500" .... never mind.

[derek10rr]

Originally Posted by Woof

I suppose you could survive, but it would involve eating a lot of home-cooked rice and pinto beans ..... maybe you could scavenge a few wilted vegetables at the grocery store dumpsters. It would take a lot of creative problem-solving to avoid being evicted from some shabby little room into the cold, hard streets of San Diego ......

.... oh wait, you said $145,000 .... I thought you wrote "14,500" .... never mind.

lol i get your point but i am mainly talking about the price of homes in SD. 145k should be enough but with house prices near 800k for homes, it doesnt always add up mathematically.

[SDF]

Originally Posted by derek10rr

lol i get your point but i am mainly talking about the price of homes in SD. 145k should be enough but with house prices near 800k for homes, it doesnt always add up mathematically.

OOh, you're getting ripped up pretty good here Derek...time for some damage control..

Hey, I'd say Derek poses a pretty good question, especially with these darn high mortgages. Obviously you'll most likely be fine with anything up to 500-600k but if your jobs aren't so stable, it can be tricky business. A 600k mortgage could be upward of 4k monthly, after taxes that could be half of your monthly income. I would advise not to shoot too high, because as was mentioned earlier home prices are still dropping and folks are selling low and losing money everyday at this point. Paying off your mortgage will take forever, lots of $$$ paid to the bank in interest.

If you rent, you'll be able to find a 2br. condo or apt for $850 - 2k monthly, a small house for 1,100 up to 4-5k for a huge one (5+bd and 5+ba), and you can save some serious coin during that time if you shoot well lower.

Once again: unless you have STABLE jobs, do not buy an expensive place just for show or to show off the SD lifestyle, it could backfire in any number of ways. Rent to wait out the housing downturn, analyze all areas town to be sure of what you're moving into. Good Luck!

[ndfmnlf]

My rule of thumb for buying a house is not to buy anything more than 2 times my annual income. So if you make $145k, you can only afford a $290k house. This is a strict rule that I follow, which has allowed me to save a bundle over the past few years and pad my retirement accounts. I am in the same situation as Derek. I have been offered a job in Sacramento for $165K, and even I hesitate when looking at the home prices there (although they have been coming down of late). I could never imagine myself living in San Diego, LA, or San Francisco on $165K, but Sacramento may be doable. It all boils down to your priorities: would you rather save for retirement or spend every single dime while living it up in the glitzy coastal cities of California? Living in Sacramento allows you to save for retirement while still be in easy access to the beaches and mountains. Just my two cents.

[justsomeguy]

Originally Posted by ndfmnlf

My rule of thumb for buying a house is not to buy anything more than 2 times my annual income. So if you make $145k, you can only afford a $290k house. This is a strict rule that I follow, which has allowed me to save a bundle over the past few years and pad my retirement accounts. I am in the same situation as Derek. I have been offered a job in Sacramento for $165K, and even I hesitate when looking at the home prices there (although they have been coming down of late). I could never imagine myself living in San Diego, LA, or San Francisco on $165K, but Sacramento may be doable. It all boils down to your priorities: would you rather save for retirement or spend every single dime while living it up in the glitzy coastal cities of California? Living in Sacramento allows you to save for retirement while still be in easy access to the beaches and mountains. Just my two cents.

You people disgust me. I'd give my right nut to have a job offer of $165k, no matter where I lived. I would probably die on the spot from shock.

[giraffebutt]

no, but you could totally buy 220,000 cans of spaghettios (if they're the off-brand kind)