Please help...should I consider San Diego area? (transplants, short sale)

[Rtm808]

I currently live in the dfw area in Tx. I have a wife and a five year old son. Weve just returned from our 2nd trip to San Diego. Both times we left, we've been rather distraught. We love the ocean and the perfect weather. I work for a major airline and working on the tarmac in dallas summers is quickly becoming more than I can handle.

The population explosion in dfw has lead to more transplants, traffic, and increasing housing appraisals that have sent my mortgage through the roof. We would love to live in San Diego but always thought its impossible. Then I realized theres over a million people living in SanDiego and surrounding area every day!! It must be possible!!! Houses in San Diego are way more than mine bought at 185,000. But the property taxes are sixty percent less than mine and capped at that. So heres my ?s

1) Does your mortgage increase?
2) whats an accurate ball park on a monthly mortgage payment on a 4 to 500,000 dollar home in California?
3) What are other high hidden costs besides housing?
4) Are there any affordable safe areas to raise a young family within 30 miles of San Diego airport?

Thanks to all!!!

[loveautumn]

More like 3 million in San Dieogo County.

[RosieSD]

Originally Posted by Rtm808

We would love to live in San Diego but always thought its impossible. Then I realized theres over a million people living in SanDiego and surrounding area every day!! It must be possible!!! So here's my ?s

1) Does your mortgage increase?
2) whats an accurate ball park on a monthly mortgage payment on a 4 to 500,000 dollar home in California?
3) What are other high hidden costs besides housing?
4) Are there any affordable safe areas to raise a young family within 30 miles of San Diego airport?

Thanks to all!!!

You forgot a very important question: What are homes in decent, family-friendly areas selling for in San Diego County?

According to Zillow.com, the median price for a single family home in San Diego County is currently $624,900.

I know it is easy to fall in love with San Diego on vacation. Everything always looks better when you're on vacation. However, enjoying San Diego on vacation and actually living here are two completely different things.

Most of us who aren't independently wealthy have to make compromises to make living here work.

A budget in the $400K to $500K range in San Diego County is going to mean a lot of compromising on things like size of the home, type of home, condition of the home, location, school quality, neighborhood safety, commute time and even weather (most homes in your price range that are family friendly are going to be inland, where it is hotter). If you'll be stretching to afford a mortgage in that price range, you'll also probably need to compromise on things like saving for retirement, saving for your kids' college education, clothing/vacations/new cars, etc.

So, the two questions you and your wife really need to ask yourselves are:

(1) what are we willing to compromise on in order to live in San Diego?

And, perhaps just as importantly:

(2) do we really want to pay half a million dollars to make those compromises?

Of course, only you and your wife can answer those two questions. The answers will be different for everyone.

So, here's my advice, for what it's worth. Go to a site like Zillow.com or Trulia.com. Do a search for San Diego County, using $400K as your minimum and $500K as your maximum.

These sites will give you a map showing you where homes in that price range are located.

Pick a few of those areas, look at what $400K to $500K buys, then come back and ask us about those areas. We'll fill you in on what compromises will be needed to live in those areas.

Zillow.com and Trulia also have mortgage calculators that you can use to figure out what your monthly mortgage payment will be, based on the size of your down payment.

However, I would suggest that you get in touch with a mortgage broker who can walk you through the size of the downpayment you'll need for a $500K home, explain what types of mortgages you might qualify for, and detail what your mortgage payments might be under different types of mortgages.

You may also want to use this calculator to do a cost of living comparison with DFW:

Cost of Living Calculator - Cost of Living Comparison Index Tool

[RosieSD]

Also, while property taxes may seem lower here, we also have something Texas doesn't have: state income tax.

I would strongly encourage you to use an online calculator to get an idea of what your actual take home will be here, assuming your salary will be the same as in Texas.

Here is a calculator to help you get started:

https://smartasset.com/taxes/california-tax-calculator

Also, it isn't exactly true that property taxes never go up here. Voters can (and do) pass special bonds that can increase taxes in certain areas, and some newer communities here also have what are called Mello Roos assessments that can tack on extra "taxes" to your property for a certain number of years.

So, don't assume that you'll be saving 60% on taxes. After you take into account the extra you'll be paying in state income taxes and possible other assessments, and then add in your new, bigger mortgage, the upside likely will be far less than you think.

[someguy10]

Originally Posted by RosieSD

Also, while property taxes may seem lower here, we also have something Texas doesn't have: state income tax.

I would strongly encourage you to use an online calculator to get an idea of what your actual take home will be here, assuming your salary will be the same as in Texas.

Here is a calculator to help you get started:

https://smartasset.com/taxes/california-tax-calculator

Also, it isn't exactly true that property taxes never go up here. Voters can (and do) pass special bonds that can increase taxes in certain areas, and some newer communities here also have what are called Mello Roos assessments that can tack on extra "taxes" to your property for a certain number of years.

So, don't assume that you'll be saving 60% on taxes. After you take into account the extra you'll be paying in state income taxes and possible other assessments, and then add in your new, bigger mortgage, the upside likely will be far less than you think.

Also, this probably goes without saying, but keep in mind 1% real estate tax on a $500K home is only going to be a savings if your $180K home in DFW is taxed above 2.5%/year.

[Axxlrod]

I don't think there are any $400K homes in SD; at least not ones that are livable.

[GSR13]

Originally Posted by Rtm808

I currently live in the dfw area in Tx. I have a wife and a five year old son. Weve just returned from our 2nd trip to San Diego. Both times we left, we've been rather distraught. We love the ocean and the perfect weather. I work for a major airline and working on the tarmac in dallas summers is quickly becoming more than I can handle.

The population explosion in dfw has lead to more transplants, traffic, and increasing housing appraisals that have sent my mortgage through the roof. We would love to live in San Diego but always thought its impossible. Then I realized theres over a million people living in SanDiego and surrounding area every day!! It must be possible!!! Houses in San Diego are way more than mine bought at 185,000. But the property taxes are sixty percent less than mine and capped at that. So heres my ?s

1) Does your mortgage increase?
2) whats an accurate ball park on a monthly mortgage payment on a 4 to 500,000 dollar home in California?
3) What are other high hidden costs besides housing?
4) Are there any affordable safe areas to raise a young family within 30 miles of San Diego airport?

Thanks to all!!!

Ask yourself - how many of those transplants moved to DFW from California? And if so, for what reasons did they move?

[mysticaltyger]

Rosie's response was awesome. Can't add anything to it!

[1AngryTaxPayer]

Originally Posted by Axxlrod

I don't think there are any $400K homes in SD; at least not ones that are livable.

That ship sailed around 2012.

[Mugsy]

Originally Posted by Rtm808

I currently live in the dfw area in Tx. I have a wife and a five year old son. Weve just returned from our 2nd trip to San Diego. Both times we left, we've been rather distraught. We love the ocean and the perfect weather. I work for a major airline and working on the tarmac in dallas summers is quickly becoming more than I can handle.

The population explosion in dfw has lead to more transplants, traffic, and increasing housing appraisals that have sent my mortgage through the roof. We would love to live in San Diego but always thought its impossible. Then I realized theres over a million people living in SanDiego and surrounding area every day!! It must be possible!!! Houses in San Diego are way more than mine bought at 185,000. But the property taxes are sixty percent less than mine and capped at that. So heres my ?s

1) Does your mortgage increase?
2) whats an accurate ball park on a monthly mortgage payment on a 4 to 500,000 dollar home in California?
3) What are other high hidden costs besides housing?
4) Are there any affordable safe areas to raise a young family within 30 miles of San Diego airport?

Thanks to all!!!

1. Depends on the type of loan, we got an arm when we bought high in 2004. But we sold high also, so we put 100K down. We also did an interest only loan first 7 years.

2. It is going to depend on the rate and your amount to qualify.

3. HOA dues as well as Mello Roos and McMansions are expensive to maintain energy wise

4. Of course. And the trolley runs downtown and there is also an airport bus, the 992 Flyer, if you become employed at the airport, check to see if you ride free.


Try to find a fixer foreclosure or a short sale takes longer but cheaper; a distressed home