Let me have it; don’t hold back (San Diego, Kensington: for sale, real estate)

[KingHenry123]

So it seems I’ve been slapped across the face with the quintessential American question: do I do what’s easy for my young family (Husband, Wife, Newborn currently living in low cost of living city in the South near family) or do I do what’s easily the better career opportunity (move to San Diego for an obvious upgrade in career trajectory in a position that is at the near peak of my function in my industry)?

Here are the pros:

1) Career advancement
2) Quality of Life / things to do

Here are the cons:

1) Away from family / support / friends / existing business network
2) SD cost of living appears mountainous

I think my spouse and I can arrive at an informed decision with regards to the above. Assuming SD can be affordable, the scale of opportunity tilts clearly in its direction. But about that affordability ... here are the numbers:

1) Combined household income (gross): $200k to $250k
2) Need for child care: none outside of babysitter here and there for Dad and Mom night out
3) Monthly cost of Student Loans / 2 Vehicles: $1,600
4) Desired location: anywhere within 30-min commute of downtown
5) Safety rank (1-10): 10 - this is a non-negotiable
6) Good public school district rank (1-10): 5 - newborn will obviously be a few years out
7) Desire to move to San Diego and barely make ends meet: very little, as this in our minds would almost outweigh the career considerations

With all that said, can one comfortably live in / close to San Diego subject to the aforementioned considerations / restrictions?

My sincerest thanks in advance for your input!

[expatCA]

Originally Posted by KingHenry123

So it seems I’ve been slapped across the face with the quintessential American question: do I do what’s easy for my young family (Husband, Wife, Newborn currently living in low cost of living city in the South near family) or do I do what’s easily the better career opportunity (move to San Diego for an obvious upgrade in career trajectory in a position that is at the near peak of my function in my industry)?

Here are the pros:

1) Career advancement
2) Quality of Life / things to do

Here are the cons:

1) Away from family / support / friends / existing business network
2) SD cost of living appears mountainous

I think my spouse and I can arrive at an informed decision with regards to the above. Assuming SD can be affordable, the scale of opportunity tilts clearly in its direction. But about that affordability ... here are the numbers:

1) Combined household income (gross): $200k to $250k
2) Need for child care: none outside of babysitter here and there for Dad and Mom night out
3) Monthly cost of Student Loans / 2 Vehicles: $1,600
4) Desired location: anywhere within 30-min commute of downtown
5) Safety rank (1-10): 10 - this is a non-negotiable
6) Good public school district rank (1-10): 5 - newborn will obviously be a few years out
7) Desire to move to San Diego and barely make ends meet: very little, as this in our minds would almost outweigh the career considerations

With all that said, can one comfortably live in / close to San Diego subject to the aforementioned considerations / restrictions?

My sincerest thanks in advance for your input!

Where will you be working and what is your housing budget?

[kettlepot]

You will have a gross income of $20k per month. Most of the rest of us who live here do it on a lot less.

This question is really all about housing. Most of your other costs will be within 20% of what you're paying now. For housing, I'm estimating a $800,000 house/townhouse situation. With 20% down ($160,000) I believe you are looking at a monthly payment of $3350 + 150 (fire insurance) + HOA ($400?) or $4000 per month.

You are really complicating things by the combination of a "10" on the safety scale combined with a 30 minute commute to Downtown. The Coaster commuter train might allow you to live further north than 30 minutes, but then you'll be in the north county coastal housing bubble and will be paying a lot more for housing. In that area, your only choice will be a townhouse. If buying, maybe you could find something in Mission Hills at the bottom of the range. For example, currently there is a 2 bed/1 bath cottage available in southern Mission Hills at $800,000.

Also, you could rent. Housing prices have plateaued so I don't think you have to rush out and buy. Use the intervening year to aggressively save for your down payment.

Personally, I think you should make the move. The opportunity you're being offered is good, and if things flop you can always move back. Your family support will still be waiting for you.

[KingHenry123]

@expatCA - I’ll be working downtown. I’d like my all-in housing budget (the items kettlepot lists) to be in the 3k-4K range.

@kettlepot - I definitely plan on renting until we get our bearings. The thought of getting into a home for 800k before I even get comfortable with the new position is pretty frightening. Preferably something like 3 bd / 2 ba with a yard if that’s possible for 3k-4K a month. Do you mind clarifying what you mean by the safety / commute combo being complicated? Are you saying I should be looking closer to city center?

Thank you both. It is really very appreciated. I’m inclined to make the move if I can sell my wife on it (feel like I’m just about there).

[sfosyd]

Can I ask where you are living now? Compared to most cities in the south, San Diego is Disneyland safe.....

[KingHenry123]

Oh, there’s no doubt it’s Disneyland compared to where we are (New Orleans). I’d still like to make sure we are in a safe area, though. I’d imagine just about anywhere is safer than here, but I’m not an expert so thought I’d ask.

[sfosyd]

I think you will love it here. I’d look at the areas of University Heights and Mission Hills as described above.....easy commute to downtown and great schools at least to high school.

Your budget should be fine. It’s probably cheaper in urban San Diego than nice urban areas of New Orleans such as the garden district. The difference is the San Diego suburbs are MUCH more expensive than suburban New Orleans so it depends on the type of lifestyle you are looking for.

Also, this place is nearby and opening to remind you of home:

https://sandiego.eater.com/2018/8/9/...ant-north-park

Good luck.

[KingHenry123]

Thanks, sfosyd. That’s an interesting distinction on the urban vs suburban differentials between SD and NO and helps put things into perspective for sure. I think my wife would enjoy the proximity to walkable attractions in the urban setting, but it’s hard for a southern girl not to live in a proper house with proper yard and proper detachment from the neighbors. All things to consider for sure.

And, yes, a Vieux Carre or Sazerac would make me feel right at home Ramos Gin Fizz would be enjoyed as well.

Thanks again. I’ve got some homework to do, but this has been a great help.

[lostsoul359]

Welcome King Henry! San Diego is a melting pot, you just have to watch the local news to see what local cities have the most local news like crimes DUIs etc...

It is a no brainer, if you listen to the local news.

[kettlepot]

The 30 minute commute is an issue because there are very few ultra, ultra safe (that's what a "10" means to me) single family home neighborhoods within 30 minutes of a rush hour commute to Downtown. You see, a 30 minute commute doesn't take you very far in San Diego traffic.

It's very hard to find that level of safety outside of a gated community. Now, if you could compromise on just living in a safe neighborhood, the type where there is the occasional car theft or car break in for cars parked on the street, or maybe a mid-day package theft of items left for hours unattended on front door steps, then there are a lot more choices. I don't think even the worst neighborhoods of San Diego approach the average crime rate of New Orleans.

What type of house would your wife find acceptable? Would she live in an older home? Anything older than 30 years won't have to pay Mello-Roos bond payments. Personally, I prefer the older pre-1950 homes.

Also, as you can tell, land is at a premium. Typical lot sizes are 5000 square feet. There will be none of these 1 acre lots you find in the east, unless you have serious cash. Caveat on lot size. Sometimes there are houses with large lots which are built on the edge of unbuildable canyon slopes. The land is otherwise useless except as a privacy barrier and fire hazard.

In my last post, I understated current interest rates. So, here's a real life example of a $820k house currently for sale in Kensington. Kensington is a nice neighborhood. 2 bedrooms, 2 baths. 1200 square feet. 4900 square foot lot. Built in 1928.

Assuming 20% down, 30 year mortgage, P&I $3514 + Prop Tax $854 + Insurance $205 = $4,573. No Mello-Roos because it's an old neighborhood. Personally, I think the estimated insurance is about $100/month too high.

I think you could make it Downtown in close to 30 minutes from this location.

Finally, while Southern California real estate swings wildly in price, it will never suffer Rust Belt price implosions where values sink and never rebound. Our climate will always be the best climate on earth.