possible move from TX to SF (San Francisco: 2013, insurance, houses)

[meiniu]

our family with 2 little kids are thinking to move from Texas to the bay area.
It is a really tough decision after looking at the extremely higher cost of living there compared to TX.
Currently family income is a little more than 200k in TX. Our family income will be a little more than 400K in SF area. But still, given the expensive house price with a lot smaller sq-ft compared to house in TX, also the higher income tax in CA, still hard to convince us it is a good move. Certainly our job there is more interesting which may be the only motivation.... Any one thinks it is a good move though? Thanks a lot!

[clongirl]

Oh yeah.. You'll be downright poor here since everyone in the Bay Area makes well over a million. You'll be downright poor. Sheesh. Use some common sense, man.

Not sure why anyone would need 7,000 sq. ft house and 4 acres of land, anyway unless you're a farmer and have 12 kids and have an apple orchard.

If you can think smaller/sustainable/less obnoxious (i.e. more like a Californian) then go for it! You'll be able to find something in your price range in a nice part of the Bay Area.

---Sorry for my cynicism, btw.

[TR95]

You just proved to all these TX pundits that question me every time I bring up that on average you make more in ca than Texas even when you factor in state income tax. Again, I say on average this is the case. Good luck, you will be fine in the Bay Area unless you do want a 5,000 sf house.

[Tex N Cal]

I say go for it. Yes, SF is pricey, but 400K should be plenty of money to not only make it in the bay area, but to be doing well as long as you live within your means. My family and I moved back to Texas in 2013 from the bay area for work and personal reasons. However, although I didn't LOVE San Francisco like many here, we did love Northern California. We really miss it and may return at some point.

[meiniu]

thanks a lot for all the reply

We will work in the mountain view area. Houses around 1500-2000 sq-ft close to that area do look very expensive. Commute seems tough if living farther away from that area.
It may be unfair to compare with the house price and condition in TX. Living condition would downgrade anyway but have to find some other positive side there. TX is really good in cost of living and pretty layback state - but drawback is obvious as well

[likealady]

What's your main motivation and what type of person are you? Generally for families I suggest they pass on the Bay Area, I don't consider the struggle worth it.

[beb0p]

I did some research when I was looking to invest. From what I gathered Texas has:

1. Insanely high property tax rate

2. Insanely high home insurance

3. Insanely high cost of cooling during the hot months

4. High home maintenance cost

5. Crappy weather/climate that contributes to #2, #3, and #4

I think CA has higher up front cost (cost of housing, state income tax, etc); while Texas hit you with the hidden cost. I did the math and my conclusion is that while you do save a bit by living in Texas, it's not enough to justify living in TX over CA. I also factor in property appreciation with my forecast (faster appreciation in CA vs TX) and the opportunity cost that results from it.

If you've making $200k more in CA than in TX, then it's a no-brainer. Go CA, you will end up saving more and living in a better climate.

When you're factoring the COL you should also consider that CA has:

1. property tax rate capped at 1% + a few junk fees. Cannot raise more than 1% every year.

2. Home insurance rate is much less scary.

3. Mild climate means maintenance cost is much lower.

4. Your house (if you buy) appreciates much faster and always outpaces the nation, and definitely outpaces Texas.

[cis_love]

there are plenty of people moving from CA to TX so you may want to think long term if CA is where you want to be. however, it will probably be a great experience for your family -- there's definitely nothing like SF/Bay Area. Our family is thinking of moving BACK to the Bay Area within the next couple of months (also a job opportunity in Mt View) but our income will be far, far less than yours, so in my eyes, I think you'll be fine. Not huge TX Mcmansion fine, but 2000sf in nice area fine.

[TR95]

Originally Posted by beb0p

I did some research when I was looking to invest. From what I gathered Texas has:

1. Insanely high property tax rate

2. Insanely high home insurance

3. Insanely high cost of cooling during the hot months

4. High home maintenance cost

5. Crappy weather/climate that contributes to #2, #3, and #4

I think CA has higher up front cost (cost of housing, state income tax, etc); while Texas hit you with the hidden cost. I did the math and my conclusion is that while you do save a bit by living in Texas, it's not enough to justify living in TX over CA. I also factor in property appreciation with my forecast (faster appreciation in CA vs TX) and the opportunity cost that results from it.

If you've making $200k more in CA than in TX, then it's a no-brainer. Go CA, you will end up saving more and living in a better climate.

When you're factoring the COL you should also consider that CA has:

1. property tax rate capped at 1% + a few junk fees. Cannot raise more than 1% every year.

2. Home insurance rate is much less scary.

3. Mild climate means maintenance cost is much lower.

4. Your house (if you buy) appreciates much faster and always outpaces the nation, and definitely outpaces Texas.

All so true. There are cheap areas in TX, but the good school areas on par with the Ca schools can get pricy and after you factor in all the maintenance, utility, etc costs and huge property tax rates it can be better financially to live in CA. Of course, buy at the top of the market in CA and don't plan to stay very long, you could lose a significant amount.

[roadwarrior101]

Originally Posted by TR95

You just proved to all these TX pundits that question me every time I bring up that on average you make more in ca than Texas even when you factor in state income tax. Again, I say on average this is the case. Good luck, you will be fine in the Bay Area unless you do want a 5,000 sf house.

Not sure if the average person moving from TX to CA sees their income jump from $200k-$400k. I'd say that a 15%-20% increase is more realistic, especially if moving from one of the large metro areas in TX. I would say that after visiting Austin and considering a move there, I decided that it was worth the higher cost of living to stay in the Bay Area. However, I don't buy the argument that its typically advantageous financially to move here from TX. This is definitely an outlier.