Considering a Job Offer -- So many questions! (San Francisco, Palo Alto: real estate, to rent)

[jrn]

My husband has recently received a job offer in the Palo Alto area. We currently live in Greater Boston. I thought Boston was expensive until we started looking at SF real estate! Holy Cow!

So, I have a ton of questions -- some factual, some opinion-based. The offer looks like it will come in at roughly $225K base/$100K bonus per year (bonus is fairly reliable -- but I still don't like to count on it). I currently stay home with the kids and would like to continue to do so.

1) Communities. We live in a suburb of Boston with EXCELLENT schools. We chose our roughly 2000 sq. foot house in this community for this reason. Our oldest child will be starting kindergarten next year, so schools are very important to us. Based on the research I've done so far, I've narrowed Palo Alto area communities to (off the top of my head): Palo Alto, Menlo Park, Portola Valley, Belmont, Los Altos, Burlingame, Redwood Shores and Cupertino. Does this sound about right? Any others I should really be considering?

2) Rent or Buy? We initially thought that for sure we would buy, but the costs are just astounding, and even with this salary we're not sure we could afford much. Further, we're terrified that we would buy, real estate prices would fall dramatically, and then we wouldn't be able to sell if we want to. Your thoughts?

3) Monthly rent vs. Monthly mortgage. From what it seems -- it's so hard to know going just off of online searches -- we could get basically the same house in half the rent per month that we would end up paying on a mortgage (ex: 1900 square foot home for roughly $4000/mo rent, or $8000 mortgage, taxes, insurance). Does this seem right?

4) Moving kids around. For those of you with experience . . . If we rent, it's more likely that we'll move the kids around more. We'd be moving now (not too big a deal, since oldest child would have a big transition moving to kindergarten next year anyways), probably again if/when we decide to buy a place -- say in two to three years. . . And then possibly AGAIN if we decide to relocate back to the East Coast eventually. Is all of this moving around unfair?

5) How great is the SF area? I've never really been. Obviously I'll have to visit before signing on the dotted line, but . . . Is is wonderful? If we can afford to live there, are the extra benefits as good as I imagine them to be -- good weather, lots of natural areas, culture, etc. . . Might it be worth a slight decrease in "lifestyle" -- smaller house, for example -- for the less tangible "extras"?

Anything you have to offer is greatly appreciated. Thanks so much.

[MaggieZ]

Why would you buy if you are not staying there that long? I'd say rent something nice so you and your family don't have to move again and again. Unless you decided to never go back East and then it would make sense to buy. Moving around may be exciting and wonderful at the time but it takes a kid's roots away. Especially when they get to be school age, it's better to stay in the same neighborhood/town so they can settle down and have some feeling of security.
Of course the way real estate is, you may buy something and have to sell at a loss later on. There's no guarantee.
As far as areas, I really have no idea what would be the best one.
Probably others here can help with that.
Just my opinion...

[sonarrat]

I would just rent in Palo Alto. The only, single, solitary drawback to living there is the price. You've got that covered. Go for it.

Oh, just make sure you don't get suckered into the city of East Palo Alto. Totally different kettle of fish there.

[jrn]

Thanks. That's sort of our feeling. The problem is that we really don't KNOW if we'll stay or not. When we moved here we thought we were settling permanently, and look what's happening?!?

. . . But I suppose I'm answering my own question . . . After a year or so out there we should have an idea if we want it to be a permanent experience or not. If it is, then we look into buying and assume that we won't have to move again. If it isn't, then we continue to rent until we decide to move back to the east coast. . .

I just hate to feel as though I'm "throwing away" my money in rent. But if home prices are more likely to fall then I suppose that's not what we'd be doing. . . . If only we had a crystal ball.

[clongirl]

At this time, you certainly wouldn't be "throwing away" your money by renting. If you rent, invest all the money you would be saving on a mortgage, property tax, insurance costs, maintenance, and furnishings. As I'm sure you've already noticed, prices around the Bay Area are still outrageous for the majority of people. Prices now days have only one way to go- and that is down- or at least hold steady for quite a while (in my opinion, of course!). It's especially not wise to purchase a house around these parts unless you know for sure you'd be staying long term. Good luck with the move.

[KRISTINsf]

My family is from Boston and Ny. You'll always wind up going back, for some odd reason.

San Francisco is exciting when you first move, but things become boring real fast. For your price range, why not look into Pacific Heights?

[gizmo980]

Originally Posted by KRISTINsf

My family is from Boston and Ny. You'll always wind up going back, for some odd reason.

San Francisco is exciting when you first move, but things become boring real fast.

Hmmmm... my family came from back east 25 years ago, and none of us have ANY desire to go back! My sister went to college in Philadelphia, my brother in New Orleans, I went to Oregon, and my father even moved back to DC for a few years - all of us returned to California rather quickly. Sorry, but they can keep their humidity, snowstorms, flat scenery, and everything else that makes me prefer the west coast. Not that the east coast is bad, just different.

To answer the original poster's question, I'd recommend renting until you're sure about staying here. Palo Alto and Menlo Park are very nice towns with good schools, and I think you can afford them on that salary. Los Altos is also nice... Portola Valley is too, however it's slightly inaccessible & has a "rural" feeling (which you might like). Burlingame, Hillsborough & Foster City are good places to live on the north Peninsula, though it will make for a longer commute. As for the South Bay, I'm not an expert on that area, but know Los Gatos, Saratoga & Cupertino are ones you should consider. Good luck!

[jrn]

Thanks, everyone! I think we've decided on renting and we're in the process of negotiating our offer right now. Hopefully we'll have all of this settled soon!

I'm going to post another thread just about school systems now, as I'm wondering if I should consider other communities. . .