Cost of Living vs. Tech Salaries in Mountain View area (San Jose: buying a house, neighborhood)

[511pf]

Seconding the things people said here about the cost of living. Figure on $2,000 to $2,500 per month to rent a 1950's three bedroom house. Also be aware that he will be working 60 - 80 hour weeks (and more during crunch time) to earn that salary. Not sure if working for a defense contractor includes the same expectations.

[Wintermomma]

Originally Posted by 511pf

Seconding the things people said here about the cost of living. Figure on $2,000 to $2,500 per month to rent a 1950's three bedroom house. Also be aware that he will be working 60 - 80 hour weeks (and more during crunch time) to earn that salary. Not sure if working for a defense contractor includes the same expectations.

And if you can find a house like that in a good area (meaning school-wise) I think it would be much more. Or a house that's in total 'original' condition. Or PPer has some secret rental hook up I couldn't find.

[80skeys]

Originally Posted by Karamia36

My question is two-fold:
1. If we moved to Mountain View, what sort of salary would be necessary in order for us to maintain a similar standard of living for ourselves and our children?

You can either look at this without a house or with a house.
If you decide to rent an apartment or house then your dollar will stretch a lot farther, simply becuase of the unbalanced cost of buying property here.
That's pretty much the decision you'll face.

2. Is the answer to #1 a salary that a software engineer could reasonably expect to earn in Silicon Valley?

Take his job title, go to glassdoor.com and look it up for Mountain View/San Jose. Then go to Salary.com. Average these together and that's what he can expect to earn. A Senior Software Engineer is probably around $140k in Silicon Valley. If that's your only source of income, then it would be impossible to buy a house (or at least the type of place you are accustomed to) but you could swing renting a smaller house or apartment and be okay. Even then, it might be a bit tight with two kids but at least you will be able to keep your head above water.

[80skeys]

Originally Posted by yeahthatguy

Given your husband's Stats.. If he is is a great engineer working for the right company, with his experience .. He will easily be able to clear $150k .. I'd say, he'd be able to command $200k.

No. Only if he's the top of his field (a recongized expert, published author, patent holder, etc.).

I was a software engineer in defense 1 year out working in orlando.. and came here .. the pay increase wasn't enough to cover the COL difference .. Right now, a very skilled software engineer out of college can command $100-$120k out of a top tier college.. thus, why I say your husband will be up on the $200k range ..

My buddy is a Senior Java developer with over 20years Silicon Valley experience and a M.S. degree in Physics. He makes $125k. Granted, that's a San Francisco wage. In the Valley he'd be making maybe $140k. The only way you get up to the $200k range is if you make the jump to management and even then you're probably looking at $180k for titles like "V.P. of Operations" or V.P. of Engineering.

[Nell Plotts]

The unsaid piece is that salary is base. Professionals and Managers income is significantly increased by stock options. The reason why homes are so expensive is that buyers are cashing in their stock holdings, they are not buying with salary income.

The OP's husband should take a long look at the employer's practices with respect to bonus and stock options. Stock options are tricky tax wise. Be sure to consult with a local accountant familiar with their issues.

[511pf]

Originally Posted by Wintermomma

And if you can find a house like that in a good area (meaning school-wise) I think it would be much more. Or a house that's in total 'original' condition. Or PPer has some secret rental hook up I couldn't find.

Yeah, the school thing I never researched, so I would defer to your superior knowledge.

[yeahthatguy]

Originally Posted by Nell Plotts

The unsaid piece is that salary is base. Professionals and Managers income is significantly increased by stock options. The reason why homes are so expensive is that buyers are cashing in their stock holdings, they are not buying with salary income.

The OP's husband should take a long look at the employer's practices with respect to bonus and stock options. Stock options are tricky tax wise. Be sure to consult with a local accountant familiar with their issues.

From my understanding, I know a lot of people who are barely getting by because homes are still too expensive.. can barely put together 20% down.. arm loans and the like.. in fact, the bay area has one of the highest rates of these kinds of loans.... People are stupid and everyone is chasing the same carrot .. that's why prices are high.

"From 2004 to 2008, "one in five people who took out a mortgage loan (for both purchases and refinancing) in the San Francisco metropolitan region (San Francisco, Alameda, Contra Costa, Marin and San Mateo counties) got an option ARM," said Bob Visini, senior director of marketing in San Francisco at First American CoreLogic, a mortgage research firm. "That's more than twice the national average."

Bay Area foreclosure action heads back up - San Jose Mercury News

People aren't balling here .. Given the home prices, they are 'just getting by'.. which is why i suggested to the op to brace for 'starting all over again' in order to live here.. jumping back on that 30 year mortgage train and home slavery.

[80skeys]

Originally Posted by Nell Plotts

The unsaid piece is that salary is base. Professionals and Managers income is significantly increased by stock options. The reason why homes are so expensive is that buyers are cashing in their stock holdings, they are not buying with salary income.

This isn't accurate. Most people don't have stock options that are worth anything or anywhere near enough to make a dent in buying a house.

Mostly what you see is a multiple-income household saving up for a downpayment and using that to buy the property.

[Nell Plotts]

I don't dispute the "mostly" statement because "most" people cannot afford to buy a home, period.

My daughter once commented that she was getting tired of being outbid by a Google Admin buying with stock options. A cash offer was not unusual. Your experiance may differ.

[jbunniii]

Originally Posted by 80skeys

No. Only if he's the top of his field (a recongized expert, published author, patent holder, etc.).

My buddy is a Senior Java developer with over 20years Silicon Valley experience and a M.S. degree in Physics. He makes $125k. Granted, that's a San Francisco wage. In the Valley he'd be making maybe $140k. The only way you get up to the $200k range is if you make the jump to management and even then you're probably looking at $180k for titles like "V.P. of Operations" or V.P. of Engineering.

I agree if you're considering base salary only. However, with additional stock compensation (RSUs or stock options), a senior engineer can certainly clear $200k+ per year.

Of course, the level of stock compensation varies with the stock price and with the employer's generosity from year to year, and in my opinion it should not be included when considering a housing budget.