Love Silicon Valley BUT . . . . (San Jose: real estate, apartments, rental)

[bobby_guz_man]

Originally Posted by PhoenixSomeday

I grew up in Santa Clara and just moved away almost 5 months ago. I'm in my early 30s. I worked retail back home, but here I'm finally doing my dream of software development. I'm definitely far better off here!

Congrats! I remember some of your posts regarding pursuing software career in the Bay. I'm glad that you found an open door! Though it's not in the Bay, it's still all good!!! Happy for you!!!

[RecentGrad1]

I fully agree with you, OP. Taxes are ridiculous and COL is obscene. I rent and would never consider owning in this area. I DO plan to leave, but right now due to the salary increase from COL I'm better off here than elsewhere.

[marcopolo666]

Originally Posted by RecentGrad1

I fully agree with you, OP. Taxes are ridiculous and COL is obscene. I rent and would never consider owning in this area. I DO plan to leave, but right now due to the salary increase from COL I'm better off here than elsewhere.

What taxes, exactly, are 'ridiculous' ?? (I assume that you mean "it eats up a lot of money".)

You'd have to make a LOT of money for the difference in state income taxes to make much of a difference. It's the housing cost that's the real bear, and housing is not cheap around here - although it is not that difficult to find a 2 BR appt in a decent area for $2500 or less - $16K/yr. That means $60K/yr salary is easily do-able to live here comfortably.

[RecentGrad1]

Originally Posted by marcopolo666

What taxes, exactly, are 'ridiculous' ?? (I assume that you mean "it eats up a lot of money".)

You'd have to make a LOT of money for the difference in state income taxes to make much of a difference. It's the housing cost that's the real bear, and housing is not cheap around here - although it is not that difficult to find a 2 BR appt in a decent area for $2500 or less - $16K/yr. That means $60K/yr salary is easily do-able to live here comfortably.

I agree that it's "worth it", that's why I'm still here - the Valley is an even better deal for as frugal of a person as me - I'm content with 250 Sq. Ft and no car. But the sales tax (almost 10%) and state tax (almost 10%) are crazy, particularly with how this state is doing. Also subtract another 10% due to COL. When I retire (a little less than 10 years from now) I definitely plan to get out. There's no reason to pay so much.

[vadaseri]

Originally Posted by RecentGrad

When I retire (a little less than 10 years from now) I definitely plan to get out.

Recent grad retiring in less than 10 years? Hmmm...

[cardinal2007]

Originally Posted by vadaseri

Recent grad retiring in less than 10 years? Hmmm...

The person lives a very minimalist lifestyle, and he or she probably makes well into 6 figures, I'm guessing he or she calculated it out to retire by 35, and have a 60 year retirement.

[bentobox34]

Originally Posted by marcopolo666

what taxes, exactly, are 'ridiculous' ?? (i assume that you mean "it eats up a lot of money".)

you'd have to make a lot of money for the difference in state income taxes to make much of a difference. It's the housing cost that's the real bear, and housing is not cheap around here - although it is not that difficult to find a 2 br appt in a decent area for $2500 or less - $16k/yr. That means $60k/yr salary is easily do-able to live here comfortably.

$2500 * 12 = $30,000.

[oldtrader]

You can use a cost of living calculator, to compare the costs of living between different areas of the country.

Cost of Living comparison calculator

Example, you could take over 1/3rd less salary to live in Phoenix vs. Silicon Valley and still have the same standard of living.

When you use the median household income for a metro area, and adjust it for cost of living, you will find there are a lot of places that make more money than in the Silicon Valley and other areas of California with lower salaries.

List of Metro Areas By Cost Effectiveness (Adjusted Income) | True Cost - Analyzing our economy, government policy, and society through the lens of cost-benefit

Note that Silicon Valley is clear down to 25th place right behind San Francisco, well behind the major parts of Texas, through Phoenix AZ. The IT metro areas of Colorado, and Utah also beat out the Silicon Valley. And poor old Los Angeles is clear down at 49th place.

[RecentGrad1]

Originally Posted by cardinal2007

The person lives a very minimalist lifestyle, and he or she probably makes well into 6 figures, I'm guessing he or she calculated it out to retire by 35, and have a 60 year retirement.

33 actually, and still in the 5 figures (at my current rate, I only need wage increases with inflation to retire at 33). It's really quite simple when you just don't need the things many people can't live without. I wouldn't even call myself minimalist - I still buy fast food at least weekly and am just starting to cook more. I take at least one international vacation a year, but I just don't need a car (doesn't interest me and I get along great without it). I have a number of expensive electronics.

Not buying expensive cars (or even better, biking to work) really saves a lot of money. But the biggest thing you can save on is living costs - I'm perfectly content with my small studio and save a TON living in it. My one issue when I leave the area will be finding a sufficiently small apartment - us Americans tend to hoard too much stuff! And no, you don't need to own a home to retire.

[BayAreaHillbilly]

Well, looking at the income / COL ratio, there are definitely places with a higher ratio than the Bay Area. It all depends on which of the things that contribute to inflation here you'd be willing to give up. But you may gain other things we don't really have here.