Palo Alto on $100k? (Mountain View, Menlo Park: sales, real estate, apartments)

[gikemee]

Hey all,

First time poster...so first let me say hello!

An opportunity has presented itself to leave Miami and move to Palo Alto. My salary would be $100k, and I currently make $85k in Miami.

I've done the comparisons using many different calculators but I wanted to get a first-hand opinion on how far $100k would go. I don't need a ton of space, just a small one bedroom, but I'd like a good/safe/quality location. Walking distance of downtown PA would be ideal. Am I kidding myself?

Right now I pay about $1500/mo for housing (I can afford more), I save quite a bit for retirement, and I don't typically have to think much about my spending unless I'm dealing with bigger ticket items.

Any insight would be greatly appreciated.

[hsw]

Palo Alto is a costly area but would argue QOL in region is some of best in world

$100K/yr for a single is a bit tight but def doable for modest living; consider that PA has many Stanford grad students and young faculty who live in rentals nr downtown on far less than $100K/yr...as well as various tech billionaires who live in relatively modest houses within blocks of those modest rentals

Stuff you need to value for self includes career opportunities for pay increases; Silicon Valley is a far more powerful, dynamic, Darwinian economy than almost anywhere in world, so it's a magnet for the upwardly mobile who often arrive as penniless students or as low-paid entry-level engineers or workers

And some aspects of QOL in PA...like nr-perfect weather (none of that Eastern US humidity), scenic topography, fresh produce (and excellent dining up in SF), and lots of very smart young people (from all over US and RoW) are impossible to replicate in most allegedly cheaper parts of US

Good luck with your decision

[jbunniii]

Sure, you can find one-bedroom apartments in/near downtown Palo Alto in the $1500/month range. Also check Menlo Park - some of the rentals there are immediately adjacent to PA and within walking distance of downtown Palo Alto via bike/pedestrian bridges. I see tons of listings in that price range right now on Craigslist.

Rent is by far the biggest expense in the Bay Area, so if you can keep that under control, you should be able to live quite comfortably on $100k.

[gikemee]

Maybe a better question for me to ask is given income taxes, etc what kind of monthly rent payment could I comfortably swing on $100k. I know there are many other things to consider such as food, gas, etc. But what's a good ballpark rent range for someone in that salary range.

[Mach50]

Originally Posted by gikemee

Maybe a better question for me to ask is given income taxes, etc what kind of monthly rent payment could I comfortably swing on $100k. I know there are many other things to consider such as food, gas, etc. But what's a good ballpark rent range for someone in that salary range.

I would say no more than $1700 a month, which is about average for a 1 bedroom here. That should leave you enough to put money towards your 401k, insurance, car, etc...

I also have no idea of your current debt situation...so that's very rough.

[coolwaves]

But what's a good ballpark rent range for someone in that salary range.

To each his own. I'd keep it under $2k for everything. I know someone who's 26, making $200K and shares a house with 3 others. His share is around $1500 inclusive. He banks $$$ per month. No need to keep up with the joneses here. $100K is quite common for a college graduate a few years out of school.

[mysticaltyger]

Originally Posted by gikemee

Maybe a better question for me to ask is given income taxes, etc what kind of monthly rent payment could I comfortably swing on $100k. I know there are many other things to consider such as food, gas, etc. But what's a good ballpark rent range for someone in that salary range.

Taxes are higher here (both sales and income), but the general rule of thumb for being able to "comfortably" afford rent or mortgage is 20% of income or less. That's what I keep myself to and I make only 50K and it works out fine for me. I do not live payday to payday and save at least 15% in the 401k.

Using the 20% rule of thumb, you should be comfortable with a rent payment of about $1650 or less.

[esmith143]

Living single on 100k in Palo Alto is perfectly doable. (In fact, there are very few places in the country where you CAN'T live on 100k.)

Your problems will start if you try to raise a family. Throughout most of the country, 100k income is sufficient to keep your wife home and your kids in a very good school. In the neighborhood of PA, it's not.

[SVHomePro]

Typically when buying a home a bank will require your total debt(including car, credit card etc.) to income ratio to be 45% or below. If you will be renting, I would try to keep it below 30% to save up for a home purchase or rainy day. Palo Alto is a very expensive place for purchasing real estate but rentals are not that bad. The next town south (Mountain View) has some nice condos you would be able to afford if you wanted to go the homeowner route.