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Old 09-17-2015, 08:34 AM
 
Location: Sacramento
2,568 posts, read 6,750,457 times
Reputation: 1934

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So here is the situation. Company wants hubby to relocate. Job is in Carson and we would like to live in a 3-bedroom 2-bath 2-car garage house. We currently pay 2k for our mortgage including escrow for taxes and insurance. We have 2 kids and a small dog so schools are very important. Safety is of course very important. How much more money should we ask for to have the quality of life we want?
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Old 09-17-2015, 08:50 AM
 
Location: Birmingham, Alabama
2,054 posts, read 2,568,281 times
Reputation: 3558
Over Alabama's wages, I will be asking for 20%. Don't ask, you'll never know. Probably more slight of a bump since you already reside in the state. if they don't offer more, take a pass on it.
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Old 09-17-2015, 08:51 AM
 
Location: Southern California
12,713 posts, read 15,532,629 times
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No clue what you make now but I used this:

Cost of Living Calculator: Compare the Cost of Living in Two Cities - CNNMoney

and it says if you make $75,000 in Sacramento the LA equivalent is $90,000. So approximately 20% more. This is obviously an estimate and many other factors should be looked at.
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Old 09-17-2015, 09:59 AM
 
Location: Sacramento
2,568 posts, read 6,750,457 times
Reputation: 1934
Quote:
Originally Posted by Mr_Geek View Post
No clue what you make now but I used this:

Cost of Living Calculator: Compare the Cost of Living in Two Cities - CNNMoney

and it says if you make $75,000 in Sacramento the LA equivalent is $90,000. So approximately 20% more. This is obviously an estimate and many other factors should be looked at.
I've already seen that calculator. It doesn't help me for what I want. I was looking more into the real estate aspect. What neighborhoods I should look into? How much a similar house would cost? Which schools to buy nearby? Based on that I would calculate how much more the new mortgage would cost me. Then multiply by 12 and estimate taxes to arrive at a number to ask. Right now looking online I seem to only like the houses that are over a million dollars.
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Old 09-17-2015, 10:04 AM
 
Location: Southern California
12,713 posts, read 15,532,629 times
Reputation: 35512
Quote:
Originally Posted by suzie02 View Post
I've already seen that calculator. It doesn't help me for what I want. I was looking more into the real estate aspect. What neighborhoods I should look into? How much a similar house would cost? Which schools to buy nearby? Based on that I would calculate how much more the new mortgage would cost me. Then multiply by 12 and estimate taxes to arrive at a number to ask. Right now looking online I seem to only like the houses that are over a million dollars.
Yep, in that aspect you are going to need a lot more than 20%. A 3/2 house here will most definitely be starting at upper 6 figures / lower 7 figures in decent areas. You will have to make some sacrifices to move here most likely. I doubt the job will offer a 200% pay increase over what you make now.
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Old 09-17-2015, 10:13 AM
 
Location: South Bay
7,226 posts, read 22,194,951 times
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Even modest homes in non-crappy areas start at around $600k. If your wife doesn't work, you'd need to make about $120k to afford that mortgage with 20% down. If that doesn't seem doable you probably shouldn't move.
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Old 09-17-2015, 10:41 AM
 
Location: Sacramento
2,568 posts, read 6,750,457 times
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Quote:
Originally Posted by Mr_Geek View Post
Yep, in that aspect you are going to need a lot more than 20%. A 3/2 house here will most definitely be starting at upper 6 figures / lower 7 figures in decent areas. You will have to make some sacrifices to move here most likely. I doubt the job will offer a 200% pay increase over what you make now.
Which are the decent areas near Carson? How far could we live with a decent commute? Is Orange Co better than LA county?


Quote:
Originally Posted by BRinSM View Post
Even modest homes in non-crappy areas start at around $600k. If your wife doesn't work, you'd need to make about $120k to afford that mortgage with 20% down. If that doesn't seem doable you probably shouldn't move.
We are already above the $120k. We want to be able to continue saving for retirement and kid's college and are trying to figure out which number would allow that. Then we are going to ask and if the say no we won't move.
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Old 09-17-2015, 11:07 AM
 
Location: Downtown Los Angeles, CA
1,886 posts, read 2,098,948 times
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We can apply these +/- % calculators all day long but it's not that simple. We'd need the answers to the below questions:
  • How large of a down payment can you make?
  • What does your husband make now?
  • If your current mortgage is 30yrs, do you need to move to 15yrs?

3/2 homes in the Carson area start around $500k and quickly move to $700k. Not as insane as the West Side. So depending on your answers to the above questions, you may be asking for a fortune.

Last edited by adr3naline; 09-17-2015 at 11:18 AM..
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Old 09-17-2015, 12:09 PM
 
Location: Sacramento
2,568 posts, read 6,750,457 times
Reputation: 1934
Quote:
Originally Posted by adr3naline View Post
We can apply these +/- % calculators all day long but it's not that simple. We'd need the answers to the below questions:
  • How large of a down payment can you make?
  • What does your husband make now?
  • If your current mortgage is 30yrs, do you need to move to 15yrs?

3/2 homes in the Carson area start around $500k and quickly move to $700k. Not as insane as the West Side. So depending on your answers to the above questions, you may be asking for a fortune.

20% down
we are currently in a 15yr but expect we will have to go to 30yr.
About 120k
We've been told not to live in Carson.
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Old 09-17-2015, 01:06 PM
 
Location: Downtown Los Angeles, CA
1,886 posts, read 2,098,948 times
Reputation: 2255
Quote:
Originally Posted by suzie02 View Post
20% down
we are currently in a 15yr but expect we will have to go to 30yr.
About 120k
We've been told not to live in Carson.
Thanks.

So housing is the primary variable in this equation. Let's hold the others constant.

Carson is not so great for young families so lets say you find something nice in Long Beach.Prices of 3/2 SFR in Long Beach are $475-750k/avg. Via Zillow it appears this is 40% more than a comparable property in Sacramento. Long Beach's property tax is about on par with Sac so you're not pegged there.

Option 1: You maintain a nice standard of living and go for an updated $700k property. At a $700k purchase price with 20% down @ 30yrs + $7000 property taxes, you're looking at a ~$3600 mortgage depending on your credit and including $900/yr insurance, which is $1600 more than what you pay now. $1600 additional housing expenses + 30% taxes X 12 months = ~$30 yr. Your husband would need a bump from $120k to $150k, or 25% incremental increase.

Option 2: You buy a fixer upper @ $600k. At a $600k purchase price with 20% down @ 30yrs + $6000 property taxes, you're looking at a ~$2900 mortgage depending on your credit and including $900/yr insurance, which is $900 more than what you pay now. $900 additional housing expenses + 30% taxes X 12 months = ~$15k yr. Your husband would need a bump from $120k to $135k, or 12.5% incremental increase.

This math is by no means perfect, but I hope it helps.

Last edited by adr3naline; 09-17-2015 at 01:58 PM..
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