Relocation - The numbers just dont work... Am I missing something? (Portland: sales, renting)

[bye2cali]

I have been researching the possibility of a move to area for quite a bit. I am looking at a possible relocation from the Calif - SF Bay Area as long as there is an economic gain as my wife is unable to work. We are having a difficult time making it here on a salary of $90K.

When looking at the cost of living comparison, It says that my salary could decreas to $57K and still maintain the same quality of life I am living here. I am in the opening stages of looking at a serious position in the area at $80K and am nervous about the $10K loss and here is why:

If we are currently renting at $2,000 per month and I am seeing avgerage rents at $1,500 we are left with an annualized decrease of only $6,000 in rents which leaves us with a delta of $4,000 per year or $330 per month.

I have understood that income taxes are higher in Or when compared to California, but bankrate.com reports slightly lower income tax rate in Oregon at 9% while CA is at 9.3%.

It looks like the remaining cost of living expenses are less as well according to an index, but I cannot find the percentage decrease I might expect to see on groceries and other essentials.

Am I missing something, because right now it is looking like the change would be marginal, at best. Are there better online resources I should be using?

[Steve Pickering]

No Sales Tax.

[bye2cali]

Thanks Steve! I forgot to mention that part. I have visited the area several times and really enjoy that part

So when I quickly do the math, that would indicate that my I am currently paying tax on my remaining untaxed income, which comes out to roughly $300+ per month. That would basically show were the remaining deficit goes. So it looks almost like a break-even situation, perhaps better based on the other cost of living items (groceries, etc...).

[Steve Pickering]

No sales tax on the biggies like Cars, Trucks, Motorcycles, Boats, Computers, Appliances, Etc. It all adds up to big savings. It's not just the daily spending, but the big ticket purchases.

Now here is something people just don't take in to account. An hours work will give you the same buying power in most cases no matter where you live.

An hours work is an hours worth of goods and services period. Rarely will you gain with a move. There has to be some other motivation. If you pay less, you will be paid less.

I remember when I was the Shift Commander at the Arizona State Prison, a headhunter offered me a job in Marin County California. It paid more upfront and had a $20,000 a year cost of living incentive for working in Marin County. My buying power would not have changed and I would have had to put up with the California crap. I stayed in Arizona.

[PDXNative2Houston]

Originally Posted by Steve Pickering

No sales tax on the biggies like Cars, Trucks, Motorcycles, Boats, Computers, Appliances, Etc. It all adds up to big savings. It's not just the daily spending, but the big ticket purchases.

Now here is something people just don't take in to account. An hours work will give you the same buying power in most cases no matter where you live.

An hours work is an hours worth of goods and services period. Rarely will you gain with a move. There has to be some other motivation. If you pay less, you will be paid less.

I remember when I was the Shift Commander at the Arizona State Prison, a headhunter offered me a job in Marin County California. It paid more upfront and had a $20,000 a year cost of living incentive for working in Marin County. My buying power would not have changed and I would have had to put up with the California crap. I stayed in Arizona.

What your saying Steve is only true in perfect markets. Fortunately or unfortunately regulation and taxes will make it so that an hour of work in Houston will go a lot farther than an hour of work in Portland, from both the cost side and income side for most professions.

[Steve Pickering]

Houston would be an exception. I lived in Spring when they started boarding up whole blocks of Houston. Wages are above average for an area that almost closed the doors, and only the Old Money wanted to stay. They had to pay the New Money well just to keep the lights on downtown.

[Leisesturm]

If one makes 90K and has a difficult time making it, the reason isn't because they live in California. Let's get that out the way. Moreover, a move to Oregon, even Portland Oregon makes sense if you own your home in California. The o.p. rents. No wonder the numbers don't work. Besides which... the o.p. (and a number of other people besides) is assuming that they will quickly find work in Portland to continue whatever life arrangements they have ongoing. Is that reasonable? The people leaving California for Oregon are selling million dollar homes, relocating to Oregon and buying $200K homes here, for a considerable cash discount. At least that is what was going on. Now, after the recession, I don't know exactly what the California emigrates are doing but it still involves selling property for a profit.

H

[PDXNative2Houston]

Originally Posted by Steve Pickering

Houston would be an exception. I lived in Spring when they started boarding up whole blocks of Houston. Wages are above average for an area that almost closed the doors, and only the Old Money wanted to stay. They had to pay the New Money well just to keep the lights on downtown.

It's changed a lot

Spring is still a pretty nice area, but most of the very well to do moved up to the Woodlands now or out in Sugar Land.

[Steve Pickering]

My dad bought his house in Sylmar when it was a place the aerospace engineers lived off Foothill, for around $12,000 in 1960. He sold it a year later for $18,000 and laughed all the way to the bank. The house sold in 1982 for $250,000. In 2010 it was on the tax rolls for $850,000. My brother told me it just sold for 1.1 million dollars in Sylmar. A part of the valley that is not considered a good neighborhood these days. I have not yet confirmed the sale or how my brother knew. But I can tell you this, Rents are not going to pay the Mortgage if they have it as a rental, and having been there a couple of years back, I can't even comprehend someone paying 1.1 million for a $12,000 house.

Sadly it is what is wrong with Oregon today. These overpriced sales in California make Oregon too attractive to out-of-stater's fed-up with California.

[Steve Pickering]

Originally Posted by PDXNative2Houston

It's changed a lot

Spring is still a pretty nice area, but most of the very well to do moved up to the Woodlands now or out in Sugar Land.

I figured that about Spring, but what about Houston downtown? I haven't been there in years.