What jobs do people have in San Diego that lets them afford it here (Fortuna: daycare, lawyers)

[1AngryTaxPayer]

Originally Posted by NativeCalifornia

We bought our house about a year ago for $735K (fixer upper in "gentrifying" area). Current value is about $875-$900K. Down payment was about 18% with 3.8% interest 30-yr loan. Some of the $200K is variable comp, like bonuses, so I can't use that in the budget.

But keep in mind, interest rates have gone up. Let's assume I sold you my house for $875K and you had 10% to put down. Taxes, insurance, PMI, interest and principle is going to run you $5,430/month. I don't have an HOA either.

What income do you need to afford $5,430 a month? To not be housing burdened, you can spend at most 30% on housing. This would require an income of $217,200/yr. If I relax this to 40%, you still need $162,900. And remember, you can't generally use bonuses to qualify (nor is it wise to). Plus, if you have kids, and you are dual income, child support is going to run you $2,000/mo. Oh, and the Trump tax bill severely limits the SALT deduction.

That's some expensive kids there.

[BBslider001]

Originally Posted by 1AngryTaxPayer

That's some expensive kids there.

I am wondering if school cost are factoring in here? But $2k a month for childcare is just really high.

[someguy10]

Originally Posted by MayouInSeattle

Thanks for the detailed response.

With a house for 735k and a HHI of 200k that is definitely really responsible and living within your means.

I definitely think you are right in that people aren't taking into account the SALT deduction, the mortgage deduction limit, and the increased interest rates. Seems like prices have at least plateaued for now though.

I couldn't imagine spending $5500/mo on housing on $200K income, especially if kids are in the mix.

That said, The CNN calculator (which uses the PEW data, which is adjusted for COL) says middle class is San Diego is $41K-$123K. "we define middle class as two-thirds to two times median income for the county" https://money.cnn.com/interactive/ec...ss-calculator/

[jnojr]

Originally Posted by 1AngryTaxPayer

That's some expensive kids there.

No such thing as "cheap" kids...

[NativeCalifornia]

Originally Posted by 1AngryTaxPayer

That's some expensive kids there.

Sorry, I meant child care, not child support. I understand that $1,000/mo per kid is actually a very low estimate for full-time child care.

[LaJollaEast]

One of the young guys in our accounting department pays almost $20K a year for full time childcare!

[MayouInSeattle]

It is cheaper once they start school though. Then you just have to worry about after school activities and who will pick them up.

[1AngryTaxPayer]

Originally Posted by LaJollaEast

One of the young guys in our accounting department pays almost $20K a year for full time childcare!

Why? Even when I had my kids in private school I didn't spend that much. Was it forced? As in child support? Is that a nanny?

I'd just have my wife stay home with the kids if we were dishing out that much to have someone else raise my kids. Actually, when I was in IT churning OT we did just that.

[LaJollaEast]

The person I know paying $20K a year for childcare has a low six figure income and his wife makes even more than he does so they both continue to work and can afford the childcare.

[1AngryTaxPayer]

Originally Posted by LaJollaEast

The person I know paying $20K a year for childcare has a low six figure income and his wife makes even more than he does so they both continue to work and can afford the childcare.

Dang, the lady we had was a bargain then. We paid like 8 grand for two kids for the year and she had them from six am to 4 pm. Much more personal attention too.