Reoccuring Theme: Too expensive, Low paying jobs!

[Ultrarunner]

Originally Posted by socketz

I'm referring to real wealth. The kind that affords one financial freedom at an early age. I am already one of these rags to very modest riches stories myself. 100k is not what it was even 10 years ago. Here in the Bay Area,I know many couples that make 200k combined and live somewhat modestly. Recall that 6-8k mortgages are pretty common here.

It's hard for me to quantify Real Wealth...

I've worked with people worth 50 to 100 million... one of my partners is easily over 100 million...

I've ALWAYS lived very modestly... and many, what I would call, "Well to Do" people also live that way here in the Bay Area.

Being third generation Oakland, it still continues to amaze me when I hear the high cost of Bay Area living... The Real Estate Market has so many similarities to the 1982 Market when I started buying, while attending college full time... last week I found over 600 east bay homes for under 100k.

In 1982, I was buying homes in the 50k area and rents today are 3 times the rate of 1982 and mortage interest is at least half the 1982 rate.

Buying a home back then required a termite clearance and minimum 20% down to get a loan... seems like this is the direction we are heading back to now.

I actually know a few 20 somethings that are doing exactly what I started to do in 1982... they buy a distressed home, MOVE IN, clean it up and rent it within the first year and repeat...

I bought my first 50k fixer with 12k savings from working through high school at minimum wage jobs. I figured I had to live somewhere and being single... I could live anywhere... so why pay rent when the same $475 a month rent would pay my mortgage note.

Looking back to this time in the future, I have no doubt for some this will be where their wealth building started.

[dweej]

Originally Posted by Ultrarunner

It's hard for me to quantify Real Wealth...

I've worked with people worth 50 to 100 million... one of my partners is easily over 100 million...

I've ALWAYS lived very modestly... and many, what I would call, "Well to Do" people also live that way here in the Bay Area.

Being third generation Oakland, it still continues to amaze me when I hear the high cost of Bay Area living... The Real Estate Market has so many similarities to the 1982 Market when I started buying, while attending college full time... last week I found over 600 east bay homes for under 100k.

In 1982, I was buying homes in the 50k area and rents today are 3 times the rate of 1982 and mortage interest is at least half the 1982 rate.

Buying a home back then required a termite clearance and minimum 20% down to get a loan... seems like this is the direction we are heading back to now.

I actually know a few 20 somethings that are doing exactly what I started to do in 1982... they buy a distressed home, MOVE IN, clean it up and rent it within the first year and repeat...

I bought my first 50k fixer with 12k savings from working through high school at minimum wage jobs. I figured I had to live somewhere and being single... I could live anywhere... so why pay rent when the same $475 a month rent would pay my mortgage note.

Looking back to this time in the future, I have no doubt for some this will be where their wealth building started.

I absolutely love this idea and would totally do it right now if I didn't have a hubby and three kids to consider (school zoning meaning they'd be constantly changing schools, stress from constant flux, living in a not so healthy construction zone. I'm thinking it's not the most kid friendly lifestyle ). I mean, personally I even love the moving part!

[Ultrarunner]

Originally Posted by dweej

I absolutely love this idea and would totally do it right now if I didn't have a hubby and three kids to consider (school zoning meaning they'd be constantly changing schools, stress from constant flux, living in a not so healthy construction zone. I'm thinking it's not the most kid friendly lifestyle ). I mean, personally I even love the moving part!

No argument from me... being married with children definitely adds an entirely new dimension... It certainly helps being single and/or not having school age children.

Very good High School friends, I was in their wedding, did almost the same thing. They bought a home in East Oakland where the roof was so bad I saw daylight looking up in the bedrooms... Both their parents were not pleased... one was actually horrified that their daughter would have to live like this Her father threatened to sue the Realtor that sold them the house because he said it should have been condemned... This couple married right out of High School and had a Baby a year later... and they were also the first to own their own home at age 20... Their little girl was the best daddy's helper... she would go around and sweep and pick-up all the wood scraps before she was old enough for kindergarten.

They moved 4 times before they bought their fixer home in the Montclair District of the Oakland Hills and had their second child... it was always their goal to get in the best public school district.

I even helped put the new roof on their house way back when in lieu of a wedding present

[pll]

I would encourage the parents of young children out there living in beautiful sunny San Diego (and surrounding areas) to sacrifice "things" for your children. If you're truly struggling to make ends meet try moving to a more affordible area. It takes courage but it's worth it in the long run. You can live in a place where mom can stay home with the kids. You can live in a safe area with great schools and have a nice home but you will have to sacrifice. Chances are you won't be in a tourist town with all the attractions but in the end it will be worth it because your priorities are right. Your kids will thank you for it. Later on when it just you and your wife and the kiddies are grown live where you want to live.
This sounds easier said then done but I'm speaking from personal experince.

[pll]

PS This may mean moving to another state where the dollar goes further.

[dweej]

Originally Posted by pll

PS This may mean moving to another state where the dollar goes further.

Yes, it's hard to make the choice to leave, but if hubby gets the job offer we're pursuing, we will say good-bye to Socal....at least for a while . I'm just too frugal to spend more than I "have to" for my kiddos to go to a good school and for us to have a yard while still being close to cultural opportunities and an airport. We do enjoy where we are living very, very much and there will be a lot to miss, but an objective analysis of pros and cons points squarely east .

[Oerdin]

Originally Posted by MrNiceGuy06

Every thread, same story...which is why I'm curious.


(1) How many of you are college educated? Any advanced degrees??

(2) What's your profession?

(3) Define low paying. Relative to what??

(4) Define expensive. Relative to where??

1) I have a MS in Geological Sciences

2) A Geologist

3) I prefer not to get specific about money but if a single guy makes at least $50k then he should be pretty comfortable here. If you make more then gravy but if you make less it will get harder and harder to make ends meet.

4) It expensive compared to the midwest or even the mountain states but that's because San Diego is a highly desirable place to live. Supply and demand and all that. San Diego is still cheaper then San Francisco or New York and rightly so since we're kind of a step down from those places in some ways but the weather can't be beat and the people are friendly. Besides it's home and all my family is here.

[Oerdin]

Originally Posted by Olivenhain

So many of this same thread... OK, this is a relatively expensive area. Either you simply deal with it, or don't move here/stay here. That's what's called the weather tax. Pay up, or get out.

San Diego environs treats motivated people very well. It also makes laggards feel unable to keep up. While a college degree will certainly open doors, what you do from there on, is up to you. Creative innovators thrive here. Folks who constantly compare SD to whatever burg they came from, won't last long. We also don't treat immigrants from out-of-state poorly, like our neighbors in the Northwest (OR, WA, MT) do. You want to move here? Fine. Just leave your New York/Chicago/ wherever mindset at the border. You come here, be a Californian. You've got an equal chance to make it. Come sit on the beach all day and tend bar at night, don't expect to buy a house. Work your butt off developing a new web protocol or cancer vaccine, and you'll do fine.

It seems that a lot of the people I meet who complain about low paying jobs tend to be in fields which don't require an advanced degree. Yes, lots of people want to live here so salaries go down if you don't have a competitive advantage. That sounds a bit snobbish but the truth is if you work your butt off and stay more qualified then the competition then you get ahead and if you don't then you don't.