Considering relocating from Dallas to Bay Area ... is it worth it? (Sunnyvale: real estate, rental)

[aaronsama]

I've got an offer from a company I've wanted to work at for years, and will be making about $175K all-in (base, bonus, stock) in my first year, with the expectation that I will move up from there. We're comfortably situated in Dallas now, own a beautiful home that we'd hate to leave, live in a nice neighborhood with great schools, but the job options are less exciting, though potentially still interesting and with good income potential. I know that by leaving Dallas I'll be giving up:
- Big house
- Great schools
- Lots of middle class families with kids my age
- No state income tax
- Much lower cost of living for everything, not just real estate

By moving to Bay Area (job is in south part of Silicon Valley), I'll be gaining:
- Dream job with an amazing company
- Gorgeous weather all year around
- Mountains and beaches just minutes away
- Access to tech gurus and venture capitalists in case I want to start a business
- Live within driving distance from my family (3-day weekends and such)

My main question is -- is it worth it? Let's say my career maxes out at $250K in today's terms, and my wife wants to stay at home to take care of our two children. How comfortably can one live off that? In what kind of neighborhood/house? Is it worth leaving the suburban paradise that is Dallas?

[skyao]

where are you living and working in dallas? Are you originally from texas

Where is your job in the Bay Area? What are your expectations of what you are willing to trade off in terms of house, suburbia, etc..

i grew up in dallas so have some insight..

[aaronsama]

I grew up in north Orange County, most of my family lives down there. My house in "Dallas" is in the northern suburb of McKinney, part of Frisco school district, so all the public schools are top-notch, and we live in a 3,300 sqft home. I know we'd be lucky to get half the house for twice the money in bay area, and it's even more expensive in the cities with the best public schools, so that's really the main concern.

I would be working in a finance job at one of the major technology companies in the area, management track, so potential to go a lot higher than $250K, but wanted to keep it conservative so that I don't put myself into a bad situation I can't dig out of.

The big question is, on $200-250K what would our situation be on a spectrum of scraping by to living comfortably? (I also have $1000K/mo student loan payments for the foreseeable future, and pay 10% tithing to my church)

[skyao]

see responses below...it really depends on what you value and prioritize...

Originally Posted by aaronsama

I grew up in north Orange County, most of my family lives down there. My house in "Dallas" is in the northern suburb of McKinney, part of Frisco school district, so all the public schools are top-notch, and we live in a 3,300 sqft home. I know we'd be lucky to get half the house for twice the money in bay area, and it's even more expensive in the cities with the best public schools, so that's really the main concern.

Public Schools wont be as good unless you live in Palo Alto, burlingame,Los Altos, or Cupertino, the East Bay, or private schools. East bay is too far too commute for most.



I would be working in a finance job at one of the major technology companies in the area, management track, so potential to go a lot higher than $250K, but wanted to keep it conservative so that I don't put myself into a bad situation I can't dig out of.

I dont think you can afford to buy in any of those areas above on that salary. You can probably rent but its going to be much smaller and not new like that part of dallas.

The big question is, on $200-250K what would our situation be on a spectrum of scraping by to living comfortably? (I also have $1000K/mo student loan payments for the foreseeable future, and pay 10% tithing to my church)

I guess it depends on how much you spend and how many kids you have. You definitely wont have as much disposable income, but people make do here with less than that.

[aaronsama]

Thanks for the info. I'm fine renting, I really don't see the attraction of owning a home if your mortgage payments, even after taking the tax deduction, are going to be more expensive than your rental payments. Especially since you can't count on the eternal appreciation of home prices like Californians had in the past.

[skyao]

good luck...if you give me a better idea of your monthy budget i can help more..

The Bay Area has its advantages but its alot more expensive. If you value the weather and outdoors type activities and close to a major urban center like SF, it cant be beat. But you will pay a pretty price for it.

Many of my friends from Texas moved out here and loved it and most of my friends never left texas and could not deal with the cost of living..

[80skeys]

Originally Posted by aaronsama

My main question is -- is it worth it? Let's say my career maxes out at $250K in today's terms, and my wife wants to stay at home to take care of our two children. How comfortably can one live off that? In what kind of neighborhood/house? Is it worth leaving the suburban paradise that is Dallas?

Household income of $200k and above is perfectly respectable here. I'm sure you've already done your research. You know what housing costs.

[clongirl]

You'll be absolutely fine on your income. Just live close to your job so you won't be doing a commuter's nightmare.

Can't tell you whether it's "worth it" since it's up to your wife and kids to help you decide if their sacrifices are worth your happiness in a new career! If you have family here, then it'll make it much easier on your family.

On a side note, big houses here aren't so much equated with being successful. Many folks in these parts seem to actually frown upon the whole "bigger is better" kind of mentality.

Which town/city you live in usually says a lot more in terms of "status' (not that this matters to you) than a 4000 sq. ft house (which are actually quite prevalent and cheap in outlying areas). So a smallish house in Palo Alto or similar would be better on your home life than driving out to the middle of nowhere to a large place.

[NorCal44]

I'm sure you could do just fine, if not great on that salary, especially if it grows like you say. Having said that, I don't know what your spending/saving habits are. My personal opinion is that it's always better to make more money even if it's an expenive area, IF you have the discipline to save/live in a smaller home, etc. Most people do extremely well here despite the high costs. Also, there should be plenty of decent schools in Santa Clara County. And plenty of sunshine too.

[capoeira]

Originally Posted by aaronsama

My main question is -- is it worth it?

Probably not!

Originally Posted by aaronsama

Let's say my career maxes out at $250K in today's terms, and my wife wants to stay at home to take care of our two children. How comfortably can one live off that?

Depends how you define comfortable. The 250K income probably equals a home in the 700's. Take a look.

Sunnyvale example 1

Sunnyvale example 2

Or even higher priced in a top ranked school district:

Palo Alto example 1

Originally Posted by aaronsama

Is it worth leaving the suburban paradise that is Dallas?

I suggest taking your family to equivalently sized houses in your area and asking them how they would like it.

TX Real Estate