Could 2 software engineers survive in the Peninsula?

[cardinal2007]

Originally Posted by calicoastal

She said $200k net, i.e. after taxes.

Tough to answer then, if you get a $1M mortgage in the peninsula with a 4.5% interest rate that is $45000 in deductions. So now it really depends on whether they are buying or renting, as $200k net is a higher raw salary for someone buying than for renting.

Is OP talking about $200k net for buying or $200k net for renting?

OP talking a combined income of $300k before taxes, unless they own, in which case they are probably talking $260k before taxes, those are just guesses btw.

The mortgage interest deduction is kind of factored into the price of property in the Bay Area, so it doesn't actually make it more affordable to own. A combined income of $260k is not as good as $300k and for me that would be around the border of being able to afford really nice properties. Can OP let us know what the before income taxes are?

[Ahiko]

Originally Posted by ambient

Software engineers... nope, there isn't much for those types around here.

You'll be fine. Software engineers pretty much own the peninsula. If you're half decent at your job, you'll make far more than $200K combined at a good company. If you're really great at your job, you'll have recruiters lined up fighting to get you to go work for their clients.

Hehe, thanks for putting a smile on my face.

Originally Posted by cardinal2007

Walkable areas do tend to command a premium in the peninsula, I'm not sure what you mean by dumpy, if you just mean old then yeah, most areas are old. The school system would be the hardest issue, how many children are we talking about, and how old are they? People usually send kids to daycare before they start kindergarten (which is expensive on its own), but that means you probably have sometime before deciding on that.

Having said that, I would say for 2 software engineers, a combined salary of only $200k is kind of low, you really should look into changing jobs, we are in a boom right now and companies are willing to compete to get talent, if you wait until the cycle goes down you'll find they'll be playing hardball. If you have over 5 years experience in this economy it shouldn't be hard to get 6 figures. I only have 10 years experience (7 in SV) and I make a lot more than $100k.

Probably 2 kids max, but that's like 5-7 years down the line. We probably wouldn't have to worry about day care because he has tons of family that will be able to take care of them.

As for our projected salary, I can't give definite numbers. I just did a "high" estimate since down here, software engineers start around $40-85k. (I kid you not with the $40k salary for BS CS holder down here..) Apparently my "high" estimates are still low for SF!

My boyfriend just started working in SF and from the numbers I'm reading in this forum, he's making the low end of the average. Hoping it changes by the time I move up.

I wouldn't know what to expect for the pay for MS CS grad fresh out of school and 5 years experience (from internships/part-time, not full-time.. I wasn't sure if they differentiated between full-time and part-time employment or if it's based solely on employment duration).

I will guess $100k salary before taxes as a worst case.

Feel free to adjust my numbers for me.

[Ahiko]

Originally Posted by ssmaster

In suburban SoCal like chino hills $1.25 million will get you 3000+ sq feet,a pool and a good school district on the peninsula that same price in a good school district $1200 sq feet no pool not so nice looking home..

Your description of the Chino Hills house is dead on. Very likely it will be right next to the nice golf course. Houses around that price are near the highest end in terms of quality.

I like the comparison! It's crazy to see the difference!!

I accept the challenge!

Thanks for everyone's input so far. I have a better idea than I did a few days ago.

I really appreciate it.

[Ruth4Truth]

Originally Posted by Ahiko

Your description of the Chino Hills house is dead on. Very likely it will be right next to the nice golf course. Houses around that price are near the highest end in terms of quality.

I like the comparison! It's crazy to see the difference!!

I accept the challenge!

Thanks for everyone's input so far. I have a better idea than I did a few days ago.

I really appreciate it.

OP, I have an off-topic question. You and your SO are both software engineers. How much vacation time/year does the tech industry usually give? Is there a standard, or does it vary significantly from one company to the next, as far as you know? And does it differ for engineers, vs. office staff, as far as you know?

[Oakformonday]

Originally Posted by cardinal2007

Tough to answer then, if you get a $1M mortgage in the peninsula with a 4.5% interest rate that is $45000 in deductions. So now it really depends on whether they are buying or renting, as $200k net is a higher raw salary for someone buying than for renting.

Is OP talking about $200k net for buying or $200k net for renting?

OP talking a combined income of $300k before taxes, unless they own, in which case they are probably talking $260k before taxes, those are just guesses btw.

The mortgage interest deduction is kind of factored into the price of property in the Bay Area, so it doesn't actually make it more affordable to own. A combined income of $260k is not as good as $300k and for me that would be around the border of being able to afford really nice properties. Can OP let us know what the before income taxes are?

I come up with very similar numbers. At 260K gross salary they would be eligible for about a 1.1 million mortgage at 4.5%. Monthly payment would be around 5,600. They'd have almost 50K in interest deductions and around 13k in property tax deduction. This is jumping ahead but I have fun with this stuff. Although this should be taken with a grain of salt b/c I don't know if they will have 20% to put down or 3.5 for an FHA loan.

Also, you have to consider what kind of debt you have or will have. Credit cards, Student loans etc... Plus, if you want to purchase expensive bags and cars then I would lower my housing costs to accommodate. It's all what is important to you and you alone. Keep in mind, those people you see with expensive toys may be drowning in debt. I wouldn't make any assumptions about their net worth.

Bottom line, nobody here can really give you the most accurate advice without knowing many more details. Details I would not share on a public site like this!

[Ahiko]

Originally Posted by Ruth4Truth

OP, I have an off-topic question. You and your SO are both software engineers. How much vacation time/year does the tech industry usually give? Is there a standard, or does it vary significantly from one company to the next, as far as you know? And does it differ for engineers, vs. office staff, as far as you know?

His paid vacation time goes off of his hours worked, but he is salary.

I don't get any since I'm still interning, but I can ask to take a week off for exams if I need to. I just don't get paid. :P

Where I work, vacation incentives are given equally to all employees (part-time/full-time, non-interns) regardless of title and occupation. My SO's sounds similar as well.

But I'm pretty sure it varies among different companies, though there are likely to be standards that are required by law. HR would know more information about that.