Possible relocation to San Mateo area (Palo Alto, Half Moon Bay: renting, to buy, private schools)

[jaypee]

Originally Posted by roadwarrior101

I'm guessing that a sizeable % of the OP's total compensation comes from an annual bonus/stock payout. You can't really factor in the variable component of this into your monthly run rate until you've been able to manage this consistently for a couple years. Trust me, I've been through it.

Also, its important to note that with young kids, you have other very high expenses. You're probably looking at over $3k/month for both of them in daycare, unless this person's wife is staying home to care for them. Even without that, you have other high expenses around food, utilities, kids' sports/activities, 529 contributions, additional costs when traveling, etc.

Not saying this person is impoverished at all, but they indicated they wanted a high standard of living. Its not easy with that income on the peninsula.

I’m going by the info OP supplied : 375-400k “salary” (not comp pkg) and OP’s definition of “comfort”.

If $13k after rent is not enough to manage the rest of the budget then that’s a whole other issue.

[roadwarrior101]

Originally Posted by jaypee

I’m going by the info OP supplied : 375-400k “salary” (not comp pkg) and OP’s definition of “comfort”.

If $13k after rent is not enough to manage the rest of the budget then that’s a whole other issue.

If the OP is making $375k - $400k in base salary, then they're probably making 2-3x this amount in total comp (at least). Very few people make that type of base, except for Sr. Execs (VP level and above). In the event that this was the person's compensation, we wouldn't be talking about affordability in San Mateo as daunting. Rather, we'd be discussing what type of estate he'd be wanting to buy in Hillsborough.

Agreed the OP didn't mention this specifically, but I know the labor market very well in this area, so something I could deduce very easily.

[evening sun]

I think you will be fine, but definitely rent first.

[jaypee]

Originally Posted by roadwarrior101

If the OP is making $375k - $400k in base salary, then they're probably making 2-3x this amount in total comp (at least). Very few people make that type of base, except for Sr. Execs (VP level and above). In the event that this was the person's compensation, we wouldn't be talking about affordability in San Mateo as daunting. Rather, we'd be discussing what type of estate he'd be wanting to buy in Hillsborough.

Agreed the OP didn't mention this specifically, but I know the labor market very well in this area, so something I could deduce very easily.

Ok, but what does that have anything to do with OP’s question which was to inquire about the affordability of San Mateo and the immediate neighborhoods?

Quoting OP:

“Just looking on redfin, it's gonna be a struggle to buy a house equivalent to what we have now. We'd be looking at 3bd/3bth and those are thru the roof!!!”

Presumably that’s just San Mateo real estate OP is looking at so I doubt if Hillsborough will be affordable, but I trust OP can determine whether that’s affordable to them.

[roadwarrior101]

Originally Posted by jaypee

Ok, but what does that have anything to do with OP’s question which was to inquire about the affordability of San Mateo and the immediate neighborhoods?

Quoting OP:

“Just looking on redfin, it's gonna be a struggle to buy a house equivalent to what we have now. We'd be looking at 3bd/3bth and those are thru the roof!!!”

Presumably that’s just San Mateo real estate OP is looking at so I doubt if Hillsborough will be affordable, but I trust OP can determine whether that’s affordable to them.

Yes, you're completely missing my point then. If they're considering this a struggle, no way is $375k-400k just their base salary. Their base is probably around 1/2 of this (give or take), so you need to look at their monthly run rate (post taxes) in the $10-12k range, not the $20k range, given the bonus/stock will likely not be a factor for 1-2 years.

[Jedi5]

Thanks again to everyone who chimed in on this thread with advice.

Prior this this job offer, I had never really paid attention to San Mateo or the peninsula area for that matter.
After this job offer, I read how the Peninsula is now the most expensive real estate in the country.
I didn't know that.

And as I continued to read up on the area and COL, I see this question being asked way back in 2016.

I then come across this article and think wow, maybe this isn't the move for our family.

That's why I came here to ask my question.
My thought after reading these 2 articles was wow, even on $375K we will be living check to check struggling to get by.

I'm not looking for a high standard of living out there.
I know that won't happen.
I'm looking for a comfortable standard is all.

I know we will have to make some sacrifices.
Heck, we are going from 4 1/2 bath to 3
That's one heck of an adjustment!!!

Being able to make a car payment, pay our bills, our rent, and still being able to go out to eat 1-2x per week if we want.
Maybe taking a 2-3 day getaway to LA just for the heck of it.

As for the salary, the numbers I gave, $375-400K, that's just base.
Maybe I'll get a bonus maybe I won't.
All depends on how the company does.

[roadwarrior101]

That is great you have a base of that amount. That does change the ballgame.

I do think you can get a nicer house and do the other things you're looking for (e.g., not be house poor). But, I would suggest you consider expanding your commute radius.

You may want to also think very hard about whether you'd need to come in the office every day after COVID is over. Many companies are rethinking the remote work arrangement and are becoming more flexible. Facebook is an example of this. I often didn't apply to roles there as they required people be in the office 5 days per week (and its a long commute for me to Menlo Park). However, they've now mentioned they expect 50% of their workforce to be remote within 5 years.

[jaypee]

Originally Posted by Jedi5

even on $375K we will be living check to check struggling to get by.

I'm not looking for a high standard of living out there.
I know that won't happen.
I'm looking for a comfortable standard is all.

Being able to make a car payment, pay our bills, our rent, and still being able to go out to eat 1-2x per week if we want.
Maybe taking a 2-3 day getaway to LA just for the heck of it.

How do you figure?
What does a "comfortable standard" mean to you?

[jaypee]

Originally Posted by roadwarrior101

Yes, you're completely missing my point then. If they're considering this a struggle, no way is $375k-400k just their base salary. Their base is probably around 1/2 of this (give or take), so you need to look at their monthly run rate (post taxes) in the $10-12k range, not the $20k range, given the bonus/stock will likely not be a factor for 1-2 years.

In medium to large tech companies, Sr Directors and above are typically at/around 375k salary.
In dual-income households, esp if they're both in tech, it's common to exceed 400k.

Plug that amount into a loan calculator and they're likely to qualify for a $1.3-1.6M home loan. Ok for San Mateo, no way for Hillsborough unless they bring more cash.

[Jedi5]

Originally Posted by jaypee

How do you figure?

I said my thinking after reading those articles was that even making $375k, living in the peninsula people are still struggling to survive.
I based my comment on the article and thread I shared.
Doesn't mean it's correct.
That's just the impression I was left with.