I now might have a chance to repeat this same model again. I’m in discussions that could enable me to take a new position that would double my salary while depositing me in an area of CA that has housing prices that would enable a less than 3:1 homeprice to salary ratio (within 2.5 hours of SF). While I miss the heck out of OC and SD, I will NEVER indebt myself to the level I would need to in order to buy a nice home in a decent area there. I have come to fully subscribe to the notion of putting family financial health over personal indulgence – which is what a move back to SoCal would be for me given the current price environment and where the high paying jobs are. I like to fully fund my 401K, stock purchase plan, and have some left over for 529s, money market savings and taxable investements.
Does anyone else on this board share similar views?
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YES, whole heartedly yes. Trust me, if I could afford a decent property in San Diego for anything close to 3:1 ratio, I’d be staying here forever. But even making a combined ~$170K, a 3:1 ratio gives us a selection of crummy condos, hideous tiny SFRs in run down neighborhoods, or nice properties in the land of commute hell. I will not spend an 2 hours a day in traffic (2 hours now, three hours in ten years) just so I have enough room for all my furniture.
I LOVE San Diego, but waiting for a $600K house to drop to $400K is insufferable. Rather, it looks like I’ll be moving (somewhere, not sure where yet) and finding twice the space for half that $400K price. With the $200K savings on housing, I’ll be taking awesome vacations, enjoying some expensive hobbies (flying, boating, skiing, etc), having the choice of public or private schools for my kids, and still saving a ton for retirement. What good is perfect weather when you can’t afford a pot to piss in?
The only question left is, where to end up? What is the trade off for surrendering perfect weather for financial viability? Brutal humidity and mosquitos the size of pidgeons? Snow storms from September to May? Flat dusty boring terrain with nothing to do for 750 miles? Decisions, decisions! 🙁
