[MistaVista]

Keep in mind this is an average…the smaller the property the higher the price per sq. ft., as you get larger the price per sq. ft. goes down, all your really doing is pointing out the outliers of an “average”. The reality is however the market price is what some one is willing to pay. I can tell you first hand I rented for a short term (6 months, so it was at a premium) in summer of 2015 in the same area (off college and Frazee) and I was paying $2300/mo. for a 2/1, 1000sq ft. with a single car garage and parking spot. The one caveat is that Oceanside is very spotty, if you go north of O.blvd on college there are great schools and it is a really nice area, while south of O. blvd tends to be worse schools and a lot cheaper.

[MistaVista]

Spd, pulled out the low end stuff to avoid seeing any sec.8,42. Only asset classes a-c in the average price per square foot now. the averages are below:

1bd avg $/sq ft. = $2.15
2/1= $1.65

[MistaVista]

I work for a RE software company and can pull various reports that a top tiered PM company utilizes. Based on our data the average rent is about $2.07 per square foot in a 3 mile radius around college blvd and the 78.

Keep in mind this is an average across about 45 MF properties, from varying asset classes.

[MistaVista]

We actually have checked it out. the challenge is we need to keep the amount borrowed under $417k since once you go above it is considered a jumbo. Going over requires 10% down to avoid having to go with an FHA loan. the PMI would kill us with an FHA. we would be able to 5% for anything under $417 borrowed. basically it would put us right at the top of our price range depending on taxes and if there is an HOA for the property. I am estimating about 3k/mo. for the overall cost.

[MistaVista]

First and foremost I would like to thank all of the people who contributed to helping me with the decision process, granted nothing has been decided yet. In regards to location we are not set on Scottsdale proper, but exploring all options in the surrounding area. Ultimately the job market, should we decide to move will influence location. Currently after reading one Piggs post am I really interested in Anthem. It looks like a great place to raise a young family. Price ranges are from 265K to $330k. The boat argument is moot since it would be a smaller boat I could store in the garage. I would also say the argument of Santee, Ramona, Lakeside is also irrelevant and was fabricated to prove a point. Lets be honest these cities suck ( no offense to current residents) and the weather is comparable to AZ. In addition anyone who has driven during rush hours knows the commutes would be horrendous and one would lose roughly 2 hours of the day 5 days a week. Lastly the elementary school rankings for these cities range from 4 to 8 out of 10, with median around 6 (www.schoolratings.com). While the areas we are focused on and can afford in AZ are 9’s and 10’s. As I mentioned to the OP, should we stay in CA I am fine with a much smaller house 3/2 1200sq. ft. I strongly feel if you are going to live here the goal is not to be in your house as much possible, where as in AZ sometimes this is unavoidable. The challenge to stay in CA is not over extending ($450k) to get into a house that is in a somewhat desirable location that also needs 100k in work. This would be at an unfavorable debt to income ratio and result in being house poor like so many of our friends. Key in that the current sales territory and job locations eliminates much of North county and south county and the current bidding wars going on for these first time buyer or investment properties and it is very discouraging for young families. While BG wants to point out everything that is wrong with the Gen Xers, I disagree we are making smart conservative decisions not using real estate as an ATM and over extending hoping to gain equity. Also considering BG has no idea of my families background, college credentials, or experience it as rather bold assumption to indicate what can and can’t be made in regards to salaries in AZ. Additional factors that concern me about staying in CA are the current governments inability to manage their finances, attitudes toward business’s, and the state of our schools system. There is a long road ahead for CA even if things go right. I am not a conservative but a moderate, and I feel strongly this state is headed in a bad direction. Ultimately its the thirty somethings like my self and our children who are going to foot the bill. AZ being more conservative makes it very appealing in that regard. The hardest decision is leaving behind family and good friends which is a decision that will have to be made. There is definitely an opportunity cost to be here in this beautiful state and I just not sure if I willing to pay it anymore. However you never now what could happen, there’s always the lottery and the chances some other employer call offering more $$. Let me just address this to before BG tries top argue this point. My family and I live within or means but as anyone who has a young family know things are not cheap here. We use an affordable childcare provider and the rates is about $2200/mo. while rates in AZ tend to be about $1600/mo. For out little house with a yard and driveway we pay $2000/mo., granted it is by the beach but this is the sacrifice we make in square footage for location. However look around clairemont, Tierra Santa, etc this is about the going rate for a rental.With no business to write off or mortgage interest it leaves us with limited deductions and a tax rate in the upper 20% to low 30%. Tack on food, insurance, gas, etc. My point is it is really difficult to make it here with a family if you don’t have joint income of over $150k. Once again thank you all for your assistance and what ever the future holds may it bring you happiness.

[MistaVista]

There seems to be a lot of confusion and manipulating to make points regarding Santee, Ramona, etc. They area my wife an I are looking at is Scottsdale which as my friend who lives in Arizona described it ” is the La Jolla of AZ”. Top notch schools, very nice. This move would be for a promotion which would result in a much larger overall Salary (almost double). The role is a sales manager with a four state territory versus a sales rep with a territory from 52 south to the border. My wifes current company (Sorrento Valley), the controlling share was purchased by a hedge fund a little over a year ago. While the pay is good the overall pay and quality continue to decline and the Vulture capitalist continue to pinch everyone to inflate their numbers and prepare to sale. Point is time here seems to be limited. The key components bearish gurl is not acknowledging are 1) the future of the CA school system and the state 2) That for $350 this is a house that doesn’t need work, is larger, and has high end finishes. To maintain our current Salary levels my wife would simply need an very modest paying job 50k which is very attainable since she has a college degree and a strong resume. You factor additional cost such as Gas (about 75 cents cheaper a gallon), taxes, etc. This is not even close to even with a home in Santee that will definitely need money invested. I applaud your efforts to try and make these comparable situations, but one offers financial stability and a stronger future for my children while the other offers better weather for 3 months out of the year. Yes I will miss friends and surfing, but I haven’t surfed every weekend since before my daughter was born and see my friend every other month. The drive is close enough we can leave early morning and be here by lunchtime.

[MistaVista]

I completely disagree with some of your statements. I think any buyer with children should be concerned with teacher pensions. Currently CA ranks 47th in spending per student and this coincidentally strongly relates to achievement levels. Do you think the schools here are going to get better or worse? I have lived away from the beach and I did miss it, but that being said I also found many things to do that were just as fun. I have surfed for the last 25 years and I know i am not going pro anytime soon, its just another hobby I have lots of them. currently financial stabilty and my children are more important. I have no desire to sit in traffic for multiple hours a day commuting back and forth from Rancho Bernardo. I am curious as to where these top notch schools are where one can find a Single family home for $350k in San Diego County? I am also curious for someone who has never lived somewhere how do you know the traffic is horrendous? Lastly in regards to wages there are far more companies leaving California than there are coming here to setup shop. How do you think that is going to effect the market longterm?

[MistaVista]

I am the friend and here is some of the reasoning.
1) Housing cost- For $350k I can purchase a newer home with 4-5 bdrms, and 3 plus baths, with a pool and a 3 car garage for my boat 😉
2)Even if I find something in my price range here there is a slim chance I will get it, it will be similar to the house in South Park where I was told I can’t even look at it unless I submit an offer.
3) This house Arizona would be in a high end neighborhood with premier schools while here for that I would get a condo in a low end neighborhood with poor schools take (10 out of 10 versus 5 out of ten using south park as an example).
4)This brings us to education…California has 500 plus million in unfunded teacher pensions and no plan how to pay for it, unless the genius Browns magic bullet train is the first train to be profitable.
5) Longterm Goals- it is difficult to plan for college tuition, retirement and gain equity when my wife has the best paying job she has ever had and we are living paycheck to paycheck in a 1000sq. ft rental for 2k/mo.

Maybe its hot, of Course I will miss surfing but its seems like a smart move even though some may disagree.

[Author]

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