Does it really cost $131,414/yr to live in CA?

[YoungWiseWoman]

first let me start off by saying like everyone else, i want to move to ca from tx. the problem is i don't know where to live. so i go on this website called www.bestplaces.net and compare cost of living to get a better idea of my choices. to my horror i received some devastating information.

with my potential new grad salary of 50,500 in houston, i would have to make:

$131,414 to live in san fran,

$121,114 for san diego,

$97,603 for la, or

122,483 to live in san jose to "maintain" the same standard of living.

is this true??!!! surely there are new grads that live in these areas, and they don't make that much money? right? i read plenty of threads, and all of them mentioned how expensive it was. i got that part loud and clear, but i never thought there was such a huge gap. i was already confused, this just makes me afraid and confused. each time i check out a hospital i look up the area and i get news like this. are there hospitals with good new grad programs in med/surg that are in areas where i won't be a victim of crime and not have to eat roman noodles to survive? can anyone shed light on this or am i doomed???

any advice on programs or areas would be great. thanks

[BerkeleyMom]

I think it's important to note that the dynamics of the market have completely changed from when I bought my house nearly four years ago. While I would hit the road, start looking for areas I liked and tracking prices I probably wouldn't buy right now unless I had to and here's why:

...

However, we're now in a down market. So it's a whole different ball game. Housing prices are just beginning to fall all over California, and foreclosures are starting to reach an all time high.

http://www.dqnews.com/

If you bought a house right now, you could easily pay too much for it because prices will probably drop further. Here's an example:

...

BUT ... prices could go down even further and they probably will. So, I wouldn't want to buy my house right now and get into a potential negative equity situation if prices drop further.

During the last real estate crash of '92 prices dropped by 20 percent. And, right now the down turn is just starting. In my experience, at least, when the real estate market starts to crash it takes a good two years or more for prices to reach bottom.

So ... while I'd start looking and researching, I'd wait until prices got down to about 80 percent of peak values which, in the case of houses in my area would be more like $270K on average. That's when you're most likely to know that you're closer to the bottom of the market and not paying too much because, obviously, it would be much better to pay $270K for a house than $315K, for example.

Back during the boom even foreclosures were overpriced but, because so many people went nuts paying crazy prices for homes ... foreclosures are going through the roof. There could very well be some really fantastic foreclosure deals closer to the coastal areas in the next couple of years.

Also ... so many areas are being overbuilt right now. I've seen houses sitting on the market for months and prices being reduced on brand new homes so, that also tells me that prices will probably drop further.

It's impossible to predict markets with any certainty but, based on what's happened in previous down real estate markets ... that's what I'd do.

:typing

Great points Lizz! Now is the worst time to buy a house--you will be paying sky-high prices and then losing value on your home as prices drop! There is an article about this in the NY Times 4-12-07 issue (online). Overall, right now it is better to rent and wait until the prices level off.

I live in the East Bay, across the water from SF--I live in a town called Albany that borders Berkeley. I love it here and I actually do feel like I "have it all." I get the weather, culture, politics, fresh foods, SF views, a short walk to the water, etc.

I also get that "small town feeling" that Albany has to offer--appreciation for small business, residents invest heavily into their community and school district (which is separate from the larger school districts), community events with familiar faces, etc.

However Albany is very expensive compared to some neighboring cities--Richmond, El Cerrito, some parts of Berkeley and Oakland, etc. It is all about what *YOU* value as an individual--*I* happen to love it here and don't mind living in a smaller home to be here. *Other people*, might prefer to go inland where they can have a larger home and yard for the same price.

To the OP, it is hard to decide where to go in Cali--that is for sure! I think it is great that you are asking around and researching this. Maybe you should travel to different cities and see how they feel to you. It is tough to make a decision without having lived here. For example, there was a time that Oakland was pinned "murder capital of the world." ... What does that "really" mean to individuals? Oakland is a HUGE city that is vastly different with every neighborhood. It is only a dream of mine to live in some of those small neighborhoods in the Oakland hills! They are beautiful large homes with lovely neighborhoods and views of the entire SF Bay--incredible! ... But East Oakland is a different story.

So, my point being, there is just as much variation within communities as there is between them. If you have any more questions about the East Bay specifically, I may be able to answer some of them because I have been here most of my life. ... Best of luck to you!

Berk

[YoungWiseWoman]

To the OP, it is hard to decide where to go in Cali--that is for sure! I think it is great that you are asking around and researching this. Maybe you should travel to different cities and see how they feel to you. It is tough to make a decision without having lived here. For example, there was a time that Oakland was pinned "murder capital of the world." ... What does that "really" mean to individuals? Oakland is a HUGE city that is vastly different with every neighborhood. It is only a dream of mine to live in some of those small neighborhoods in the Oakland hills! They are beautiful large homes with lovely neighborhoods and views of the entire SF Bay--incredible! ... But East Oakland is a different story.

So, my point being, there is just as much variation within communities as there is between them. If you have any more questions about the East Bay specifically, I may be able to answer some of them because I have been here most of my life. ... Best of luck to you!

Berk

Thanks for your input Berk. I was in Anaheim this past week for the NSNA convention and got to talk to MANY of the hospitals. The ones that stood out were Loma Linda, Methodist, and Sharp. My next step is to do what you suggested and visit these areas. I plan go come in the summer and stay for a week to hit the hospitals that I am interested in. It's very overwhelming, but I know I can do it. It's hard because I am going by myself, so there's really no one to help me or share my experience . I am trying not to get discouraged and go for it!

Thanks again and if I find a hospital I am interested in in the East Bay, I will definately pm you.

[YoungWiseWoman]

Hi I'm a recent Texas transplant myself (from Houston as well), and currently in San Diego. I never thought I'd leave Texas (ahem...the "Mother-land"), but now I'm totally sold on California! The weather and scenery is second to none. Yes, it's a bit hard in the beginning with all the adjustments, but you get used to it. At first, I couldn't believe the outrageous prices out here in Cali, but the higher pay does help compensate for that. Tax time was an "experience" as well. This was my first time filling out a separate form for California since Texas has no state income tax. Despite that, I am loving my "adopted" state.

Great a fellow TEXAN!! So Minty, how did you decide where you wanted to live? Was there a hospital that attracted you? I am not looking to buy, so I'm hoping I won't get killed in rent. And how do the taxes work? Any info shared would be appreciated.

[MintyKorn]

I just took a trip out here to San Diego and decided i really liked it so here I am!

Lolz I'm renting right now since housing here is quite steep, but I still have dreams of buying a house here (crossing fingers) since I've decided this is where I'm planning to stay. Apartments here are more expensive, but you can still find some decent ones for $1000-$1,500 (and believe me, that's cheap around here lolz). The prices here used to shock me everytime I went to pump gas or even at the supermarket, but now I guess I'm used to it. But despite the high prices the weather is what sold me. I love it and I don't ever wanna go back to Hot, Humid, sauna-like Houston :smilecoffeecup:

(God bless Texas)

There's several hospitals here that are pretty good, but I chose Kaiser since I'm only a block away and I'm not too keen on driving thru traffic going to work since I did plenty of that back in Houston - ugh! I'm still getting used to that separate state income tax since we don't have that back in Texas. It's just another headache,but luckily I only have to deal with it once a year.

I hope you like it out here! The pay for nurses out here has me "all smiles" lolz.

[fiveofpeep]

I live in orange county and I do get depressed but then I remember that hopefully I wont be single forever and our combined incomes will be more than enough.

My bf's mom is a realtor and she said that although a 4 br 3 bth house may be 600,000 now--it can easily be twice that if you stick with it for tens of years hahah

[G to The P]

I lived in Crescent City, Its about 10 miles from the Oregon border and right on the coast. Its as norcal as you can get. The housing was cheap and the people were friendly. I loved it up there and they have the largest redwood trees in the world and also the third cleanest river in the world (the smith river). I know they have a few hospitals up and down the coast near it. Maybe you should check it out especially if you can handle a little rain in the winter (annual rainfall 66 inches) I'm sorry i had to move away from there but schooling called my name.