With the huge difference in housing prices, doesn't moving to Hiuston from San Ramon equal a big raise ?
32 replies (most recent on top)
Hahaha , yes, interest rates can be negative. It's just a much safer bet that when they are at 0%, the wiggle room is in the positive direction. No market timing necessary. I didn't come up with that. Study up.
It comes back to jobs and because of the tech companies, high paying jobs are easier to find in the Bay Area than Houston, this allows the Bay Area folks to be able to afford a much higher mortgage
@2vrs - "Not sure if the low prices in Houston have anywhere to go but up." Three comments: 1) It sounds like you're the market timer here 2) I thought that in the early 80's when I bought a home and ended up selling my house at a 20% loss 8 years later. 3) Have you looked at housing prices in Detroit? Believe me low prices can go lower. Disclaimer: I'm not saying they will go down, though if oil prices stay low for an extended period it will be a good test of whether Houston's economy is really as diversified as some people like to think.
I have no idea what housing prices are going to do in the future, I was just making the comment based on past history
"You have not figured in the house appreciation which is much higher in San Ramon than Houston" ????? That's an odd comment. Sounds like you are a market timer or claim to know something everyone else doesn't. Not sure if the low prices in Houston have anywhere to go but up. There was a person on here stating earlier that the housing appreciation of the San Ramon area is a thing of the past. It has ramped up at an accelerated rate already and that ship has sailed. What's it gonna be? I live in neither location.
As long as there are abundance of jobs and the state remains immigrant friendly , home prices will stay strong
Home values will continue to rise as long as there is another person willing to pay more. There is a limit to everything before the pendulum starts swinging in the opposite direction. This is another fundamental economic rule of capitalism.
You have not figured in the house appreciation which is much higher in San Ramon than Houston
OP, to answer your question, yes, it definitely equals a big raise. Just do a cost of living comparison for the two cities. You would have to earn over twice as much in San Ramon to enjoy the same standard of living. In CA, not only are house prices high, but you have to pay state and local taxes.
http://www.bestplaces.net/cost-of-living/houston-tx/san-ramon-ca/50000
Despite the much higher cost of living, I still think quality of life would be better in CA due to the great weather and natural beauty, though you would have less cash in your pocket.
OK, now that we have read the posts from the San Ramon fanboys jerking each other off, can we get back to the original discussion, If you guys don't mind?
"You are obviously a mature minded person with a vision for what is important." This stinks strongly of one poster in love with and replying to himself. Will you just hang on for about a minute while I go puke? Thanks.
It is definitely timing . A lot of the folks who bought homes at the 2007 peak in CA got wiped out
You are welcome, @1lhv. You are obviously a mature minded person with a vision for what is important.
@1wtu - Thanks. If you make enough money, which a lot of people of Chevron do, it just takes some luck with regard to timing and the willingness to forgo some luxuries in the present so you can pay down your mortgage for retirement.
Right you are @1jqy. Congratulations on the equity you own in your home. $60k is a small balance compared to the current value you have. I agree the Bay Area is a nice place to live. It's obvious you have surpassed the affordability threshold, so once again... congratulations.
@1omo - Actually, historically the total cost of housing, if you include price appreciation, has been less over the long term in San Ramon. And for most people that appreciation is tax free. Timing is everything of course. When I moved to San Ramon from a cheaper area a work friend of mine told me to consider the extra money I was paying on my house as a huge forced savings account. He was right, now I have over $1 million dollars in equity and only $60K left on my mortgage. Most long-term Chevroners who have spent the bulk of their careers in San Ramon have similar or more equity. I could use that equity to buy something nice almost anywhere that I might want to retire, though for now I like where I am enough that I'm going to stay here. Of course, past trends don't necessarily predict the future. I don't see Houston getting much price appreciation in the near term, and I'm afraid the Bay Area might be reaching the limit of what people can afford.
In any case, most people who work for Chevron don't get to choose their location. You can have a great life just about anywhere Chevron locates you if you make the best of it.
The way I look at it, is that one day I'll want (or have to) retire. By then, I'll need a house that's paid off and I'll need to have invested as much money as possible. If a home in San Ramon costs me a $700k-$1MM vs $275k-$400k in Houston, the difference saved in housing and interest would go to investment for a better retirement. It's a trade off between living for today and living for tomorrow. That's the choice for most of us workers. One previous poster said it concisely... there comes a point if you earn enough money, you are able to "cross the threshold" (of affordability) to where living in the San Ramon area is better than in the Houston area.
I've lived in both types of areas also. I think what it boils down to is some people would like to spend their time and money doing things, travelling, seeing the world, getting in touch with nature, enjoying all of the wonderful things that life has to offer, and other people are only concerned with living in some prestigious areas of the country and community with a certain level of luxury at any cost - and couldn't care less about anything else. And in may cases they will sacrifice all else just to have that certain perceived social status, keeping up with the proverbial "Jones's" if you will They even have to go to prestigious resorts when they travel and ignore 95% of the local culture, cuisine, sites, etc, because they are so obsessed with their social status, where they stay and which sites/restaurants will pass their scrutiny. Many people who live in the most exclusive areas of California and other places, including Houston, are of that mindset. It's nice to be free of that burden. Accepting people for who they are, not what they happen to earn or their net worth, which we don't discuss anyway, that's tacky. We have traveled with both types at both types of resorts - we can afford it. I'll let you guess which/who are the most fun - LOL!
@HnYzLaH-1dvu, I live within an hour's drive of some the most popular vacation spots in the country and the cost of living in my area is probably half that of San Ramon. People in my area do "Staycations" it's so popular. However, most people want to go away for a vacation. That's a fact, not an opinion.
Reread that several times if you have a comprehension problem. There are no contradictions.
Good post @1dvu.
@1vbr - You contradicted yourself in your first 2 sentences. If most people like to get away for a vacation then why are so many people doing "staycations"? Anyway, popular doesn't necessarily mean desirable, if you live in a crappy area you're likely to take a lot of weekend trips to somewhere nearby that is slightly less crappy, which would make it very popular. For example, I don't see anywhere near Houston on this list http://travel.usnews.com/Rankings/best_usa_vacations/. Not sure what you meant about confusing cost of living and quality of life, I don't think anyone meant to imply high cost of living means good quality of life. The only point was that places where real estate is high, like San Ramon and West University Place are that way because people are willing to pay the price to live there, so there must be something they like about it.
Look, everyone wants different things out of life, and that's fine. I do feel that some people justify living in a less desirable area by convincing themselves that their 5000 square foot house and their $80,000 car will make them happy. On the flip side, you do need a higher income in San Ramon area to afford a reasonable house nearby and still have money for daily living expenses, savings, etc. But in my experience, once you cross that threshold, your quality of life will be better. I've lived for quite a few years in both areas, so I have some basis for comparison.
@HnYzLaH-1nnm, I live within an hour's drive of some the most popular vacation spots in the country and the cost of lving in my area is probably half that of San Ramon. People in my area do "Staycations" it's so popular. However, most people want to go away for a vacation. That's a fact, not an opinion. I think you are confusing cost of living with quality of life. They are not directly proportional, contrary to the belief of those born with a silver spoon in their mouth, and for some, who behave like they have one stuck up their A-s-s. I prefer to stay as far away as possible from those types, if I have any say so in it - LOL!
@1tvx - If you live in San Ramon, your whole life is like one big vacation. What's not to like about that? But if you really get bored you can always go for a week to Hawaii. Along with business trips to Houston to remind you what life is like for the less fortunate.
@axj - "The best places to live will always result in higher real estates prices, no doubt." True. That's exactly why Bay Area real estate prices are so high.
For those who transferred from San Ramon to Houston, how do you like it ?
@-lps, That's a nice way to look at it, you can negotiate a good retirement in either case. However, I personally would prefer to not be tied into real estate in that manner. Real estate can be volatile. I have a philosophy, the less moves, the better and the less costly. You have moving/Real estate commission costs and other costs. And if you lived your entire life in San Ramon where do you Vaca - LOL? Expensive places like that are for Vacations.
If you are a chevron employee , on the same salary, you can save much more in Houston and retire with a lot more . Or if you are in California and own a million dollar home, you can sell and buy an equivalent home in Houston and bank 600K
Thats a farce that property taxes are higher in Houston. The rate may be higher but property values are much higher in the bay area. Most of my friends in California are paying much more in property taxes than me. And dont forget about the insane California income tax.
Housing used to be cheap in Houston but not so much these days. Add on nearly triple the annual property tax, plus annual increases, and some huge electric bills and Texas is less appealing long term. Nearly everyone who has bought in the Bay Area the last 30 odd years is sitting on huge equity today and paying low tax.
@cvd, the areas you cited around the Houston area are established neighborhoods and/or trending places. The best places to live will always result in higher real estates prices, no doubt. Yes, they are relatively pricey for the Houston area, but compare the price per square foot in the Houston areas you cited vs the San Ramon area. You'll see what "pricey" really means.
Certain areas in Houston , woodlands, Houston heights etc are still pretty expensive aren't they ?
The San Ramon area is beautiful and the year around weather is much better than Houston. I'd jump at a chance to live there, but the insane real estate prices make me think otherwise. Because I can enjoy a bigger home for a lot less money, I prefer Houston. No second thought.
Duh... It has been that way since I started in 1981.