Buying a house or moving to west coast

Jun 13 22 Comments

Want to buy a house in Michigan now while I can still afford. Because every year, $$>10k goes in the drain by renting. But also preparing for FAANG targeting next year which would require moving out of my new house. If I move to CA/WA it might take another few years to be able to afford a house. Also if I have a baby by then, it might make it even harder to save enough for a house. Spouse might need to find a job too.

Would it be a good decision to buy a house in Michigan now and having to sell it in a year?

FAANG people, were you able to buy a house and really get a better living standard after moving to SF or similar high COL places?

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TOP 22 Comments
  • Oath Atinlay2
    No, it would not be a good decision to sell in <1 year
    Jun 13 0
  • Google / Eng Looki
    Houses are expensive even for FAANG employees here. Even 2b condos cost over 1MM if you don't want crazy commute.
    Jun 13 7
    • Google / Eng Looki
      On the other hand, renting a single family home might not be a bad idea here. I have a colleague who rents a 3 bedroom single family home for $4000/month. The market value for the house is 2M+. If you buy it, you will pay $2000+ property tax every month on top of your mortgage, which is no longer tax deductible as your state tax is definitely going to be higher than $10k
      Jun 13
    • Salesforce DBlindGuy
      OP must be wondering in 4K he can pay mortgage of two houses.. both bigger than bay area. 😃
      Jun 13
    • OP
      Thanks @Looki! It's all about that 100k in savings which I don't know if is possible to make it in other places. Do you own a house? What's your plan?
      Jun 13
    • OP
      @Salesforce Not even in 480p I could think of pulling that off 😂
      Jun 13
    • Google / Eng Looki
      I have a townhouse in a good location. My wife wants a single family house in a better school district. Currently saving for that.
      Jun 13
  • New / Eng VJ91
    Why not buy a house and rent it when/if you leave? Let someone pay off your mortgage for you.
    Jun 13 5
    • OP
      Is that a sustainable plan? What would the tenants do if they need me as a landlord to fix and maintain things while I'm away out of state permanently? And is it common for people to rent houses with ~$2000 every month?
      Jun 13
    • New / Eng VJ91
      You’d have to look at how much rent is fair for the house, and see if it covers based on your mortgage. Overall though its a fairly common idea though, buying a place and renting it when you move on to the next place.

      As far as maintenance you can use someone local you know or if you want to forget about it you can have a property management company take care of it for ~10% of the rent.
      Jun 13
    • Dropbox oMEn02
      The rental market in the Midwest is a big dead zone above like $1k/month. Anyone that can afford to rent your house for $2k/month would just buy instead, it's a bad idea
      Jun 13
    • New / Eng VJ91
      oMEn02 might be right, I’m speaking from my experience in Los Angeles/SF. Rent is ridiculous here.
      Jun 13
    • OP
      I think @oMEn02 is right. But it is possible that people rent houses for various reasons instead of buying it
      Jun 13
  • Google
    kielbasa

    Google

    PRE
    Amazon, Yahoo, Microsoft
    kielbasamore
    I wouldn’t buy if you want FAANG on your resume and plan to move to the Bay Area. Be prepared for your standard of living to go down. Traffic is worse, housing is incredibly expensive and you have to be careful about school districts when you have kids. Work for FAANG for a few years and move back. Then buy a house in the Midwest in cash or get an awesome mansion by the lake. That’s my plan.
    Jun 13 3
    • OP
      Thanks for sharing. Do you know people who left FAANG and went back to Midwest to buy a nice house or may be a lakeside mansion? Asking because I think big cities make it harder to move out from after family settles down for a while
      Jun 13
    • OP
      Also I heard similar plan from a friend who is also at G like you. Do these plans get executed actually?
      Jun 13
    • Google
      kielbasa

      Google

      PRE
      Amazon, Yahoo, Microsoft
      kielbasamore
      I know people who have quit after reaching their FIRE goal. I’ve also met several who have been able to negotiate working from the Midwest. So, yes, it does happen. However, I’m sure the vast majority of people stay in the Bay Area. It’s very hard to break away.
      Jun 13
  • Groupon grpbyee
    If you are spending only 10k on rent I would stay away from buying a home. You would pay close to that on home insurance + hoa + taxes(the hidden costs that people forget to associate homeowneship to). If your betting on home appreciation over time, mid west is not going to make u a ton of money. You are going to loose 6% on commissions and also ur closing costs on mortgage. On trying to save the 10k rent you would end up with a lot more hassle. Buy only if you plan to stay put at a place for a long time and if you are in need of a big place.
    Jun 13 0
  • Salesforce DBlindGuy
    Decide tour priorities. Do you want house and good wlb (because of baby) and arguably in general more happiness ? Or you want big name in resume.. move to hustle bustle of Bay area and delaying your buying a house plan etc for a few years? And even if you are able to buy a house say at least after 2-3 years.. not as good and big as you'd at other places.
    Decide whats more important fir you all of that or a name in your resume.
    Jun 13 0
  • OpenText / Eng vdcov
    If you buy a house in Michigan, you’ll most probably get stuck there for next 10 years. Think about it and decide.
    Jun 24 0

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