About us: We are a family of 4 with 2 young children. My partner stays at home with the kids. Here’s the timeline: * Started at Amazon L4 SDE in Seattle (170k TC) * Moved to Austin, TX (approved by leadership) for cost of living * Promoted to L5 (250k TC) * RTO comes in and we have to move to HQ2 (Arlington, VA) manager promises L6 promo so I come * L6 Promo approved (Q1 2024) manager shared TC 348k (expected) Additional Details: We have tried to settle in HQ2 but we have lost multiple (10+ offers) on old homes far from work. (We have tried everything with a reasonable commute and we don’t want to go to Stafford or Fredericksburg) — We have effectively given up on HQ2, traffic is horrible and summers are brutal. Houses are old and super expensive also income tax. We loved Seattle in the summer (like everyone?), but we didn’t live there through the winter and wife has seasonal depression so we don’t know if we can go back. Besides I couldn’t afford anything there. We could rent though. We could go back to Austin, it’s not perfect by any means but it allows us to live comfortably without being house poor. There are enough tech jobs there. I think I am done in my team, I like them, grateful for promo, but ready to move on. We have been spinning our wheels for months now. Living in an airbnb for 10 months because it was supposed to be temporary. Kids don’t feel stable. We are now making decisions and going back on them every other day. We are paralyzed. Clarifications: * Reasonable commute: 1 hour door to door * House price: $700k more than that stretches us due to interest rates * Down Payment amount: $120k, that leaves us with 6 month emergency fund * TC is 348k but base is 180k Question: What would you do if you woke up in my shoes?
Something(Most likely a townhouse) in Fairfax to Ashburn stretch. Pay toll to commute if necessary
We,ve lost several houses in that area. We went as far as Leesburg and lost. The market is crazy and it seems to be getting worse. We also don’t want to be house poor for an old home.
dont Think Twice Austin is the choice
More to Austin. Cheap COL. tech jobs. Lower chance of seasonal depression
Look from school perspective and which area has better growth for children.
I’m not super concerned about this tbh. We’ll buy in a good school sure, but I am not crazy about it. The kids will receive full support at home to succeed and do well on tests.
You also need at least 1 year (2 even better) of emergency fund. People who have lost their job easily takes 1 year to get a new one.
Very true. Depending on where I buy I would have 6 months or a little over 1 year (because of size of mortgage payment)
Don't decide the city before an offer. If you have an offer in Austin, go, but not worth a move in this market without guarantee. Also your math doesn't add up. You do your budget based on base only I think. Your stocks are for use not for saving. You should be the one outbidding locals for homes. Then you can save stocks later.
I’ve thought about this. People are waving inspections and all contingencies and offering 100k over asking. I don’t feel like participating in this for the house you end up with
Have any job offers yet?
I can get them internally. I have soft offers in Austin and Seattle at the moment.
Solving for two variables of housing and job at the same time is tough and too much stress. If you were going to work remote, the only number that mattered would be income. Since you’re going to commute and I assume don’t have a huge lump sum, you’re basically targeting COL/income ratio. There are really only 3 tiers, so not that many options, the city choice is then a personal one. Once you nail that down, don’t constrain yourself by a timeline. Yes, the market is bubbly but if you’re not standing on a stable foundation you won’t jump. Consider renting something for the kids to feel stable, stabilize the job picture, and save a solid cushion for downpayment. The worst case is the market goes up by 7-10% in one year (happens if interests go down so there’s silver lining). We overindex what that means. For the long term roof over your head it doesn’t matter, what matters is avoiding the mistake of buying into the wrong fit you have to get rid of early. If you’re staying 5+ years, price point differences are rounding errors. Overall message: remove the constraint that you have to figure this out in short order, and instead focus on maximizing life experience in 1 yr. As long as the goal is in the background and your income gets your Loan to Value lower (downpayment higher), it’ll work out.
This makes a lot of sense to me. Break down the problem and tackle it separately. Thanks
Congrats on your promotion! Would you happen to have any tips for the journey from L4 to L6? How long did it take you to reach this point? Thank you in advance!
Hi! I worked hard and tried to own as much as possible even as an L4. Really though: I got pretty lucky with manager and support. It took me 3.6 years from L4 to L6 but I had previous experience prior to Amazon though
Family and health are more important. You stayed you are already to move on from the team. Start preparing for the next gig and stay in Texas.
Thanks. I guess it’s silly but I feel shame of going back to Austin, after moving to HQ2 and having Amazon pay for my relo here
Shame is an odd emotion, life's too short to care frankly