So I just had a business trip up to Santa Clara, and coincidentally while I was up there I thought was offered and opportunity at a competitor. The total comp package would be about $250k, including bonus and stock grants.
My current comp package in another part of California is around $205k. A $45k bump sounded great until I did some due dillegence....
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My hood's public school is ranked 10. A comparable school district would be Cupertino. My home costs $1.2million right now. A comparable home in Cupertino costs $2.3million. so I would need to carry a $1.1 million mortgage just to relocate, instead of being free and clear.
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If I spent $1.2million, that would put me in Santa Clara , which the schools s---. Also my home's sqft would shrink from 2800sqft to 1800sqft, and the age of the house in Santa Clara would be 20 years older.
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I would have to give up $45k/year in rental income from the properties I manage locally in my hood,.since there eould be no time and major pita to manage them remotely. And because earning $45k from rental income has a much more favorable tax rate than earning additional $45k salary on a W2, my annual net take home income would actually go down if I give up.my rentals.
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No homes in the bay area could be bought with a standard 20% and be positive cash flow as a rental. So the idea of having extra rental income for anyone moving there is a non start.
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Food, and services like housekeeping, and auto repair, etc is roughly 25% more than it is where I live.
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Gas prices roughly the same.
Conclusion. For most people that don't hit the stock option jackpot up there, tour quality of life is worse than you could.do elsewhere