Talk to me about coastal living

[riverwed070707]

I've lived in the same state in the middle of the country for my entire life. I talk about leaving often, sometimes apply for jobs, sometimes just research what it would take to relocate and it is completely mind boggling to me how different the COL is. I can't imagine the pay increase would make up for housing that's 90% more expensive, longer commutes, etc. In reality I'm likely stuck in my landlocked state until DD graduates in 9 years but its fun to think about leaving. Anyone made the leap from LCOL to HCOL? Worth it? Tips?

I'll probably just stick with my corp job until I can retire to central america and live on pennies because I can't fathom paying coastal prices for housing and delaying all my other financial goals.

[disneysteve]

I'm not sure how close to the coast you mean by "coastal". We live in southern New Jersey, about 10 miles east of Philadelphia and about 50 miles from the ocean. We were both born and raised in the area so we don't know anything else.

How long your commute is obviously depends on where you choose to work relative to where you live. My first job was 20-25 minutes away. My second job was about 15 minutes/7 miles away. My current job is about 15 minutes/5 miles from home.

Our biggest COL issue in NJ is property taxes. We have a modest 3 bedroom colonial on 1/4 acre and we pay $8,000/year in property taxes. As for housing cost in general, our house is worth maybe 250K on a good day but my town has everything from trailer parks to multi-million-dollar mansions so there's really a broad range of options.

[LivingAlmostLarge]

There isn't a reason to move to a HCOLA unless you have to. If you are close to family, like your job, enjoy your life, then why would you go somewhere that it is harder to get ahead? I don't think it ever makes sense.

That being said going to a LCOLA makes a lot of sense. It's easier to get ahead. Usually pay isn't proportionately less for the drop in cost of living is what many people don't realize. But a lot of people in HCOLA also leave when they retire to LCOLA when they aren't tied to jobs and a lot of them (speaking from experience) cash out their homes and use that as their retirement plan instead of having "saved" money into retirement accounts. I'm not sure that's the smartest move.

That being said I have a coworker who has always been good with money and they bought for a million a house in 2004 and sold for $2.8M in May and are cashing in the home equity to buy another home for about $1m elsewhere that they are "retiring" to cash. They just added another $1m to their portfolio for retirement. I don't particularly love living in HCOLA but it's happened to us that we've gotten stuck in jobs that happen to be in HCOLA. We probably could find something now in a cheaper COLA, but at the same time we like to be close to family which to us is more important. So I'd rather suck it up and make adjustments financially than not be happy close to my family.

We'd definitely be ahead if we moved. We could cash out our home equity and buy a home with $400-500k cash if not more from our home. Then our retirement and our taxable savings would be probably more than enough to retire on right now. But DH loves his job so we can afford to stay where we are. And we are doing okay. Could we do better elsewhere? Probably. But that's the trade offs. You can't have everything in life.

I've just grown up always thinking that you have to spend up to 50% of your income on housing, but you are frugal everywhere else. That housing and HCOL is how it is and you make adjustments. Travel less, never eat out, etc. And none of my family have left hawaii and cashed in on home equity. Instead they are stuck in their homes handing it down to family. So I get the "HCOLA mentality". I am that way too.

Guess it's just choice. What is important to you?

[disneysteve]

I've just grown up always thinking that you have to spend up to 50% of your income on housing

There are some markets like that. Fortunately, most places aren't like that. We paid 142K for our house. At the time, we were earning 85K so it was very affordable and got even more affordable as our income grew.

[LivingAlmostLarge]

There are some markets like that. Fortunately, most places aren't like that. We paid 142K for our house. At the time, we were earning 85K so it was very affordable and got even more affordable as our income grew.

those are the hcola mostly that you think you have to spend up to 50% of your income on rent or mortgage.

[snafu]

How adventurous are you? How do you feel about adapting to the different costal living lifestyle? New job, new friends, unfamiliar home. How much change is acceptable. I just watched this blog with the lead explaining his change of direction, coincidently choosing coastal https://www.youtube.com/watch?v=skaoQy04EjU. DH and I chose to relinquish the familiar to take international contracts and live 'like the locals' without speaking the language or understanding the various cultures.

[Drake3287]

Having lived all my life nearly on the Northern California coast, you'd be surprised at in-often most of us even go the the beach or the coast itself. I live in a beautiful area but I think the romance of living on the coast is mostly from people like yourself who never have. Unless your in Southern California for example, the west coast can be a cold and foggy place. The common phrase the coldest winter I ever spent was a summer in San Fransisco certainly applies. And yes, the price of living here is incredible so that's a huge issue. Luckily wages tend to be higher though.

I'd say more of us travel inland towards Sonoma/Napa or the Lake Tahoe area then the coast itself, simply because of the weather.

[bjl584]

My mom and step dad have a second home along the gulf in Florida. They spend the winters there and absolutely love it. Obviously that doesn't help you, but no complaints from them. They are both retired, so no worries about work. They spend summers in Ohio, so they escape the hottest Florida months. Not sure what you are planning, but their set up seems to work well for them.

[MooseBucks]

My mom and step dad have a second home along the gulf in Florida. They spend the winters there and absolutely love it. Obviously that doesn't help you, but no complaints from them. They are both retired, so no worries about work. They spend summers in Ohio, so they escape the hottest Florida months. Not sure what you are planning, but their set up seems to work well for them.

My parents have do the same except they now spend 7+ months down in FL. They live about 15 min from the beach so they do significantly better when the storms hit and their cost for the condo was less than some cars. They love it & we like having a free place to stay when we want to go. You really need to pick a place and see how the costs compare. Some expenses are now higher for them but they’ve offset them with no longer having to pay state income tax.

[riverwed070707]

I'm not sure how close to the coast you mean by "coastal". We live in southern New Jersey, about 10 miles east of Philadelphia and about 50 miles from the ocean. We were both born and raised in the area so we don't know anything else.

How long your commute is obviously depends on where you choose to work relative to where you live. My first job was 20-25 minutes away. My second job was about 15 minutes/7 miles away. My current job is about 15 minutes/5 miles from home.

Our biggest COL issue in NJ is property taxes. We have a modest 3 bedroom colonial on 1/4 acre and we pay $8,000/year in property taxes. As for housing cost in general, our house is worth maybe 250K on a good day but my town has everything from trailer parks to multi-million-dollar mansions so there's really a broad range of options.

Definition of coastal to me would be being able to drive to the beach for a long weekend. Currently the closest ocean is about a 20 hour drive one way.
Your commute time is obviously very reasonable. I've never commuted more than 15 minutes each way - when I look for jobs in my field, they are most prominent in bigger cities which I guess I usually associate with a 30+ minute commute. Ideally, at some point I will convince my employer or find a job that allows me to be location independent so I can choose a more affordable area.

[riverwed070707]

I've just grown up always thinking that you have to spend up to 50% of your income on housing, but you are frugal everywhere else. That housing and HCOL is how it is and you make adjustments. Travel less, never eat out, etc. And none of my family have left hawaii and cashed in on home equity. Instead they are stuck in their homes handing it down to family. So I get the "HCOLA mentality". I am that way too.

Guess it's just choice. What is important to you?

You lost me at "travel less" but then when you said never left Hawaii, I guess I could see traveling less if you are in a destination where people constantly want to travel to. I live in the Midwest. The largest city in my state is a quarter of a million population and the largest body of water is man made. I need travel and I need to visit the ocean at minimum a couple times a year. I need to take long weekends in the winter for my sanity and mental health. I need to visit cities with cultural diversity and good ethnic food. I'd lose my mind if I were stuck here 365.

I'm not tied here for family aside from my DD - closest family is 3-4 hours away and we only visit a couple times a year. I don't live where I grew up so not tied by attachment that way either. Settled in a city near where I went to college and I like it, I especially love that its affordable and has allowed me to get off on a great start saving for retirement and investing in real estate, but I don't love it and I don't see a compelling reason to stay once DD graduates.

[riverwed070707]

Having lived all my life nearly on the Northern California coast, you'd be surprised at in-often most of us even go the the beach or the coast itself. I live in a beautiful area but I think the romance of living on the coast is mostly from people like yourself who never have. Unless your in Southern California for example, the west coast can be a cold and foggy place. The common phrase the coldest winter I ever spent was a summer in San Fransisco certainly applies. And yes, the price of living here is incredible so that's a huge issue. Luckily wages tend to be higher though.

I'd say more of us travel inland towards Sonoma/Napa or the Lake Tahoe area then the coast itself, simply because of the weather.

Tahoe is hands down the most beautiful place I've ever visited. While I realize it isn't coastal, its another area I can't wrap my head around absorbing the cost increase of, especially housing.

I've spent a decent amount of time on the west coast, and I don't disagree. Would still live there in a heartbeat for the right opportunity. Particularly love the central coast of California and the Oregon coast.

[LivingAlmostLarge]

Where are you riverwed? I guess it depends but if you want the lifestyle really. Sometimes it's worth the cost!

[riverwed070707]

Where are you riverwed? I guess it depends but if you want the lifestyle really. Sometimes it's worth the cost!

Iowa Born and raised. Well traveled but never lived anywhere else.

[LivingAlmostLarge]

Iowa Born and raised. Well traveled but never lived anywhere else.

Do you want to leave Iowa? Can you do a sabbatical?