Stay in big city or move to smaller LCOL city?

[giantspaceminsc]

Long time lurker, decided to sign up for an account as I would like some help on a personal dilemma.

I am looking to switch jobs and currently have two offers - one in my current city (London) and one in Manchester and I'm not sure which to go with. I would be interest in hearing peoples experiences of moving to a smaller city and how that fit in with the FIRE journey.

My current thoughts on pros/cons for the options are:

London
- Better pay (35% higher than the other offer)
- Bigger company and better career prospect though the job is a somewhat niche area within my industry which I think may be less marketable in the long term
- Big city living (lots of events, concerts, museums etc. to keep me occupied)
- Friends/family are situated here
- Renting with little chance of being able to buy a home in the foreseeable future
- Pretty expensive city to live in

Manchester
- Lower pay but city is cheaper to live in (around 30% cheaper according to some comparison sites)
- Slower career growth but job is broader role so can develop more marketable skills
- A friend of mine worked in the same department recently and has very positive things to say about the company
- Better work life balance
- Get own place. This is probably the biggest plus for this option right now. At current prices I can buy a home near the city centre either outright or with a small mortgage (£15k to £20k)
- Have lived in the city before for a few years so know it fairly well already

Doing some figures,  the London job is about 25% better net pay after fixed costs like rental at average prices in both cities. If I buy a place and take estimated mortgage costs both come out about even in terms of net pay in my pocket so in terms of maintaining my savings I would be coming out even with the added benefit of owning my own home.

In terms of personal situation:
- Single, no kids, in my late 20s
- No debt
- Net worth of £130k, of this £30k is in pension/retirement savings

I am struggling with making a decision on this so any advice would be much appreciated.

[JLee]

In my experience it's easier to cut living costs in a HCOL area than it is to make HCOL salaries in a LCOL area...so generally I defer to the HCOL/high salary.

I did that when I moved from a low cost area ($750/mo mortgage on a 1825sq ft home) to a high cost area ($1950 for 2br apartment that's half the size), but I left for a 60% raise.  I had to compromise on my living situation (i.e. half the space, minimal parking, etc) but it was more than offset by the salary difference. I am able to save dramatically more now than I was previously.

[pbkmaine]

How important is owning your own place?

[Kayad]

So ... financial situation is basically neutral in the short term, and longer term variables re: career advancement also cut both ways.  I would just set that aside and think about what will make you happier.

For me, work-life balance is at or near the top of the list.  Living near friends and family is also a big component of my happiness, but if you are too busy to see them, or stressed out so you don’t enjoy your time, then proximity doesn’t do much good. 

One other thing to think about: Sounds like you could rent in Manchester for a time and save even more money than in London.  You could try it on for a year or two and if you missed London, you could move back without the anchor of owning a home.  If you like it, there will still be homes for sale in a year or two.

Good luck, it’s an exciting branch in your life!