Bumping this from the Seattle thread to get some more opinions-
SO and I debating buying a house in San Francisco. We contemplated leaving the area, but SO’s job is awesome and has room for growth, and mine is stable. We also have a solid amount of family (childcare help) and friends nearby. After having kids a few years ago, the thought of keeping them in the city is appealing. We would be in it for the long haul though, assuming our jobs are intact. As everyone knows, home prices here are crazy. This may be dumb, so I'm looking for any advice.
Approximate Numbers:
Combine annual income: 300k
401Ks: 450k
Roth/HSA: 80k
Taxable accounts: 480k
(SO also has about 100k of equity that vests on a 4 year schedule. We basically ignore this and think of it as free money)
Rent: 3,100 /month (3BR, 2BA apt)
Spending Avg: 3,300 /month
Mid 30s with 2 kids (0 and 3)
Solidly mustachian (lots of bike riding, walking, make 95% of our meals, have a really old car we never drive, etc.)
Our situation is slightly different in that we also have an investment property out of state. We had bought it with the thought of moving, but are rethinking that option. It does NOT cash flow, but has a significant amount of equity in it. (Worth 600k, we owe 325k) Potentially selling this house kick started the idea actually. Additionally we have the potential for a free “loan” of 100k from our parents. Houses in SF could be at least 1.2M-1.3M. This seems quite crazy, but when I factor in we may not need to touch our invested stache to put in a down payment, I rethink the idea.
Anyway, we are open all ideas. Just looking for some smart advice. Thanks!