Greetings from the Bay Area, hoping to FIRE by mid-2030s

[Major Tom]

Crime is more of an issue in Oakland and much of the East Bay.

True. The main crime in SF is the housing prices

 

[2035]

Third generation San Franciscan. It's very expensive here. I'm lucky to pay 1400 per month for a small one bedroom facing a brick wall.

 

[2035]

I'm investigating housing through the Mayor's "Below Market Rate" housing program. It's not Section 8, it helps modest income earners by property at a reduced rate or helps with the downpayment. You should look into it, if you qualify.

 

[2035]

How do I reply to a specific person...I thought I was doing that but it didn't work...sorry :-(

 

[REWahoo]

How do I reply to a specific person...I thought I was doing that but it didn't work...sorry :-(

Click the "quote" button on their post. Type your response after the last [ /QUOTE].

 

[2035]

Hey I'm targeting the 2030s too! Specifically January 2032 For me, which is the first month of the year I will turn 55, in late December. Should be a year or so after my youngest is out of college too, so things line up nicely. So I'm a few years younger than you, and have a little more saved up in 401k and Roth IRA. I have no pention, and not planning on SS. If I get some SS payout it will be a bonus (and I bet I will, but I am not making my plan based on it). I expect to live quite comfortably from my savings alone. I do live in a lower cost of living region than you.

Congrats on your 100k! You're lightyears ahead of "normal"!

Thanks!

 

[2035]

Out of curiosity, where in the Bay Area are you seeing condos<=$150K?

Ha

San Francisco

 

[Major Tom]

San Francisco

Are these properties in the "Below Market Rate" program you were mentioning earlier? I haven't looked at properties in SF recently, but 150K strikes me as particularly cheap for a condo in SF.

I'm also quite surprised that your income of around $70K would qualify you for such a program. I know that $70K may not be a lot in that city, but it's not exactly peanuts.

I might have to look into that program myself and consider a move from the East Bay back to SF if I can buy property that reasonably there.........

EDIT - Just did some very quick Googling. Looks like the income threshold in 2008 was $50,050 for a one-family household and resale values are limited by the program. It's also for first-time home-buyers only (very reasonable of course.) Looks like a good idea to keep middle-class earners in SF.

 

[mb]

Rockridge and Piedmont aren't exactly low-income housing areas, are they? Or at least they didn't used to be?
.

I sold my 2 bedroom condo in that area for $150k . . . . in 1988!

 

[Huston55]

Yes, I would be interested too! I will be moving to BA shortly and I am looking for bargains!

Alameda is also worth a check. Not as exciting as The City but, on the water, safe and easy commute (ferry or bus).

 

[panacea]

Still w*rking but there will be no pensions here. We expect that there will be Social Security in some capacity but it won't be necessary to make it work. SS=more fun. Currently, we're saving a bit more than 30% of gross toward retirement, but should be able to step that up soon. If we can get some cooperation from the markets everything should work out great, if not... a couple more years of w*rk might be necessary. Sniff...

 

[explanade]

Just did a quick search there on Zillow.

Lot of million dollar properties in Rockridge:

Rockridge Real Estate & Rockridge Oakland Homes for Sale - Zillow

 

[Major Tom]

Alameda is also worth a check. Not as exciting as The City but, on the water, safe and easy commute (ferry or bus).

Alameda Island is nice - has that feel of being a little separate from the rest of the East Bay which of course, it is.

 

[FIREd]

Alameda is also worth a check. Not as exciting as The City but, on the water, safe and easy commute (ferry or bus).

Yes, Alameda looks very nice. However, that's where most of DW's colleagues live and we want to do our own thing. After spending 10 years in suburbia, I am ready to move back to the city.

 

[tmm99]

Here is the list of condo's for less than 150K in San Jose (south bay)...
Real Estate Search | Redfin
Most parts of San Jose aren't that nice, but I don't think you have to go to East Bay like Oakland (much higher crime rate) to get a 150K condo.

 

[Major Tom]

Here is the list of condo's for less than 150K in San Jose (south bay)...
Real Estate Search | Redfin
Most parts of San Jose aren't that nice, but I don't think you have to go to East Bay like Oakland (much higher crime rate) to get a 150K condo.

Bit of a commute if you work in SF though.

 

[Lagniappe]

I lived in both the city and the East Bay at various times. It would be difficult to impossible to find a non-subsidized place in the city for $250K or less, but going East has some possiblities that have already been mentioned. Head South to San Mateo, San Bruno, Daly City, South San Francisco or San Jose and there are more possibilites. I would be concerned about the resale restrictions and home inspections that are mentioned in conjunction with the subsidized plans, but if you are comfortable with those and meet the ncome requirements, there are some great deals.

I used the San Francisco Area MLS to search when I was there - it feeds all the realtor sites. sfarmls.com

 

[Packman]

With regard to the original question of being able to ER on only IRA and 401k (no inheritance, pension, etc.), it would depend on how early one would retire. Most young people have a difficult time contributing maximums to tax deferred accounts, unless they are in very high paying jobs, and then you face income limitations. But it surely can be done, especially if your ER age is up closer to 60.

When I started saving for retirement, there we no IRA's or 401k's so I started with after tax savings. I'm glad I did, since that is what I am now living on until I reach 59.5 (or older). Most of the taxes have already been paid. I would still recommend some savings in after tax accounts for most anyone these days.

 

[Huston55]

Yes, Alameda looks very nice. However, that's where most of DW's colleagues live and we want to do our own thing. After spending 10 years in suburbia, I am ready to move back to the city.

Understood.

DW and I have lived in the BA, both in The City and outside it, for 10 yrs. Since then, we've returned to visit friends a few times every year. Were we to return, if we didn't live in North Beach, we'd likely live in Sausalito; $$$ not being the primary factor of course.

Good hunting!

 

[2035]

The BMR housing in the city is a little more expensive than $150K, but I'm also looking at San Rafael and Novato. Also, the SF BMR housing has income caps that vary.

 

[tmm99]

Bit of a commute if you work in SF though.

True. Try San Bruno or Daly City on redfin. I am sure you will find several listings.

 

[WestLake]

I will be living off rental property and dividends from taxable accounts before I am able to access an IRA. I hope to leave it alone until RMD.