QuagmireGiggity

We toss around the idea but the housing prices have gone through the roof. There seems to be a few places that are barely within budget.
I see a lot of newer people now based in LA but are they moving there or temporary commute.. how about all those PHX people? Did they already live there and commute to PHX all these years?
How much does one actually pay in income tax? I see the brackets but someone told me once the get a bit back.
My main hangup is the income tax but I sure love the weather and things to do so don't beat me up.

jcountry

People live there who make a lot less than we do (somehow.)

I think real estate seems insane there, but maybe long term it's a good investment.

Just don't fall for an "interest only" or "adjustable rate" or whatever the hell they call that nonsense these days. I've known a lot of people to lose their houses that way.

If you only qualify for one of those stupid things, then looks for something cheaper

G550av8r

I always say this...most people in LA are one job loss away from being homeless. I know several people that live paycheck to paycheck and make a "respectable income", or at least what would be respectable in other parts of the country. Low 6 figs doesn't go very far, especially if you have a wife and kids...

viper548

I'm on 4th year pay and am on pace to have about 12,000 in CA withholdings. My wife will have about 10,000. Last year we got about 6000 back on probably 18000 withheld. Effective rate of 4.8%. We are on alternative min tax and CA allows some of the deductions that federal does not

450knotOffice

Quite a few of the pilots headed to LAX used to be based there as Eagle pilots before the company shut down the base and moved Compass and Skywest in. Those folks have been commuting to DFW and ORD for years hoping and waiting that they could get back to LAX again. Additionally, yes, many of the former AWA PHX based pilots live in southern California and have commuted for all those years.

I heard a news report a few days ago that mentioned that fewer families own the homes they live in in California than in any state but New York (and CA and NY are close at only .5% apart). Beyond that, the LA/OC metro area has the lowest home ownership rate of any large metropolitan area in the US, as of 2016, at only 49%. The toughest issue for most people to overcome is acquiring the down payment. So yea, a lot of people live here, but a high percentage of them are renters.

jcountry

Holy Crap!

I know 4th year pay doesn't come close to AMT. your wife must be pulling down fat stacks!

JetMonkey

After a 13 year break, I'll be commuting to LAX hopefully sooner rather than later. I love Cali just as much as the next guy. However, the thought of giving that crazy socialist/welfare state my income (other than the forced disability fund I have to pay into to), is a far worse scenario than any commute in my opinion.

flyfresno

I would have thought it was the SF Bay Area, but maybe a lot of people in the Bay still own the homes they bought when it was (somewhat) affordable...

iahflyr

My effective CA take rate is 5.5% and unmake 6 figures. Remember that is deductible from your top federal income tax rate (mine is 33%, so technically CA income tax only costs me 67% of 5.5%, or 3.66% of my total income).

Buying a house is not a cost, it's an investment. Yes, your investment in LA is higher, but the payoff is higher as well.

Owning a house in California has and continues to be the best investment I ever made. Last year I made more money owning my house than I did working, and I make six figures.

You only live once. Go live where you want to live. Year round great weather, amazing beaches, mountains, and so much to do that I'll never get bored. What is a small percent of your income compared to your happiness? I know what I chose.

PRS Guitars

You'll lose that deduction under the proposed new tax plan.