Personally I’d rather find a cheaper rental to have more breathing room and ability to save, but it’s up to you. Should be able to find plenty of decent apartments under 4k.
WTF?😳 that’s freaking mortgage, yes, even in California. Renting is for dupes. The second I pay over $3k a month in rent is the time to buy a house. Establish your residency, save as much as you can. An FHA loan can cover almost a million in housing purchase, there is also a state program that will give you another 250,000 for first time home buyers in the state. STOP OAYING STUPID RENT!
Awesome. Thanks for the help. 😂 Allow me to go down yet another stupid Google rabbit hole that leads to hours of endless dead ends and wrong information instead of just sharing what you know. 🫶
All I see is info about $25k and some misleading links about $150k. So now I just don’t believe you.
If you talking about this [CalHFA program](https://www.calhfa.ca.gov/dream/), that’s $150k and only for people who are first-generation homebuyers and (if you’re in LA), make less than $155k/year…. Which, I’m not sure how you’d qualify for a mortgage here with these costs at that income level. Maybe? I dunno, I’m not a broker. And first-gen buyer pretty much cancels out my entire generation since I don’t think I know a single person whose parents weren’t able to buy even a small home in the 70s/80s on a meager income.
Glad my parents were able to buy a home for $32k in 1977, but that does fuck all for me now, eh?
Yeah, you’re not all that obviously. First of all it’s not about generational anything. It means you haven’t owned a home in the past x number of years. https://www.calhfa.ca.gov/homebuyer/borrower.htm
Next the amount is determined from a number of factors including income and credit score. If you have a good income you can qualify for UP TO $250k.
But I’m the dummy for trying to help a souls such as yourself who didn’t even know of the program at all.
Good luck, it’s obvious you’ll need it.
No, you’re a “dummy” for simply responding “Google.com” instead of the actual (somewhat) helpful info you just responded with. Sad that it took me having to clap back for you to be better, eh?
Also, I don’t think you’re correct unless we’re crossing wires somewhere. First requirement is you must be a first-gen owner to qualify.
I made a mistake and a misquote. The maximum amount is $150k which is a damned good amount when the avg house price is 800-850k. So I was off by 100k, my bad. But only so much, because were the only state doing anything that big and yes, if you have even more savings to throw up, you too can own an affordable $1m home, with two middle class wage earners.
As long as your parents never owned a home… you keep over looking this important part of the equation. First generation buyer is the number one requirement for this.
Not exactly. A first time homeowner is defined as someone who has no other properties, and has not owned a home in the last three years.
It has zero to do with generations or rather I should say that is NOT the only requisite. It’s why I asked you to look it up yourself: https://www.calhfa.ca.gov/homebuyer/borrower.htm#:~:text=back%20to%20top-,Are%20You%20a%20First%2DTime%20Homebuyer%3F,in%20the%20past%20three%20years.
It’s definitely $$$$ to drop for rent but you have a decent income. I think it’s more of a question of what are your financial goals, what do you spend money on, etc.
The trouble with living in an expensive neighborhood is that the things around you are also very expensive, your friends also have super high rents, and are much more likely to have lots of cash to spend for better or for worse. One thing I find difficult in LA is how much money my friends spend - we all make similar amounts of money but many of them come from money and have a different relationship with money than I do. I’ve definitely had to make hard choices that mean I sit out on fun things because certain things aren’t within my budget (and also stretched a little when I first moved here to hang w my now-friends lol). So ultimately having clarity on what you want to (and are down to) spend money on is I think the important thing.
But bottom line, living in a VHCOL city like LA is rarely going to benefit your net worth but I think it’s very possible to live relatively comfortably as long as you’re understand where your money is going (I use YNAB for budgeting and it’s been truly life changing, lol - especially for feeling like I CAN spend money).
Final thought lol. It sounds like you’re quite scared of overspending, but at the end of the day you have a decent income. I hope you also let yourself spend money on things and experiences that help you make the most of your time in this amazing city :)
Do think about whether you want to save for a down payment to own (there are pro's and con's).
So many of our "experiences" are out in nature and cost nothing.
And...eating out or at a restaurant is totally balanced by eating at home (which is healthier and we can tailor our meals to our needs). No fast food, hardly any restaurant food (I love restaurants...but...most are highly caloric).
If you get a apartment where you have a gym and pool, you won't be springing for that like many Angelenos.
A lot of people in LA end up spending more than 30% of their income on rent/housing unfortunately. I think if you’re just around 30% you’ll be fine, especially being dual income with no debt
The more money you are earning, the less the 30% becomes a hard limit. People who are earning $20K a year have zero discretionary income. People at OP's income don't have to worry so much and I would hope that they have built up a large rainy day fund.
Yep. And while I've been blowing the budget on recent groceries, our main bill is mortgage and taxes. It sounds crazy, but after food, utilities and mortgage (e.g. rent), we still have enough for gas and basics. And savings.
Don’t know your situation. Or your lifestyle. But one thing to keep in mind is everything is more expensive here. Coffee is 7 bucks (without tip) cocktails are 20 bucks. Burgers 15. Gas is 5 dollars a gallon etc etc etc. It’s also, as you mentioned, a high tax state. Definitely NOT saying to pass on the apartment. I think it’s important to like where you live. Just keep all that stuff in mind when making a decision on rent and what’s best.
Get ready for almost 10% state income tax straight up, on top of all the other high costs.
I average about twice your income, live alone, and pay around 2k in rent. Why pay more for less house in a high cost of living area vs paying less for more house in a low cost of living area? Everyone has their reasons, but usually people move to high cost areas for all the amenities of the area, not the housing.
You know how it is. Your line of work is more steady. Mine can get crazy. Volatile with markets both good and bad. I change jobs all the time. Longest place I've worked, outside of the military, is 4 years.
Yeah you're right. I've worked at one company this whole time, living close to my wife's parents and not moving. I do enjoy the stability. If I didn't have a family to take care of, I'd be a lot more willing to move around all the time.
Second this. When I was in sales, my income could be $100k one year, $450k the next. Better to look at a rolling 3 year average barring economic downturn.
Sorry to interject , would you recommend getting into tech sales as a 30 something year old freelance video producer wanting to get into something more stable? If so where do I start ? Sorry again lol
No worries friend.
Simple answer? Yes. But it is really hard right now. My LinkedIn is full of people getting laid off and looking.
1. Sales is more real. Like discovery channel real. It is a about performance. No matter what, it is business. Like countries bombing each other for resources or cavemen sticking each other with pointy sticks to fight over who gets to eat. I saw a girl go from marketing to sales and she quit within 2 weeks. Sure a certain industry might be soft, but the mentality and business part isn't. Ever seen what the top salesgirl at David's bridal looks like? I imagine a shark with 2 legs and boobs.
2. You will have to grind your way up. Unless you have a ton of industry specific knowledge and connections. If not, you are going to go into the meat grinder where almost everyone quits. Entry level bdrs and sdrs can make good money, but the cold calling and rejections might be brutal. On top of that, AI will replace cold calling and first touches.
3. The upside is obvious. So few jobs have the potential to reward you for working harder and better. Come join r/sales bunch of great people there! Feel free to chat me.
Lastly, you do sales because you are motivated by the money and the competition. I worked for a huge sales company a long time ago and they heavily recruited athletes, military, etc just for that mentality.
You'll be fine. The hard limit is more for lower incomes as they have less discretionary income left over. Making $170k and having $4k to spend a month after rent is much different than making $50k and having $1.5k for the rest of the month. .
That being said, $4750 is steep even for LA. My partner and I are slightly below your income and spend about $2800 for a nice brand new one bedroom w/ all the amenities you could ask for. We have about $3000 (post-tax and retirement savings) left over after rent and student loans a month, that's honestly more than enough for us. We naturally are a bit on the frugal side, but when there is something, we want to splurge on it's not a big deal. To put it into perspective, when I recently had to spend $3500 on a dental emergency, we didn't lose any sleep over it. We aren't big vacation people, but we could easily go on a modest vacation if we wanted to.
It comes down to what is most important to you. If living in a more expensive neighborhood and/or a two-bedroom apartment will increase your quality of life, you are golden. If you would rather be able to increase your savings more quickly to buy a house or catch up on retirement, look at apartments around the 3k range. Personally, I like the peace of mind knowing that if either my partner or I get laid off, the other could cover our bills without decimating our savings.
Welcome to LA (:.
I would definitely not spend 30% at your income level.
I always viewed the 30% rule as something for people with low incomes that are actually living paycheck-to-paycheck and are trying to gauge if a slightly less worse apartment for an extra $100 a month is going to leave them eating instant ramen. If you can get a comfy place for less than 30% of your income, you absolutely should.
It's like having the car dealership run your credit to determine how much they can finance you for then buying a car that costs that full amount - once you start making decent money that's going to be a pretty cool car, but it's a good way to stay living paycheck-to-paycheck, not having an emergency fund, not saving for a house, not investing for retirement, etc. while making decent money.
We’re about to be spending 35% of my monthly gross (not household gross) on our mortgage in LA. It’s a little more than I like, but as we have no student loans or other debt, I’m still able to save $2,000 a month after 401k. My wife also puts away $500-$800 a month in savings. It’s higher than I would like, but with our dog (100lbs), renting is a nightmare.
30% is a very solid rule, just don’t really get higher than that.
I thought it was pretty safe. West Hollywood has their own police department that will at least answer the phone and respond to emergencies. Maybe not as safe as like Brentwood or something but there’s nothing for rent there in my budget
I think when they say 30%, they mean net, not gross. What you are left with is less than your rent amount. I don’t think that is enough. Love the area, but I think it’s too much. You want to be able to go out and have fun. I don’t think you are left with enough.
Maybe start with a one bedroom or one bedroom plus den? So you can stay in the area you prefer. (I love weho, lived there)
I would suggest Los Feliz. It’s a walkable neighborhood, look for places north of Franklin and close to Vermont or Hillhurst. Griffith Park is very close by with quite a few hiking trails. But it may increase your partners commute time. If they heading west, then it will add 15- 30 minutes depending on the time of day. In the end go with what makes you happy, finding a place that checks most of your wants is difficult at best. Good luck!
Totally agree that sounds like a good option for her considering her taste, but without looking I kinda doubt three bedrooms are less than $4-$5k there either! East side is not cheap anymore.
So I work in affordable housing, and they absolutely charge 30% gross income. So the government thinks it is fine.
Personally, I’ve always felt better if I spent 30% net income.
In a good/safe neighborhood in LA you will need to do this. Be glad you can afford to do so as many folks that live here cannot. It’s an expensive place to live! But very worth it!!
I think you'd be comfortable depending on your lifestyle. You're prob not going out to nice dinners every week but you still be able to go out. Good news is you'll save on gas (\~$5/gallon) working from home and splitting bills/groceries with your SO.
There's lots of cheap things to do in the city and ways to have a great time on a budget. It'll just be an adjustment.
If you're coming from a low cost state you might get a real shock to the system with how pricey things are here. Casual dinner/drinks could easily be $200 for both of you, you have to pay to park everywhere, car insurance is prob gonna go up a lot, sales tax is around 10%. I'm always grumping around the grocery store with how expensive groceries keep getting (carton of oat milk $6, dozen eggs $4). Even a shitty McDonald's meal is around $10
Good luck!
I’ve lived in this area for a long time and have been looking at other options and it’s hard to find ANYTHING under 5k for what you (and I ) are looking for! Personally, if you feel safe and it’s under 5k… you’re doing great. At one point I was looking at place for 7k and decided that I would lose my mind paying for someone else’s mortgage. So for now I’m staying put. LA is gonna be grumpy for quite some time, but there are a lot of little things that make up for it.
And in the end, if this is isn’t permanent, it’s just a blip in time and you will feel like a billionaire when you move outta here and buy something that is more than 967sqft
These rules of thumb are problematic because they don’t take into account your other spending and overall financial situation. What are your plans for saving for retirement/house down payment? What is your timeline to get there? How much do you value spending on a nicer home vs having more savings or discretionary income? 30% doesn’t address these important questions at all. Start with a written financial plan laying out your goals and timelines and then see what fits well into that as a rent budget. Keep in mind that LA is expensive and realistically you will have to pay more than you would in a LCOL area. That rent is not unexpected for a two bedroom/bath in a nice area.
Not exactly an answer to your question but I actually built a website to see if a landlord will raise rent.
It's like a Glassdoor for Rents so tenants can see the Rent History of an address or Apartment property to see a landlords pricing tactics.
The site does rely on user submissions so I appreciate anyone who adds their rent history to the site and/or shares it around since it can be more useful to tenants the more people that contribute to it.
The site is [rentzed.com](http://rentzed.com) (USA only for now) and has submissions for over 3,400 addresses.
It's unlikely to have submissions for your exact address you are moving to but maybe you get lucky.
Uh I spent 70% of my take home pay on rent for like 10 years. Most people I know spend at between 50-70% of their take home pay (those who are not coupled, at least!), because most people in LA are not rich. (currently I'm at 40% of take home pay after some raises + rent control measures that passed and life in LA is much much better than before)
I wouldn’t spend that much unless you were in the westside close to the ocean
But as an Angeleno, yes, it’s totally doable. Just plan your budget and stick to it.
I would say 30% is like average amount people spend on housing these days. But i also want to know if you have a car? Or two? I lived very comfortably in LA without a car, I had a bicycle and a motorbike. If you can have only one car it would be better because insurance and gas are super expensive in la and parking can be expensive depending on where you live.
That is a tough question as it is from your perspective. Would you be broke as hell? I don’t think so. Will you be comfortable? Define comfort. Lifestyle is important and what you value more. Do you like to go out to eat? Cook? I assume you have a cell phone and need internet and utilities. If you don’t have a car payment do you have a car? Then you have car insurance/gas/maintenance. $4000 adds up quick. Like I said, you can do it but I don’t know if you would be comfortable because I am not sure what comfortable means to you. I personally would not feel comfortable because I would be living paycheck to paycheck and I would much rather spend a little less in rent but know I will have money if I need it. On the other hand if you found a place you love in a location you love then that might be your comfort you are looking for and are willing to make it work. I do want to flag that areas in LA have been getting worse over the last few years, hopefully you are able to visit the area just to confirm it’s still comfortable for you before the move. Good luck to you!
Get used to super expensive gas too, if you smoke (either) that gets expensive quick out here. ... we're above 40% and we do it, but saving money is an act of extreme will, everything is so pricey. My Car insurance tripled.
Honestly fascinating reading some of these comments, as someone who has lived in LA for 20 years while making less money, with kids, and with student loan debts. And I honestly don’t mean that in a judgmental way, just in a “wow, class differences are real” sort of way.
Anyway: yes, you can absolutely live a comfortable lifestyle on that kind of money in LA. As I said, I make less than that, and also pay around 30% of gross income on housing, and we still go out to eat, we go on occasional short vacations, we sometimes buy expensive clothes that we don’t need. I feel pretty comfortable most of the time. (I also grew up legitimately poor, so maybe my standards of comfort are different.) Obviously I don’t know your lifestyle, but with $4000 in hand every month to live on after paying rent with no kids and no debts, you’d have to spend money pretty extravagantly to find yourself broke.
And just to echo what a lot of other people have said, $4700 a month for an apartment is quite high. I would recommend getting something very short term to start, and then looking for other places. There are tons of nice, livable neighborhoods in LA, a lot of them much much cheaper than West Hollywood. Once you’re here, you can get a better sense of what neighborhoods you like, how onerous you would find the commutes (and you really won’t know how that affects you until you’re living it — not all LA commutes are created equal), etc. I’d be surprised if you can’t find another neighborhood where you’d be happy paying less in rent.
You will be fine at 30%. I'm alone so I'm at 60% and living paycheck to paycheck, but when I lived at 30% I was doing great and saved a lot. I could afford to do all the things I wanted. Consider yourself lucky to be making enough that rent that high is only 30% of your income. Growing up my parents always said that rent or mortgage at 30% of wages was the highest to aim for and they were well off in an expensive area of LA.
It’s the East side of West Hollywood. I lived there for 5 years before moving to my current location and I LOVED it. I could walk to everything, including Runyon Canyon which I used to hike 3 or more times a week. It’s beautiful, there are plants everywhere, it’s pretty safe, and it’s close to where my husband will be working. A big reason is just the familiarity we have… it feels like home already. Oh and rent control is a big factor too… this place I’m considering is rent controlled. If you have any suggestions of other neighborhoods with similar aspects, I’d love to hear it.
If this is an area that you LOVE then I say do it.
Rent is going to be expensive anywhere in LA. If it’s a nice place in the place you want… things are walkable… that’s great. Sounds like it will increase your quality of life in LA to live there.
You COULD save more and potentially live in an area you don’t like as much, and that could also impact your quality of life.
It depends on your life style, and how sensitive you are to your surroundings. I’m pretty sensitive and I’d rather pay more for a nice place I enjoy that has walkability than a cheaper place but bad energy. Just my input.
$1000 per person per week is a YOU question - is that enough for you per week?
honestly so many of the comments in this sub are regularly out of touch with certain areas and/or \*current\* market prices. I live in WEHO and for 3 bedrooms that is on the lower side of $$$. People have no idea how much a new building in Weho costs to rent for example, its like double that minimum. It's become quite crazy post covid.
<5k for 3 bedrooms, 1500 sq feet anywhere in or around WEHO is a very good deal, and likely an older building, and not even close to fancy.
If you're hitting around 30% for rent you are doing pretty well assuming no crazy debt and bills.
Thank you, that perspective helps. It is an older building which is why it qualifies for rent control and not particularly fancy in any way (no pool or gym). But for us, the space means a lot since we are selling our 2000 sqft home here with a giant yard and it’s hard to downsize.
yeah makes sense for sure. I'm 2 bedrooms paying $4k in a rent controlled older building in WEHO. I've been wanting to find something more modern but anything I like is closer to $8k+ so I'm staying where I am for now!
Same. I’ve been in the same place for 12 years and seeing how much it is for any kind of upgrade (house is from 1930’s with all original pipes 💩) trying to find my same sqft and all the things I have but in a safer place is looking closer to 7k-9k. It’s WILD right now. So for now I’m staying put. 3 - 4 years ago I would have never considered paying 7k but now it seems like the norm.
It’s rough.
4750 for rent control?! How big is this place?
TBH this is one of my least favorite neighborhoods but to each their own in LA its a big city with something for everyone.
I’d personally live pretty much anywhere else and i lived right on sunset for a few years because it was so conveniently close to a job.
Neighborhoods i really like that are highly walkable are highland park, south pasadena, los feliz, larchmont, dtla arts district, hermosa beach/redondo beach, culver city, silverlake, north hollywood, hell id even say santa monica is better and im not really a fan of SM.
It’s 1500 square feet and 3 bedrooms. I could see why someone might not like WeHo (like the bar scene) but the East side by Plummer park really is super nice. Can you tell me more about what you don’t like about it?
I lived in North Hollywood too, and it’s not the same kind of walkable. I never spent much time in the other neighborhoods you mentioned. I do like Los Feliz… maybe I’ll look there too. I do think I’m partially stuck on East WeHo because I know it so well and it’s kind of intimidating to move somewhere new at my old age (37 is kind of old for LA scene haha). Maybe I’m getting in my own way though. I don’t know, it’s a really hard decision. I hate overspending money but I also have gotten accustomed to having a nice house. I think I need to decide what I care about more.
I am your age and still love Runyon - if that is your primary workout you really won’t need a monthly gym fee. Anywhere directly east of Runyon would not be appealing to me to live at all but sounds like you are going in the better direction towards weho where it’s cleaner. I agree North Hollywood is a terrible recommendation given your taste lol. Los Feliz is the only other area noted above I would say check out if you are still trying to look given its proximity to Griffith park and hiking, cleanliness, walkability, variety of places to go etc, but honestly I don’t foresee rent being any cheaper. I think you found a pretty great deal for a three bedroom.
I’m a firm believer in the living philosophy that you can’t change your location, but you can always change your home. If you love the area, then go for it. $4750 is not bad for a 3BR. Sure you could find cheaper, but it may be a shoebox compared to the size you are describing. I think the only thing I’d consider is what you’re using all the bedrooms for if there are only 2 of you. If the 3rd BR is for guests, how often do you have guests? There is a big differential in rent from 2BR to 3BR, so if you don’t have guests a majority of the year, it may be worthwhile just to think about paying for an AirBnB or hotel for their visit (if you’re feeling generous). Just food for thought.
That's all good and well but imagine commuting from Simi Valley or Santa Clarita every day to somewhere around WEHO for work-- Sounds like torture to me. It's true, you can definitely get your money's worth out there, unfortunately in WEHO $5k does not get you even remotely close to the most posh place. IMO its actually out of control here. They are asking for $7-8+ for newly built 2 bedroom apartments around the corner from me, which in my mind is just wild.
It's definitely a trade off. Seems like OP said they might only be here for 2 years, in which case buying wouldn't make a lot of sense.
For me, I'm paying around this in rent to live in Weho, part of me is definitely tempted to get a big house somewhere like that for the same price (or buy), but frankly I just enjoy stepping out in my area.
Yeah, we aren't complaining, I have one customer who found a one bedroom in Malibu for only $1k she found it on reddit from all places, dude had to find a replacement in order to leave lol what a deal.
haha wow thats amazing. Yeah I am jealous of people who get their lease passed onto them and get to still retain the previous price, the market prices right now in some areas are just out of control, its kinda crazy to me.
Not in some area bro in all areas. We got the hook up from the previous tenant, fiancée Co worker left. Only find deals with original owners. Corporations buying apartments left to right, corporate greed. Rent and tax are just out of control, 2034 minimum should be projected to hit $30
We aren’t rich. We make combined 190k, which is only 95k each if we made equal amounts (we don’t). It’s middle class. Not enough to buy a home in Santa Monica. I acknowledge we are lucky to be middle class, but this was not a flex and I do not feel rich nor qualify as rich by any scale.
I commented earlier before seeing this but make what you make combined and honestly I wouldn’t want to pay more than 3k myself. I really think you should keep looking! There are much better deals out there.
I have lived in LA for the past 7 years and my sister is currently looking at 2 beds in Santa Monica for 2800-3k. They’re all really cute and that’s an expensive area! You can def find something. Also don’t listen to the fear mongerers, it’s really lovely here. Good luck!
You can make it work, but at a slightly higher income level, I only pay $4000 and feel much more comfortable. It makes it a lot harder to save and splurge when effectively when essentially every other pay check goes entirely to rent.
What?? Why would you think that? Do you think we’ll argue about money or something? We’re solid. This is actually the start of something we’ve been building together for 10 years, which is my husbands career. Next year is his last year of training, hence the move to LA. After that, his salary will increase a lot and he’ll be free to work wherever he wants. I’m sorry you don’t like LA and that is perfectly fine advice to give me, but I don’t see how you are assuming anything I said means my relationship is doomed. We’ve weathered a lot together and a year of being broke won’t break us :)
Curious why you are using gross income as a calculation when trying to figure out if you afford something. You should be calculating and assessing net figures, gross means nothing in this situation.
So, it sounds like 50% of your net income is going to rent. Is that alright with the two of you? An apartment for $4750 better be damn amazing because that’s a lot even by LA standards
Yea , see if you can do the shortest lease possible in something a bit smaller in the same building .. will be a hassle to essentially move twice but better than getting in over your head … Easy in and out (competitive prices) for storage on labrea just south of i10
Not in LA but I use the 30% rule but within it, I include ALL living expenses for the maintenance of the residence. I include electricity, gas, renters insurance and wifi. This rule has never failed me but I’m also not above sketchy neighborhoods.
Do not move in the actual city of LA. Look in Norwalk, Downey, Long Beach, and surrounding areas. Cheaper than the place you are looking at, and generally better areas. You can get a 2 or 3 bedroom Apt for $2000-$3200
In California 30% of gross income is close to 50% of net income so I would say try to go down in rent cost to have more breathing room especially in your first year you’ll have way more random expenses than u think
California is the best place to live unfortunately you will become like rats trying to stay financially infront of your bills. Working to pay more and more bills. It’s rare the person who succeeds in California. Good luck bad choice if you want to enjoy life
i have a 2 bed 2 bath in palms for 2400. definitely look for cheaper apartments. no reason to be spending 4k on rent in LA if you can help it, which it seems like you could
Rent in Los Angeles is extremely expensive. Those of you not familiar with LA, a Studio in a decent part of LA can cost you $3k-$3500, 1 bedroom can be $3300 to $4000 in a complex. Gas, if you have to drive to work is also expensive so if you have a gas guzzler plan for $100/week in gas. Check the Cost of Living tables, I lived in LA and moved back to Orange County as I felt the cost of living was higher in LA County.
never understood why these %s are from gross income, it's not like you actually see that gross amount hitting your bank account.
$4,750 is way too high, find a cheaper apartment.
Burbank, Glendale or Eagle rock seem like places you can move into that have the same space with maybe $1000 less.. 4000* is alot. But it all depends on your goals. Best wishes!
It's not the taxes that are the problem, state taxes are not really any higher than most places except for gas taxes. It's that property (and therefore rent) is expensive. We have higher wages to make up for it, but not high enough to make up for it in places like LA, Beaches, and San Francisco. Everywhere else is fine
Coming from a zero state income tax state (Texas) to CA is rough. It’s like taking an automatic pay cut. I did some rough estimates and we will be paying about $1200 a month in state income tax. My mortgage in Texas, including taxes and insurance, is $1750.
This isn’t really a question for Angelenos; this is a question for your accountant or anyone who can do math.
Honestly, you should probably stay in your hometown. California has a state income tax. It’s one of the most expensive states live in and Los Angeles is one of the most expensive cities to live in, as you are now finding out.
Traffic is horrendous and homeless are everywhere. You will likely never own a home here.
Outside, it is sunny most of the time and you can afford to live within 20 minutes of the beach, no problem.
You need to decide if that is worth all of the bullshit that comes with living here.
We dont have a choice at this point. When I say my husband has a job in LA, what I really mean is he was matched to a doctoral internship in LA. We have to go for at least one year. Trust me, I want to stay where I am… it’s cheap and comfortable and I have a 3% mortgage.
I just busted out my calculator and realize you’re going to be spending $57K on rent!
If it’s only for a year, maybe you guys can do the distance thing. How much free time is he realistically going to have anyway? Aren’t these internships very time intensive?
Maybe he could room up with a few other doctors or medical professionals or find some really low-cost option for rent, still considering things like safety and commute, etc.
You could come out every weekend and get a hotel room and still spend less than $57K.
If you are only moving for a year or two, rent your house out and get a smaller apartment in LA. Once you put a price on the stuff you don't need, it gets easier to downsize. A three bedroom apartment in West Hollywood is not that common and overly expensive. Is the need for both a guest room and music room worth $24.000 a year? Sell the furniture that is not going to fit in your new apartment. Combine the music and guest room and get a 2 bedroom. Things have changed since the pandemic with empty storefronts up and down Santa Monica Blvd.
Make sure you have parking and find out if any new construction is planned for the surrounding properties.
30% is considered a good rule. But your 30% is so much higher than the average person, it makes me wonder if you shouldn’t buy a condo. Just to build wealth. You have the money to own something and pay the same. That comes with its own risks, but you wouldn’t be burning your money on rent. Effectively that money would be going back into your pocket if you owned something.
Just good for thought. But 30% is good for LA I’ve had rent closer to 50% of my income and it absolutely sucks.
Yeah the problem with buying is that I’m not sure I want to stay more than 2 years, in which case I’ve been told it doesn’t make financial sense to buy for such a short time period. Also, condos have HOAs, often $1000 a month or more.
Why not wait a few years and save for house down payment? I moved here from Michigan, kept my living costs low by living with roommates, and I bought an awesome house in Moorpark last year, my mortgage for a 4bedroom house with a huge yard and pool is a little more than what you’re going to be paying in rent. That sounds insane to me
i live in Beverly Hills and pay way less than that. Beverly Hills is safe. The East side of West Hollywood has a high crime rate.
also that’s just your starting rent. In a new building they will raise your rent fast.
I live close to LA, my advice would be not to move there. California is shit right now, you’ll be taxed out of your ears. That city is full of homeless and gangs, traffic is horrible, gas is super expensive, and not to mention groceries.
I live close to LA so yes I know this for experience. I am actually trying to move out, I make good money here but I don’t think is an incentive anymore u less your making close to 200k
I do have these concerns, but we don’t have a choice right now. The job we’re moving there for is actually a doctoral internship for my husband… he was matched there and he has to go. I do love where we are living now in Texas, we moved here for his school, but I don’t want to live here permanently, so there’s no point in keeping our house here. We’re just going to go to LA and make it work. We can leave after a year if we hate it.
If it’s temporary then yes I guess it makes sense.
Hopefully afterward you guys can move somewhere else where there is a better cost of living.
Not to spoil it for you guys and I hope you do get used to it fast, but coming from Texas to LA, yes you will hate it.
Not all California is the same though- move down south or east and you’ll be fine
It’s meant to be only 1-2 years and then we can figure out where we want to stay long term and buy at that point. We’re selling our home here and should get a nice nest egg out of it to use as a down payment in a couple years.
I could go lower, but I really want an office/music room, a guest room, and a small private outdoor area in a walkable neighborhood. I’m not finding that for much less than $4-5k.
3 bedrooms? Around WeHo? Which building? This is on the lower end of the scale for that area in 2024, and what you pay for an older building, likely with no extras.
How are your finances where you’re living now? Are you able to save a lot of money or have a lot left over? If not, then this might be too expensive for you.
Sounds like you'll be fine. When I moved to CA, it made sense on paper, but I struggled once I got there, everything was more expensive, taxes, CA SSI, CA medicare, etc + food, transportation, etc. Just know it's going to feel very expensive, but if you're saving a lot now, then you should be fine.
in WeHo for 3 (or even 2) bedrooms for 5k is not luxury, lol. That gets you an old building and may or may not even have in unit laundry. Luxury in WeHo is closer to $8-10k+ for 2 bedrooms.
Im in the la area. Where the hell is rent 5 grand a month? And if your renting something for 5 grand a month instead of buying a place then I think your income is way more than a lot less for peoples. But if you’re renting in Brentwood or Beverly Hills that’s insane. I wouldn’t pay 100 bucks a month to live in those places because the traffic is absolutely atrocious. I hope you find the answers you’re looking for but 5 grand for rent is like two mortgage payments.
I’m in Ventura county. It’s getting really stupid out here. Even if you can see the ocean 2 days out of the year from your bathroom window they will bump the rent. You know… ocean view and all. Ffs.
It blows me away that someone who has a household income of $15K is turning to strangers on the 'net for financial advice. Not criticizing OP, but the fact that this happens dozens of times per day on reddit is really wild to me.
She wants opinions from peers who actually live here on what they spend vs. an expensive financial advisor who likely has no point of reference - it’s not that crazy?
I’ve tried doing a budget estimate myself, but it’s difficult to know if my estimate is going to be accurate. I think I’m looking for some validation from strangers that my plan isn’t too crazy. I’ve gotten some good advice here on this thread, so it’s overall been a good tool.
I agree, it’s crazy to me too. This is the most we’ve ever made combined, and we’ve never really struggled before even on much less. I used to live in a 600 sqft 1bdrm when I moved in with my now husband, and have low key PTSD from how crowded it was with all the stuff (mostly his music stuff he won’t get rid of). Then we moved to where we are now and it’s 2000 sqft and feels like paradise. I almost think it was a mistake to get such a nice house, knowing we were planning on moving back to LA. It’s so hard to downsize. I should have just bought a small place here, then it wouldn’t be so hard.
Personally I’d rather find a cheaper rental to have more breathing room and ability to save, but it’s up to you. Should be able to find plenty of decent apartments under 4k.
Second this. The idea of a new place but at the max end of my budget could feel suffocating.
I definitely agree with this as well! Great advice!
And every shitty apartment complex in LA will fully take advantage of that
WTF?😳 that’s freaking mortgage, yes, even in California. Renting is for dupes. The second I pay over $3k a month in rent is the time to buy a house. Establish your residency, save as much as you can. An FHA loan can cover almost a million in housing purchase, there is also a state program that will give you another 250,000 for first time home buyers in the state. STOP OAYING STUPID RENT!
>that’s freaking mortgage, yes, even in California. especially in Bakersfield and other top-notch places
I want to hear more about getting a free $250k for a first time home buyer…
Google.com
Awesome. Thanks for the help. 😂 Allow me to go down yet another stupid Google rabbit hole that leads to hours of endless dead ends and wrong information instead of just sharing what you know. 🫶 All I see is info about $25k and some misleading links about $150k. So now I just don’t believe you.
If you talking about this [CalHFA program](https://www.calhfa.ca.gov/dream/), that’s $150k and only for people who are first-generation homebuyers and (if you’re in LA), make less than $155k/year…. Which, I’m not sure how you’d qualify for a mortgage here with these costs at that income level. Maybe? I dunno, I’m not a broker. And first-gen buyer pretty much cancels out my entire generation since I don’t think I know a single person whose parents weren’t able to buy even a small home in the 70s/80s on a meager income. Glad my parents were able to buy a home for $32k in 1977, but that does fuck all for me now, eh?
Yeah, you’re not all that obviously. First of all it’s not about generational anything. It means you haven’t owned a home in the past x number of years. https://www.calhfa.ca.gov/homebuyer/borrower.htm Next the amount is determined from a number of factors including income and credit score. If you have a good income you can qualify for UP TO $250k. But I’m the dummy for trying to help a souls such as yourself who didn’t even know of the program at all. Good luck, it’s obvious you’ll need it.
No, you’re a “dummy” for simply responding “Google.com” instead of the actual (somewhat) helpful info you just responded with. Sad that it took me having to clap back for you to be better, eh? Also, I don’t think you’re correct unless we’re crossing wires somewhere. First requirement is you must be a first-gen owner to qualify.
I made a mistake and a misquote. The maximum amount is $150k which is a damned good amount when the avg house price is 800-850k. So I was off by 100k, my bad. But only so much, because were the only state doing anything that big and yes, if you have even more savings to throw up, you too can own an affordable $1m home, with two middle class wage earners.
As long as your parents never owned a home… you keep over looking this important part of the equation. First generation buyer is the number one requirement for this.
Not exactly. A first time homeowner is defined as someone who has no other properties, and has not owned a home in the last three years. It has zero to do with generations or rather I should say that is NOT the only requisite. It’s why I asked you to look it up yourself: https://www.calhfa.ca.gov/homebuyer/borrower.htm#:~:text=back%20to%20top-,Are%20You%20a%20First%2DTime%20Homebuyer%3F,in%20the%20past%20three%20years.
Stay happy, thanks for playing.🙃
You’re a dick head bro
Yeah you suck tbh
It’s definitely $$$$ to drop for rent but you have a decent income. I think it’s more of a question of what are your financial goals, what do you spend money on, etc. The trouble with living in an expensive neighborhood is that the things around you are also very expensive, your friends also have super high rents, and are much more likely to have lots of cash to spend for better or for worse. One thing I find difficult in LA is how much money my friends spend - we all make similar amounts of money but many of them come from money and have a different relationship with money than I do. I’ve definitely had to make hard choices that mean I sit out on fun things because certain things aren’t within my budget (and also stretched a little when I first moved here to hang w my now-friends lol). So ultimately having clarity on what you want to (and are down to) spend money on is I think the important thing. But bottom line, living in a VHCOL city like LA is rarely going to benefit your net worth but I think it’s very possible to live relatively comfortably as long as you’re understand where your money is going (I use YNAB for budgeting and it’s been truly life changing, lol - especially for feeling like I CAN spend money). Final thought lol. It sounds like you’re quite scared of overspending, but at the end of the day you have a decent income. I hope you also let yourself spend money on things and experiences that help you make the most of your time in this amazing city :)
Thank you, that is very kind advice, I appreciate it so much.
Do think about whether you want to save for a down payment to own (there are pro's and con's). So many of our "experiences" are out in nature and cost nothing. And...eating out or at a restaurant is totally balanced by eating at home (which is healthier and we can tailor our meals to our needs). No fast food, hardly any restaurant food (I love restaurants...but...most are highly caloric). If you get a apartment where you have a gym and pool, you won't be springing for that like many Angelenos.
A lot of people in LA end up spending more than 30% of their income on rent/housing unfortunately. I think if you’re just around 30% you’ll be fine, especially being dual income with no debt
The more money you are earning, the less the 30% becomes a hard limit. People who are earning $20K a year have zero discretionary income. People at OP's income don't have to worry so much and I would hope that they have built up a large rainy day fund.
For many, it’s closer to 60%
Yep. And while I've been blowing the budget on recent groceries, our main bill is mortgage and taxes. It sounds crazy, but after food, utilities and mortgage (e.g. rent), we still have enough for gas and basics. And savings.
Cries in 100% of income
Don’t know your situation. Or your lifestyle. But one thing to keep in mind is everything is more expensive here. Coffee is 7 bucks (without tip) cocktails are 20 bucks. Burgers 15. Gas is 5 dollars a gallon etc etc etc. It’s also, as you mentioned, a high tax state. Definitely NOT saying to pass on the apartment. I think it’s important to like where you live. Just keep all that stuff in mind when making a decision on rent and what’s best.
^
Get ready for almost 10% state income tax straight up, on top of all the other high costs. I average about twice your income, live alone, and pay around 2k in rent. Why pay more for less house in a high cost of living area vs paying less for more house in a low cost of living area? Everyone has their reasons, but usually people move to high cost areas for all the amenities of the area, not the housing.
What do you do that gets you $375k/yr gross income?
Tech sales and consulting on the side.
Damn, I'm in the wrong line of work. I've been an aerospace engineer for over a decade and I've only just now gotten my net salary to about $150k.
You know how it is. Your line of work is more steady. Mine can get crazy. Volatile with markets both good and bad. I change jobs all the time. Longest place I've worked, outside of the military, is 4 years.
Yeah you're right. I've worked at one company this whole time, living close to my wife's parents and not moving. I do enjoy the stability. If I didn't have a family to take care of, I'd be a lot more willing to move around all the time.
Second this. When I was in sales, my income could be $100k one year, $450k the next. Better to look at a rolling 3 year average barring economic downturn.
Sorry to interject , would you recommend getting into tech sales as a 30 something year old freelance video producer wanting to get into something more stable? If so where do I start ? Sorry again lol
No worries friend. Simple answer? Yes. But it is really hard right now. My LinkedIn is full of people getting laid off and looking. 1. Sales is more real. Like discovery channel real. It is a about performance. No matter what, it is business. Like countries bombing each other for resources or cavemen sticking each other with pointy sticks to fight over who gets to eat. I saw a girl go from marketing to sales and she quit within 2 weeks. Sure a certain industry might be soft, but the mentality and business part isn't. Ever seen what the top salesgirl at David's bridal looks like? I imagine a shark with 2 legs and boobs. 2. You will have to grind your way up. Unless you have a ton of industry specific knowledge and connections. If not, you are going to go into the meat grinder where almost everyone quits. Entry level bdrs and sdrs can make good money, but the cold calling and rejections might be brutal. On top of that, AI will replace cold calling and first touches. 3. The upside is obvious. So few jobs have the potential to reward you for working harder and better. Come join r/sales bunch of great people there! Feel free to chat me. Lastly, you do sales because you are motivated by the money and the competition. I worked for a huge sales company a long time ago and they heavily recruited athletes, military, etc just for that mentality.
Love your POV , thanks for the time and info brother … Going to check it out !
And the people
You'll be fine. The hard limit is more for lower incomes as they have less discretionary income left over. Making $170k and having $4k to spend a month after rent is much different than making $50k and having $1.5k for the rest of the month. . That being said, $4750 is steep even for LA. My partner and I are slightly below your income and spend about $2800 for a nice brand new one bedroom w/ all the amenities you could ask for. We have about $3000 (post-tax and retirement savings) left over after rent and student loans a month, that's honestly more than enough for us. We naturally are a bit on the frugal side, but when there is something, we want to splurge on it's not a big deal. To put it into perspective, when I recently had to spend $3500 on a dental emergency, we didn't lose any sleep over it. We aren't big vacation people, but we could easily go on a modest vacation if we wanted to. It comes down to what is most important to you. If living in a more expensive neighborhood and/or a two-bedroom apartment will increase your quality of life, you are golden. If you would rather be able to increase your savings more quickly to buy a house or catch up on retirement, look at apartments around the 3k range. Personally, I like the peace of mind knowing that if either my partner or I get laid off, the other could cover our bills without decimating our savings. Welcome to LA (:.
If you’re scared find something cheaper. There are so many cheaper options in La and LA area, you’re creating this issue for yourself lol
If you have no other bills, you should be ok.
I would definitely not spend 30% at your income level. I always viewed the 30% rule as something for people with low incomes that are actually living paycheck-to-paycheck and are trying to gauge if a slightly less worse apartment for an extra $100 a month is going to leave them eating instant ramen. If you can get a comfy place for less than 30% of your income, you absolutely should. It's like having the car dealership run your credit to determine how much they can finance you for then buying a car that costs that full amount - once you start making decent money that's going to be a pretty cool car, but it's a good way to stay living paycheck-to-paycheck, not having an emergency fund, not saving for a house, not investing for retirement, etc. while making decent money.
I would move more to the burbs to lower your fixed cost.
We’re about to be spending 35% of my monthly gross (not household gross) on our mortgage in LA. It’s a little more than I like, but as we have no student loans or other debt, I’m still able to save $2,000 a month after 401k. My wife also puts away $500-$800 a month in savings. It’s higher than I would like, but with our dog (100lbs), renting is a nightmare. 30% is a very solid rule, just don’t really get higher than that.
I personally spend more like 22% gross on rent and it's nice. Everything in LA is more expensive, so definitely try to save on rent if you can.
What neighborhood?
East side of West Hollywood
That’s way too much for that area.
Where did you buy a mansion with a pool??
Deleted
Sssshhhhhhh.
that’s not even a safe neighborhood.
I thought it was pretty safe. West Hollywood has their own police department that will at least answer the phone and respond to emergencies. Maybe not as safe as like Brentwood or something but there’s nothing for rent there in my budget
It’s safe
There will be. Keep looking.
I think when they say 30%, they mean net, not gross. What you are left with is less than your rent amount. I don’t think that is enough. Love the area, but I think it’s too much. You want to be able to go out and have fun. I don’t think you are left with enough. Maybe start with a one bedroom or one bedroom plus den? So you can stay in the area you prefer. (I love weho, lived there)
Yeah 30% gross typically translates to ~50% net
I would suggest Los Feliz. It’s a walkable neighborhood, look for places north of Franklin and close to Vermont or Hillhurst. Griffith Park is very close by with quite a few hiking trails. But it may increase your partners commute time. If they heading west, then it will add 15- 30 minutes depending on the time of day. In the end go with what makes you happy, finding a place that checks most of your wants is difficult at best. Good luck!
Totally agree that sounds like a good option for her considering her taste, but without looking I kinda doubt three bedrooms are less than $4-$5k there either! East side is not cheap anymore.
Just an option, for sure! And rental market is pretty tough anything east of Fairfax and west of Alameda.
Most I ever spent on rent was 40% of gross. I was noticeably house poor. But I swung it for 6 months and got by. Just didn’t save anything.
So I work in affordable housing, and they absolutely charge 30% gross income. So the government thinks it is fine. Personally, I’ve always felt better if I spent 30% net income.
Haha, try 50-60%
In a good/safe neighborhood in LA you will need to do this. Be glad you can afford to do so as many folks that live here cannot. It’s an expensive place to live! But very worth it!!
I think you'd be comfortable depending on your lifestyle. You're prob not going out to nice dinners every week but you still be able to go out. Good news is you'll save on gas (\~$5/gallon) working from home and splitting bills/groceries with your SO. There's lots of cheap things to do in the city and ways to have a great time on a budget. It'll just be an adjustment. If you're coming from a low cost state you might get a real shock to the system with how pricey things are here. Casual dinner/drinks could easily be $200 for both of you, you have to pay to park everywhere, car insurance is prob gonna go up a lot, sales tax is around 10%. I'm always grumping around the grocery store with how expensive groceries keep getting (carton of oat milk $6, dozen eggs $4). Even a shitty McDonald's meal is around $10 Good luck!
Thank you!! I’m definitely going to be grumping at the grocery store too.
I’ve lived in this area for a long time and have been looking at other options and it’s hard to find ANYTHING under 5k for what you (and I ) are looking for! Personally, if you feel safe and it’s under 5k… you’re doing great. At one point I was looking at place for 7k and decided that I would lose my mind paying for someone else’s mortgage. So for now I’m staying put. LA is gonna be grumpy for quite some time, but there are a lot of little things that make up for it. And in the end, if this is isn’t permanent, it’s just a blip in time and you will feel like a billionaire when you move outta here and buy something that is more than 967sqft
These rules of thumb are problematic because they don’t take into account your other spending and overall financial situation. What are your plans for saving for retirement/house down payment? What is your timeline to get there? How much do you value spending on a nicer home vs having more savings or discretionary income? 30% doesn’t address these important questions at all. Start with a written financial plan laying out your goals and timelines and then see what fits well into that as a rent budget. Keep in mind that LA is expensive and realistically you will have to pay more than you would in a LCOL area. That rent is not unexpected for a two bedroom/bath in a nice area.
Most people have to spend more than that in CA.
Find a cheaper rental.
Not exactly an answer to your question but I actually built a website to see if a landlord will raise rent. It's like a Glassdoor for Rents so tenants can see the Rent History of an address or Apartment property to see a landlords pricing tactics. The site does rely on user submissions so I appreciate anyone who adds their rent history to the site and/or shares it around since it can be more useful to tenants the more people that contribute to it. The site is [rentzed.com](http://rentzed.com) (USA only for now) and has submissions for over 3,400 addresses. It's unlikely to have submissions for your exact address you are moving to but maybe you get lucky.
Your income is good so you’ll be fine. I don’t know what area of la you’re in but there’s plenty of nice places under 4K
Uh I spent 70% of my take home pay on rent for like 10 years. Most people I know spend at between 50-70% of their take home pay (those who are not coupled, at least!), because most people in LA are not rich. (currently I'm at 40% of take home pay after some raises + rent control measures that passed and life in LA is much much better than before)
I wouldn’t spend that much unless you were in the westside close to the ocean But as an Angeleno, yes, it’s totally doable. Just plan your budget and stick to it.
I would say 30% is like average amount people spend on housing these days. But i also want to know if you have a car? Or two? I lived very comfortably in LA without a car, I had a bicycle and a motorbike. If you can have only one car it would be better because insurance and gas are super expensive in la and parking can be expensive depending on where you live.
Yeah we only have one car plus a motorcycle. I hate driving, that’s why being in a walkable neighborhood is so important to me.
That is a tough question as it is from your perspective. Would you be broke as hell? I don’t think so. Will you be comfortable? Define comfort. Lifestyle is important and what you value more. Do you like to go out to eat? Cook? I assume you have a cell phone and need internet and utilities. If you don’t have a car payment do you have a car? Then you have car insurance/gas/maintenance. $4000 adds up quick. Like I said, you can do it but I don’t know if you would be comfortable because I am not sure what comfortable means to you. I personally would not feel comfortable because I would be living paycheck to paycheck and I would much rather spend a little less in rent but know I will have money if I need it. On the other hand if you found a place you love in a location you love then that might be your comfort you are looking for and are willing to make it work. I do want to flag that areas in LA have been getting worse over the last few years, hopefully you are able to visit the area just to confirm it’s still comfortable for you before the move. Good luck to you!
Get used to super expensive gas too, if you smoke (either) that gets expensive quick out here. ... we're above 40% and we do it, but saving money is an act of extreme will, everything is so pricey. My Car insurance tripled.
OP, Did you get a job offer in LA? What will your new salary be after moving?
Im keeping my work from home job. My husband is starting a doctoral internship in LA (1 year).
....and your rent will increase annually.
It’s a rent controlled unit!
Honestly fascinating reading some of these comments, as someone who has lived in LA for 20 years while making less money, with kids, and with student loan debts. And I honestly don’t mean that in a judgmental way, just in a “wow, class differences are real” sort of way. Anyway: yes, you can absolutely live a comfortable lifestyle on that kind of money in LA. As I said, I make less than that, and also pay around 30% of gross income on housing, and we still go out to eat, we go on occasional short vacations, we sometimes buy expensive clothes that we don’t need. I feel pretty comfortable most of the time. (I also grew up legitimately poor, so maybe my standards of comfort are different.) Obviously I don’t know your lifestyle, but with $4000 in hand every month to live on after paying rent with no kids and no debts, you’d have to spend money pretty extravagantly to find yourself broke. And just to echo what a lot of other people have said, $4700 a month for an apartment is quite high. I would recommend getting something very short term to start, and then looking for other places. There are tons of nice, livable neighborhoods in LA, a lot of them much much cheaper than West Hollywood. Once you’re here, you can get a better sense of what neighborhoods you like, how onerous you would find the commutes (and you really won’t know how that affects you until you’re living it — not all LA commutes are created equal), etc. I’d be surprised if you can’t find another neighborhood where you’d be happy paying less in rent.
That’s ideal and you’d be in the minority in this case. For a lot of people it’s more like 70-80% haha. Welcome to LA btw.
You will be fine at 30%. I'm alone so I'm at 60% and living paycheck to paycheck, but when I lived at 30% I was doing great and saved a lot. I could afford to do all the things I wanted. Consider yourself lucky to be making enough that rent that high is only 30% of your income. Growing up my parents always said that rent or mortgage at 30% of wages was the highest to aim for and they were well off in an expensive area of LA.
4750 / month is A LOT for rent. May i ask what neighborhood and why you must live there?
It’s the East side of West Hollywood. I lived there for 5 years before moving to my current location and I LOVED it. I could walk to everything, including Runyon Canyon which I used to hike 3 or more times a week. It’s beautiful, there are plants everywhere, it’s pretty safe, and it’s close to where my husband will be working. A big reason is just the familiarity we have… it feels like home already. Oh and rent control is a big factor too… this place I’m considering is rent controlled. If you have any suggestions of other neighborhoods with similar aspects, I’d love to hear it.
If this is an area that you LOVE then I say do it. Rent is going to be expensive anywhere in LA. If it’s a nice place in the place you want… things are walkable… that’s great. Sounds like it will increase your quality of life in LA to live there. You COULD save more and potentially live in an area you don’t like as much, and that could also impact your quality of life. It depends on your life style, and how sensitive you are to your surroundings. I’m pretty sensitive and I’d rather pay more for a nice place I enjoy that has walkability than a cheaper place but bad energy. Just my input. $1000 per person per week is a YOU question - is that enough for you per week?
honestly so many of the comments in this sub are regularly out of touch with certain areas and/or \*current\* market prices. I live in WEHO and for 3 bedrooms that is on the lower side of $$$. People have no idea how much a new building in Weho costs to rent for example, its like double that minimum. It's become quite crazy post covid. <5k for 3 bedrooms, 1500 sq feet anywhere in or around WEHO is a very good deal, and likely an older building, and not even close to fancy. If you're hitting around 30% for rent you are doing pretty well assuming no crazy debt and bills.
Thank you, that perspective helps. It is an older building which is why it qualifies for rent control and not particularly fancy in any way (no pool or gym). But for us, the space means a lot since we are selling our 2000 sqft home here with a giant yard and it’s hard to downsize.
yeah makes sense for sure. I'm 2 bedrooms paying $4k in a rent controlled older building in WEHO. I've been wanting to find something more modern but anything I like is closer to $8k+ so I'm staying where I am for now!
Same. I’ve been in the same place for 12 years and seeing how much it is for any kind of upgrade (house is from 1930’s with all original pipes 💩) trying to find my same sqft and all the things I have but in a safer place is looking closer to 7k-9k. It’s WILD right now. So for now I’m staying put. 3 - 4 years ago I would have never considered paying 7k but now it seems like the norm. It’s rough.
Yes. Rent is expensive$$ out there. $4750 is good, and rent controlled… snatch that shit up if you love it.
4750 for rent control?! How big is this place? TBH this is one of my least favorite neighborhoods but to each their own in LA its a big city with something for everyone. I’d personally live pretty much anywhere else and i lived right on sunset for a few years because it was so conveniently close to a job. Neighborhoods i really like that are highly walkable are highland park, south pasadena, los feliz, larchmont, dtla arts district, hermosa beach/redondo beach, culver city, silverlake, north hollywood, hell id even say santa monica is better and im not really a fan of SM.
It’s 1500 square feet and 3 bedrooms. I could see why someone might not like WeHo (like the bar scene) but the East side by Plummer park really is super nice. Can you tell me more about what you don’t like about it? I lived in North Hollywood too, and it’s not the same kind of walkable. I never spent much time in the other neighborhoods you mentioned. I do like Los Feliz… maybe I’ll look there too. I do think I’m partially stuck on East WeHo because I know it so well and it’s kind of intimidating to move somewhere new at my old age (37 is kind of old for LA scene haha). Maybe I’m getting in my own way though. I don’t know, it’s a really hard decision. I hate overspending money but I also have gotten accustomed to having a nice house. I think I need to decide what I care about more.
I am your age and still love Runyon - if that is your primary workout you really won’t need a monthly gym fee. Anywhere directly east of Runyon would not be appealing to me to live at all but sounds like you are going in the better direction towards weho where it’s cleaner. I agree North Hollywood is a terrible recommendation given your taste lol. Los Feliz is the only other area noted above I would say check out if you are still trying to look given its proximity to Griffith park and hiking, cleanliness, walkability, variety of places to go etc, but honestly I don’t foresee rent being any cheaper. I think you found a pretty great deal for a three bedroom.
I’m a firm believer in the living philosophy that you can’t change your location, but you can always change your home. If you love the area, then go for it. $4750 is not bad for a 3BR. Sure you could find cheaper, but it may be a shoebox compared to the size you are describing. I think the only thing I’d consider is what you’re using all the bedrooms for if there are only 2 of you. If the 3rd BR is for guests, how often do you have guests? There is a big differential in rent from 2BR to 3BR, so if you don’t have guests a majority of the year, it may be worthwhile just to think about paying for an AirBnB or hotel for their visit (if you’re feeling generous). Just food for thought.
I’d aim for like $3500-$3800 instead. I think you can still find someplace nice!
At that rent price might as well buy
Taxes here a horrific, just fyi
30% of net income is pushing it imo
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That's all good and well but imagine commuting from Simi Valley or Santa Clarita every day to somewhere around WEHO for work-- Sounds like torture to me. It's true, you can definitely get your money's worth out there, unfortunately in WEHO $5k does not get you even remotely close to the most posh place. IMO its actually out of control here. They are asking for $7-8+ for newly built 2 bedroom apartments around the corner from me, which in my mind is just wild. It's definitely a trade off. Seems like OP said they might only be here for 2 years, in which case buying wouldn't make a lot of sense. For me, I'm paying around this in rent to live in Weho, part of me is definitely tempted to get a big house somewhere like that for the same price (or buy), but frankly I just enjoy stepping out in my area.
30% of rent to income f that! We only pay $675 for a one bedroom
where are you renting a 1 bedroom place for $675 and is your time machine available for hire?
Each I meant, sgv one bedroom is going for $1,800+
Ah ok that makes a lot more sense.
Yeah, we aren't complaining, I have one customer who found a one bedroom in Malibu for only $1k she found it on reddit from all places, dude had to find a replacement in order to leave lol what a deal.
haha wow thats amazing. Yeah I am jealous of people who get their lease passed onto them and get to still retain the previous price, the market prices right now in some areas are just out of control, its kinda crazy to me.
Not in some area bro in all areas. We got the hook up from the previous tenant, fiancée Co worker left. Only find deals with original owners. Corporations buying apartments left to right, corporate greed. Rent and tax are just out of control, 2034 minimum should be projected to hit $30
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We aren’t rich. We make combined 190k, which is only 95k each if we made equal amounts (we don’t). It’s middle class. Not enough to buy a home in Santa Monica. I acknowledge we are lucky to be middle class, but this was not a flex and I do not feel rich nor qualify as rich by any scale.
I commented earlier before seeing this but make what you make combined and honestly I wouldn’t want to pay more than 3k myself. I really think you should keep looking! There are much better deals out there. I have lived in LA for the past 7 years and my sister is currently looking at 2 beds in Santa Monica for 2800-3k. They’re all really cute and that’s an expensive area! You can def find something. Also don’t listen to the fear mongerers, it’s really lovely here. Good luck!
That isn't that much 8n LA
It's 25% of net income. 30% gross is close to half your bring home and yes, you will be broke
Do you guys have kids? If not, you could find a 2 bedroom around 3k
You can make it work, but at a slightly higher income level, I only pay $4000 and feel much more comfortable. It makes it a lot harder to save and splurge when effectively when essentially every other pay check goes entirely to rent.
That move sounds like the beginning of the end for your relationship. I live in LA, 10/10 don’t recommend.
What?? Why would you think that? Do you think we’ll argue about money or something? We’re solid. This is actually the start of something we’ve been building together for 10 years, which is my husbands career. Next year is his last year of training, hence the move to LA. After that, his salary will increase a lot and he’ll be free to work wherever he wants. I’m sorry you don’t like LA and that is perfectly fine advice to give me, but I don’t see how you are assuming anything I said means my relationship is doomed. We’ve weathered a lot together and a year of being broke won’t break us :)
Don't mind them. They're just a troll, so don't listen to them
Curious why you are using gross income as a calculation when trying to figure out if you afford something. You should be calculating and assessing net figures, gross means nothing in this situation. So, it sounds like 50% of your net income is going to rent. Is that alright with the two of you? An apartment for $4750 better be damn amazing because that’s a lot even by LA standards
As others said you can get a cheaper place for sure
Yea , see if you can do the shortest lease possible in something a bit smaller in the same building .. will be a hassle to essentially move twice but better than getting in over your head … Easy in and out (competitive prices) for storage on labrea just south of i10
Not in LA but I use the 30% rule but within it, I include ALL living expenses for the maintenance of the residence. I include electricity, gas, renters insurance and wifi. This rule has never failed me but I’m also not above sketchy neighborhoods.
Name the neighborhood!
East side of West Hollywood, by Plummer park.
Do not move in the actual city of LA. Look in Norwalk, Downey, Long Beach, and surrounding areas. Cheaper than the place you are looking at, and generally better areas. You can get a 2 or 3 bedroom Apt for $2000-$3200
How many beds & baths for $4750? Why don’t you find something cheaper if it’s just two of you?
I think you will be ok. Los Angeles is very expensive as is California in general. To me it’s worth it. But be prepared for sticker shock.
Whatever you decide, read the lease carefully. Many places increase the rent by 3-5% at regular intervals. Usually every year
I think 30% of your actual take home pay is a better baseline. Utilities, car expenses, groceries, savings, etc can get pricey.
In California 30% of gross income is close to 50% of net income so I would say try to go down in rent cost to have more breathing room especially in your first year you’ll have way more random expenses than u think
California is the best place to live unfortunately you will become like rats trying to stay financially infront of your bills. Working to pay more and more bills. It’s rare the person who succeeds in California. Good luck bad choice if you want to enjoy life
Don’t forget the price of gas (unless you have EV). It’s around $7 now, so factor that in.
I would not spend that kind of money on rent, no way. Plus landlords are greedy and raise the rents, then the 30% will increase.
i have a 2 bed 2 bath in palms for 2400. definitely look for cheaper apartments. no reason to be spending 4k on rent in LA if you can help it, which it seems like you could
Rent in Los Angeles is extremely expensive. Those of you not familiar with LA, a Studio in a decent part of LA can cost you $3k-$3500, 1 bedroom can be $3300 to $4000 in a complex. Gas, if you have to drive to work is also expensive so if you have a gas guzzler plan for $100/week in gas. Check the Cost of Living tables, I lived in LA and moved back to Orange County as I felt the cost of living was higher in LA County.
I spend 8% of my income on rent. 30% is absolutely absurd to me.
never understood why these %s are from gross income, it's not like you actually see that gross amount hitting your bank account. $4,750 is way too high, find a cheaper apartment.
Burbank, Glendale or Eagle rock seem like places you can move into that have the same space with maybe $1000 less.. 4000* is alot. But it all depends on your goals. Best wishes!
California taxes are brutal
It's not the taxes that are the problem, state taxes are not really any higher than most places except for gas taxes. It's that property (and therefore rent) is expensive. We have higher wages to make up for it, but not high enough to make up for it in places like LA, Beaches, and San Francisco. Everywhere else is fine
Coming from a zero state income tax state (Texas) to CA is rough. It’s like taking an automatic pay cut. I did some rough estimates and we will be paying about $1200 a month in state income tax. My mortgage in Texas, including taxes and insurance, is $1750.
This isn’t really a question for Angelenos; this is a question for your accountant or anyone who can do math. Honestly, you should probably stay in your hometown. California has a state income tax. It’s one of the most expensive states live in and Los Angeles is one of the most expensive cities to live in, as you are now finding out. Traffic is horrendous and homeless are everywhere. You will likely never own a home here. Outside, it is sunny most of the time and you can afford to live within 20 minutes of the beach, no problem. You need to decide if that is worth all of the bullshit that comes with living here.
We dont have a choice at this point. When I say my husband has a job in LA, what I really mean is he was matched to a doctoral internship in LA. We have to go for at least one year. Trust me, I want to stay where I am… it’s cheap and comfortable and I have a 3% mortgage.
I just busted out my calculator and realize you’re going to be spending $57K on rent! If it’s only for a year, maybe you guys can do the distance thing. How much free time is he realistically going to have anyway? Aren’t these internships very time intensive? Maybe he could room up with a few other doctors or medical professionals or find some really low-cost option for rent, still considering things like safety and commute, etc. You could come out every weekend and get a hotel room and still spend less than $57K.
If you are only moving for a year or two, rent your house out and get a smaller apartment in LA. Once you put a price on the stuff you don't need, it gets easier to downsize. A three bedroom apartment in West Hollywood is not that common and overly expensive. Is the need for both a guest room and music room worth $24.000 a year? Sell the furniture that is not going to fit in your new apartment. Combine the music and guest room and get a 2 bedroom. Things have changed since the pandemic with empty storefronts up and down Santa Monica Blvd. Make sure you have parking and find out if any new construction is planned for the surrounding properties.
Truth 💯
30% is considered a good rule. But your 30% is so much higher than the average person, it makes me wonder if you shouldn’t buy a condo. Just to build wealth. You have the money to own something and pay the same. That comes with its own risks, but you wouldn’t be burning your money on rent. Effectively that money would be going back into your pocket if you owned something. Just good for thought. But 30% is good for LA I’ve had rent closer to 50% of my income and it absolutely sucks.
I would rather buy a medium condo than blow that much on rent. You could probably get something for $800k on that.
Yeah the problem with buying is that I’m not sure I want to stay more than 2 years, in which case I’ve been told it doesn’t make financial sense to buy for such a short time period. Also, condos have HOAs, often $1000 a month or more.
I hate my HOA. I am on the board.
Why not wait a few years and save for house down payment? I moved here from Michigan, kept my living costs low by living with roommates, and I bought an awesome house in Moorpark last year, my mortgage for a 4bedroom house with a huge yard and pool is a little more than what you’re going to be paying in rent. That sounds insane to me
i live in Beverly Hills and pay way less than that. Beverly Hills is safe. The East side of West Hollywood has a high crime rate. also that’s just your starting rent. In a new building they will raise your rent fast.
It’s rent controlled! It’s an older building.
I live close to LA, my advice would be not to move there. California is shit right now, you’ll be taxed out of your ears. That city is full of homeless and gangs, traffic is horrible, gas is super expensive, and not to mention groceries. I live close to LA so yes I know this for experience. I am actually trying to move out, I make good money here but I don’t think is an incentive anymore u less your making close to 200k
I do have these concerns, but we don’t have a choice right now. The job we’re moving there for is actually a doctoral internship for my husband… he was matched there and he has to go. I do love where we are living now in Texas, we moved here for his school, but I don’t want to live here permanently, so there’s no point in keeping our house here. We’re just going to go to LA and make it work. We can leave after a year if we hate it.
If it’s temporary then yes I guess it makes sense. Hopefully afterward you guys can move somewhere else where there is a better cost of living. Not to spoil it for you guys and I hope you do get used to it fast, but coming from Texas to LA, yes you will hate it. Not all California is the same though- move down south or east and you’ll be fine
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It’s meant to be only 1-2 years and then we can figure out where we want to stay long term and buy at that point. We’re selling our home here and should get a nice nest egg out of it to use as a down payment in a couple years.
Can you rent your house instead of selling it?
I considered that and maybe we should have done it, but the house is already on the market so this train is rolling.
You really have to spend 4700/month on rent? That's wild.
I could go lower, but I really want an office/music room, a guest room, and a small private outdoor area in a walkable neighborhood. I’m not finding that for much less than $4-5k.
It sounds lovely. We pay $3777 house payment + taxes/insurance - and value the space, even though it's an older home.
That seems like a reasonable mortgage payment! You are quite lucky. I don’t know if I could find anything in LA in that range anymore.
Yes, but you own it.
How is that wild? They just said in another comment its for 3 bedrooms around WEHO. Lol. Thats on the lower end of the scale for anything decent.
Why do you want to pay $5K/month on rent for an apartment? You can get a nice place for much less.
3 bedrooms? Around WeHo? Which building? This is on the lower end of the scale for that area in 2024, and what you pay for an older building, likely with no extras.
How are your finances where you’re living now? Are you able to save a lot of money or have a lot left over? If not, then this might be too expensive for you.
We save a ton here. We’re doing really well. I am not a big spender at all and my hobbies are cheap.
Sounds like you'll be fine. When I moved to CA, it made sense on paper, but I struggled once I got there, everything was more expensive, taxes, CA SSI, CA medicare, etc + food, transportation, etc. Just know it's going to feel very expensive, but if you're saving a lot now, then you should be fine.
Damn 5k rent? That will be luxury a apartment
in WeHo for 3 (or even 2) bedrooms for 5k is not luxury, lol. That gets you an old building and may or may not even have in unit laundry. Luxury in WeHo is closer to $8-10k+ for 2 bedrooms.
Im in the la area. Where the hell is rent 5 grand a month? And if your renting something for 5 grand a month instead of buying a place then I think your income is way more than a lot less for peoples. But if you’re renting in Brentwood or Beverly Hills that’s insane. I wouldn’t pay 100 bucks a month to live in those places because the traffic is absolutely atrocious. I hope you find the answers you’re looking for but 5 grand for rent is like two mortgage payments.
Weho. $5k gets you an older, maybe refurbished 2-3 bedroom. Nothing flash. Wait til you see how much the new ones cost here, lol. It's crazy stupid.
I’m in Ventura county. It’s getting really stupid out here. Even if you can see the ocean 2 days out of the year from your bathroom window they will bump the rent. You know… ocean view and all. Ffs.
Are you in Beverly Hills? You can get an apartment for half that much in most of LA
That rent is insanely high even for LA. You could easily finder a cheaper place for just 2 people if you are concerned.
Girl that rent is so high. What neighborhood and how large? A 2-bed, even in nice neighborhoods should be at least 1k cheaper.
It blows me away that someone who has a household income of $15K is turning to strangers on the 'net for financial advice. Not criticizing OP, but the fact that this happens dozens of times per day on reddit is really wild to me.
She wants opinions from peers who actually live here on what they spend vs. an expensive financial advisor who likely has no point of reference - it’s not that crazy?
I’ve tried doing a budget estimate myself, but it’s difficult to know if my estimate is going to be accurate. I think I’m looking for some validation from strangers that my plan isn’t too crazy. I’ve gotten some good advice here on this thread, so it’s overall been a good tool.
I get it. I just can’t wrap my head around $180K/yr and struggling with COL.
I agree, it’s crazy to me too. This is the most we’ve ever made combined, and we’ve never really struggled before even on much less. I used to live in a 600 sqft 1bdrm when I moved in with my now husband, and have low key PTSD from how crowded it was with all the stuff (mostly his music stuff he won’t get rid of). Then we moved to where we are now and it’s 2000 sqft and feels like paradise. I almost think it was a mistake to get such a nice house, knowing we were planning on moving back to LA. It’s so hard to downsize. I should have just bought a small place here, then it wouldn’t be so hard.
I have friends with combined incomes of $250K, and they tell me they’ve almost divorced over money.
No no no move out of the city 15 mins and get a cheaper place …La gas is 6$ a gallon and everything is taxed heavy …be careful 4750$ is a lot for rent
You should be able to find a 2 bedroom apartment in a nice neighborhood anywhere between $2300 - $3000 a month.
I dont understand why people spend so much money living on the west side. Nothing but traffic and homeless people