ABC News: Austin is the top place to retire and "Austin is not only vibrant, but inexpensive." (West: sales, real estate)

[dundermifflin]

"Austin is not only vibrant, but inexpensive. It has a low cost of living, no state income tax and its cost of housing is 15 percent below the national average."

Do you agree?

7 New Retirement Hot Spots - ABC News

[UKjay]

Hah, that's what we thought when we moved here to retire. No way is the cost of living low and we're out in the 'burbs. Sure it's doable if you have that $4M the WSJ recommended or daddy's trust fund.
Our experience is not good; if we had a chance to "do over" the Austin area would not be on our list of places to retire. That said, I sure see a lot of retirees in the stores, so it's working for some people.

[HappyTexan]

I disagree. The COL has risen in the past decade. I would retire to another county..away from the I-35 corridor as all those cities along there have risen dramatically over the past decade.

There's still good spots in Texas for retirement though with low taxes and low COL and that's where I'll be headed for as Texas is my home.

[dundermifflin]

Originally Posted by UKjay

Hah, that's what we thought when we moved here to retire. No way is the cost of living low and we're out in the 'burbs. Sure it's doable if you have that $4M the WSJ recommended or daddy's trust fund.
Our experience is not good; if we had a chance to "do over" the Austin area would not be on our list of places to retire. That said, I sure see a lot of retirees in the stores, so it's working for some people.

Yes prices are high, especially downtown. What city would you prefer to be in?

[passionatearts]

Austin's housing costs are only "inexpensive" if you're used to East Coast or West Coast housing costs.

[thedogatemyhomework]

agreed - austin is great if you are coming from a big city [with lots of cash from selling your tiny condo or whatever]

i am always a bit puzzled by people who consider this a retirement destination as it seems that with no state income tax and high property taxes [at least in austin] is retirement-unfriendly; the type of scenario better suited to working people

[Trainwreck20]

i am always a bit puzzled by people who consider this a retirement destination as it seems that with no state income tax and high property taxes [at least in austin] is retirement-unfriendly; the type of scenario better suited to working people

Most of these 'studies' fail to account for property tax and only compare income and sales tax, so ofc Texas ends up looking good. That said, the lower housing cost than some areas does make up for it, and the lack of tax on your retirement earnings does help some, too. My in-laws retired out west of Austin and love it.

[atxcio]

I think Austin can be a great place to retire, but there is some special planning that should be done. First off, there are only a few things that put the COL out of whack and make it much more expensive than people expect. They are:

1) Property Taxes, HOA expenses
2) Utility costs (mainly electricity for cooling and water for landscaping)
3) Gas costs (if you live in the suburbs or somewhere where you must drive everywhere)

So just manage the above factors like this:

1 - Rent, or if you must own look for a small property or a home with 2 bedrooms. The 2 br/smallish home thing will help keep the property taxes low even in the close-in neighborhoods. Be sure to protest the property valuation every year, and get your over 65 exemption. Live in the city of Austin proper, it's cheaper property tax-wise than most suburbs. Don't live where there is an HOA, unless it's a condo (and look for low fees if so).

2 - Energy efficiency of a home can mean thousands of dollars of yearly savings. Don't skimp on this. Put the money up front to get the most efficient A/C unit(s) you can, along with extra attic insulation, solar screens, ridge vent, ceiling fans in every room, whatever you can think of -- consider it part of the purchase price and negotiate accordingly. As for water, it's EXPENSIVE and only getting more so -- look for minimal yard, or at least minimal grass. Xeriscape or get something where the lot can be left mostly natural.

3 - Live in town, or in one of the semi-walkable neighborhoods. That way you can have only 1 car, or maybe 1 car and a scooter or something. I guess some people will want acreage or country living, and that's fine I guess. But for me, retirement should be somewhere next to a beach or a city center.

Anyway, if you can manage those things, the COL here is indeed low, especially for a trendy place.

[CarnivalGal]

Austin is still less expensive than the national average. That said, there are some big problems with retiring to new areas. Sure, it's great when you actually first retire. You are still relatively youthful, drive, are independent and have your spouse to help you anyway. You play golf, tennis, go out, etc. But eventually you get to the point where you need help. Your spouse may pass, leaving you alone and lonely, you may have health problems, you can't drive, maintain your home or properly care for yourself, etc. Many folks who "retire to" a certain destination eventually wind up moving back where whey came from because they are close to family and have the resources to help them when they need help.

There was an interesting story about this on 60 Minutes (I think). It has been one of the factors that has hurt Arizona and Florida real estate (among many other things, of course). All those people who retired there in droves to play golf and live the good life went from being simply retired to, well, old. And then there was a huge influx of people moving out and back "home."

[llkltk]

Originally Posted by mm57553

Austin is still less expensive than the national average. That said, there are some big problems with retiring to new areas. Sure, it's great when you actually first retire. You are still relatively youthful, drive, are independent and have your spouse to help you anyway. You play golf, tennis, go out, etc. But eventually you get to the point where you need help. Your spouse may pass, leaving you alone and lonely, you may have health problems, you can't drive, maintain your home or properly care for yourself, etc. Many folks who "retire to" a certain destination eventually wind up moving back where whey came from because they are close to family and have the resources to help them when they need help.

There was an interesting story about this on 60 Minutes (I think). It has been one of the factors that has hurt Arizona and Florida real estate (among many other things, of course). All those people who retired there in droves to play golf and live the good life went from being simply retired to, well, old. And then there was a huge influx of people moving out and back "home."

Wow, you are a major downer. My Great Grandmother lived until 94 and took care of herself fine! Not all older people are bed ridden. Geesh!