Arizona to Austin experiences... (Fredericksburg, Wimberley: rental car, sales, real estate market)

[ellie84]

Has anyone moved from Arizona to Austin?
Which do you like better and why?

[Leaving Arizona]

Austin, for a thousand reasons.

To give you an idea, we came back to AZ for a relative's celebration last spring. We'd gotten our rental car, and were going along the 202 on the way to Scottsdale Road - therefore only about 5 minutes out of Sky Harbor - when my husband muttered, "No, I don't miss this place." I replied that I didn't, either. As our trip lengthened, the feeling remained - the move had been completely worth it.

Personal, political, professional (for my husband), environmental, educational (for my child)... the positive reasons are many and varied. What are you aiming for in terms of an answer?

[ellie84]

I am retired and living in Sacramento area and thinking of relocating to either Arizona or Austin.
(The earthquakes and especially the fires...known as the fire season out here really scare me).
I have lived in both Arizona and Austin many years ago...knowing things must of changed for both.
I would think Austin is a more active place then Arizona. More things to do as I am an active senior.

My main concerns are the people and cost of living. Other things that that will come to mind.

[ashbeeigh]

Do a bit of searching within the forum. You'll find a plethora of people moving from California to Austin. Many are shocked that our cost of living is either a. way higher than expected or b. way less expensive than it was in California. However, I think that depends on how much money you're bringing with you. If you killed it in the real estate market and are paying cash for your house in Austin then the cost of living will be lower. If you're moving here and paying rent or buying a new house, then it's going to be more.

[A-Tex]

Phoenix is the cost of living winner hands down. Plus, since it's a popular retirement location, there are many more affordable living options available.

Please make sure you research property taxes in the Austin area. Because there is no state income tax, those taxes are offloaded into property taxes and they remain sky high even once you're able to take the additional exemption because of your age. This will likely lead you to pay more taxes than you would in many other places since they're not based on income. I would never relocate here to retire without a burning need to do so (such as local family) or a bottomless bucket of money.

[Trainwreck20]

Originally Posted by A-Tex

Phoenix is the cost of living winner hands down. Plus, since it's a popular retirement location, there are many more affordable living options available.

Please make sure you research property taxes in the Austin area. Because there is no state income tax, those taxes are offloaded into property taxes and they remain sky high even once you're able to take the additional exemption because of your age. This will likely lead you to pay more taxes than you would in many other places since they're not based on income. I would never relocate here to retire without a burning need to do so (such as local family) or a bottomless bucket of money.

This is a little cursory, though.

Comparing Maricopa County Area to Central Texas tax similarities/differences:
Assume:
Retired individual
50,000 annual income
$250,000 house (paid for)

State Income tax (approx.):
TX - 0
AZ - $1,500

Property Tax (approx.)
TX - 2.0 to 3.0 = ~$6,000
AZ - 0.8 to 0.9 = ~$2,000

Sales Tax
TX - 6.25 - 8.25
AZ - 6.30 - 10.9 (note that groceries are generally taxed within a municipality)

Vehicle Tax/Registration
TX - <$100
AZ - varies based on age/cost of vehicle ($30,000 car will be $500, $435, and $365 for first three years)

Bills
Electric looks to be about the same (average bill is higher in deregulated areas in Texas due to higher use, lower in co-ops/munis due to lower use).
Water is higher in most of Texas (say, $30 or so more)
Gasoline is about 11% higher in AZ right now (+$0.28/gal, say $100 to $200 per year depending on driving)

Anyway, if you are a very low spender/income and live in an expensive house, AZ favors you most likely. If you are a high spender/earner in an inexpensive house (or low tax area), Texas could still come out better. In between will depend on a lot on exactly where you live in either place.

[A-Tex]

Originally Posted by Trainwreck20

This is a little cursory, though.

Comparing Maricopa County Area to Central Texas tax similarities/differences:
Assume:
Retired individual
50,000 annual income
$250,000 house (paid for)

State Income tax (approx.):
TX - 0
AZ - $1,500

Property Tax (approx.)
TX - 2.0 to 3.0 = ~$6,000
AZ - 0.8 to 0.9 = ~$2,000

Sales Tax
TX - 6.25 - 8.25
AZ - 6.30 - 10.9 (note that groceries are generally taxed within a municipality)

Vehicle Tax/Registration
TX - <$100
AZ - varies based on age/cost of vehicle ($30,000 car will be $500, $435, and $365 for first three years)

Bills
Electric looks to be about the same (average bill is higher in deregulated areas in Texas due to higher use, lower in co-ops/munis due to lower use).
Water is higher in most of Texas (say, $30 or so more)
Gasoline is about 11% higher in AZ right now (+$0.28/gal, say $100 to $200 per year depending on driving)

Anyway, if you are a very low spender/income and live in an expensive house, AZ favors you most likely. If you are a high spender/earner in an inexpensive house (or low tax area), Texas could still come out better. In between will depend on a lot on exactly where you live in either place.

A retired person with a $50K income and a $250K paid off house in Austin? A unicorn. You're not comparing apples to apples. This person doesn't live in Austin so wouldn't have one of those sweet $250K homes they've lived in forever in the city and would be moving here and making a buying decision. Where exactly in Austin would they be buying this $250K house so it could be "paid off?" The far flung suburbs, that's where. Arizona is a popular retirement spot for a reason. It's dirt cheap. You can buy a home in a decent area for half of that. You can rent a nice apartment in a decent area for literally half of what you'd pay for an "average rent" apartment in Austin.

[A-Tex]

Originally Posted by Anywhere but here

You have to look backwards to see the benefit of that home price. That 250k home was about ten years ago in my hood, which translates to 450k to 500k now. It could be paid off. I paid off my home here in about 13 years. I started that loan back in 1997.
I do agree taht they are unicorns.

Duh. That's why I'm saying it's a unicorn. It doesn't exist.

[Trainwreck20]

Originally Posted by A-Tex

A retired person with a $50K income and a $250K paid off house in Austin? A unicorn. You're not comparing apples to apples. This person doesn't live in Austin so wouldn't have one of those sweet $250K homes they've lived in forever in the city and would be moving here and making a buying decision. Where exactly in Austin would they be buying this $250K house so it could be "paid off?" The far flung suburbs, that's where. Arizona is a popular retirement spot for a reason. It's dirt cheap. You can buy a home in a decent area for half of that. You can rent a nice apartment in a decent area for literally half of what you'd pay for an "average rent" apartment in Austin.

You are missing the point - there are a lot of houses like that in central Texas, just not in Austin proper. Most retirees moving here end up in somewhere like Wimberley or Woodcreek or wherever. My mom lives in a house that is under 250k on basically that income (essentially social security and 401k withdrawals) in Fredericksburg. You know the 'nice' retirement areas around Phoenix? They ain't all cheap, either, although there is a huge range. The assumption is that by the time you retire you should plan to be in a paid house, but even that is basically immaterial and the cost of a mortgage does not vary much by location.

Just looked up her rate - 1.779 without exemptions. With HSE and over-65, she is paying somewhere just under $4,000/yr in property taxes. That particular rate is right at double AZ, but I am not sure on the particular exemptions or freezes that might be available. Assuming the property tax was really small, like $1,000 leaving a $3,000 deficit, half of that ($1,500) would be made up by income tax. Another $300 additional for car tax. At least hundreds of dollars more paid in sales tax due to grocery tax in municipalities, possibly more if you live in a 'high sales tax' city - Glenndale - 9.2%, Phoenix - 8.6%, Avondale - 8.8%. A few are lower by by a small amount, but most still tax groceries.

And while it might not last, sales tax in Texas is still deductible, but is not in Arizona.

In any case, the cost of living is not all that much different. You might get a cheaper house in AZ but will lose some of the benefits via income tax and others costs. You might get a bigger house for your money in places around Maricopa County, though, but depends on what you are looking for.

And as I type this, it is 104 F in Phoenix with a forecast of 105 F tomorrow.....

[A-Tex]

Originally Posted by Trainwreck20

You are missing the point - there are a lot of houses like that in central Texas, just not in Austin proper. Most retirees moving here end up in somewhere like Wimberley or Woodcreek or wherever. My mom lives in a house that is under 250k on basically that income (essentially social security and 401k withdrawals) in Fredericksburg. You know the 'nice' retirement areas around Phoenix? They ain't all cheap, either, although there is a huge range. The assumption is that by the time you retire you should plan to be in a paid house, but even that is basically immaterial and the cost of a mortgage does not vary much by location.

Just looked up her rate - 1.779 without exemptions. With HSE and over-65, she is paying somewhere just under $4,000/yr in property taxes. That particular rate is right at double AZ, but I am not sure on the particular exemptions or freezes that might be available. Assuming the property tax was really small, like $1,000 leaving a $3,000 deficit, half of that ($1,500) would be made up by income tax. Another $300 additional for car tax. At least hundreds of dollars more paid in sales tax due to grocery tax in municipalities, possibly more if you live in a 'high sales tax' city - Glenndale - 9.2%, Phoenix - 8.6%, Avondale - 8.8%. A few are lower by by a small amount, but most still tax groceries.

And while it might not last, sales tax in Texas is still deductible, but is not in Arizona.

In any case, the cost of living is not all that much different. You might get a cheaper house in AZ but will lose some of the benefits via income tax and others costs. You might get a bigger house for your money in places around Maricopa County, though, but depends on what you are looking for.

And as I type this, it is 104 F in Phoenix with a forecast of 105 F tomorrow.....

The OP lives in Sacramento. She is more than familiar with those temperatures. Funny people forget those winters when it's 30 degrees in Austin but 75 in Arizona.

And you're the one missing the point. I am intimately familiar with the real estate market in the Phoenix area. Like I said, for literally half the price of that unicorn Austin $250k house, you have your pick of any area in Phoenix. In the Austin area, you are pigeon holed into a few far flung non-Austin areas away from vital medical services needed by seniors. You also have an incredibly myopic view of the average American retiree's financial position.