Seattle vs. Austin cost of living comparison (Portland, West: apartment, rent)

[tomis]

Originally Posted by Twincerely

Like... sunshine!?!?!

For us, the equity from our Seattle home (on the market for $575) will allow us to put down about 70% on an Austin home 400-450 K. Figuring in taxes, insurance, and utilities, our out of pocket every month will be about the same. Maybe a couple of hundred less a month?

See, that's exactly how we initially imagined it would be, but our math didn't work out that way. With the equity from our Seattle home we could actuallly pay off a 400-450k home in Austin. But then the 3% property tax in Austin would be 12k, compared to the 4k that we pay on our Seattle property. Then, add the extra expense for the homeowners insurance and electricity and our monthly expenses would be significantly higher. And yes, it would be mostly for the sake of more sunshine, but then I'm concerned about the really hot summers that we're clearly not accustomed to. Oh, how I wish this were easier...

[Twincerely]

Originally Posted by tomis

See, that's exactly how we initially imagined it would be, but our math didn't work out that way. With the equity from our Seattle home we could actuallly pay off a 400-450k home in Austin. But then the 3% property tax in Austin would be 12k, compared to the 4k that we pay on our Seattle property. Then, add the extra expense for the homeowners insurance and electricity and our monthly expenses would be significantly higher. And yes, it would be mostly for the sake of more sunshine, but then I'm concerned about the really hot summers that we're clearly not accustomed to. Oh, how I wish this were easier...

Hmmm.. I wonder what hubby and I are missing in our math. We're figuring 10-14K for property taxes and 400-600 for utilities on bad months. We're calculating insurance based on someone else's numbers, but maybe those aren't accurate? Based on our figures, we're still coming out 100-200 less a month in out going expenses. Maybe we're just shelling out more on our mortgage in Seattle than you are?

I went to college in Wichita Falls and I spent part of my childhood in Ft. Worth. I think the summers will be difficult at first, but I know I'll acclimate. I'm willing to endure Texas summers over Seattle winters. I just can't handle anymore gloom. Not to mention the people... Seattle's very reserved for me. I feel like a freak here. Even if Austin turns out to be a couple hundred dollars more expensive every month... it's worth it to me. Everyone's gotta make that call for him/herself. Good luck to ya!

[achtungpv]

Maybe this should be its own thread, but does anyone who upgrades their home when moving to Austin look at what the taxes could be in 5 years if homes continue to appreciate in value? On a $500K home today at a tax rate of 2.5%, you'd pay $12,500 first year and after 5 years of 10% increases you'd pay $20,131 in taxes each year. I doubt houses will appreciate like that (if they do, I'm selling :-)) but when we bought our house, we used that 5-year down the road figure when determining our housing budget. If I couldn't easily afford those taxes on my current salary, I couldn't afford to buy it. It's being extremely optimistic your salary will increase 10% a year and if you're buying the most house you possibly can today, eventually the property tax increase may catch up with you.

[tomis]

Originally Posted by Twincerely

Hmmm.. Maybe we're just shelling out more on our mortgage in Seattle than you are?

OK, now I see where our scenarios diverge. The case I was interested in is the one in which you're mortgage-free. We are close to being done with our mortgage in Seattle and, upon selling our Seattle house we could buy a 400-450k house in Austin and not have a loan. So, my theory is that if and when you become mortgage-free it's more expensive to live in Austin than here. All the big ticket items, like property tax, utility bills, insurance are significantly higher there. Gas, movie tickets, groceries, etc. may be less expensive in Austin, but probably wouldn't offset the other costs, unless, like someone was joking, you drive all over Texas smoking cigarettes .

We may still make the leap and accept the added expenses for the sake of a (hopefully) better climate, quality of life etc., but we need to plan accordingly. Otherwise, a few years down the road we may need to move again because we can't afford the property tax anymore. Speaking of which, I found it very educational to look various properties up on the appraisal roll and see how their tax liability increased from year to year. It's really an eye-popping experience... Here's the link (for Travis County) for those interested:

Travis Central Appraisal District - Appraisal Roll Information

Click on Appraisal Roll and enter the property's address.

[malarkey]

Originally Posted by Trainwreck20

In August 2006, Seattle had an average high temperature of ~77 F. In Austin, it was ~101 (the average low was 77!). Assuming your average target household temp is 76 F, you had no need for AC in Seattle, but had a 25 F delta to account for in Austin.

In January 2006, Seattle had an average low temperature of ~36 F. In Austin, it was ~46 F. Assuming you kept your house heated to ~68, that would be 32 F in Seattle and 22 in Austin (not that big of difference)

I've never had AC in Seattle. You simply don't need it. Heat, however, you do need. And you run it 9-10 months out of the year. For instance, its June 14th, and I'm still running the heat in the mornings and in the evenings for a bit when I get home.

[noplacelikeWA]

We moved from north Seattle last April to San Antonio, however we spent most of April through August in Austin with family and we still spend at least 1 weekend a month there. We were able to move here debt free on account of a good profit on selling our house however aside from getting more house for our money there is no other real significant cost of living savings and unfortunately our lot is smaller.

WA house - 2300sq ft sold for $350k property taxes $2000 per year, lot size .22

TX house - 3000sq ft bought for $180k property taxes $4300 per year, lot size .14

Insurance is more in TX and if you add mandatory HOA fees we pay about $100per month more here than in WA.

Our a/c expense is virtually equal to our old heating expenses and all of our other utilities run about the same. Everything else is also the same or more, (dining out, movies, retail shopping, etc.)

The only significant cost of living savings I can say we have experienced is the price for gas, unfortunately SA is spread out over a large area of land so we really don't save on the fuel expense because you have to drive so far to get to anything. Austin is also pretty spread out and the traffic there is worse IMO.

The only thing you can't put a price on is all the sunshine and coming from WA after living there for the past 20years, the weather in TX is priceless!

[Twincerely]

Originally Posted by noplacelikeWA

The only thing you can't put a price on is all the sunshine and coming from WA after living there for the past 20years, the weather in TX is priceless!

AMEN!!!!!!!!!!!!!!!

[kphin]

I don't think the cost increase in the Austin area is as bad as you would think. I'm in the suburbs (both places, so maybe that makes a difference). Gas, food, and other misc things are cheaper than Washington. Also our car insurance will be $400 cheaper/year for 2 cars. And our home owners insurance is going be about the same (460K house here vs. 625K house in wash.--the house here is significantly bigger and has many more features). Plus we save about another $450/year on the earthquake insurance we were paying in washington.

We look at it as paying about the same for housing. In Washington you get a smaller house with a huge mortgage and avg property tax. In this area, you get a smaller mortgage, bigger house, and bigger property taxes. Its all coming out about the same....

[cdelena]

Originally Posted by achtungpv

Maybe this should be its own thread, but does anyone who upgrades their home when moving to Austin look at what the taxes could be in 5 years if homes continue to appreciate in value?
...

Good point, especially if you don't foresee income increases.

In the last ten years I lived in Texas my property taxes more than doubled (some of it valuation driven, some rates, but all out of my pocket), my insurance went up 40%, and electricity bills almost tripled.

The rate of inflation accounts for maybe 20% of the increases, but it is wise to anticipate some change.

[texastrigirl]

We are actually pricing a move in the opposite direction and it is freaking me out to think about paying 2.5 times more for a house of the same size 10 miles further from town than I now live so I am glad to hear people think the cost of living is about the same, even though I think of Austin as way less expensive. Maybe it's my $1000 mortgage in a great subdivision in SW Austin with fabulous schools obtained 7 years ago but thinking of paying $2500-$3000 per month in Sammamish or Issaquah for the same size house is frightening. Salary.com says Seattle is approx. 26% more expensive than Austin and the Seattle area recruiters tell us Austin tech workers are overpaid relative to the National Avg (LOL) so we can't expect that kind of increase.

BTW, if you live in Travis County, sales tax is 8.25%. Property tax is expensive but after a big adjustment, mine has leveled out for the past few years and I live in SW Austin which has seen steady appreciation, most of it in the last 18 months. It can only be raised up to 10% of its value each year and that has only happened to me once. And yes, property insurance is also expensive because of previous flooding and mold damage claims in the state. Having excellent credit and no claims helps but we still pay $1000 per year. I only have a 2300 sq ft house and my electric runs $180-$200 in the summer, not to mention $200 water bills to barely keep the lawn alive. That lasts for about 4 months at that rate (Mid-May to Mid-Sept). Friends with large houses of 4000-5000 sq ft have bills that run as high as $800-$900 for electric depending on how well they do at keeping shades closed.

I have been here 11 years and will really miss it but hubby is from Cali and says he absolutely cannot take another summer here and is tired of getting precancerous moles removed every year. So we trade heat for rain. I am looking forward to having Whistler close by. Missing my previous life in Colorado! But I will miss Texas and the people. None better than the friendly folks of this state!!