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Old 04-08-2016, 12:20 PM
 
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Quote:
Originally Posted by my post View Post
Here in Texas I run into a lot of refugees from California. They lived in LA or the SFO Bay Area most of their working life and were home owners. They saw the quality of life go down hill and decided to retire early and get out of California. One guy told me he sold his house in Palo Alto CA for over a million he had bought in 1980 for $90K and took the profits and bought a home in TX for $350K which was twice as nice and retired on the rest. (Along with a small bit of savings.)


Anyone here with a similar story? Lets discuss.
Doesn't Texas have high property taxes and electric bills? The $750k remaining might not last too long unless they can live frugally, but it is nice to be able to have house equity like that instead of not having it.
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Old 04-08-2016, 12:32 PM
 
Location: We_tside PNW (Columbia Gorge) / CO / SA TX / Thailand
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Originally Posted by Petunia 100 View Post
It doesn't matter if it is your first home or not. The limit is 250k single, 500k mfj. Anything above that is subject to capital gains tax.
And... You can do that gig every 24 months.... $250k single or $500k married TAX FREE gain on primary personal residence. You don't have to wait the 24 months under 'special' circumstances (such as having multiple births ). I have several friends who do the 24 month roll on their homes. I did it on some commercial property that I converted from primary residence.

Quote:
Originally Posted by fumbling View Post
Doesn't Texas have high property taxes and electric bills? The $750k remaining might not last too long unless they can live frugally, but it is nice to be able to have house equity like that instead of not having it.
The CA couple should have bought a $70k home in Arkansas if they wanted to stretch their equity dollars. (At least they should have bargained their new TX house back to $200k, where it belonged; so as not to ruin the neighbor's valuation, causing high taxes for all).

My TX property taxes are pretty high, but only 1/10th as high as my WA property taxes (another income tax free state, with ruined properties values due to Californication of Real Estate values, which forces seniors / farmers / fixed income folks to leave their generational homes due to high taxes. / influx of inflated RE $. )
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Old 04-08-2016, 12:33 PM
 
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Originally Posted by petch751 View Post
While it is true that PA didn't suffer the overinflated housing PA's governor Tom Wolf held up passing the budget because he wanted the largest tax increase in our history including taxes on nursing home care claiming only 25% of the people would have to pay it. For gods sake, people who do pay can't afford the $4,500 - $6,000 a month cost to take care of their parents let along getting hit with taxes on top of that. Thankfully the republicans fought it and he didn't get his tax increases. This went on for 9 months.

The only reason I am here in PA is because of my elderly mother. I will be selling my house, taking my business and my money with me, leaving when she passes and be moving to a lower tax state. Besides I'm not sure how long republicans can hold Tom Wolf off.
we had a 2nd home in pa in the pocono's . the area is doing awful . we sold the house 3 years ago , it was no place we wanted to retire to
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Old 04-08-2016, 12:51 PM
 
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Originally Posted by fumbling View Post
Doesn't Texas have high property taxes and electric bills? The $750k remaining might not last too long unless they can live frugally, but it is nice to be able to have house equity like that instead of not having it.
That's what I was thinking.
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Old 04-08-2016, 12:53 PM
 
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How could $750,000 not last very long?
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Old 04-08-2016, 01:01 PM
 
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how ? 750k only generates safely about 30k a year before tax . . i couldn't pay our health insurance and rent on that
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Old 04-08-2016, 01:18 PM
 
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What are you invested in that gives you $30,000 per year on $750,000? (if you do not mind me asking)
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Old 04-08-2016, 01:20 PM
 
Location: SoCal
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That's a back up plan when all else fails, but I think it's Las Vegas for me. I like dry heat but not the scorpions.
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Old 04-08-2016, 01:45 PM
 
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Originally Posted by matisse12 View Post
What are you invested in that gives you $30,000 per year on $750,000? (if you do not mind me asking)
That's an expected long term inflation-adjusted return on a balanced portfolio based on historical data. It doesn't mean you'd automatically get $30K to spend in 2016 plus another $15K added to that $750,000 to stay even with 2% inflation.
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Old 04-08-2016, 01:57 PM
 
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Originally Posted by matisse12 View Post
How could $750,000 not last very long?
Well, 350k of it was spent immediately to purchase the new place in Texas. 400k is a nice chunk of money, but depending on how much you need to live, it can go very fast when it is going in only one direction.
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