True cost of living (Tyler, Longview: sales, real estate market, insurance)

[jmeyer197]

We're considering moving to Longview, TX from Portland, OR for a job opportunity. We have been told the cost of living is not lower as much documentation would lead us to believe once the sales taxes are added to everything in spite of no state income tax. Can anybody speak to the cost of living as compared to the Pacific Northwest?

Jm

[Texas Ag 93]

I can't even imagine the cost of living in Portland is anything less than significantly higher than Longview.

Portland is a really hot real estate market, is it not? The State income tax in OR is a progressive tax and among the highest in the country. True, there is no sales tax in OR, but I don't see how that makes up for the real estate (own or rent) or tax costs.

Longview, conversely, is a small town in East Texas. Seems like a complete apples to oranges comparison.

I hope it's an out of the world job offer, because from everything I know of Portland, it offers an amazing quality of life, assuming one can afford the costs.

[LeagleEagleDFW]

Cost of living in Longview should be significantly less than Portland. It's mainly the larger cities where cost of living is more expensive than people are led to believe.

However, quality of life in Longview will also be significantly reduced from Portland. That's not to say Longview is a bad place to live, it's just the complete and total opposite of Portland.

[jmeyer197]

I've been reviewing the properties for several weeks now and I can say that while I seem to be able to get more home for the dollar in Longview, in each case, the property tax is double what I'm paying here for comparable property. Besides all the available cost of living calculators available on the web, I can't see where the cost of living is all that much less. Perhaps, nominally..?

[bluescreen73]

Originally Posted by jmeyer197

I've been reviewing the properties for several weeks now and I can say that while I seem to be able to get more home for the dollar in Longview, in each case, the property tax is double what I'm paying here for comparable property. Besides all the available cost of living calculators available on the web, I can't see where the cost of living is all that much less. Perhaps, nominally..?

Yes property taxes will be higher, but you're neglecting the income tax (or lack thereof in TX).

If you've never been to Texas you should probably visit in the dead of summer before uprooting your family and moving there. Summer in East Texas is going to be a huge shock to the system coming from Portland. The average high in July and August in Longview is around 94-95 degrees.

[jmeyer197]

I guess I'm still a bit confused(not unique for me) as I think about the cost of regular things(groceries and all other things we live on) being slightly more with taxes, then add to that the significant increase in property tax, all presumably consumed by what might have been gained by not having an income tax, I don't see a cost of living benefit. That's all I'm truly attempting to determine here.

As far as uprooting my family in consideration of the weather, it's precisely the weather we're attempting to escape to as much as from. 9 months of cold rain makes it tougher to appreciate the green shrubbery and all the other pleasant social amenities. No doubt, we love Portland, however, we're increasingly convinced it is a better place to visit than to live. However, if it ends up it is a wash on cost of living, we might reconsider.

[Lowexpectations]

Originally Posted by jmeyer197

I guess I'm still a bit confused(not unique for me) as I think about the cost of regular things(groceries and all other things we live on) being slightly more with taxes, then add to that the significant increase in property tax, all presumably consumed by what might have been gained by not having an income tax, I don't see a cost of living benefit. That's all I'm truly attempting to determine here.

As far as uprooting my family in consideration of the weather, it's precisely the weather we're attempting to escape to as much as from. 9 months of cold rain makes it tougher to appreciate the green shrubbery and all the other pleasant social amenities. No doubt, we love Portland, however, we're increasingly convinced it is a better place to visit than to live. However, if it ends up it is a wash on cost of living, we might reconsider.

Add your property tax now to your current state income tax then subtract out your hypothetical texas property tax. That would give you a base figure to work off of to move from there. Non prepared food from grocery stores isn't taxed in texas

http://www.window.state.tx.us/taxinf...s/tx96_280.pdf


I'd wager that 5-9.9% of my income is higher than 8% of my sales tax eligible spending(which is federally tax deductible fwiw)

[Lowexpectations]

A COL calc breaks down different categories to start your math problem and you can work taxes in there


Cost of Living Calculator | Portland, OR vs Tyler, TX | NerdWallet - Personal Finance

[jmeyer197]

Very helpful, Lowexpectations...! Thank you.

[Wittgenstein's Ghost]

There is great misunderstanding regarding the no state income tax in Texas thing. The state has to get its money somehow. It isn't as though it just manages to get by with significantly less taxpayer help than other states. The glaring example is, as you've discovered, property taxes. Texas has the third-highest property taxes in the nation, and the only other states that are higher are also states without state income taxes.

I've posted this before, but I think it applies here:

Let's imagine Smith qualifies for a monthly total housing payment of $1800. Let's also assume that his homeowner's insurance costs are the same in Texas and state B (let's say $1,500 per year). The only difference is that in Texas he will pay a property tax rate of 2.5%. In state B, it will be 1%. Assuming an interest rate of 4.5% amortized over 30 years, in Texas Smith could afford a $235,000 house for $1800 per month. In state B, he could afford a $285,000 house for $1,800 per month. Alternatively, if he were to buy a $250,000 house in either state, he would be paying $1907 per month in Texas and only $1595 in state B. Over the life of the loan, that difference in payment would mean he would save $112,320 by buying a house for the same price in state B.