It's Funny How Things Work Out (Ogden, Logan: mortgage, equity, estate)

[fteter]

It's funny how things work out. My wife and I have wanted to leave Southern Cal and move to the Logan area for some time. We especially like Mendon, as we have some friends living there.

I've been banging my head against the wall trying to find work in the area (I'm an IT Project Manager specializing in Oracle technology) that doesn't require a vow of poverty. Looked for work in the Cache Valley, Ogden, and even considered commuting to Salt Lake. I came close a few times, but nothing worked out.

Just when I was about to throw in the towel, my employer has offered me a two day per week telecommuting work schedule. The offer came out of the blue, and I grabbed it. I'll work in the office Monday, Tuesday and Wednesday. Thursday and Friday, I work from my home office. Yup, it's a sweet deal and I do feel very lucky!

Here is the funny part. I've done the research, run the numbers, and figured out that commuting from Cache Valley to Los Angeles for my three "in office" days costs less (after taxes) than the mortgage and property tax payments I'm making on my home in Southern Cal. That's right, the weekly airplane tickets, hotel, and other travel-related costs don't add up to my current mortgage payment (and my mortgage isn't really all that big or for all that much house). Is that nuts or what? I also calculate (conservatively) that we have enough equity in that Southern Cal home to sell it and pay cash for an equivalent home in the Cache Valley. Just goes to show how out-of-whack things are between the two areas.

I'm sharing my experience because I thought you all would get a kick from this example of how out-of-whack things are between Utah and Southern Cal. Like I said, it's funny how things work out... Anybody know of homes for sale in Mendon?

[cas2006]

I know a few folks who live in my area (Park City, UT) and commute to SoCal every week....not all that unusual.

[Steadykat]

For what it's worth, be careful. Make sure you sell you home in SoCal before you purchase one in Utah. The CA market has changed quite a bit since last summer, what appears to be the market high. Inventory is at six-ten year highs in some parts of your State and sales have dropped in half in most of your markets. I'm sure that you have noticed all the new "for sale" signs springing up.

However, if you have a nice home and it is priced to sell, 10%+ lower than your neighborhood comps and you make quick price reductions if it fails to sell promptly, you may beat the upcoming crash. A real-estate agent may tell you that the market will return, interest rates are going up, now is a good time to buy, etc. Go on the internet and check out the house inventory and sales numbers in your State and particularly in your area before you make a decision.

[fteter]

cas2006, thanks for letting me know that I won't be the only guy doing the long distance commute.

steadykat, you're right about the decline. I "Zillowed" my house, compared with similar homes in the neighborhood, and knocked 20% off the bottom line. If it won't sell that low, I'll leverage the heck out of it to buy the Utah house, and rent the SoCal house for a few years until the market improves.