Planning to relocate to Austin,TX (Dallas, Arlington: appointed, crime, hotel)

[10scoachrick]

Originally Posted by A-Tex

Additionally, sales tax is 1.5% higher in Travis county.
.

Higher than where?

[Rynldsbr]

An additional point that I think has not really been considered or discussed much on many of these forums is the fact that Austin, and Texas in general, has jobs. Decent paying, professional level, stable jobs. Even though the cost of living has gone up and the traffic is no longer a quiet drive in the country, you will continue to have an influx of people because you have jobs. It could be 50% the COL of where I am today, but with no job, I don't move there. Since I have been offered a job, in my field, along with a fairly significant salary increase and a good career path, I intend to move to the Austin area.

For some it may be a COL issue, but for many of us in areas that have struggled and have not maintained a professional base of employment, it is the career path (or just the ability to pay the bills) that will bring us to Austin.

It may be worth those of you who are local natives to look around and realize how good you have it. If Texas had not made themselves very appealing to the corporate entities that hire, it could just have easily been you that had to look elsewhere for a new home. You could have been the ones uprooting your family from lifelong friends and familiar traditions to seek an opportunity.

[A-Tex]

Originally Posted by 10scoachrick

Higher than where?

Raleigh, which is the other city they're discussing and comparing in this thread.

[10scoachrick]

Originally Posted by A-Tex

Raleigh, which is the other city they're discussing and comparing in this thread.

Then why limit the response to Travis County...I live in Austin and pay the same tax in Williamson County.

[A-Tex]

Originally Posted by 10scoachrick

Then why limit the response to Travis County...I live in Austin and pay the same tax in Williamson County.

Because I'm not pedantic. There are parts of counties that are more or less depending on the city tax. I didn't feel it necessary to list every decimal point tax difference for every area surrounding area. The point is that the sales tax is higher in the Austin area and this is another factor to consider in the OP's cost comparison.

[jonlovet]

On the side note, if I am paying 40% of my income in taxes, how much would i save once I plan to buy house. I think we can show some deductions to lower the tax bracket right.. if that deduction saves 10%, i would spend that in property tax.. so i donot see any tax benefit. Or there is something more i am missing in this. I am new in this and I apologize if my questions are too obvious.

so because of property tax, Austin seems to be expensive. But I see large number of software companies in Austin as compared to NC. So it may be worth it. But if austin over 3 years becomes like bay area, then RTP would be the only choice.

Can we have some numbers put in.. comparing 300k house in RTP vs 300k house in Austin. keeping 300k same just to see what are the factors driving the other expenditures like taxes and how much they vary over the city

300k -15 yr, 5%, same square feet area (experts, please fill '??' below)

RTP

mortgage per month:2.91k (300k*15*12/100 + 300k)/(12*15)
property tax1% correct me if wrong) 3k/12 = 250
insurance:900/12 = 75

sales and other tax:??
maintenance/labor etc:??
fedral tax: ?? (considering 100k income+ planning to show home purchase deductions)
state tax: ??(considering 100k income+ planning to show home purchase deductions)
misc exp: ??

Austin
mortgage per month:2.91k
property tax: 9k (as per previous post)/12 = 750
insurance:900/12 = 75

sales and other tax:??
maintenance/labor etc:??
state tax:0
fedral tax:??(considering 100k income+ planning to show home purchase deductions)
misc exp: ??
I believe fedral tax should be constant all over or it varies by state..

- Jon

[COCUE]

Originally Posted by jonlovet

On the side note, if I am paying 40% of my income in taxes, how much would i save once I plan to buy house. I think we can show some deductions to lower the tax bracket right.. if that deduction saves 10%, i would spend that in property tax.. so i donot see any tax benefit. Or there is something more i am missing in this. I am new in this and I apologize if my questions are too obvious.

so because of property tax, Austin seems to be expensive. But I see large number of software companies in Austin as compared to NC. So it may be worth it. But if austin over 3 years becomes like bay area, then RTP would be the only choice.

Can we have some numbers put in.. comparing 300k house in RTP vs 300k house in Austin. keeping 300k same just to see what are the factors driving the other expenditures like taxes and how much they vary over the city

300k -15 yr, 5%, same square feet area (experts, please fill '??' below)

RTP

mortgage per month:2.91k (300k*15*12/100 + 300k)/(12*15)
property tax1% correct me if wrong) 3k/12 = 250
insurance:900/12 = 75

sales and other tax:??
maintenance/labor etc:??
fedral tax: ?? (considering 100k income+ planning to show home purchase deductions)
state tax: ??(considering 100k income+ planning to show home purchase deductions)
misc exp: ??

Austin
mortgage per month:2.91k
property tax: 9k (as per previous post)/12 = 750
insurance:900/12 = 75

sales and other tax:??
maintenance/labor etc:??
state tax:0
fedral tax:??(considering 100k income+ planning to show home purchase deductions)
misc exp: ??
I believe fedral tax should be constant all over or it varies by state..

- Jon

Yes I do believe federal taxes should be the same in either place.
Sales Tax in Austin - 8.25%
Maintenance - I would budget perhaps about 10% of your Mortgage to be conservative but likely to be the same both places summing you but similar type and age of house.
Misc - should be discretionary and you decide
And for insurance in Austin, perhaps I would budget $1000

[Novacek]

Originally Posted by jonlovet

On the side note, if I am paying 40% of my income in taxes, how much would i save once I plan to buy house. I think we can show some deductions to lower the tax bracket right.. if that deduction saves 10%, i would spend that in property tax.. so i donot see any tax benefit. Or there is something more i am missing in this. I am new in this and I apologize if my questions are too obvious.

so because of property tax, Austin seems to be expensive. But I see large number of software companies in Austin as compared to NC. So it may be worth it. But if austin over 3 years becomes like bay area, then RTP would be the only choice.

Can we have some numbers put in.. comparing 300k house in RTP vs 300k house in Austin. keeping 300k same just to see what are the factors driving the other expenditures like taxes and how much they vary over the city

300k -15 yr, 5%, same square feet area (experts, please fill '??' below)

RTP

mortgage per month:2.91k (300k*15*12/100 + 300k)/(12*15)
property tax1% correct me if wrong) 3k/12 = 250
insurance:900/12 = 75

sales and other tax:??
maintenance/labor etc:??
fedral tax: ?? (considering 100k income+ planning to show home purchase deductions)
state tax: ??(considering 100k income+ planning to show home purchase deductions)
misc exp: ??

Austin
mortgage per month:2.91k
property tax: 9k (as per previous post)/12 = 750
insurance:900/12 = 75

sales and other tax:??
maintenance/labor etc:??
state tax:0
fedral tax:??(considering 100k income+ planning to show home purchase deductions)
misc exp: ??
I believe fedral tax should be constant all over or it varies by state..

- Jon

9k for property tax seems high. Is anyone actually paying 3%? I'm at 2.46 myself.

"But if austin over 3 years becomes like bay area, then RTP would be the only choice. "
I think it would take _many_ years of 10% homestead caps for Austin to reach the bay area.

[Antny12]

Property taxes are less here then where I came from (Chicago) and without state income taxes. So its all relevant to where you are from. It's getting expensive if you're used rk what Austin was 15 years ago but not of you're from (Chicago, NYC, Cali, Seattle etc). Also not everyone who moves here wants to live in the city which is where the prices have really taken off in comparasion to the suburbs which are still far more affordable then a lot of the previously mentioned cities.

[Rynldsbr]

ADP payroll services offers a net income calculator that is great to work out what your net income should be using scenarios from various states. You need to estimate or know the deductions for healthcare and/or pensions but can get a good feel for what the net income would look like in both areas you are considering.

On a $300k home in Austin the taxes should not be $9k based on all that I am seeing. Most that I am looking at in the $225k range are taxed at about $5k so it seems that the tax rate you were quoted is a bit high, although it can vary.

Property insurance in TX generally runs about $2,500 based on quotes I have received, so it is a little pricey compared to other areas but is still not as bad as some. A quick calculator shows a $300k loan with 20% down on a 15 year at 4% (conservative figures today) with 2.75% taxes and $2500 property insurance will have a payment of $2671 with taxes and insurance escrowed.

In this scenario your property taxes of $8250 and your interest of $9383 in the first full year (assuming a January 1 purchase) are tax deductions so using your calculation of 40% tax bracket you will save $7053 on your taxes. The cost of ownership at this point is $10,580 or approx 3.5% of the cost of the home. If the home is appreciating at or above 3.5% you are money ahead using no other factors. If you like the idea of owning and not having apartment neighbors, then you can consider that when you make the decision if this is the best option for you.

Others may wish to advise on whether the 20% down is a good idea or not, what the market may offer as an alternative, or a variety of other options.