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in Texas you don't pay the high property tax if you are not a home owner, you could rent and make a bunch of money income tax free. The "average" wage earner is each state more likely rents than owns, so the benefit for the averave family is much greater in Texas.
Also, rent is also much lower in Texas compared to ca, let alone the business centers in ca.
The biggest advantage to coastal areas, especially California is the amount of appreciation(or depreciation) you can get in short amounts of time. You dont get that in Texas, its much more of a slow climb (or descent). In high growth areas of Texas, good luck selling a 'used' house to. Everyone expects houses to show like brand new model homes. In coastal California you can pretty much sell any piece of crap house at anytime for big bucks. You just have to really play the market correctly here.
I think the complaint in the article was mostly about property taxes.....sure, Cali owners sitting on overpriced house paying nothing due to Prop 13 and expecting others to pick up the tab and pay their way for schools, roads, etc can have entitled laugh at dumb home owners now and sneer if these go back to the growing American class of rental serfs....till Prop 13 is repealed
I tend to agree with you. New comers to the state often buy in the newer developments with those terrible Mello-Roos taxes. It's totally unfair to new developments IMO. Subdivisions prior to Prop 13 didn't have to pay for Mello-Roos taxes, so why should today's new developments have to?
Most people who leave high COL states like California, et al. and move to low COL states like Texas, et al. end up buying homes in the lower COL state that are newer with more square footage and land as well as higher-end finishes.
Thing is, the new home that they purchased in the lower COL state is often equivalent in price to the home they sold in the higher COL state. Now, their salaries are lower while their home maintenance and utility costs have drastically increased (bigger homes are much more expensive to maintain and keep up then smaller homes).
Don't forget, most low COL states require residents to run A/C for 3-6 months straight during the summertime (9-10 months in Florida and the Gulf Coast) and/or 3-6 months of heat due to oppressive summers and bone-chilling winters.
I know we've had some hot, humid weather in Southern California lately, but in much of coastal California, heat and A/C are rarely used, keeping our utility costs among the lowest in the nation.
Then, when talking about states in the middle of the country like Texas, you have to factor into the equation all of the different things that can damage or destroy homes - tornadoes, hail, high winds, lightening, hurricanes (at least in Houston and along the Gulf Coast), etc. That's why homeowners insurance is general higher in Texas.
Of course, we have our fair share of natural disasters in California, but unless you live on a steep hillside or in a heavily forested area, landslides and wildfires, respectively, present little concern. Furthermore, most homes and apartment buildings are built or retrofitted to withstand earthquakes to a certain extent, so not much concern there, either.
Another thing that some people fail to realize is that despite lower housing costs, property taxes in some low COL states are much higher, on average, than property taxes in California, whose population has benefited over the years from the passage of Prop 13. Property taxes in some states known for their low COL like Texas, Nebraska, Wisconsin and Utah are much higher than in California. Something else to take into consideration, for sure.
I've seen it time and time again where people move from a high COL state to a state with a 20-30% lower COL and buy a newer, bigger home for an equivalent price of what they sold their previous home for in the higher COL state while taking a 50% pay cut and seeing their utility, insurance and maintenance costs triple. The grass isn't always greener - that's for sure!
I just stumbled upon this thread on the Real Estate forum where folks from other states are complaining about losing their paid-off homes because they can't afford the annual skyrocketing property taxes. //www.city-data.com/forum/real-...h-america.html
I wonder how long it will be before the California haters come running back from Texas when they discover the grass wasn't exactly greener in other cow pastures. Don't get me wrong, I hope they leave and don't come back. The state prefers innovators, not whiners. But I sure would love to be there when reality bites these guys in the butt.
So let me get this right... You want people to leave California and not come back but also like to laugh at their misfortunes if they decide to seek happiness in another state? Wow, you sound like such a lovely person with such a warm personality!
I tend to agree with you. New comers to the state often buy in the newer developments with those terrible Mello-Roos taxes. It's totally unfair to new developments IMO. Subdivisions prior to Prop 13 didn't have to pay for Mello-Roos taxes, so why should today's new developments have to?
Why buy into a Mello-Roos... there are plenty of homes with no Mello... also, Mello does not continue forever.
Um, actually, no. There are LOTS of forms of retirement income that are tax free. California also has no estate tax, which is something you can NOT say for the Pacific Northwest.
And really, "most oppressive in the entire US"? For an individual earning $250,000 do you know what state charges the highest income tax? OREGON
On that list, California is #8.
Gee, exaggerate often?
Lori,
Just curious. Which retirements are not taxed in California? I'm a retired teacher and my retirement taxes are around $4,500/year. My late husband was a retired county deputy and his retirement was also taxed. I'm guessing maybe railroad retirees are not taxed as I see they are exempt from taxes in most other states. I'm pretty sure all state,county and federal retirees are taxed. That only leaves private retirees, but they are for sure taxed. Could you clue me in to which retirees don't have to pay California state income taxes please?
Um, actually, no. There are LOTS of forms of retirement income that are tax free. California also has no estate tax, which is something you can NOT say for the Pacific Northwest.
And really, "most oppressive in the entire US"? For an individual earning $250,000 do you know what state charges the highest income tax? OREGON
On that list, California is #8.
Gee, exaggerate often?
I an not talking about a person who is actively working and earning 250K. I am strictly speaking about retired people and not many retired folks are earning 250K on investments.
Retirement Income Taxes: There is a 2.5% tax on early distributions and qualified pensions. All private, local, state and federal pensions are fully taxed.
Retired Military Pay: Follows federal tax rules.
Military Disability Retired Pay: Retirees who entered the military before Sept. 24, 1975, and members receiving disability retirements based on combat injuries or who could receive disability payments from the VA are covered by laws giving disability broad exemption from federal income tax. Most military retired pay based on service-related disabilities also is free from federal income tax, but there is no guarantee of total protection.
Property Taxes
Property is assessed at 100% of full cash value. The maximum amount of tax on real estate is limited to 1% of the full cash value. Under the homestead program, the first $7,000 of the full value of a homeowner’s dwelling is exempt. The Franchise Tax Board’s Homeowner Assistance program, which provided property tax relief to persons who were blind, disabled, or at least 62 years old, and met certain minimum annual income thresholds, has been halted. The state budgets approved for the 2008/2009 and 2009/2010 fiscal years deleted funding for this Homeowner and Renter Assistance Program that once provided cash reimbursement of a portion of the property taxes that residents paid on their home.
On this 2015 list CA is the second worst state for retiring.
in Texas you don't pay the high property tax if you are not a home owner, you could rent and make a bunch of money income tax free. The "average" wage earner is each state more likely rents than owns, so the benefit for the averave family is much greater in Texas.
Also, rent is also much lower in Texas compared to ca, let alone the business centers in ca.
Exactly and not everyone in Texas runs out and buys a big house like the posters here claim their CA friends unwisely did.
You can get a very modest house in Texas for a very good price.
Just curious. Which retirements are not taxed in California? I'm a retired teacher and my retirement taxes are around $4,500/year. My late husband was a retired county deputy and his retirement was also taxed. I'm guessing maybe railroad retirees are not taxed as I see they are exempt from taxes in most other states. I'm pretty sure all state,county and federal retirees are taxed. That only leaves private retirees, but they are for sure taxed. Could you clue me in to which retirees don't have to pay California state income taxes please?
You're referring to pensions. Most of us in the private sector have to save for our own retirement. Roth IRAs, municipal bond funds, health savings accounts are all sources of retirement income that are not taxed on withdrawl.
Most people who leave high COL states like California, et al. and move to low COL states like Texas, et al. end up buying homes in the lower COL state that are newer with more square footage and land as well as higher-end finishes.
Thing is, the new home that they purchased in the lower COL state is often equivalent in price to the home they sold in the higher COL state. Now, their salaries are lower while their home maintenance and utility costs have drastically increased (bigger homes are much more expensive to maintain and keep up then smaller homes).
Don't forget, most low COL states require residents to run A/C for 3-6 months straight during the summertime (9-10 months in Florida and the Gulf Coast) and/or 3-6 months of heat due to oppressive summers and bone-chilling winters.
I know we've had some hot, humid weather in Southern California lately, but in much of coastal California, heat and A/C are rarely used, keeping our utility costs among the lowest in the nation.
Then, when talking about states in the middle of the country like Texas, you have to factor into the equation all of the different things that can damage or destroy homes - tornadoes, hail, high winds, lightening, hurricanes (at least in Houston and along the Gulf Coast), etc. That's why homeowners insurance is general higher in Texas.
Of course, we have our fair share of natural disasters in California, but unless you live on a steep hillside or in a heavily forested area, landslides and wildfires, respectively, present little concern. Furthermore, most homes and apartment buildings are built or retrofitted to withstand earthquakes to a certain extent, so not much concern there, either.
Another thing that some people fail to realize is that despite lower housing costs, property taxes in some low COL states are much higher, on average, than property taxes in California, whose population has benefited over the years from the passage of Prop 13. Property taxes in some states known for their low COL like Texas, Nebraska, Wisconsin and Utah are much higher than in California. Something else to take into consideration, for sure.
I've seen it time and time again where people move from a high COL state to a state with a 20-30% lower COL and buy a newer, bigger home for an equivalent price of what they sold their previous home for in the higher COL state while taking a 50% pay cut and seeing their utility, insurance and maintenance costs triple. The grass isn't always greener - that's for sure!
Sorry sold my CA home and bought one about the same size and on 1/2 acre instead of the 6000 or so sq ft of the CA home and saved thousands of dollars in income including in heat and A/C. Oh and tens of thousands of dollars cheaper. Most people do not spend more when they move they spend less and get more. This in a humid and cold State for parts of the year. Most people never spend the same amount as their CA home unless they want a VERY large home. They get comparable, with more land and save tens if not hundred of thousands in cost.
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