Californians Moving To Texas : Interesting New Article (San Diego, Corona: cul-de-sac, homes)

[Racer46]

Originally Posted by Coloradomom22

The one thing people who relocate aren't prepared for is the big increase in property tax and insurance.

Home prices are enticingly low for what you get. But taxes are 3x what you'd pay in a state with income tax. Then homeowner's insurance is also a consideration. When we lived in Texas our insurance was high due to mold, floods and hurricanes. So even if you paid cash for a $450k house your taxes and insurance would still be around $1100 a month. This is fine if you have no state income tax but it's tough if you are not working.

Strange a family member moved from TX to CA. The TX house was just over $150,000.00 and the CA home was just over 200,000.00 (Before the recession) and the property tax was just about identical. Then no income tax in TX so more out of their pocket in CA. Insurance about the same and no flood or hurricane insurance, unless you live right on the coast, like Houston. TX flat out costs less. Mind you So California weather is better.

[NORTY FLATZ]

Originally Posted by StreetBobTX

I am only teasing, the folks I have met from Cali where actually nice people, but I did meet a few that want to change things.

I hope you did what any upstanding Texan would do, in this situation....

[aslowdodge]

Originally Posted by Coloradomom22

The one thing people who relocate aren't prepared for is the big increase in property tax and insurance.

Home prices are enticingly low for what you get. But taxes are 3x what you'd pay in a state with income tax. Then homeowner's insurance is also a consideration. When we lived in Texas our insurance was high due to mold, floods and hurricanes. So even if you paid cash for a $450k house your taxes and insurance would still be around $1100 a month. This is fine if you have no state income tax but it's tough if you are not working.

While you say insurance is high in Texas, have you added up the cost of earthquake insurance in Ca?
If you are not working, state income tax is the least of your worries.

You do realize that depending on where you are the same house in Texas may well be 1/4 the cost in California. A house in my home town in California could be 1.4 million and a similar home might be 250K in Texas. Property Taxes in Ca would be 15K a year and 5k a year in Texas.
Income tax on 100K income in Ca is about $6800 vs nothing in Texas.
So that's about $17,000 in savings on Taxes per year.

Take the $250K and pay for the house cash in Texas, no payments, In Ca that $250K is a down payment and even with low interest rates you pay $58.176 a year. Now the difference is $75,176K a year more in Ca than Texas.
Take that $75,176K a year and put it in the market at 8% per year for the life of a 30 mortgage and in Texas you will have $9,404,113 after 30 years
Still think Texas is a bad idea?

[Ergo Para Bellum]

I would not move to Texas.

[Electrician4you]

Originally Posted by aslowdodge

While you say insurance is high in Texas, have you added up the cost of earthquake insurance in Ca?
If you are not working, state income tax is the least of your worries.

You do realize that depending on where you are the same house in Texas may well be 1/4 the cost in California. A house in my home town in California could be 1.4 million and a similar home might be 250K in Texas. Property Taxes in Ca would be 15K a year and 5k a year in Texas.
Income tax on 100K income in Ca is about $6800 vs nothing in Texas.
So that's about $17,000 in savings on Taxes per year.

Take the $250K and pay for the house cash in Texas, no payments, In Ca that $250K is a down payment and even with low interest rates you pay $58.176 a year. Now the difference is $75,176K a year more in Ca than Texas.
Take that $75,176K a year and put it in the market at 8% per year for the life of a 30 mortgage and in Texas you will have $9,404,113 after 30 years
Still think Texas is a bad idea?

Earthquake insurance isn’t required. It’s offered and can be bought but it’s not required to buy. Now flood insurance can be required depending if you fall in a flood plain.

Also in Texas the wages are lower when compared to the same job in Ca. I already looked into it. Even with taxes vs no taxes etc I still make more here than Texas. This may not be all the jobs but a good majority. A tenant of mine moved from Texas to here. His wages were 35% higher here.

It’s really all relative. I have no issues with Texas. It’s just not a state I would consider moving as my first choice. It’s maybe around 9th-10th.

The big issue with moving out of Ca is for the most part once you move out you rarely can afford to move back in unless you kept your house. If I sold any of my houses I could buy some of them back. But about 1/2 of them would be very expensive to buy back in. I know quite a few people who would move back here in a heartbeat but they can’t buy back in

[aslowdodge]

Originally Posted by Electrician4you

Earthquake insurance isn’t required. It’s offered and can be bought but it’s not required to buy. Now flood insurance can be required depending if you fall in a flood plain.

Also in Texas the wages are lower when compared to the same job in Ca. I already looked into it. Even with taxes vs no taxes etc I still make more here than Texas. This may not be all the jobs but a good majority. A tenant of mine moved from Texas to here. His wages were 35% higher here.

It’s really all relative. I have no issues with Texas. It’s just not a state I would consider moving as my first choice. It’s maybe around 9th-10th.

The big issue with moving out of Ca is for the most part once you move out you rarely can afford to move back in unless you kept your house. If I sold any of my houses I could buy some of them back. But about 1/2 of them would be very expensive to buy back in. I know quite a few people who would move back here in a heartbeat but they can’t buy back in

In the end with the numbers I provided the insurance is a small difference. Also you don’t have to move into a flood plain. As far as pay, it depends on what you do. A friend moved out of California to another state and kept his pay rate. If you move to Texas and paid for your house cash you don’t need to earn as much.

None of the numbers I provided used any wages to make that saving for retirement so the numbers are still achievable even with a lower income.

In my case moving to Georgia with a lower col helped enable me to establish a base that allowed me to retire in about 5 years which I couldn’t do in Ca. Might not be the same for everyone else. Here I have a higher standard of living and don’t work. I can come back to California but the only benefit is the weather so it’s not worth the tradeoff in lifestyle for me. Plus ca is going through a lot of bad stuff now.

[BB_210]

Originally Posted by Tulemutt

You call that an article? Lol.

Anyway, I (sincerely) hope half of California moves ... to Texas or anyplace else.

Let's get rid of half of the population so you can be comfortable. Ok Thanos.

[roadwarrior101]

Originally Posted by aslowdodge

In the end with the numbers I provided the insurance is a small difference. Also you don’t have to move into a flood plain. As far as pay, it depends on what you do. A friend moved out of California to another state and kept his pay rate. If you move to Texas and paid for your house cash you don’t need to earn as much.

None of the numbers I provided used any wages to make that saving for retirement so the numbers are still achievable even with a lower income.

In my case moving to Georgia with a lower col helped enable me to establish a base that allowed me to retire in about 5 years which I couldn’t do in Ca. Might not be the same for everyone else. Here I have a higher standard of living and don’t work. I can come back to California but the only benefit is the weather so it’s not worth the tradeoff in lifestyle for me. Plus ca is going through a lot of bad stuff now.

As you know, my family strongly considered moving to GA a few years ago. I do really like the Atlanta area and wouldn't rule it out that we may eventually live there. After not accepting that job offer 3 years ago, we visited Atlanta as a family two years ago and we all really enjoyed it.

Then COVID hit. I've been really shocked how terribly Kemp has been in terms of handling the pandemic as it seems he doesn't prioritize human life/safety. I get he's trying to keep businesses afloat, but I see health and economic well being really tightly linked as we consider the long term impacts. I get why people dislike Newsome for his hypocrisy and arrogance. Despite this, I'm glad that I have a governor that at least makes an effort to control COVID spread and I'd feel more unsafe if I were in GA at this time.

In addition, the politics there are sort of scary to me. I don't have a problem having diverse views. I happen to live in one of more conservative parts of the Bay Area (mixed views, but still probably considered very liberal by Southern standards). But, all of what's happening right now with the conspiracy theories in GA right now is really scary.

I know you have more conservative views than I do and what I'd consider scary you may feel is a breath of fresh air. However, this has all really given us pause as we consider where we'd want to live (vs not) long-term.

[Tulemutt]

Originally Posted by max210

Let's get rid of half of the population so you can be comfortable. Ok Thanos.

Well, me and the other, 20 million, half of current population that would stay

[BobPhipps]

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