selling house in CT, buying in TX, do I come out Even? (real estate)

blakesq · 08-28-2009, 07:26 AM

I worry too much sometimes. What has got me worried now is we are thinking of moving from CT to Austin, TX. The scary part is we bought a small cape cod style house in CT in the middle of 2005 (near the height of the housing boom). If we try to sell it in the spring/summer of 2010, we are probably going to take a loss. That really bothers me. But then, I am thinking, wouldn't it be a wash (ie. we come out even)? My question is: if we sell in CT and buy in Austin, isn't there a good chance that any loss we take in CT, we will make up in more value in the house we get in Austin? What do you all think, thanks!

toddb · 08-28-2009, 07:37 AM

Quote:

Originally Posted by blakesq

I worry too much sometimes. What has got me worried now is we are thinking of moving from CT to Austin, TX. The scary part is we bought a small cape cod style house in CT in the middle of 2005 (near the height of the housing boom). If we try to sell it in the spring/summer of 2010, we are probably going to take a loss. That really bothers me. But then, I am thinking, wouldn't it be a wash (ie. we come out even)? My question is: if we sell in CT and buy in Austin, isn't there a good chance that any loss we take in CT, we will make up in more value in the house we get in Austin? What do you all think, thanks!

Probably not, unfortunately. A 20% decrease in value on a 500k home (in CT) vs a 20% decrease on a 250k home (in AUS) definitely does not even out. But - the benefit for you is that although the pay scale is somewhat lower down there, the cost of housing is 50% or more of a discount. I have a bunch of ppl that I work with based in Austin, and several bought in the last few years at the peak of the market. They paid under $300k for about 3200 sq ft of relatively new home. 1 paid more, but thats because he's in a gated golf community. In any event - best of luck on your relocation!! Austin is a beautiful city - clean, friendly, nice and plenty of big city features (nightlife, restaurants, etc) without the crowds or garbage.

mlassoff · 08-28-2009, 07:41 AM

Value? No. Texas is cheap for a reason. The Austin marketing was overvalued, then dropped and then went back up and is still overvalued.

I really would caution you that most people from the Northeast come to Austin with the highest of expecatations, only to move back in a year or two. If you find value in good food, higher salaries, an educated and motivated populace, four seasons, and many, many other things, the value is in CT not in Texas.

blakesq · 08-28-2009, 07:49 AM

I guess you go back to what you love and know, I was born and raised in Texas, so it will be a homecoming for me.

Quote:

Originally Posted by mlassoff

Value? No. Texas is cheap for a reason. The Austin marketing was overvalued, then dropped and then went back up and is still overvalued.

I really would caution you that most people from the Northeast come to Austin with the highest of expecatations, only to move back in a year or two. If you find value in good food, higher salaries, an educated and motivated populace, four seasons, and many, many other things, the value is in CT not in Texas.

Dallascaper · 08-28-2009, 07:51 AM

Generally, thanks for prolific construction and a rather abundant source of land, housing is not a great investment in Texas. However, Austin has been one of the stronger Texas housing markets the last 10 years or so, particularly in the areas close to the city core.

If you can buy in a mature area close to downtown, you have a good chance of making money. You can make more money with fixers if you are handy and if the location is good. If you buy a McMansion in the outskirts, you will get a lot of house for the money, but will always be competing against new construction, which affects resale.

The Austin forum probably can give you more specific advice, and of course, work with a real estate expert when you get to Texas.

renovating · 08-28-2009, 08:33 AM

Quote:

Originally Posted by blakesq

: if we sell in CT and buy in Austin, isn't there a good chance that any loss we take in CT, we will make up in more value in the house we get in Austin? What do you all think, thanks!

If you stay in Austin for the long haul, absolutely. If you are planning on flipping or living there only a few years, no.

This housing market will take a looong time to recover and stabilize.

You are in the same boat with people all over the country! I would say, go for the move if you can afford to, since you are moving back home...you can't put a price tag on family and quality of life! Good luck!

shoehoard · 09-15-2009, 08:39 AM

Absolutely. After almost 2 years in CT, we're going to put our house on the market in the spring and go back to FL. I'm glad to have had this experience but you have to live where you feel the most comfortable. I guess I'm just too southern to be a northerner.

Quote:

Originally Posted by blakesq

I guess you go back to what you love and know, I was born and raised in Texas, so it will be a homecoming for me.

HeadedWest · 09-15-2009, 11:24 PM

Quote:

Originally Posted by mlassoff

Value? No. Texas is cheap for a reason. The Austin marketing was overvalued, then dropped and then went back up and is still overvalued.

I really would caution you that most people from the Northeast come to Austin with the highest of expecatations, only to move back in a year or two. If you find value in good food, higher salaries, an educated and motivated populace, four seasons, and many, many other things, the value is in CT not in Texas.

Do not mistake one person's vehemently and repeatedly expressed viewpoint for objective advice.

blakesq · 09-16-2009, 07:37 AM

I am a southerner too (by way of Texas). But, I met my wife up in CT. I hope she will grow to love TX as much as me!

Quote:

Originally Posted by shoehoard

Absolutely. After almost 2 years in CT, we're going to put our house on the market in the spring and go back to FL. I'm glad to have had this experience but you have to live where you feel the most comfortable. I guess I'm just too southern to be a northerner.

blakesq · 09-16-2009, 07:39 AM

True. But, different strokes for different folks. Mlassof has a better fit with CT, which is fine, probably has a lot to do with where he grew up. I grew up in TX, and miss it terribly. I like CT, but it is very expensive here. And, I am not at all interested in NYC, which seems to be a major reason why people live in CT.

Quote:

Originally Posted by HeadedWest

Do not mistake one person's vehemently and repeatedly expressed viewpoint for objective advice.