people who left CA to avoid state income tax - did it work out? (Howe: mortgages, house prices)

[BobPhipps]

Originally Posted by 75214Dad

You took a $45,000 pay cut to save $12,000 in taxes?! I took a 10% pay cut to move from NYC, but my take home pay stayed the same. mod cut

Is that a serious question?

Did you actually read the title of the thread? I answered the question as it was put forth to us. It does help to understand the subject matter.

We took a 30% pay cut to live in an area that on average has a 50% cost of living difference. For someone buying a $315k house at 3.5% interest rate (omit down payments for the sake of simplicity), the monthly mortgage is $1,414. A median price house in our old neck of the woods at $1.3 million would have a monthly payment of $5,838 (a difference of over $4k a month). We also are renting out the house we still own in the SF Bay Area for $4k a month. Yep, just silly. Let me know if you have any other questions.

[Tslmdlx]

Originally Posted by BobPhipps

Is that a serious question?

We took a 30% pay cut to live in an area that on average has a 50% cost of living difference. For someone buying a $315k house at 3.5% interest rate (omit down payments for the sake of simplicity), the monthly mortgage is $1,414. A median price house in our old neck of the woods at $1.3 million would have a monthly payment of $5,838 (a difference of over $4k a month). We also are renting out the house we still own in the SF Bay Area for $4k a month. Yep, just silly. Let me know if you have any other questions.

With that kind of ROI, I want to be silly too!

[BobPhipps]

I also forgot to mention when I was speaking of median home price, I should clarify that in no way are the homes similar in structure. That $1.3 million home in the SF area was 4 bedrooms and 1070 sf (no that's not a typo). It was also built in 1960. Now we have a new, modern home built in 2017 that we can host our grandkids at and not have them feel like they're living in a commune. They weren't coming back to visit anytime soon living in that miniature box we had in the Bay Area.

[Taub201]

You won't get much of a home with the average Q3 2020 price of $294K for the DFW Metro area.

I believe people typically buy bigger homes in the greater Dallas area than homes they had in LA or SF metro areas.

School quality and costs plus commute times are key.

[75214Dad]

Originally Posted by BobPhipps

Is that a serious question?

Did you actually read the title of the thread? I answered the question as it was put forth to us. It does help to understand the subject matter.

We took a 30% pay cut to live in an area that on average has a 50% cost of living difference. For someone buying a $315k house at 3.5% interest rate (omit down payments for the sake of simplicity), the monthly mortgage is $1,414. A median price house in our old neck of the woods at $1.3 million would have a monthly payment of $5,838 (a difference of over $4k a month). We also are renting out the house we still own in the SF Bay Area for $4k a month. Yep, just silly. Let me know if you have any other questions.

But you couldn't afford $1.3M on a $150K CA income. And groceries in the exurbs of Austin aren't half what they are in the Bay. Your net worth would be much higher in CA, but it's not worth it to you when you can have more space in TX. So you aren't actually better off financially, you just have more space. That's fine- but it's the trade off.

[75214Dad]

Originally Posted by BobPhipps

I also forgot to mention when I was speaking of median home price, I should clarify that in no way are the homes similar in structure. That $1.3 million home in the SF area was 4 bedrooms and 1070 sf (no that's not a typo). It was also built in 1960. Now we have a new, modern home built in 2017 that we can host our grandkids at and not have them feel like they're living in a commune. They weren't coming back to visit anytime soon living in that miniature box we had in the Bay Area.

Ah, got it you are a retiree. I assumed you were a 30 something with kids.

[BobPhipps]

Originally Posted by 75214Dad

But you couldn't afford $1.3M on a $150K CA income. And groceries in the exurbs of Austin aren't half what they are in the Bay. Your net worth would be much higher in CA, but it's not worth it to you when you can have more space in TX. So you aren't actually better off financially, you just have more space. That's fine- but it's the trade off.

You sure make a lot of assumptions. Did you just come in here to pick a fight?

I was giving an apples to apples comparison if someone was trying to make a buying decision now.

Who even said what we were making? It's like you're pulling information out of thin air. Give it a rest pal. I'm not here to fight with you.

[75214Dad]

Originally Posted by BobPhipps

You sure make a lot of assumptions. Did you just come in here to pick a fight?

I was giving an apples to apples comparison if someone was trying to make a buying decision now.

Who even said what we were making? It's like you're pulling information out of thin air. Give it a rest pal. I'm not here to fight with you.

You told us how much state tax you were paying. It's not hard to figure out

[BobPhipps]

Originally Posted by 75214Dad

You told us how much state tax you were paying. It's not hard to figure out

Accept for the fact that you have no idea on deductions, etc. Again, give it a rest. You appear to be just wanting to pick a fight.

[75214Dad]

Originally Posted by BobPhipps

Accept for the fact that you have no idea on deductions, etc. Again, give it a rest. You appear to be just wanting to pick a fight.

You did not have enough deductions to afford a $1.3M house.