Hidden Costs of Cheaper States (home owners insurance, mortgage, new house)

[TuborgP]

Originally Posted by vanyali

My property tax in NC is about $11,000/yr. Looking at comparably priced (though admittedly smaller) places in MD, my property tax looks like it'll probably go down a few thousand after I move back north.

And yes, food is oddly expensive down here too. I already told this story on another thread, but I moved down here with my husband from NYC, and we had just been remarking that our grocery bills hadn't seemed to go down at all after the move when we found a section of the local paper from the early 1950's stuffed into a hole somewhere in our crawlspace containing a story about how food prices in Charlotte were higher than in Manhattan.

We have had this discussion in another thread and I understand your point. I think what needs to be mentioned in that North Carolina can be cheaper if yo want it to. It is certainly easier to retire from Maryland to North Carolina then from Carolina to Maryland. For us North Carolina is certainly cheaper.

[dkf747]

Originally Posted by MsMilford

Five months ago, we moved from MD to PA. We re-registered our vehicles, that were both purchased in MD, in PA. We are now moving back to MD.

Do we have to pay the 5% tax when we come back? My husband thinks not as we've already paid it when we bought the cars. It seems like we shouldn't have to, but you never know...

I don't think you need to pay again, as long as you have proof it was paid. The answer may, or may not, be different if you had said 5 years, rather than 5 months. I'm pretty sure the answer is on the MVA website somewhere.

[jaindow]

I posted the quote below on another thread, and thought it may be relevant for this one as well so I am posting it here too. The intention is NOT to bash one state or say that another is better, rather it is to provide an illustration of how looking at one factor in a vacuum (such as lower taxes) can lead to higher costs/losses - albeit financial, educational, recreational, etc.

I believe Jay Hancock summarizes it best with the following:

" 'Virginia crushes Maryland in Economic Ranking of All 50 States' was the provocative headline on last week's announcement by a pro-markets, pro-limited government research group.

That's true - if you don't measure poverty, education, business creation, household income, homeownership growth, venture-capital investment, broadband access, major league sports, cultural opportunities, sprawl and pollution.

Other than those areas, in which Maryland does better than Virginia, this is a terrible state in which to live, raise a family, hold a job and own a business.

As you might guess, the study by the American Legislative Exchange Council gave states favorable marks for low taxes, low wages and not much else.

But low taxes aren't everything, or else Mississippi would be a thriving corridor of biotech startups and investment banks. Economies need reasonable taxes and investment in brains, bodies and infrastructure."

From: baltimoresun.com - Jay Hancock's blog: Examiner on Maryland taxes vs. Virginia taxes

[Adios Baltimore]

We left the Pasadena area last June for Austin, TX and are coming back this June. We really did think we would do better financially here. It is really hard to find jobs and the pay is nowhere near what we made in MD.
You can definitely get a nicer house for your money but then you have to tack on hundreds of dollars per month for the property tax.
Car ins is about the same. Childcare is a little less here.
All and all, it's just not worth it!
I miss my MD!!!!

[oldawg]

Vanyali,

Now you know why we are trying to get back to Maryland.

[Jaded]

I've never lived in Maryland but am considering relocating to the DC/Maryland area with hubby by the end of the year.

We are originally from CA and moved to AZ for his job. We thought, "great, we can buy a house." Not. We are so glad that we didn't!! There are sooo many cons to moving to "cheaper" states:

1) Education usually is far below the national average, which translates into a poorly educated working class/workers
2) Research Universities attrack brilliant minds which in turn creates economic growth and development; many "cheaper" states do not have research universities that are globally known (i.e. Johns Hopkins)
3) Generally speaking (yes, this is a generalization), stronger economic centers and true metropolitan regions are home to higher-educated individuals; even if they don't possess degrees per se; the bar is somehow set higher and met in these areas
4) Healthcare is often inferior and costs are much higher...again, not being able to attrack top talent or any talent for that matter
5) Salaries are much lower...much lower
6) Homes don't appreciate as much, and when the market is down, don't recover as quickly and often times are hit the hardest
7) Competition - this is what I've noticed that does not exist in the Phoenix area (probably because it is primarily a retirement state); competition, IMO, actually helps economies and drives some prices down, it also commands more from residents/workers of the region

We can't wait to move out of AZ...we are definately city people and miss the drive and determination we were surrounded by in CA. We don't mind the housing cost being higher...we actually haven't seen too much of a financial boom since moving to AZ; we've had to pay more in healthcare, car insurance, utilities in the summer, etc.

[TuborgP]

One of the things that needs to be added to this discussion is the reason for moving. As Jaded said Arizona had a number of retired people. Our scenario for moving is very different for several reasons.

1. Our income is now defined. If our wealth base was accumulated in a state like Maryland for higher incomes it still transfers as is to another state.

2. Yes housing cost are cheaper if you cash out from Maryland and buy the same size house (new) for less then the older house you sold.

3. Costs associated with working aren't there

4. Yes as you get older a laid back lifestyle may be what you want.

5. Health care in retirement is important and thus the draw of areas with major universities and medical systems.

Remember many seniors are well off with solid health care. Your fixed income (pension, investments, social security) can buy you more elsewhere.

[jaindow]

I think Tuborg is absolutely right about about considering the reason for the move.

For us, Maryland works well right now since we are in the work force and my husband happens to be in a profession where he literally can make almost 2x what he did in Arizona and about 3x what he made in Louisiana. So we intentionally did move around looking for the life we wanted - at the top of this list was opportunities with huge income potentials. We also needed a place that was stimulating and has a lot to do. After living here a few years, we did think living in Maryland was a forever decision, however, the more I've learned, the more I don't see Maryland as the place we would necessarily want to retire in. Some of those reasons are already highlighted above in Tuborg's post.

[vanyali]

Originally Posted by TuborgP

We have had this discussion in another thread and I understand your point. I think what needs to be mentioned in that North Carolina can be cheaper if yo want it to. It is certainly easier to retire from Maryland to North Carolina then from Carolina to Maryland. For us North Carolina is certainly cheaper.

What are you doing, growing your own food?

[vanyali]

Originally Posted by Jaded

7) Competition - this is what I've noticed that does not exist in the Phoenix area (probably because it is primarily a retirement state); competition, IMO, actually helps economies and drives some prices down, it also commands more from residents/workers of the region

This is a gigantically important point that many people overlook. Competition also drives quality, from healthcare to daycare to the McDonalds on the corner -- people who live in a competitive environment try harder, do better, and generally perform to a higher standard than people who live in a less competitive environment. And the kicker is, they don't even necessarily know they're doing a better job -- they're just performing to the standards they see around them.

Add all the disclaimers you want about how anything anyone says is a generalization and blah blah, but the effect is real.