IMO an asset bubble has been created by low rates.
What do you think will happen if mortgage rates move up substantially.
Most people scrape by with a down payment and need to qualify for a loan.
There will be an adjustment period, but at current prices, it will be much harder to qualify for a loan. You think prices will go higher ?
There will always be people who must sell at whatever the market is due to death, job loss/transfer, divorce etc.
There will always be others who will wait for prices to go up before they will sell.
People who are myopic about Southern CA real estate don’t understand the national scope of home prices AND the quality of life in so many other places at higher/better standards of living.
Given the fact that you are considering leaving this area; listen to spouse and sell now.
Take the tax free gain and move.
(Take the money and run)
Austin & Oceanside are not the only 2 places in the country to consider living. If Texas doesn’t work you’ll find somewhere else.
The net return on a $500,000 home here coupled with being an absentee landlord wouldn’t be attractive to me.
Being a landlord is a great road to wealth but I think many people are delusional about the potential for appreciation coupled with true carrying costs for maintenance/vacancies etc.
and the headaches of being an absentee landlord.
Having the cash will give you options.
Decide later if you want to pay cash in TX or
buy rentals there (or someplace else)or just sit on the cash.
The cash flow and cap rates are much more attractive elsewhere.
The tax free gain option could go away.
