[quote=no_such_reality]…Friend #2, moved to Austin 6 years ago. No longer stressed, feeling broke and living in a nice house on an acre instead of scraping by in a one bedroom apartment in beach town.
Friends #3, went St Louis 6 years ago. Happy, job is good, lots of opportunity. Has a 15 minute commute instead of an hour plus from the IE to the coast…[/quote]
NSR, based upon the info you gave us, I’m going to take “umbrage” with the “not-so-hidden” but nonetheless “real” reasons your “friends #2 and #3” defected from SoCal.
Reread my previous post on this thread about the “disconnect in the mind” about what particular properties “should sell for” in CA coastal counties and what they actually sell for. Those transplants that can’t get a grip on this phenomenon more often than not leave 1-5 years after arrival.
I’ve posted this several times on this forum and even stated a few times that the “housing expectations” of most transplants (even if assisted with their move by an employer) have to be carefully “managed” by their agent/broker assisting them in their search or hundreds of hours will be wasted by all with no sale.
Friend’s #2 and #3’s REAL issue was that they couldn’t obtain the “lifestyle” (read: size and/or location of housing) in So Cal that they saw others own and fantasized about owning themselves. Perhaps it was because they entered SoCal at a time when they watched a lot of “pretend” homeowners who used “funny money” to purchase their properties and home “equity” to live off of live the life they wanted.
The truth is, Friend #2 didn’t want to leave his/her “beach area” OR was renting a luxury apt/condo elsewhere in SD. They didn’t want to pay LESS rent and save MORE for a downpayment for a house because they couldn’t stomach leaving their beach locale or luxury unit for lesser local digs while they saved. Why am I saying this? Because they managed to purchase a house on an acre in Austin ($275K – $375K). So that person moved to Austin in 2006 and then purchased a property which may or may not (more likely not) be worth any more today or even tomorrow.
Friend #3’s housing disconnect is even MORE pronounced. They bought/rented in the IE all the while knowing they were working “on the coast.” Therefore, they never really assimilated into the coastal area where they were working (SD County?). All during their residence in the IE until the time they left in 2006, they likely coveted a home closer to work but refused to pay the price (they could have rented). Their self-imposed road warrior lifestyle was entirely their choice. They didn’t like what was on offer to rent or buy in the area of or an adjacent area to their employment so moved out of county and commuted daily.
Had either Friend #2 or #3 just “hung on” in SoCal three more years (to 2009), they would have very likely been able to buy better (and closer) digs then what they were living in. Instead, they sought employment elsewhere and left when a job was offered to them.
I don’t buy that your “friends” were taxed out of CA. All five of them don’t sound like they were in a “category” to pay very much in taxes.
They just suffered from good old “CA housing disconnect” which is incurable. In CA coastal counties, RE buyers must accept what is on offer, rent or leave.
