February 28, 2019 at 1:46 AM #811924moneymakerParticipant
No matter where you live there will be richer and poorer, also if you leave the coast I guarantee you will probably miss the ocean even if you hardly ever went to the beach. San Diego is really good if you are already a homeowner, if I were a renter I would definitely be considering moving. Having an affordable place to live is stress reducing for a lot of people.February 28, 2019 at 10:00 AM #811925
[quote=scaredyclassic]reasons to stay:
great interest rate
used to it.
stuff is here
temecula values will go up imo
reasons to go
sick of it all
take cash and buy a cheap place outright and work less
temecula is ridiculous and bad for bicycles
is this reallly where i will die???[/quote]
Rent out your current place and use the rental income to pay for your next place.
Then again, that up to $500k capital gains exemption is nice 🙂
Or, if you plan to stay in CA, you could could wait until you are 55 before you sell and buy another place, and then have your cake and eat it too….You can get your $500k capital gains exemption and also transfer your property tax base from your old place to the new place. God, I love Prop 13 and Prop 60 and Prop 90.
Prop 13: cap on property tax
Prop 60: preservation of property tax base for 55+
Prop 90: allows intra-county transfers (IE between Riverside and San Diego ,etc)
There’s other things you can do… You can convert it to a rental…Then get all of your depreciation deductions while a rental…Then you could 1031 exchange it to another property, and then convert the new property back into your primary….And while technically you need to deal with depreciation recapture on the % of the home that was used as rental, you don’t need to deal with it until you sell your house again..And if you live in that new home for a long time as a primary, the percentage used to calculate rental and depreciation is small because it will be weighted base on time of use as a rental versus as a primary residence… None of this matters, if you end up dying in your new home and leave it to your kids…Because when that happens, all your depreciation recapture gets wiped clean and your kids gets a “step up” cost basis when they inherit your house, so their capital gains will be determined based on the value of the house the day they inherited it, not the cost you paid for it…
Oh, and they get to keep your property tax basis too if you stay in CA. Thank you Prop 58!!!
And with the recent changes to inheritance tax, your kids property won’t need to pay any…at least up to $22 million for a couple I think…
Welcome to the envy club. You got your house at at a really good price. And at least for now, you live in a state that is very pro property owners, especially when they get older. You have a lot of options to skin the cat and work the system…
People complaining about taxes in CA probably aren’t property owners…lol…February 28, 2019 at 12:38 PM #811927FlyerInHiGuest
With prop 13 and related, the assessed value still goes up 2% per year.
Depending on your financial situation, you may be better off being in a area where values don’t go up, even abroad where there are very little property taxes.
Some areas of Hawaii have very little taxes.
Depends on your budget. But if you’re living on social security only and only have a small nest egg, you might be better off moving to Sri Lanka, Thailand, Mexico or Russia, because in California you could easily spend $10k on taxes and HOA on a modest apartment. That’s about imiddle class income threashold according to OECD.
Me, when I’m old, I’d rather live in a dynamic place full of people, where I can travel to places easily, than some lonely American suburb where people spend their time between the strip mall, Costco and the hospital. And where obese people eat plastic microwave food and pizza.
I’m going to buy a luxury condo in Bangkok where in about 10 years’ time, the high speed rail will allow you to zip to China and Singapore. Plus plenty of low cost air travel options. $300k buys you a beautiful condo connected to public transport. Negligible taxes and HOA.February 28, 2019 at 12:41 PM #811928
By the time you are ready to retire, if you can’t come up with cost of property tax, even with the max 2% increase per year, you aren’t really retired and shouldn’t claim to be. That would be pretty pathetic, and you should fire your financial advisor if you have one.February 28, 2019 at 1:26 PM #811930FlyerInHiGuest
[quote=flu]By the time you are ready to retire, if you can’t come up with cost of property tax, even with the max 2% increase per year, you aren’t really retired and shouldn’t claim to be. That would be pretty pathetic, and you should fire your financial advisor if you have one.[/quote]
I agree….. but that’s not how Americans manage their finances.
But think outside the box a little. If you live in a place like Thailand with no/very little property taxes, what could you do with $10k or $20k that would go to property taxes. If on top of that you have $36k (or 3k a month) to spend then you have a very nice lifestyle.
I’m not against paying taxes if I earn cash flow from a job, business or property rental in CA or any other high cost area.
The way I think, is when you’re retired, take your monthly cash and decide how best to allocate it, whether you have $2k or $20k or whatever amount. My goal is to have a fixed amount to spend without needing to dip into my principal. I’d rather spend money having dinner at the Mandarin Oriental in Bangkok than paying the County Tac Collector
I will still own property in CA which I will rent out….. but the tenants will help me pay the property taxes.March 2, 2019 at 9:43 PM #811940NeetaTParticipant
The bottom line is the government in CA is too big and it needs to shrink dramatically. There is an increasingly massive transfer of wealth from the private sector to the public sector. Democrats are mostly to blame for this, but the few Republicans who exist in CA could and should do much more.March 4, 2019 at 7:46 AM #811945
id be fine paying taxes to live somewhere more cool.March 4, 2019 at 8:58 AM #811946The-ShovelerParticipant
Someplace cool is in the eye of the individual.
Me I would absolutely hate (just absolutely hate) not having my own 3 car garage.March 4, 2019 at 9:27 AM #811948
Mars!!!March 4, 2019 at 10:24 AM #811949FlyerInHiGuest
[quote=The-Shoveler]Someplace cool is in the eye of the individual.
Me I would absolutely hate (just absolutely hate) not having my own 3 car garage.[/quote]
A business assiociate of mine fell in love with and retired to puerto Vallarta Mexico. Used to live in a McMansion. Now lives in a condo with ocean view. Does not own a car and walks 45 to 65 miles a week. As a result he’s a lot healthier and better looking.
Used to love and be very proud of the McMansion. Was the typical American who’s worried about safety. He even installed glass shatter protector film on all his windows.
Something switched in his brain and now he’s in Mexico. Abandoned successful business.March 4, 2019 at 10:32 AM #811950The-ShovelerParticipant
I walk on the beach at least once a week (well except lately been too dang cold and wet), work out everyday at the gym.
But IMO what and how much you eat has more to do with your health than any thing else you do.
Mar’s would be cold, I mean cool LOL.
I really miss the drought, really starting to hate rain and cold.March 4, 2019 at 11:48 AM #811951
I have this theory that, at least for men, the single most important factor in health is NOT GIVING A SHIT what anyone else thinks of you and doing what you want, more or less.
I don’t have any science to back this up, just the anecdotal example of my dad and my uncle. My dad, a nervous wreck, died at 72. Worried about money, other people’s opinions, his kids, the environment, political bullshit, oppressed peoples, etc. died at 72.
Then there’s his brother, smoked cigars and drank just like my dad, but is a total opinionated pushy, in your face, sonofa And id continue with some curse words here but im too polite(though he has admittedly mellowed a bit, but not all that much.) he’s 90 and still ticking. I’m way more like my dad, though maybe not quite as wound up… maybe I’ll make it to 74.
I think location in itself won’t help you, in that you take your personality with you where you go, but maybe what my dad needed was a complete breakdown and removal to an entirely new locale and mindset. It’s not about taxes, it’s about giving a shit about taxes. If taxes and gov are driving you nuts, then you have to leave, not because of the actual situation, which is at the end of the day numbers in the internet serving as iou’s against your future consumption, but because it’s eating away at you, making you crazy, grinding down your teeth at night, making your arteries hard with rage and fear.
My uncles 90, still smoking cigars, still drinking, still thinks he’s right about everything. Doesn’t appear to worry about anything, still paying high ca taxes, still living like a prince.
The world and everyone wants to take a little bit out of you every day. I think id prefer to be my uncle than my dad. My every instinct though is to accommodate, to supplicate, to beg, to passively manipulate, to be overly intellectual, to be fearful, to be worried about worst possible outcomes.
When I say I want to get the hell out of here, I think what I mean by “here” is pretty much all the major features of my personality. Im not sure if moving will help. But a radical change of place might help.March 4, 2019 at 2:03 PM #811955FlyerInHiGuest
When I say I want to get the hell out of here, I think what I mean by “here” is pretty much all the major features of my personality. Im not sure if moving will help. But a radical change of place might help.[/quote]
You can change your personality. My real personality is not my working personality. You can become like your uncle. Play by the rules, or not so much by the rules. But play to win. Trump wins. Be more like him.March 5, 2019 at 7:34 AM #811962
i guess ill judt stsy where i am and continue. dammitMarch 5, 2019 at 8:24 AM #811963
If you really don’t give a shit… then really don’t give a shit. and you don’t need to leave to accomplish that.
I seriously doubt money is a problem for self sustaining yourself here. That might be a problem for some and create stress I doubt that’s the case for you.
Me, I like to work. I like deal with rental properties… And I think I found my balance of hobbies and interests.
- You must be logged in to reply to this topic.