[masayako]

[quote=flyer]All good points, so it boils down to where you want to be, and only you can answer that question.

We also live in other places, but still keep our dream home here. Granted, if you waited to purchase your dream home or other properties until now, they, and taxes, are going to be a lot more expensive than they were in the past. Meeting the requirements to keep a tax base in another state or country is something you might want to investigate. There are (legal) ways to have the best of all worlds.

We also have lots of family here, kids, friends etc., and take care of several family members who need care, vs. placing them in facilities. We have them taken care of in the way we would want to be treated, and are glad to do it. A few hugs a day means more to them than any amount of money every could.

Even with the best diet, exercise and mental health aspects of life covered, when you see how life can change on a dime wrt one’s health, it’s clear that making the most of what you have each day is the best way to go, and I wish you the best in your quest.[/quote]

Thank you so much for the advice. My in-laws will go with us if we decide to move out of CA. They are being very flexible. I completely agree with you that it boils down to where you want to be and what we are willing to scarifice (friends in CA etc). It’s so hard.

[masayako]

I appreciate your comment. It‘s not just money, but I have lived here half my life, I just visited the pacific northwest & kind of fall in love with it. I love the rains, the forrest and the outdoors there. Here are some Pros & Cons for staying in SD.

Pros:
1. Friends here
2. Kids already settled down
3. Some relatives here

Cons:
1. It gets too hot… no rain
2. Unfriendly business tax & laws (it looks like it will get worse)
3. Crazy housing price
4. Bad traffic
5. Too crowded

I am constantly thinking about this topic. During this Covid-19 pandemic, I guess I have lots of time to think about what I want to do next. Do I want to keep working? Do I want to spend more time with family? Where to go? Or stayput? Moving out of CA is something always in my mind. Hence, I bring it up here to discuss.

[masayako]

If it appears to be too much of a 1st world problem, I apologize. I have no intention to show off. I really want to know what people at this stage in life (in a similar situation) would do.

Back to the topic: That‘s my current thinking. Instead of having to pay $10m for my dream house, I can get a similar house outside of CA for $5m or even $3m. That’s the main trigger on why we are considering to move outside of CA. Property tax $100k vs $30k annually is a huge difference. Also, traffic in SD is getting worse and worse, I just want to live in a smaller city.

[masayako]

Funny, I did consider Tahoe (in NV). BUT, a BIG BUT, IRS is forcusing on folks living in that interesting zone because apparently, lots of well-off living in Tahoe (in NV side) and yet maintaining a business in CA. So, IRS is laser focus on those big houses there. I do not want to be on that list.

It‘s good until IRS have their eyes on them.

[masayako]

Thanks. I think the core of my question is: I find it so much more affordable outside of CA (Neveda, Colorado, Idaho, UT). I am seriously considered moving out because money seems to go further. I am not crazy enough to consider moving out of US for the sake of tax reasons, I just pond if moving out of CA is a wiser decision long term. Thoughts are welcome. It‘s a 5 yrs plan.

[masayako]

Not much of a car nut. Alright, maybe a little. I have 4 cars, 2 of them I considered collectibles…

[masayako]

I don‘t think I have said anything ’trollish‘. If so, I apologize in advance.

[masayako]

Same here. I have some property. I usually don’t increase rant for good/stable tenants ‘cos I don’t want the trouble to look for new tenants.

If they rent control initiative passes in November, I will automatically increase 3% per year just to keep up with market price. I am sure all landlords will do the same. So, take that.

[masayako]

2005-2008 housing crash is not a market timing call. As Rich said, “valuations were such that long-term risk/reward was very poor.”

[masayako]

70% Stocks / 30% Bonds. I stayed with this asset allocation consistently.

[masayako]

[quote=flu][quote=masayako]It is not wise to go all cash. Don’t time to market. Nobody can do it accurately. A smart thing to do is stay invested.[/quote]

you would have singing a different tune if things went the other way. just saying…[/quote]

True, probably. I still wouldn’t sell, would probably buy more shares when it dropped. Admit failure is the first step to success.

[masayako]

It is not wise to go all cash. Don’t time to market. Nobody can do it accurately. A smart thing to do is stay invested.

[masayako]

Hi there,
What/Who is “HLS”?

Thanks!

[masayako]

Date: 10/2015
Size: 2.95 KW
Cost: $14.5K before rebate
Family Size: 5
12 panels in total

Enough to cover all electricity cost.

[masayako]

[quote=bearishgurl][quote=spdrun]Taxes are about 1.1-1.2% of value at sale, and can increase at 2% per annum to account for increased valuation.

1.2% tax per annum on $1,092,000 is almost $1100/mo ($1092). $42 for HOA. $50 for insurance. Call it $1200 total.

$4000/mo – $1200 = $2800/mo or $33,600/yr.

$33,600 is about 3% of the purchase price of $1,092,000. Not a great rental return for a property, especially since other expenses are neglected in this calculation.[/quote]

spdrun, I have taxes at $1065 mo (1.17%); Mello Roos at $104 mo (listing states $1244 yr), HOA dues of $42 mo and $225 mo for insurance (replacement value policy). This totals $1436 mo which almost totals my entire PITI! And we haven’t even discussed what the P&I payment is yet! There is no way this property would be cash flow positive …. not now and not ever …. UNLESS the buyer/owner has a VERY small mortgage or no mortgage at all (not typical for this age of home).

I don’t really know what misayako meant by his statement, “Welcome to SoCal” in the OP. The link he provided showing an “Econobox” isn’t typical of 85-90% of SoCal housing and is in no way representative of how the masses live in SoCal (or anywhere else in the state, for that matter). It is only typical of newer neighborhoods where the developers were permitted to build largish boxy homes on smallish lots. His comment makes it seem as if that is all buyers have to choose from out there. But we all know that is a crock of BS.

Yes, I find it hard to envision that this “Econobox” with a hole in the wall for a FP, the liberal use of carpeting throughout and situated on a barely standard lot will actually sell for anywhere north of $1M. I just find it amazing that there are buyers out there who are truly that stupid.[/quote]

“Welcome to So Cal” refer to the fact that there are actually buyers in So Cal who are truly that stupid.

[Author]

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