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Old 07-12-2015, 04:17 PM   #41
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I can walk down to the Truckee in 5 minutes and fish and Tahoe is about half an hour to forty minutes away--but it's a lot less expensive than Tahoe.
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Old 07-14-2015, 03:34 PM   #42
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Again, thanks for all who have shared their thoughts and experiences. Here's a somewhat related question.

Would you rather buy a cheaper home with relatively high property taxes or a more expensive home with low property taxes. To use a concrete example, let's suppose there's an 800k home with 17k per year property taxes and a 1mm home with 7k in property taxes. You're really happy with both.

How would you look at it? Thanks


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Old 07-14-2015, 03:42 PM   #43
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Again, thanks for all who have shared their thoughts and experiences. Here's a somewhat related question.

Would you rather buy a cheaper home with relatively high property taxes or a more expensive home with low property taxes. To use a concrete example, let's suppose there's an 800k home with 17k per year property taxes and a 1mm home with 7k in property taxes. You're really happy with both.

How would you look at it? Thanks
Location, location, location. All other things being equal, personally I would look either for the highest appreciation or the least likely to depreciate home. We noticed after 2008 that in our metro area some cities went down 50% in average home prices and other cities barely registered any price dip.
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Old 07-14-2015, 03:57 PM   #44
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Expensive Retirement Home

Good suggestion. So two possible places we're looking at are a suburb near Las Vegas or a suburb in Texas.

Based on the housing data I see (Case-Shiller and Zillow), Texas home prices were very stable throughout the last decade. Declines were small when they happened and longer term, there's been a slow but steady upward trajectory. Las Vegas real estate exploded in the 2000s, peaked in 2006 and then fell by 60%. Texas properties are making new highs now, Vegas properties are still 40% off their 2006 peak.

I'm guessing you're saying TX is a better bet cause of the lower price volatility?

Anyone have insights into the TX vs NV choices specifically?


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Old 07-14-2015, 04:04 PM   #45
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Again, thanks for all who have shared their thoughts and experiences. Here's a somewhat related question.

Would you rather buy a cheaper home with relatively high property taxes or a more expensive home with low property taxes. To use a concrete example, let's suppose there's an 800k home with 17k per year property taxes and a 1mm home with 7k in property taxes. You're really happy with both.

How would you look at it? Thanks


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LOL... I would not be happy with either choice....

As for your question.... I would go with the $1 mill as you probably would get back the extra you paid for the property.... there is no way to get back the extra taxes that were paid...

EX... say there is zero inflation.... in 20 years you have paid an extra $200K in taxes on the 'cheaper' place.... but when you sell the place you only get the $800K... where you would get the full $1 mill on the 'expensive' place... so it would cost you $200K more to live at the cheaper location....
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Old 07-14-2015, 04:04 PM   #46
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Having lived in TX most of my life, I know property tax rates are very high in urban areas. Not sure about Vegas. We couldn't wait to move - it gets really hot there. I assume the weather in LV is just as bad.
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Old 07-14-2015, 04:05 PM   #47
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LOL... I would not be happy with either choice....

....
Agreed. You have an opportunity to live pretty much wherever you want in very nice house, why don't you pick somewhere nice?
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Old 07-14-2015, 04:06 PM   #48
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Good suggestion. So two possible places we're looking at are a suburb near Las Vegas or a suburb in Texas.

Based on the housing data I see (Case-Shiller and Zillow), Texas home prices were very stable throughout the last decade. Declines were small when they happened and longer term, there's been a slow but steady upward trajectory. Las Vegas real estate exploded in the 2000s, peaked in 2006 and then fell by 60%. Texas properties are making new highs now, Vegas properties are still 40% off their 2006 peak.

I'm guessing you're saying TX is a better bet cause of the lower price volatility?

Anyone have insights into the TX vs NV choices specifically?


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Texas and NV have really different vibes. If I were you I would pick where I would be happiest and not let money be the main driver. My advice is more for local choices once you've narrowed down the state and general area where you want to live. You have enough to live anywhere. Enjoy the freedom to choose.
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Old 07-14-2015, 04:15 PM   #49
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Texas and NV have really different vibes. If I were you I would pick where I would be happiest and not let money be the main driver. My advice is more for local choices once you've narrowed down the state and general area where you want to live. You have enough to live anywhere. Enjoy the freedom to choose.

That's good advice. I've been trained to look at everything financially for so long that it's hard for me not to analyze everything like a trade / investment.

We'll have to start visiting more places to figure out where we might want to settle.


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Old 07-14-2015, 04:31 PM   #50
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volatility?

Anyone have insights into the TX vs NV choices specifically?
I lived in Las Vegas for about a year, when my company was building the Venetian hotel back in the mid nineties. I couldn't wait to leave. I found Las Vegas not to my liking. Yes, it's hot, but moreover the economy is dominated by the strip, the sprawl is never ending, and there just isn't a lot of character to the city outside of the strip. When you venture outside the gated communities, there is really only pavement, traffic, noise and hustle & bustle. I know I'm pretty particular, but I enjoy character in the cities and towns where I live. To me, there just wasn't much of that. The crime there is also something to pay attention to.
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Old 07-14-2015, 05:02 PM   #51
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Location, location, location. All other things being equal, personally I would look either for the highest appreciation or the least likely to depreciate home. We noticed after 2008 that in our metro area some cities went down 50% in average home prices and other cities barely registered any price dip.
This is so true.I experienced the aerospace debacle of the early 70s, as well as mean recessions in the early 80s. After this until 2007, Seattle real estate was somewhat stabilized by tech hiring and inflow of workers.

However, in every case, the losses or more likely drawdowns were much worse in outer areas. Blue chip areas like Hunts point and Medina and West Bellevue on the eastside, and similar blue chip expensive neighborhoods in Seattle proper. Sometimes a more marginal area will do better %wise during the upturn, but rarely or never on the down slope.

Still, I agree with Day Late and others above, Texas and Las Vegas could not be more different. I also cannot understand how you expect to get any useful information out of saying "a suburb in Las Vegas, or a suburb in Texas". All these palaces have names, and I doubt a stalker will bother or be able to follow your moving van and set about taking your money even if you do identify where you are talking about.


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Old 07-14-2015, 05:10 PM   #52
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I can walk down to the Truckee in 5 minutes and fish and Tahoe is about half an hour to forty minutes away--but it's a lot less expensive than Tahoe.
Does it ever snow there
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Old 07-14-2015, 05:16 PM   #53
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Anything that requires more of my time to maintain (unless it your hobby) decreases my quality of life. So a larger home, unless I have the means to contract all maintenance out, decreases my quality of life.....I'm not free to do the things I want to do. I'd include the time to supervise the contractors/make arrangements as part of maintenance activities.

Just my feeling on the subject and opinion, but I suspect many others feel the same way as I have met several retired folks recently selling the main home to move to a condo or patio home community.
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Old 07-14-2015, 05:38 PM   #54
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Does it ever snow there [Truckee]
Ha! Google the Donner party. Not far from there, I'm pretty certain.

Quick answer from a google search, 200+ inches on average, but only from Sept to June!
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Old 07-14-2015, 05:45 PM   #55
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If this were strictly a financial decision, you'd buy the cheapest combination of purchase price, upkeep, and taxes that you could safely live in. Since you're talking about an expensive house, you're clearly beyond that. Location is far more important than having a few extras in the house, so you need to spend time in locations you are considering to decide where you want to be, and then you can scale up or down your house to fit that location. Spend time in places in the mindset as a resident, not a vacationer.
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Old 07-14-2015, 09:03 PM   #56
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Does it ever snow there
Averages 23 inches of snow a year in Reno.

(Truckee, CA is different since it's higher and closer to Tahoe. Lots of snow there.)
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Old 07-14-2015, 09:40 PM   #57
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Olympic Valley is 5 miles west of Lake Tahoe. This ski resort was the site of Winter Olympic 1960, and usually gets 40 ft of snow a year. We were there 2 months ago. Nice town, but there are few full-time residents.
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Old 07-14-2015, 09:57 PM   #58
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Originally Posted by rb35 View Post
Again, thanks for all who have shared their thoughts and experiences. Here's a somewhat related question.

Would you rather buy a cheaper home with relatively high property taxes or a more expensive home with low property taxes. To use a concrete example, let's suppose there's an 800k home with 17k per year property taxes and a 1mm home with 7k in property taxes. You're really happy with both.

How would you look at it? Thanks....
I agree with DLDS that this is more a lifestyle decision than a financial decision so you need to use your heart rather than your head and focus on which location "feels" right for you.

If it were a financial decision then I would probably be indifferent, all else being equal since the opportunity cost of the extra $200k of investment at 5% is the same as the difference in the property taxes.
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Old 07-15-2015, 12:47 AM   #59
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I agree with DLDS that this is more a lifestyle decision than a financial decision so you need to use your heart rather than your head and focus on which location "feels" right for you.

If it were a financial decision then I would probably be indifferent, all else being equal since the opportunity cost of the extra $200k of investment at 5% is the same as the difference in the property taxes.
That is if you pay cash... but I bet there is a mortgage involved and the opportunity cost are much smaller...

You also have the opposite side... say both go up 10%.... the $1 mill property goes up more than the $800k in dollar terms...
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Old 07-15-2015, 09:03 AM   #60
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I agree with DLDS that this is more a lifestyle decision than a financial decision so you need to use your heart rather than your head and focus on which location "feels" right for you.
Yes, I think you should view all personal use property as a place to live rather than an investment. Buy what will be the best place to live within your budget.
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