Originally Posted by daylatedollarshort
The huge home price swings can make it difficult to move since it may be a decision not easily reversed. Realtors still want a percent of price commission (not unlike the percent of assets FAs issue) and giving up a low fixed rate mortgage and/or low Prop 13 taxes on a house several times over what it might cost in another state or even away from the coast can make moving out of state or even changing houses within the state a pretty huge financial decision.
My city is nowhere as expensive as SF or Sunnyvale or Palo Alto or Berkeley or most of Oakland, yet if If I sold my condo I would kiss goodbye to => $25k selling costs. Then an unknown amount to move, get the new house up to snuff, buy furniture. etc, etc. I think that unless one is harvesting a big delta it might be hard to break even, let alone improve one's position.
Realize how much heating and cooling can cost in the Midwest. Almost 0 in coastal California near the sea.
Plus, if you like California, you may not like Lincoln, NE very much. Unless I disliked California on other than RE estate costs, I would give it a lot of thought before leaving.
I read an interesting article by a young finance guy who was making a temporary move to NY but planned to return to London when the gig was complete. He didn't own a flat, but ultimately decided to buy one and do a managed rental while he was away, just to guard against very large price jumps while he was gone. Looking at what has happened, it was likely a good decision. Apparently central London and the good west end neighborhoods have become almost out of reach to anyone other than xx millionaires.