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07-12-2015, 03:17 PM
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#41
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Thinks s/he gets paid by the post
Join Date: Oct 2012
Location: Reno
Posts: 1,338
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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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07-14-2015, 02:34 PM
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#42
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Recycles dryer sheets
Join Date: Apr 2014
Posts: 70
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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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07-14-2015, 02:42 PM
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#43
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Feb 2013
Posts: 9,358
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Quote:
Originally Posted by rb35
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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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.
__________________
Even clouds seem bright and breezy, 'Cause the livin' is free and easy, See the rat race in a new way, Like you're wakin' up to a new day (Dr. Tarr and Professor Fether lyrics, Alan Parsons Project, based on an EA Poe story)
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Expensive Retirement Home
07-14-2015, 02:57 PM
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#44
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Recycles dryer sheets
Join Date: Apr 2014
Posts: 70
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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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07-14-2015, 03:04 PM
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#45
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: May 2005
Posts: 17,237
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Quote:
Originally Posted by rb35
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
Sent from my iPhone using Early Retirement Forum
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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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07-14-2015, 03:04 PM
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#46
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: May 2013
Location: Les Bois
Posts: 5,761
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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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You can't be a retirement plan actuary without a retirement plan, otherwise you lose all credibility...
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07-14-2015, 03:05 PM
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#47
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: May 2013
Location: Les Bois
Posts: 5,761
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Quote:
Originally Posted by Texas Proud
LOL... I would not be happy with either choice....
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Agreed. You have an opportunity to live pretty much wherever you want in very nice house, why don't you pick somewhere nice?
__________________
You can't be a retirement plan actuary without a retirement plan, otherwise you lose all credibility...
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07-14-2015, 03:06 PM
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#48
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Feb 2013
Posts: 9,358
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Quote:
Originally Posted by rb35
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.
__________________
Even clouds seem bright and breezy, 'Cause the livin' is free and easy, See the rat race in a new way, Like you're wakin' up to a new day (Dr. Tarr and Professor Fether lyrics, Alan Parsons Project, based on an EA Poe story)
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07-14-2015, 03:15 PM
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#49
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Recycles dryer sheets
Join Date: Apr 2014
Posts: 70
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Quote:
Originally Posted by daylatedollarshort
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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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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07-14-2015, 03:31 PM
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#50
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Full time employment: Posting here.
Join Date: Aug 2013
Location: https://www.google.com
Posts: 750
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Quote:
Originally Posted by rb35
volatility?
Anyone have insights into the TX vs NV choices specifically?
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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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07-14-2015, 04:02 PM
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#51
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Apr 2003
Location: Hooverville
Posts: 22,983
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Quote:
Originally Posted by daylatedollarshort
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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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.
Ha
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"As a general rule, the more dangerous or inappropriate a conversation, the more interesting it is."-Scott Adams
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07-14-2015, 04:10 PM
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#52
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Thinks s/he gets paid by the post
Join Date: Jul 2003
Location: Pasadena CA
Posts: 3,346
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Quote:
Originally Posted by RobLJ
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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Does it ever snow there
__________________
T.S. Eliot:
Old men ought to be explorers
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07-14-2015, 04:16 PM
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#53
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Thinks s/he gets paid by the post
Join Date: Jul 2002
Posts: 1,587
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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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07-14-2015, 04:38 PM
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#54
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jun 2007
Posts: 13,227
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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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07-14-2015, 04:45 PM
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#55
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jun 2007
Posts: 13,227
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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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07-14-2015, 08:03 PM
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#56
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Thinks s/he gets paid by the post
Join Date: Oct 2012
Location: Reno
Posts: 1,338
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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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07-14-2015, 08:40 PM
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#57
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jul 2008
Posts: 35,712
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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.
__________________
"Old age is the most unexpected of all things that happen to a man" -- Leon Trotsky (1879-1940)
"Those Who Can Make You Believe Absurdities Can Make You Commit Atrocities" - Voltaire (1694-1778)
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07-14-2015, 08:57 PM
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#58
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Nov 2010
Location: Sarasota, FL & Vermont
Posts: 36,361
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Quote:
Originally Posted by rb35
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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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.
__________________
If something cannot endure laughter.... it cannot endure.
Patience is the art of concealing your impatience.
Slow and steady wins the race.
Retired Jan 2012 at age 56
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07-14-2015, 11:47 PM
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#59
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: May 2005
Posts: 17,237
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Quote:
Originally Posted by pb4uski
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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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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07-15-2015, 08:03 AM
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#60
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Thinks s/he gets paid by the post
Join Date: Dec 2009
Location: Alberta/Ontario/ Arizona
Posts: 3,393
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Quote:
Originally Posted by pb4uski
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.
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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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