My Thoughts
On a recent trip to Texas I pondered whether moving out of California would
be a viable option for me? I have lived in California my entire life. But
like
many native Californians, I have begun to consider moving out of state.
I personally know many people who have moved out of state for greener pastures. I
recently had a deep conversation with a colleague of mine about moving to Arizona.
She recently went on a trip and fell in love with the town she visited. Although
she mentioned it being extremely hot, she considered moving.
Her primary reason for leaving the Golden State was the skyrocketing cost of housing. She
said that although she loves California, working just to pay a mortgage is
simply
not appealing. She also mentioned that the amount of people here is becoming
uncomfortable. The traffic is horrendous and many people have a me-first
attitude.
Home ownership in California
has become unaffordable for many people. I would say that most people wanting to
buy are priced out at the moment.
The median home price in California is $584,460 according to the April 2018
numbers provided by California Association of
REALTORS®.
With no money down, an annual interest rate of 4.0%, and a thirty year term,
you're paying $2790.30 for the median home price of $584,460.
That is only principal and interest. When you include taxes
and
hazard insurance, you're paying well over $3,000! Unfortunately, that is
becoming the norm in the Golden State.
Texas Housing Market
Compared to California, Texas is a steal. With a median home price of $224,500, Texas looks pretty attractive. Median
home
price provided by Texas Association of REALTORS®. That's 61.5% cheaper
than living in California.
With an annual interest rate of 4.0%, 30-year term, and no money down, your
payments are a whooping $623.61!. That is for principal and
interest. Include taxes and hazard insurance, and your payments
will
be around $1,000.
However, I don't know what the job market is like in Texas. But, when I traveled
there in early May, I would have to say that their economy is chugging right
along. I didn't see any homeless people near the airport
like
you do in L.A.
Arizona Housing Market
With a median price of $238,500, Arizona is 59% cheaper
than California. If you like dry and hot weather, this state is for you.
I have been to Arizona. I can say that I fell in love with the landscape. It's
much different than the Golden State. It has a wild west feel about it. I also
loved traveling to the Grand Canyon. I could see myself moving to Arizona
because of its beautiful landscape. I enjoy hiking. And with so much undeveloped
land, it would be perfect for me
Conclusion
Now you have to ask yourself, is moving the right option for me? I would say that
if you want a slower paced life, and a much cheaper cost of living, then it's a
no brainer. Moving out of California is the right move
for you.
However, you have to consider many other factors other than just price. What
about moving your entire family to another state? How would they feel about it?
Would you be able to get another job quickly?
I have to say that moving out of state is appealing from a financial point of
view. Many people have built up a lot of equity in their homes over the recent
years. You could take all that equity and put a large down
payment on a home in another state. That would substantially decrease your
mortgage. You would have money to really enjoy life and not simply work to pay
your mortgage.
If you'd like an appointment with one of the best, don't hesitate to call or
text.
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