Re:Tesla’s headquarters will move to Austin
by somethoughts on Thursday October 07, 2021 @08:55PM
(#28794305)
Additionally as someone who did some casual redfinning around Austin at the start of the pandemic, I'd say my own natural inclination was to shop pretty close to the price of the California single family home (i.e. $1M) and envision what it'd be like to live in/grow into the Texas mansion (i.e. $1M) at the equivalent price range. I probably wouldn't have downsized to a $400K home and I probably would have been sticker shocked by the property tax bills.
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Re:Tesla’s headquarters will move to Austin
by thebradbain on Thursday October 07, 2021 @09:00PM
(#28794371)
Another thing that makes the home buying / mortgage comparison not 1-1 is Fannie Mae:
Austin/Dallas/Houston/San Antonio are not classified as "High Cost of Living" areas, as SF/LA/NYC are. This means that a conventional mortgage as of 2021 in Texas is capped at $548k, while in LA/SF it's $822k. The practical effect of that is any mortgage higher than $548k in TX is classified as a "Jumbo"/non-conventional loan, which usually comes with a higher interest rate and/or higher percent down required.
You want a $1M house in TX rather than CA? Be prepared to put $400k+ down or accept a higher rate + PMI, rather than the normal 20% down in CA. All on top of the fact that you're paying the equivalent in taxes to a $2M+ home in CA.