Question - Reloc to TX

Non-investing personal finance issues including insurance, credit, real estate, taxes, employment and legal issues such as trusts and wills
Topic Author
stocknoob4111
Posts: 1380
Joined: Sun Jan 07, 2018 12:52 pm

Question - Reloc to TX

Post by stocknoob4111 » Thu Jun 25, 2020 12:15 am

Currently in CA and moving to TX (Dallas area) over the next month for my new job. My goal is to FIRE within the next 5-6 years and retire at around 51-52 years of age. I have no prior experience of TX but I know the property taxes are killer. My ideal retirement location will have low or no income taxes and low property taxes - states such as NV for instance so I am thinking it isn't likely going to be TX. I may also consider coming back to CA... I just don't know yet.

With the above situation, would you think it would be wise to invest in any Real Estate while I am in TX. I would not buy at least for the 1st year since I would have to know the areas etc. but that would mean if I buy in my second year in TX my time horizon would be 5 or so years. For that period of time I am wondering if it's worth the risk to invest in my own place or just rent.

If property prices drop it may become a problem to sell it. On the other hand if my rent is somewhat equal to the property I could be putting it towards equity.

Thoughts?

FishTaco
Posts: 111
Joined: Sat Jun 08, 2019 7:49 am

Re: Question - Reloc to TX

Post by FishTaco » Thu Jun 25, 2020 4:09 am

My advice is to rent.

I've owned 2 houses in TX and between property taxes and real estate commission to sell, you've got a lot of ground to recover if you want to make any money on your house. 5 years is usually the break even time period and unless you really want a house, you'll be happy at the end of those years that you just rented.

BUBear29
Posts: 298
Joined: Wed Aug 19, 2015 4:20 pm
Location: DFW

Re: Question - Reloc to TX

Post by BUBear29 » Thu Jun 25, 2020 8:34 am

I live in DFW (Southlake). Given how many people are moving here, I would not hesitate to buy a house. Yes the property taxes can be high, but it is also dependent on your county and of course home value. Over the last three years my value has remained about the same and in Southlake (Tarrant County) our tax rate went DOWN. I would avoid Dallas county.

As far as real estate commission on sale, easily overcome via a flat fee service like door.com which has grown rapidly here in DFW.

Where is your job and what areas are you considering to live?
There is no dignity quite so impressive, and no one independence quite so important, as living within your means.

Lalamimi
Posts: 445
Joined: Mon Jun 24, 2019 4:22 pm
Location: Texas

Re: Question - Reloc to TX

Post by Lalamimi » Thu Jun 25, 2020 8:47 am

Rent is probably even higher - 1 bd rooms go for about $1400 here near downtown. We are in Houston. I moved back in 2011, rented, then bought a small house near a Park N Ride on West side and mortgage was less than my rent. Sold for double my purchase price end of 2017. Just watch out for MUD taxes if not in an incorporated area, can be higher than the school taxes. Plus, you get a Homestead exemption. Buy in a good school district and you should be able to sell easily. I NEVER go to Dallas, so have not clue about areas. Heard Plano is nice.

livesoft
Posts: 72087
Joined: Thu Mar 01, 2007 8:00 pm

Re: Question - Reloc to TX

Post by livesoft » Thu Jun 25, 2020 9:00 am

Do you own a home in CA now? If so, you may find your property taxes actually lower in TX.

It is premature to discuss what you will do after you get to TX. Sure, rent an apartment or something to live in, then decide after a while what you want to do.
Wiki This signature message sponsored by sscritic: Learn to fish.

Topic Author
stocknoob4111
Posts: 1380
Joined: Sun Jan 07, 2018 12:52 pm

Re: Question - Reloc to TX

Post by stocknoob4111 » Thu Jun 25, 2020 1:18 pm

BUBear29 wrote:
Thu Jun 25, 2020 8:34 am
Where is your job and what areas are you considering to live?
Job is in Frisco, TX and I am looking to perhaps stay in Plano or McKinney.
livesoft wrote:
Thu Jun 25, 2020 9:00 am
Do you own a home in CA now? If so, you may find your property taxes actually lower in TX.

It is premature to discuss what you will do after you get to TX. Sure, rent an apartment or something to live in, then decide after a while what you want to do.
I rent currently in CA otherwise it would have been difficult for me to make this move. I am leaning towards renting as it gives me more flexibility - I felt that buying would only make more sense if I plan to stick on for 10 years at least. If I decide to move earlier than 5 years, say 3.5-4 years then owning something would make it more complicated I think.

User avatar
gr7070
Posts: 1156
Joined: Fri Oct 28, 2011 10:39 am

Re: Question - Reloc to TX

Post by gr7070 » Thu Jun 25, 2020 2:11 pm

If you still anticipate being here for 5 years after your first 6+months I'd buy.

Housing in Texas is not terribly expensive, rent is not incredibly cheap by comparison, and there will be no shortage of people moving here for the next decade(s).

It's really hard to know what will transpire 6 years from now. Who knows, maybe you'll be here 6, 7, 8 years from now.

Home ownership is a big part lifestyle preference. That should weigh heavily on your decision.

Lastly, taxes are the most overrated retirement location factor. It's literally not on my list of considerations of where to retire. Family, friends, hobbies, weather, local culture. I could probably come up with 5 more that matter way more to me.

It's unfathomable how often this is mentioned as important. Way, way more important things in life than money, and taxes are unlikely to be a big factor in running out of money.

zimmer0
Posts: 245
Joined: Wed Oct 29, 2014 3:15 pm

Re: Question - Reloc to TX

Post by zimmer0 » Thu Jun 25, 2020 2:16 pm

should have no problems gaining equity in the areas you are looking at with your timeline. Will echo livesofts comments about potential decrease in costs compared to CA.

rightdecisions
Posts: 68
Joined: Wed Sep 23, 2009 11:22 am

Re: Question - Reloc to TX

Post by rightdecisions » Thu Jun 25, 2020 2:17 pm

If job is in Frisco. Look for a place in Frisco for ease. All three cities are offer the same with a little difference.

amindu
Posts: 155
Joined: Thu Aug 04, 2016 11:59 am

Re: Question - Reloc to TX

Post by amindu » Thu Jun 25, 2020 2:40 pm

stocknoob4111 wrote:
Thu Jun 25, 2020 1:18 pm
BUBear29 wrote:
Thu Jun 25, 2020 8:34 am
Where is your job and what areas are you considering to live?
Job is in Frisco, TX and I am looking to perhaps stay in Plano or McKinney.
livesoft wrote:
Thu Jun 25, 2020 9:00 am
Do you own a home in CA now? If so, you may find your property taxes actually lower in TX.

It is premature to discuss what you will do after you get to TX. Sure, rent an apartment or something to live in, then decide after a while what you want to do.
I rent currently in CA otherwise it would have been difficult for me to make this move. I am leaning towards renting as it gives me more flexibility - I felt that buying would only make more sense if I plan to stick on for 10 years at least. If I decide to move earlier than 5 years, say 3.5-4 years then owning something would make it more complicated I think.
I live in Mckinney, and housing here is much more reasonable than Frisco, i would buy here, you will still be close to Frisco. As another poster mentioned prop values have plateaued so its a good time to buy. When you do your search for a home also be cognizant of toll roads see if you can get to work within a reasonable time using either the service or local roads or HWY 380.

sls239
Posts: 978
Joined: Thu Oct 23, 2008 4:04 pm

Re: Question - Reloc to TX

Post by sls239 » Thu Jun 25, 2020 3:03 pm

Unless you just need several bedrooms a multi-car garage and a school district, I would hesitate to buy in Frisco. I think you can expect there to be nice rentals available.

Frankly, they are still building new homes around there, and trying to sell a home when people have the option of a brand new home (with the newest schools, mind you) isn't wonderful.

It is basically inherent in the Texas Constitution that sprawl is easy and cities have no way of controlling the growth around them.

Oh and paying Texas property taxes and another state's income tax is not fun either - if you thought you might keep it as a rental and go back to CA...

User avatar
Watty
Posts: 19749
Joined: Wed Oct 10, 2007 3:55 pm

Re: Question - Reloc to TX

Post by Watty » Thu Jun 25, 2020 3:09 pm

stocknoob4111 wrote:
Thu Jun 25, 2020 12:15 am
I would not buy at least for the 1st year since I would have to know the areas etc.
Worry about buying a house or not a year from now.

Things can change a lot and if you go through a lot of effort to decide what to do now then you will just need to go through the same process again next year.

I can tell you my experience though, I did a job relocation to Atlanta when I was about your age. The plan was to work in Atlanta until I was ready to retire then move somewhere else. What happened was that our son grew up(they tend to do that :D ) and got married and had kids here in Atlanta. With the family ties here now we are settling into retirement here. If you have kids that will likely settle down in Texas then you may decide to stay there for non-financial reasons.
Last edited by Watty on Thu Jun 25, 2020 3:13 pm, edited 1 time in total.

Barsoom
Posts: 287
Joined: Thu Dec 06, 2018 9:40 am

Re: Question - Reloc to TX

Post by Barsoom » Thu Jun 25, 2020 3:13 pm

I lived in California for many years before moving to Texas (Houston metro area).

Texas has no state income tax. My current property tax (while higher than what I paid in California) is lower than what I paid in California income tax, so I netted ahead.

-B

lazynovice
Posts: 61
Joined: Mon Apr 16, 2012 10:48 pm

Re: Question - Reloc to TX

Post by lazynovice » Thu Jun 25, 2020 4:18 pm

If you can stand the summer weather, you are going to find living in Texas to be pretty inexpensive. Property taxes are high but property values relative to the rest of the country are pretty low. And it has been relatively immune from real estate value boom and bust.

Most of the counties around DFW stop valuation increases when you turn 65 so you will find many people over that age unwilling to downsize for fear of increasing taxes.

Sign a lease when you get there and see how it goes.

MarkBarb
Posts: 451
Joined: Mon Aug 03, 2009 11:59 am

Re: Question - Reloc to TX

Post by MarkBarb » Thu Jun 25, 2020 5:14 pm

Property taxes are local taxes in Texas and they vary a lot. I pay property taxes to the schools, the county, the hospital district, the community college, the township, and the MUD (water) district. My taxes are 2.27794%, but it is actually a little lower than that because of the homestead exemption, which you can claim on your primary residence. I've seen people with property tax rates much closer to 5%. Home prices are much cheaper in Texas than CA, so while rates are higher, the tax amount might not be.

MarkBarb
Posts: 451
Joined: Mon Aug 03, 2009 11:59 am

Re: Question - Reloc to TX

Post by MarkBarb » Thu Jun 25, 2020 5:20 pm

While it is good that you are thinking about this already, I wouldn't get too tied to a decision until you're here and you are looking at hard numbers. The cost to rent vs buy varies tremendously over time and location. Until you sit down and do real calculations, it is hard to say what the right answer is. When I did the math 25 years ago, the break-even was 4-5 years, but that was a long time ago and a lot has changed.

Texas has far fewer protections for renters than does California.

Topic Author
stocknoob4111
Posts: 1380
Joined: Sun Jan 07, 2018 12:52 pm

Re: Question - Reloc to TX

Post by stocknoob4111 » Thu Jun 25, 2020 8:49 pm

Thanks for all the responses, good info! I think renting for the first year and getting a feel for the market is prudent. By then I will also get a feel for how I fit into the culture of the city as well :) As I said my only experience with TX is a visit to Austin a few years ago which was very positive.

bampf
Posts: 524
Joined: Thu Aug 04, 2016 6:19 pm

Re: Question - Reloc to TX

Post by bampf » Thu Jun 25, 2020 9:00 pm

stocknoob4111 wrote:
Thu Jun 25, 2020 8:49 pm
Thanks for all the responses, good info! I think renting for the first year and getting a feel for the market is prudent. By then I will also get a feel for how I fit into the culture of the city as well :) As I said my only experience with TX is a visit to Austin a few years ago which was very positive.
Austin is not Dallas. Not even close. I moved to Dallas and purchased a house. I thought housing was very expensive for what I got. To put it in perspective I paid $100K more for a 3000 sqf house in Coppell on a tiny little lot, crammed rear end to rear end with a bunch of people than I paid for a 6000 sq ft house in an ideal location on 3 acres with great access to open space and no 100+ degree heat in another state (not a low cost location).

Taxes are brutal (property) and insurance is high as well. Lots of weather related issues. Very crowded. I would totally rent for a year. I owned my house for about three years and I lost money. To put it into perspective, my taxes were about ~14K. Yes, lot more space than a 2 bedroom apartment, but, that was just the taxes. The mortgage was $4K a month (more or less) and energy was pricey as well. Rent. If you can stand the summer the weather is amazing for about three weeks in the fall and three weeks in the spring. Very nice.

Topic Author
stocknoob4111
Posts: 1380
Joined: Sun Jan 07, 2018 12:52 pm

Re: Question - Reloc to TX

Post by stocknoob4111 » Thu Jun 25, 2020 10:23 pm

bampf wrote:
Thu Jun 25, 2020 9:00 pm
Rent. If you can stand the summer the weather is amazing for about three weeks in the fall and three weeks in the spring. Very nice.
wow, that's quite a negative view of Dallas :shock: My understanding is that besides June, July, August it's moderate and not too bad.

My primary motivation to move to Dallas is the career opportunity, SoCal is nice but it isn't the Bay Area (San Francisco) in terms of tech opportunities and for whatever reason I did not want to live in the Bay Area, I love SF to visit but it's not my thing to live there. I am in tech btw.

As I said I want to give this a fair and optimistic shot, I know every place has it's pros and cons. I'm familiar with hot humid weather as I've been to many places that had such weather. It isn't comfortable but one manages.

BTW, a lot of people don't realize that SoCal has blistering temps as well, the stereotypical "California beautiful weather" is only near the coastline which is beyond astronomically expensive. Go to the depths of the San Fernando Valley or the Inland Empire and you're in Dallas - 115 degrees in the summer! SoCal essentially becomes a hot desert once you go inland - point to note, Death Valley - the hottest place in the entire world is close by.

BUBear29
Posts: 298
Joined: Wed Aug 19, 2015 4:20 pm
Location: DFW

Re: Question - Reloc to TX

Post by BUBear29 » Thu Jun 25, 2020 10:28 pm

stocknoob4111 wrote:
Thu Jun 25, 2020 10:23 pm
bampf wrote:
Thu Jun 25, 2020 9:00 pm
Rent. If you can stand the summer the weather is amazing for about three weeks in the fall and three weeks in the spring. Very nice.
wow, that's quite a negative view of Dallas :shock: My understanding is that besides June, July, August it's moderate and not too bad.

My primary motivation to move to Dallas is the career opportunity, SoCal is nice but it isn't the Bay Area (San Francisco) in terms of tech opportunities and for whatever reason I did not want to live in the Bay Area, I love SF to visit but it's not my thing to live there. I am in tech btw.

As I said I want to give this a fair and optimistic shot, I know every place has it's pros and cons. I'm familiar with hot humid weather as I've been to many places that had such weather. It isn't comfortable but one manages.

BTW, a lot of people don't realize that SoCal has blistering temps as well, the stereotypical "California beautiful weather" is only near the coastline which is beyond astronomically expensive. Go to the depths of the San Fernando Valley or the Inland Empire and you're in Dallas - 115 degrees in the summer! SoCal essentially becomes a hot desert once you go inland - point to note, Death Valley - the hottest place in the entire world is close by.
I moved to Dallas from Denver. The weather in Dallas is nice from November-May (September and October are hit and miss but as a general rule hot). The heat is really not that bad. Find a place with a nice pool and you’ll be fine.
There is no dignity quite so impressive, and no one independence quite so important, as living within your means.

Topic Author
stocknoob4111
Posts: 1380
Joined: Sun Jan 07, 2018 12:52 pm

Re: Question - Reloc to TX

Post by stocknoob4111 » Fri Jun 26, 2020 2:03 am

Comments on the hail situation? If one claims insurance damage for hail every year do rates not go up? Is it always possible to avoid hail damage to your car... i.e, advance warning? I have two vehicles and I'm concerned I'll have an apartment with only one covered spot so may have to park my other one out on the street... not a problem here in CA as we don't have any severe weather.

User avatar
gr7070
Posts: 1156
Joined: Fri Oct 28, 2011 10:39 am

Re: Question - Reloc to TX

Post by gr7070 » Fri Jun 26, 2020 8:30 am

stocknoob4111 wrote:
Thu Jun 25, 2020 8:49 pm
By then I will also get a feel for how I fit into the culture of the city as well
Dallas has no culture. ; )

Nice enough place. But no pulse.

User avatar
gr7070
Posts: 1156
Joined: Fri Oct 28, 2011 10:39 am

Re: Question - Reloc to TX

Post by gr7070 » Fri Jun 26, 2020 8:38 am

It's definitely hot July-September. But not hot enough to keep one from enjoying outdoors. June usually isn't too bad.

Dallas can get amazing T storms. Hail can get enormous. I doubt you'd get unlucky every year, or even close to that, but it definitely can happen. I never worried about it, but I don't worry about much.

Welcome to Texas.

random_walker_77
Posts: 985
Joined: Tue May 21, 2013 8:49 pm

Re: Question - Reloc to TX

Post by random_walker_77 » Fri Jun 26, 2020 8:53 am

stocknoob4111 wrote:
Fri Jun 26, 2020 2:03 am
Comments on the hail situation? If one claims insurance damage for hail every year do rates not go up? Is it always possible to avoid hail damage to your car... i.e, advance warning? I have two vehicles and I'm concerned I'll have an apartment with only one covered spot so may have to park my other one out on the street... not a problem here in CA as we don't have any severe weather.
In central texas, we've gotten nailed by one storm in about 13 years. That one caused roof replacements for every home in the neighborhood, and required us to replace a windshield, which was cracked in over a dozen places. If you sign up for notices on severe thunderstorms, you'll usually get forenotice. Sometimes, people will go so far as to tie on blankets over their car to protect against dents and broken glass.

You can also buy products to cover/shield your car (not that I've seen anyone with one):
https://www.frbumpersolutions.com/4-typ ... se%20dents.

User avatar
gr7070
Posts: 1156
Joined: Fri Oct 28, 2011 10:39 am

Re: Question - Reloc to TX

Post by gr7070 » Fri Jun 26, 2020 9:30 am

random_walker_77 wrote:
Fri Jun 26, 2020 8:53 am
In central texas, we've gotten nailed by one storm in about 13 years.
Dallas is not Central Texas. Dallas gets more/worse thunderstorms than Central Texas. Though I am not suggesting the OP is going to get caught in hail storm often.

Flyer24
Moderator
Posts: 1709
Joined: Sun Apr 08, 2018 4:21 pm

Re: Question - Reloc to TX

Post by Flyer24 » Fri Jun 26, 2020 10:38 am

I have removed several posts relating to voting. Remember, this is a no-politics forum.

bog007
Posts: 44
Joined: Fri Feb 28, 2020 3:27 am

Re: Question - Reloc to TX

Post by bog007 » Fri Jun 26, 2020 10:53 am

I'm in dallas. Never got hail damage on car in 40 years parking outside. Plano is nice. Allen mckinney prosper frisco all nice . August is hot. Stay in shade you will be good.

User avatar
TxAg
Posts: 1671
Joined: Sat Oct 17, 2009 11:09 am

Re: Question - Reloc to TX

Post by TxAg » Fri Jun 26, 2020 11:09 am

I'd live in an apartment close to the office. Traffic can stink sometimes. The urban apartments will likely have parking garages so no worrying about hail.

The DFW area is like anywhere else...it's what you make it.

User avatar
gr7070
Posts: 1156
Joined: Fri Oct 28, 2011 10:39 am

Re: Question - Reloc to TX

Post by gr7070 » Fri Jun 26, 2020 11:41 am

If you were 25 years younger and this was 1990 I'd send you to The Village for an apartment.

Unsure what The Village is like today.

lazynovice
Posts: 61
Joined: Mon Apr 16, 2012 10:48 pm

Re: Question - Reloc to TX

Post by lazynovice » Fri Jun 26, 2020 8:17 pm

gr7070 wrote:
Fri Jun 26, 2020 11:41 am
If you were 25 years younger and this was 1990 I'd send you to The Village for an apartment.

Unsure what The Village is like today.
The young professional crowd lives in Uptown now which you would think of as the McKinney Avenue area. Sounds like OP has a job in the northern suburbs which extend almost to Oklahoma these days. A lot of large corporations have moved there in the last five years particularly Frisco. The change is unreal. Frisco has ten high schools now.

tibbitts
Posts: 10721
Joined: Tue Feb 27, 2007 6:50 pm

Re: Question - Reloc to TX

Post by tibbitts » Fri Jun 26, 2020 8:37 pm

stocknoob4111 wrote:
Thu Jun 25, 2020 12:15 am
Currently in CA and moving to TX (Dallas area) over the next month for my new job. My goal is to FIRE within the next 5-6 years and retire at around 51-52 years of age. I have no prior experience of TX but I know the property taxes are killer. My ideal retirement location will have low or no income taxes and low property taxes - states such as NV for instance so I am thinking it isn't likely going to be TX. I may also consider coming back to CA... I just don't know yet.

With the above situation, would you think it would be wise to invest in any Real Estate while I am in TX. I would not buy at least for the 1st year since I would have to know the areas etc. but that would mean if I buy in my second year in TX my time horizon would be 5 or so years. For that period of time I am wondering if it's worth the risk to invest in my own place or just rent.

If property prices drop it may become a problem to sell it. On the other hand if my rent is somewhat equal to the property I could be putting it towards equity.

Thoughts?
My thoughts are it's sad that you're going to be deciding on your ideal retirement location based on any kinds of taxes.

Clueless
Posts: 22
Joined: Thu May 25, 2017 10:47 pm

Re: Question - Reloc to TX

Post by Clueless » Fri Jun 26, 2020 8:55 pm

We live in the suburbs of the Dallas area. We have had 3 cars totaled in a 5 year period due to hail. One of the cars was seven months old, and they still totaled it. So can it happen? Maybe to just us. :shock: That being said, some apartments come with private garages attached to the apartment. Lots of lofts have parking garages, and you could pay for an extra parking spot in the garage.

Sign up for NIXLE alerts when you get here. You’ll get a text when any ugly weather patterns are heading your way.

Welcome to Texas! :)

Clueless
Posts: 22
Joined: Thu May 25, 2017 10:47 pm

Re: Question - Reloc to TX

Post by Clueless » Fri Jun 26, 2020 9:00 pm

Then again, you could just buy this...

https://www.kbtx.com/content/news/North ... 08601.html

Topic Author
stocknoob4111
Posts: 1380
Joined: Sun Jan 07, 2018 12:52 pm

Re: Question - Reloc to TX

Post by stocknoob4111 » Sat Jun 27, 2020 1:49 am

tibbitts wrote:
Fri Jun 26, 2020 8:37 pm
My thoughts are it's sad that you're going to be deciding on your ideal retirement location based on any kinds of taxes.
that isn't the sole criteria, it's one consideration.

Topic Author
stocknoob4111
Posts: 1380
Joined: Sun Jan 07, 2018 12:52 pm

Re: Question - Reloc to TX

Post by stocknoob4111 » Sat Jun 27, 2020 1:51 am

Clueless wrote:
Fri Jun 26, 2020 8:55 pm

Sign up for NIXLE alerts when you get here. You’ll get a text when any ugly weather patterns are heading your way.

Welcome to Texas! :)
Thanks! looking forward to it :)

Topic Author
stocknoob4111
Posts: 1380
Joined: Sun Jan 07, 2018 12:52 pm

Re: Question - Reloc to TX

Post by stocknoob4111 » Tue Jun 30, 2020 2:32 am

What are the typical electricity costs for a small apartment there in the summer? I have got info anywhere from $130-250, that is quite a variation. Currently my electricity bill here in CA is $60/month in the peak months, I have all electric but no AC though, just running the fan. Utilities are dirt cheap here in CA.

User avatar
Eric
Posts: 758
Joined: Fri Feb 23, 2007 5:44 pm
Location: Texas

Re: Question - Reloc to TX

Post by Eric » Tue Jun 30, 2020 3:50 am

stocknoob4111 wrote:
Tue Jun 30, 2020 2:32 am
What are the typical electricity costs for a small apartment there in the summer? I have got info anywhere from $130-250, that is quite a variation. Currently my electricity bill here in CA is $60/month in the peak months, I have all electric but no AC though, just running the fan. Utilities are dirt cheap here in CA.
Electricity in Texas (at least in metro areas) is deregulated and rate plans can be complex, so shop carefully both initially and when it's time to renew. (Power companies generally charge less the first year to draw you in, then raise rates at renewal, so I usually change providers every year.) It's quite possible for the most expensive provider to be twice as much as the least expensive. Currently prices in the Dallas suburbs (or at least my suburb of Plano) are around 9 cents/kWh, all-in, for the least expensive fixed-rate plans on a one-year contract. Powertochoose.org is a good comparison site. Watch out for other sites, some show only a limited selection of providers based on who pays a commission or other factors that don't benefit you.

While rates may be different here than in your current home, I wouldn't expect your usage to be dramatically different if the climate, home size, and age of construction are similar. (Newer construction is more energy-efficient.) So if you expect your new home to be similar to your old home in size and age, and you feel that your off-coast CA climate is similar to Dallas, then as a rough approximation take your current usage and multiply by 9 cents/kWh (maybe 10 cents/kWh to be conservative, though you should be able to do better than that).

Your comment about running fan only, no A/C, in the peak months gives me pause though. Are you sure your current climate is similar to Dallas? :wink:

Eric

User avatar
galving
Posts: 163
Joined: Wed Oct 07, 2009 12:47 pm
Location: US Gulf Coast

Re: Question - Reloc to TX

Post by galving » Tue Jun 30, 2020 7:40 am

Wouldn't you expect the property taxes to be included as part of the rent?
Assuming that's the case, this wouldn't be a factor in your rent/buy decision.

User avatar
galving
Posts: 163
Joined: Wed Oct 07, 2009 12:47 pm
Location: US Gulf Coast

Re: Question - Reloc to TX

Post by galving » Tue Jun 30, 2020 7:47 am

stocknoob4111 wrote:
Tue Jun 30, 2020 2:32 am
What are the typical electricity costs for a small apartment there in the summer? I have got info anywhere from $130-250, that is quite a variation. Currently my electricity bill here in CA is $60/month in the peak months, I have all electric but no AC though, just running the fan. Utilities are dirt cheap here in CA.
Assume the AC runs more or less continuously from April - October at least along the very humid gulf coast area.
Last monthly electric bill was $176 for a 1900 sq ft house, AC setpoint at a comfortable albeit warmer 77F.
Total kWh is likely higher than typical because of the pool equipment.

User avatar
TxAg
Posts: 1671
Joined: Sat Oct 17, 2009 11:09 am

Re: Question - Reloc to TX

Post by TxAg » Tue Jun 30, 2020 7:52 am

galving wrote:
Tue Jun 30, 2020 7:40 am
Wouldn't you expect the property taxes to be included as part of the rent?
Assuming that's the case, this wouldn't be a factor in your rent/buy decision.
Yes, but "taxes paid" for renting a 900 sf apt is still much cheaper than buying a 2000sf house. Plus, complexes negotiate cheap rates and discounts.

If the OP were renting a 2000sf house vs buying a 2000sf house your comment is spot on.

Murgatroyd
Posts: 400
Joined: Sun Jan 21, 2018 8:23 pm

Re: Question - Reloc to TX

Post by Murgatroyd » Tue Jun 30, 2020 7:54 am

stocknoob4111 wrote:
Tue Jun 30, 2020 2:32 am
What are the typical electricity costs for a small apartment there in the summer? I have got info anywhere from $130-250, that is quite a variation. Currently my electricity bill here in CA is $60/month in the peak months, I have all electric but no AC though, just running the fan. Utilities are dirt cheap here in CA.
Your electric estimates are good. My son is in his 3rd one bedroom apt in north Dallas suburbs and his costs have been in that range. One note, he does not mind the heat and runs his AC sparingly, so someone else could spend far more.

zimmer0
Posts: 245
Joined: Wed Oct 29, 2014 3:15 pm

Re: Question - Reloc to TX

Post by zimmer0 » Tue Jun 30, 2020 7:58 am

stocknoob4111 wrote:
Tue Jun 30, 2020 2:32 am
What are the typical electricity costs for a small apartment there in the summer? I have got info anywhere from $130-250, that is quite a variation. Currently my electricity bill here in CA is $60/month in the peak months, I have all electric but no AC though, just running the fan. Utilities are dirt cheap here in CA.
1/1 650sq ft. Wife likes it at an icey 68-70* at night. Ran ~$70 tops.

User avatar
TxAg
Posts: 1671
Joined: Sat Oct 17, 2009 11:09 am

Re: Question - Reloc to TX

Post by TxAg » Tue Jun 30, 2020 8:02 am

I lived in one bedroom apts for a few years. Never paid more than. $100/month in the summer.

In 1700sf house now paying $140-170/month in the summer

random_walker_77
Posts: 985
Joined: Tue May 21, 2013 8:49 pm

Re: Question - Reloc to TX

Post by random_walker_77 » Tue Jun 30, 2020 9:14 am

Central Texas, well-insulated 2 story 4000 ft^2 house, downstairs kept at 79F 24/7, with upstairs at 79 overnight (and off during the day). Highest monthly electricity bill: $230 (paying about $0.11/kWh). Our typical summer monthly bill around $180-$200.

That highest month was basically triple digit temps every day of the month. In many parts of CA, it'll cool down at night, minimizing the a/c use. In my part of texas, during the peak months it'll still be in the upper 80s at midnight, and might hit a low of 79 at 6am.

User avatar
Meaty
Posts: 737
Joined: Mon Jul 22, 2013 7:35 pm
Location: Texas

Re: Question - Reloc to TX

Post by Meaty » Tue Jun 30, 2020 10:19 am

stocknoob4111 wrote:
Thu Jun 25, 2020 12:15 am
Currently in CA and moving to TX (Dallas area) over the next month for my new job. My goal is to FIRE within the next 5-6 years and retire at around 51-52 years of age. I have no prior experience of TX but I know the property taxes are killer. My ideal retirement location will have low or no income taxes and low property taxes - states such as NV for instance so I am thinking it isn't likely going to be TX. I may also consider coming back to CA... I just don't know yet.

With the above situation, would you think it would be wise to invest in any Real Estate while I am in TX. I would not buy at least for the 1st year since I would have to know the areas etc. but that would mean if I buy in my second year in TX my time horizon would be 5 or so years. For that period of time I am wondering if it's worth the risk to invest in my own place or just rent.

If property prices drop it may become a problem to sell it. On the other hand if my rent is somewhat equal to the property I could be putting it towards equity.

Thoughts?
I moved to Frisco in 2014; just relo’d again. Frisco is great. Property taxes are not killer 7k/year for 400k house). Schools are great as are amenities. Buy if you plan to stay 5+ years
"Discipline equals Freedom" - Jocko Willink

birdy
Posts: 360
Joined: Sun May 02, 2010 7:31 pm

Re: Question - Reloc to TX

Post by birdy » Tue Jun 30, 2020 12:18 pm

I have lived here in Carrollton, TX for about 25 years now. When you consider buying, be sure to check which COUNTY it is in. We are Denton County and the property taxes are much better than Dallas County. It is rare to find basements in this area because we have clay soil and rock. The neighbor across the ally from us moved to a different house in our same neighborhood (to go bigger) and had 4 offers within 3 days! In my opinion, Frisco has a problem with road traffic. It is still growing and building roads up there has been a problem. The best thing to do is if you narrow down your new home, drive from that house to your work AT RUSH HOUR and see if the drive is acceptable or not! We usually talk of how long it takes to get somewhere and not how many Miles it is! We have long springs and long falls but summer is a real killer here. Winters are more mild then up north. Just remember summer just "feels" like forever!! At least everyone has air conditioning!

birdy

RlxDude
Posts: 3
Joined: Sat Feb 17, 2018 1:56 pm

Re: Question - Reloc to TX

Post by RlxDude » Tue Jun 30, 2020 1:36 pm

I've owned two houses in Texas, one North of Austin, and now on the coast of Texas. Property taxes and insurance are sky high in Texas, so if you must buy in Texas buy as small a house as you can live with.

My first house North of Austin, was owned for ten years, but I still lost 30% just on sales price alone not including all the property taxes and insurance I paid over those years.

My current house is on a premium unobstructed ocean view lot and I purchased during the last real estate crash, but even after ten years of ownership, I would just break even on sales price if I sold today. Not including the outrageous property taxes and insurance.

Even though I've already paid off my mortgage, and should "own" my house, I still owe over $2,000 a month in property taxes and insurance. I could've rented a nice house in my neighborhood for $2,000 per month, and have all the money I have tied up in this house making me money in the stock/bond market.

Never will make the mistake of buying a house in Texas again, regardless of the amount of time I intend to live there. Texas is a great place to live, but my experience with buying real estate here has been horrible. My advice is rent for five years.

lws
Posts: 138
Joined: Tue Apr 25, 2017 6:12 pm

Re: Question - Reloc to TX

Post by lws » Tue Jun 30, 2020 1:50 pm

First, rent a place to live.
Become familiar with Texas real estate.
Make a decision.

User avatar
gr7070
Posts: 1156
Joined: Fri Oct 28, 2011 10:39 am

Re: Question - Reloc to TX

Post by gr7070 » Tue Jun 30, 2020 2:47 pm

birdy wrote:
Tue Jun 30, 2020 12:18 pm
It is rare to find basements in this area because we have clay soil and rock.
birdy
Structural engineer here. The reason is because North Texas has a 6" frost line. Foundations need to be below the frost line to minimize vertical movement from freeze-thaw.

Since a foundation wall is already going down, say 6', up north they may as well go a little deeper and provide a basement doubling the square footage for not a ton more money.

It has nothing to do with clay soil. Rock could deter building a basement, because of the cost to excavate. But not in Texas, there's just no need for a deep foundation.

It's all based on cost.

User avatar
sergeant
Posts: 1556
Joined: Tue Dec 04, 2007 11:13 pm
Location: The Golden State

Re: Question - Reloc to TX

Post by sergeant » Tue Jun 30, 2020 3:39 pm

stocknoob4111 wrote:
Thu Jun 25, 2020 10:23 pm
bampf wrote:
Thu Jun 25, 2020 9:00 pm
Rent. If you can stand the summer the weather is amazing for about three weeks in the fall and three weeks in the spring. Very nice.
wow, that's quite a negative view of Dallas :shock: My understanding is that besides June, July, August it's moderate and not too bad.

My primary motivation to move to Dallas is the career opportunity, SoCal is nice but it isn't the Bay Area (San Francisco) in terms of tech opportunities and for whatever reason I did not want to live in the Bay Area, I love SF to visit but it's not my thing to live there. I am in tech btw.

As I said I want to give this a fair and optimistic shot, I know every place has it's pros and cons. I'm familiar with hot humid weather as I've been to many places that had such weather. It isn't comfortable but one manages.

BTW, a lot of people don't realize that SoCal has blistering temps as well, the stereotypical "California beautiful weather" is only near the coastline which is beyond astronomically expensive. Go to the depths of the San Fernando Valley or the Inland Empire and you're in Dallas - 115 degrees in the summer! SoCal essentially becomes a hot desert once you go inland - point to note, Death Valley - the hottest place in the entire world is close by.
You're getting some good advice and I do not want to bash Texas but 100 degrees in Dallas is quite different than 100 degrees in the IE. We have dry heat in California. Texas has humidity. Good luck in your move to Texas. I would rent.
AA- 20+ Years of Expenses Fixed Income/The remainder in Equities.

Post Reply