Author Topic: To Move or Not to Move...That is my question.  (Read 2098 times)

cpa4fi

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To Move or Not to Move...That is my question.
« on: May 09, 2014, 01:58:05 PM »
A question for the Mustachian community...

I currently live in Austin, Texas.  Not a cheap place but it has always been home and where all my family is located.  I live in the suburbs north of Town but commute to the SW of Austin.  The MMM ways would say that I should move closer to work to eliminate the commute.  However, I work in the most expensive Zip Code in Austin and it is one of the priciest in the US. 

To keep my 4 br, 2.5 bd home, I would have to pay 3x-4x to live close to work.  Is it still a good idea to move? Any thoughts are appreciated?

Badass by 41

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Re: To Move or Not to Move...That is my question.
« Reply #1 on: May 09, 2014, 02:14:08 PM »
You should do the math, but on the face of it, it seems reasonable not to move.

Can you give us more info about the distance?  Austin proper isn't incredibly big.  How far north from the city do you live, and how far southwest of the city is your office?

wizlem

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Re: To Move or Not to Move...That is my question.
« Reply #2 on: May 09, 2014, 02:40:22 PM »
I agree that you should do the math or give us more numbers to work with than how many bedrooms you have now.

I would estimate it as 4-5% of home value per year is what a mortgage costs and then it looks like maybe 2% of home value per year is what taxes cost. Take the home price difference multiply by 5-7% and divide that by number of working days(~250) to get the additional cost per day to live closer. Then imagine it costs you at least $0.25 per mile to drive and subtract that from the additional cost to get some number.

So if houses cost 300k more to be 30 miles closer you get ($300,000)*(0.07)/(250)-($0.25)*(30)*2=$69. If it saves you an hour a day, that hour would cost you at most 69 bucks. That doesn't seem like a winning equation but a mustachian wouldn't necessary think about it the way you pose the question. You should think about if you can get a smaller house closer to work, if there are houses not immediately nearby but closer than you are now for less. the horrible side effects of driving, the benefits of walking/riding to work, any other benefits moving might bring.

TomTX

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Re: To Move or Not to Move...That is my question.
« Reply #3 on: May 09, 2014, 02:57:14 PM »
Where do you live? Leander? Round Rock? Hutto? Arboretum area?

Where do you work? Westlake? Oak Hill? Dripping?

What's your route? Can you go in at 6AM and avoid traffic?

Do you really need a house THAT big? How many kids do you have?

Can you move a mile from work and dump one of your cars, which saves you depreciation + insurance + maintenance + smog inspection, etc?
« Last Edit: May 09, 2014, 02:59:14 PM by TomTX »

Another Reader

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Re: To Move or Not to Move...That is my question.
« Reply #4 on: May 09, 2014, 03:05:21 PM »
I understand the traffic in Austin is awful, and crossing the city during commute hours is a nightmare.  However, the cost to sell and buy again is very high.  Do you intend to keep this job permanently?  Will the income grow to support a more expensive house? 

Could you carpool for awhile while you look at job and housing opportunities?  I would evaluate the alternatives long term while trying to cut the impact of the commute while you decide.

Emg03063

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Re: To Move or Not to Move...That is my question.
« Reply #5 on: May 10, 2014, 02:47:15 PM »
Do you need 4br/2.5 baths, or is that a want?