Why Live Out West?

[Jamesqf]

I'm constantly being reminded about the oddities of living in California (state income taxes cover the standard deduction = mind blowing!)

You also have to remember that the Bay Area is far from typical of California.

Even outside of California, when you add in all the other things that can be itemized deductions (or home office expenses, if you go that way), you don't need a $200K+ mortgage for itemizing to beat standard deduction.  Mine - $130K originally, paid down to where principal & interest are about equal - is still marginally better than taking standard deduction.

[ysette9]

Certainly in the short term renting is better than owning in the Bay Area since it almost always is cheaper to rent. Given that I plan on living here until I die though, owning eventually wins out, considering I plan on paying off my future house and also plan on having some aspect of that property be income-generating. Again, it comes back to so much more than just how much I pay each month to put a roof over my head. Even if it takes me more years of working to reach FI by living here, it is worth it to me because of what the area offers and what my values are. All of us are different so some people will reach that same conclusion and many others will conclude they are better off somewhere else.

[Cassie]

If you choose to live in Nevada you have lower housing costs & really cheap property tax as well as no state income tax.  It also is wonderful weather wise and very beautiful in many parts.

[Jamesqf]

If you choose to live in Nevada you have lower housing costs & really cheap property tax as well as no state income tax.  It also is wonderful weather wise and very beautiful in many parts.

I have to disagree on a lot of that - and I do live in northern Nevada.  Housing costs depend on where you choose to live.  The nice areas can get pretty pricey.  The weather also sucks (in northern Nevada: southern Nevada is considerably worse).  But it is quite beautiful in spots.

[Cassie]

I have lived in 5 states and Nevada has the best weather I think if you like 4 mild seasons. I do not like Vegas either-too hot.  Once the real estate boom busted prices are so much lower.  They are finally back to being affordable and property taxes are dirt cheap compared to most states.  Can't believe you don't love it here.

[NinetyFour]

http://www.nytimes.com/2014/03/17/us/wests-drought-and-growth-intensify-conflict-over-water-rights.html?hp&_r=0

[Jamesqf]

I have lived in 5 states and Nevada has the best weather I think if you like 4 mild seasons.

Well, that's a matter of taste.  I do prefer distinct seasons, and each in their conventional season, as it were, not - as happens hereabouts - all crammed into the same day.  Honestly, I've seen it snow every month of the year, and spells of 70 degrees in January & February.   Then there's the wind, which Mark Twain had something to say about: http://www.twainquotes.com/Zephyr.html 

Can't believe you don't love it here.

But I like it despite the weather, not because of it.  Or if I do appreciate the weather, it's in a Nietzschean 'what does not kill us, makes us stronger" sense :-)

[Cassie]

You have not even seen wind until you live in Kansas. It is windy every single day and talk about extreme weather-temps can drop 50 degrees in hours.  Very violent storms etc. The other states I live in were Upstate NY (better like tons of snow), Wisconsin(snow & very cold), Texas(hot, humid & tornadoes).  Love my Nevada!!

[oldtoyota]

http://www.nytimes.com/2014/03/17/us/wests-drought-and-growth-intensify-conflict-over-water-rights.html?hp&_r=0

I pointed out a similar article and was told I was being fearful...

[dragoncar]

Thanks for that dragoncar. Curious what HOA's and property taxes are but I guess I can see that the carrying costs could be less than renting.

I'm constantly being reminded about the oddities of living in California (state income taxes cover the standard deduction = mind blowing!)

Property taxes were included at around 1.2% (capped by prop 13 and limited increases) and is tax deductible.  Prop 13 could always be repealed but I'd guess more aggressive income taxes would happen first ( good for retired people bad for working people)

Property taxes are tax deductible

Hoas can range from a couple hundred to 1k/mo ( informal survey looking at listings).  The higher hoas are often due to: including property taxes, nice amenities like pool, gym, etc, including earthquake insurance, doorman, etc.  I'm not that interested in high Hoa properties.

The above also works for less expensive properties in other cities.  You can also buy a $200k house within an hour of SF.

fwiw, our Colorado state income tax would still exceed the standard deduction.  In CO that income is around $130k each ($260k for couple)

Nevermind, it looks like AMT is going to f* me up.  I'm pretty sure we will not be able to make use of any deductions.  In that case, things look a lot closer.  It might still be better to buy, but it's not the slam-dunk I expected.