Utilities for a single family home?

[kymom99]

Which makes you wonder why people don't move more to increase their salary?

No I don’t wonder. I like where I live and my family is here. We live ok in what we make. I paid 150k for a 3 bedroom house on almost an acre. It’s fine. I knew I wouldn’t get rich being a teacher.

 

[tvguy]

Would they really have a problem finding a place to live after getting a $2m tax free windfall?

Windfall? They'd have to spend most if not all of it on a replacement home at current prices.

 

[tvguy]

Which makes you wonder why people don't move more to increase their salary?

Family and liking what I do for a living in my case. But I could have taken a public sector job and not moved and doubled my pay. More than one co-worker has done that, but some say while the pay is amazing, the public sector work world is the pits. My son and DIL have public sector jobs. So far with good working environments.

 

[MillauFr]

Windfall? They'd have to spend most if not all of it on a replacement home at current prices.

They can downsize and move to a smaller place in a cheaper area

 

[tzolkin]

Windfall? They'd have to spend most if not all of it on a replacement home at current prices.

There are more options other than buying another $2mil home. A retired individual or couple could absolutely find something smaller or in a different neighborhood for much less than that if they really want to stay in the same area. They could easily buy something for 1/20 of that price if they were to move to a low cost of living area.

Which makes you wonder why people don't move more to increase their salary?

Others have mentioned the tradeoff in cost of living where often the increased salary doesn't actually result in any more money. But I think people also often tend to just feel settled and are worried about the unknown aspect of moving to another state or area. Sometimes it's family nearby or kids in school, and sometimes it's just not wanting to risk being uncomfortable or regretting the decision. There are also sometimes cultural differences between some high and lower cost of living areas (urban vs rural for example) that also make people hesitant to make a change.

 

[kymom99]

I love these discussions. I truly do. They can be very thought provoking. I know we are way off topic but in a way it does all relate to the OPs situation. Deciding where to live is not just about the cost of a house.

It can seem rather simple to think you can just move somewhere where housing is cheaper, or taxes are lower, or wages are higher. But many things factor into deciding where to live. In my case I could get a job across the river in Ohio and earn more money. I also would not have been required to have a masters. But I also would not have had the pension that I have now. It all plays into these decisions. In my house the electric bills are really high in winter because the house is old and poorly insulated. We put in new windows and foam insulation in the walls which helped. But those couple months of higher bills are not a big deal when you consider my last bill was $109.

OP way back when I bought my first house I remember they told me the previous owners were on even billing for about $300 a month. That was in 1990 and I thought that was crazy high. We never had bills that high year round. I never did even billing but my highest bills were only about $300. So you can easily find out the previous bills but take them with a grain of salt. Having the figures will help you to get an idea of what to expect and should ease your mind.

 

[tvguy]

There are more options other than buying another $2mil home. A retired individual or couple could absolutely find something smaller or in a different neighborhood for much less than that if they really want to stay in the same area. They could easily buy something for 1/20 of that price if they were to move to a low cost of living area.

One of the mindsets when Prop 13 passed in California in 1978 was that Seniors should not be forced out of their homes of decades. They bought and in most cases paid off a home they could afford. The tax person can wait until they die and the house changes hands to get their money.

 

[tzolkin]

One of the mindsets when Prop 13 passed in California in 1978 was that Seniors should not be forced out of their homes of decades. They bought and in most cases paid off a home they could afford. The tax person can wait until they die and the house changes hands to get their money.

I'm not arguing with that. I was responding to your comment that there's no way for the current owner to get the cash value ("windfall") out of their house because if they sold it they would have to buy another house at current market value. That would only be true if they bought a similar home in the same location. I was just pointing out that they could move somewhere cheaper and keep the rest of the money.

 

[tvguy]

I'm not arguing with that. I was responding to your comment that there's no way for the current owner to get the cash value ("windfall") out of their house because if they sold it they would have to buy another house at current market value. That would only be true if they bought a similar home in the same location. I was just pointing out that they could move somewhere cheaper and keep the rest of the money.

Got it.

 

[Mom24Princesses]

We had a Property Tax revolt in California in 1978. Voters passed Proposition 13 which limits Property taxes to 1% of original purchase price. A 5% increase is allowed each year.
The driving force behind the measure was the shocking reality that many long time homeowners property taxes per year were more than the owners paid for the house. Almost all were senior citizens on fixed incomes.

But what’s your State Income Tax? When one tax is lower another is usually higher.
DD was offered a job at UC Irvine but took a job at UCF for no Florida income tax. Disneyland/Disney World. Either was fine by me. Visiting 11/07!

 

[tvguy]

But what’s your State Income Tax? When one tax is lower another is usually higher.
DD was offered a job at UC Irvine but took a job at UCF for no Florida income tax. Disneyland/Disney World. Either was fine by me. Visiting 11/07!

1 to 12.3% depending on income. With a 1% additional tax on income over $1 million. I've never had to pay that tax, LOL.

 

[DisneyHardin]

It can seem rather simple to think you can just move somewhere where housing is cheaper, or taxes are lower, or wages are higher. But many things factor into deciding where to live. In my case I could get a job across the river in Ohio and earn more money. I also would not have been required to have a masters. But I also would not have had the pension that I have now. It all plays into these decisions.

Just saying hello from another KY teacher

 

[kymom99]

Just saying hello from another KY teacher

I retired in 2016 but have been busy with long term sub jobs and this year a half day job. As you know Kentucky schools are desperate for teachers.