Is it worth moving to a lower cost of living state?
This question has been on my mind almost every day for the past two months. My heart and mind have been at war with each other and this feeling of uncertainty has been challenging.
We currently live in a city right outside of Seattle Washington and I absolutely love it here. We have grown up here and lived here our entire adult life. Our family and friends live within a 20 mile radius around us and I enjoy being able to visit them whenever we want.
Seattle is also incredibly beautiful. If you haven’t been to the Pacific Northwest, you need to put it on your bucket list of places to visit, especially during the spring and summer months. We have the city, mountains, and water, which create the most incredible backdrop when simply going about your normal day.
Despite so many positives to living here, I haven’t been able to shake the fact that the cost of living here is increasing at a very fast rate. The average house here is well over $750,000 for your standard 3 bedroom 2 bath single family home.
Since we live about half hour outside of Seattle, the cost is closer to $500,000, but it is still way more than what we are comfortable paying. In a perfect world, we would be able to find a house for less than $300,000 in our local area, but that’s not going to happen anytime soon.
My husband is not as attached to this area as I am and he has actually been wanting to move out of state for a few years. He’s lived in Washington for decades and simply wants a change of scenery. When he brought up the idea of moving out of state a few years back I quickly rejected the idea and he never brought it up again.
However, recently I started to ask myself, “Is it worth moving to a low cost of living state if it means retiring years faster?“
We will still be able to fly back a few times every year to come visit family. We both work from home so the move shouldn’t be too hard, but i’m afraid I will regret it.
I’ve been weighing the pros and cons of in my head for a a few months now, but I never sat down and wrote everything down on paper. I think doing this will help me make a clearer decision.
So, that is what I decided to do today. I am currently sitting down on my couch with my laptop, phone turned on silent with a cup of coffee, and I am going to complete this in a blog post. If any of you are contemplating the same thing, I hope this article will help you.
One of the states we are highly considering moving to is Texas. We love that they have good food, they have great weather year round, they’re close to the ocean, and most of all… cost of housing.
Here is a side by side comparison between the two states:
**This is very specific to the area that we currently live and the city we might move to as of October 2020.**
Average Cost Housing – $450,000 (3 bed, 2 bath, 2000 sq feet, Single Family) Monthly Mortgage – $2,973 (15-year, 20% down, 0 HOA, + insurance)
State Income Tax – None
Gas – $2.80
Property Tax – 1.21%
Average Cost Housing (3 bed, 2 bath, 2000 sq feet, Single Family) – $250,000 Monthly Mortgage – $1,855 (15-year, 20% down, 0 HOA, + insurance)
State Income Tax – None
Gas – $1.80
Property Tax – 2.21%
As you can see, the cost of housing is almost half the price in Texas compared to Washington. Although property taxes are higher in Texas, it is still significantly cheaper than WA.
We will be saving $1,118 a month just in housing.
If we invest $1,118 every month over 10 years with a rate of return of 7%, we will have saved $191,235.84!
Now that is awesome. This also doesn’t include other savings such as gas, groceries, car insurance, sales tax, and other miscellaneous items. One thing we are happy about is the fact that Texas does not have state income tax, similar to Washington. If we’re moving out of state, it will definitely be to one of the states that does not have state income tax.
Other than the cost of living, there are other reasons why I would consider moving to Texas.
Some other reasons include…
1) We will retire years faster
2) Amazing weather year round
3) Change of scenery
5) Meet new people
6) Amazing food
7) Great culture
8) Great music and art scene
9) They have their own cruise port in Galveston, TX (we’re big cruisers)
10) We can fly all across the country for less money and time because of their central U.S. location.
11) Flights to Mexico will be so much more affordable
12) Increased speed limit (which I like)
13) We will be able to take road trips to more interesting cities such as Dallas, Houston, Austin, San Antonio, and Corpus Christi.
14) They have lots of activities
As I am typing this list, I am actually surprised at the number of things I am looking forward to. Of course there will be cons, the biggest being leaving my family, but my cons list is not nearly as lengthy as my pros list.
I appreciate you all listening to my rant and allowing me to unload my worries onto you. This exercise has helped me to realize the benefits of moving. As of right now, I think I am 80% move and 20% do not move. I will let you all know the final verdict once that day comes.
I hope you all have a wonderful day, and until next time…
Read my other posts…
- My First Blog Post
- September 2020 Budget
- 10 Simple Ways to Keep Your Monthly Grocery Budget At $125 Per Person