This year has seen so many changes it’s hard to know where to start. Yes, many people have been out of work, but hopefully with the recent news of successful vaccines from Moderna & Pfizer it won’t be long before they can be back to it. Fortunately for many others all over the country, it’s meant lasting & leverageable changes to how work is getting done.
Many past clients & friends have told me their company is shifting to a permanent work from home status for many employees. Industries such as finance, tech, & logistics have been able to shift quite efficiently. Becoming a work-from-home employee provides flexibility & all sorts of other benefits, but it has its challenges. One of the biggest hurdles I’m hearing repeatedly is the need for more space.
For many relatively high-income workers in California however, that extra space doesn’t need to come at an equivalent increase in living expense. In fact, it means no longer being tethered to costly and small living quarters near the office or excruciating commutes from more reasonably priced housing. It can even mean saying goodbye to high state taxes on income not generated from California, like say your stock portfolio’s performance this year.
We’re seeing an opportunity to own much more real estate than many have been renting for significantly less money. This health crisis has created opportunities in everything from the stock market, to the housing market & mortgage rates. Those previously tied to high living expenses in order to earn a high income, are now free to work remotely from fabulous, more affordable, and state income tax-free Las Vegas, Nevada.
Californians relocating to Las Vegas could potentially save thousands each month in housing expenses & as much as 13.3% on some of their taxes (though not the salary portion generated from a California company according to the American Bar Association). However, when you consider your non-retirement investment performance this year those savings may really start adding up! Lets look at a hypothetical example of today’s Las Vegas home purchase numbers below.
At the time of writing, our single family median home price in the greater Las Vegas MLS is $322,500. Zillow Mortgage is quoting rates at about 2.875% (highly variable based on your situation, please consult a lender). When you make a 20% down payment on that median priced home you would be at about $74K including all closing costs & your monthly payment would be around $1,450 per month. How does that compare to housing near the office in California that you no longer need to go to? That depends on your specific situation, but I’m pretty sure you’ll be pleased if you take a look at your current budget & what it could be.
You could stay where you are & save a bit by only investing in the top half of your professional wardrobe for Zoom calls, but that likely won’t net you what you could save by relocating here. If you’re able to work from your residence & aren’t required to remain in your company’s home state, it may be time to call a good Realtor in Las Vegas. *Note I am a Realtor, I am not a tax-professional or mortgage lender & I always recommend also speaking those professionals before making an important decision.