4 ms·

$3.2M for a measly 1700sq ft?! Nuts. You can have a bigger, probably better house near the new Apple campus in Austin -walking distance, through a beautiful p

$3.2M for a measly 1700sq ft?! Nuts. You can have a bigger, probably better house near the new Apple campus in Austin -walking distance, through a beautiful park no less!- for $600k or $700k.

spacemadness 4y ago
I think these people making these choices are in another universe from most of us working folk, so understanding this behavior from one data point isn’t going to make sense. This could even be a second convenience home. It can be hard to wrap your head around that much wealth if you’re in more down to earth class.
- jedberg 4y ago
  I haven't met the new owners yet, but most of my other newer neighbors are not what you'd consider wealthy. It's mostly families with two working adults where one works or worked at FAANG and sometimes both. Most people's story start with "my FAANG stock made my down payment, and the salary pays the mortgage". The older neighbors are generally people who have owned for 30+ years and bought when things were still reasonable. The houses in our neighborhood are all about 60 years old, and we even still have some original owners! But the point is for the most part people here are not so wealthy they can stop working, they just have high paying local jobs to pay for their really expensive house and don't have a lot left over after housing expenses.
  - strikelaserclaw 4y ago
    they probably could stop working, they just wouldn't be able to afford a house in Curpertino.
  - spacemadness 4y ago
    Spending 3.2 million on a home is in another league of wealth from the vast majority of people.
iancmceachern 4y ago
Yeah but the weather....
- cryptonector 4y ago
  I love the weather in Austin. Not very cold in the winter, and I love the dry heat of the summer.
jedberg 4y ago
You pay $700k for the house and $2.5M for the weather, stable power grid, and lower taxes (yes, people in Cupertino pay lower overall taxes than people in Austin).
- chasebank 4y ago
  How do they pay lower overall taxes?
  - jedberg 4y ago
    Here is an article on it: https://www.yahoo.com/video/everything-bigger-texas-including-taxes-162135063.html https://www.yahoo.com/video/everything-bigger-texas-includin... But basically the higher property taxes and additional taxes and fees that Texan's pay on consumption, like energy taxes, end up more than making up for the lack of income tax, unless you're a top 1% earner (which is somewhere around $700k/yr). Energy tax is a big one because Texan's use a lot more energy since they have hotter summers and colder winters.
    - chasebank 4y ago
      "About the only Texans who fare better than Californians are the wealthy. The top 1% of earners in Texas — those making $617,900 or more annually — only pay 3.1% of their income in state and local taxes. That compares to a rate of 12.4% for top earners in California, who make $714,400 or more per year." So if you're a top 1% or more, you save at least 4X in taxes. I'm sure you come out on top in TX financially for the vast majority of people reading this site, $100k+ earners. Everyone I know that moved to Austin from CA did so to avoid paying taxes on cashing out stock options.
      - jedberg 4y ago
        > Everyone I know that moved to Austin from CA did so to avoid paying taxes on cashing out stock options. And a lot of those people are now moving back after that one time tax savings. Heck even Elon is moving back. > So if you're a top 1% or more, you save at least 4X in taxes Only income taxes, but property and energy taxes are still higher.

$3.2M for a measly 1700sq ft?! Nuts. You can have a bigger, probably better house near the new Apple campus in Austin -walking distance, through a beautiful park no less!- for $600k or $700k.

spacemadness 4y ago

I think these people making these choices are in another universe from most of us working folk, so understanding this behavior from one data point isn’t going to make sense. This could even be a second convenience home. It can be hard to wrap your head around that much wealth if you’re in more down to earth class.

jedberg 4y ago
I haven't met the new owners yet, but most of my other newer neighbors are not what you'd consider wealthy. It's mostly families with two working adults where one works or worked at FAANG and sometimes both. Most people's story start with "my FAANG stock made my down payment, and the salary pays the mortgage". The older neighbors are generally people who have owned for 30+ years and bought when things were still reasonable. The houses in our neighborhood are all about 60 years old, and we even still have some original owners! But the point is for the most part people here are not so wealthy they can stop working, they just have high paying local jobs to pay for their really expensive house and don't have a lot left over after housing expenses.
- strikelaserclaw 4y ago
  they probably could stop working, they just wouldn't be able to afford a house in Curpertino.
- spacemadness 4y ago
  Spending 3.2 million on a home is in another league of wealth from the vast majority of people.

iancmceachern 4y ago

Yeah but the weather....

cryptonector 4y ago
I love the weather in Austin. Not very cold in the winter, and I love the dry heat of the summer.

jedberg 4y ago

You pay $700k for the house and $2.5M for the weather, stable power grid, and lower taxes (yes, people in Cupertino pay lower overall taxes than people in Austin).

chasebank 4y ago
How do they pay lower overall taxes?
- jedberg 4y ago
  Here is an article on it: https://www.yahoo.com/video/everything-bigger-texas-including-taxes-162135063.html https://www.yahoo.com/video/everything-bigger-texas-includin... But basically the higher property taxes and additional taxes and fees that Texan's pay on consumption, like energy taxes, end up more than making up for the lack of income tax, unless you're a top 1% earner (which is somewhere around $700k/yr). Energy tax is a big one because Texan's use a lot more energy since they have hotter summers and colder winters.
  - chasebank 4y ago
    "About the only Texans who fare better than Californians are the wealthy. The top 1% of earners in Texas — those making $617,900 or more annually — only pay 3.1% of their income in state and local taxes. That compares to a rate of 12.4% for top earners in California, who make $714,400 or more per year." So if you're a top 1% or more, you save at least 4X in taxes. I'm sure you come out on top in TX financially for the vast majority of people reading this site, $100k+ earners. Everyone I know that moved to Austin from CA did so to avoid paying taxes on cashing out stock options.
    - jedberg 4y ago
      > Everyone I know that moved to Austin from CA did so to avoid paying taxes on cashing out stock options. And a lot of those people are now moving back after that one time tax savings. Heck even Elon is moving back. > So if you're a top 1% or more, you save at least 4X in taxes Only income taxes, but property and energy taxes are still higher.