Reno, Nevada is booming. The housing market is having trouble keeping up with the demand. This is mainly because of the multitudes of young people, often with families who are flocking into the area because of jobs. As we have discussed before industries are locating or relocating (often from California, the Golden State) to Nevada, the Silver State because of its advantageous business tax structure.
However it is not only the young who are moving to Nevada, but also a lot of older folk appear to be meandering east across the California-Nevada state-line. Social Security, IRAs, and retirement income go a lot further when you are not paying the high California state income tax. A friend of mine (let’s call him Robert) is seriously considering moving from California to Nevada after he retires. Robert and his wife feel that “they can maximize his retirement income more efficiently in Nevada”.
I asked him, “Explain what you mean by maximizing your retirement income more efficiently.”
He responded, “Nevada has:
No state income tax
Lower sales tax
Lower property tax rate. The tax rate on new construction is 0.8%. On existing homes, the new owner assumes the same tax burden that the existing owner paid.
Utilities are lower
Gasoline is at least $0.50/gallon cheaper
Car & homeowner insurance is lower.
In addition, housing is cheaper. [In the Carson Valley, which is around Carson City] we can buy an acre with a 3000 ft. house for under $650K. $500K buys a half acre and a new 2000 ft house.”
And . . . “I can still go to Costco!”
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