Compare a 1954 build 1,344 sq ft tract house in Garden Grove, CA to a 2022 built 1,992 sq ft house in Ocean Springs, MS. The Garden Grove house just sold for $920,000. The Ocean Springs house is available at $235,000 (est). Save 72% on housing, move to the Mississippi Gulf Coast Now while this property is available.There are more things to compare than just price. How about the fact that the Ocean Springs house is new and larger by 648 square feet. These homes are built-in developments with similar-sized lots. Both homes have access to beaches, the Ocean Springs house is closer. Both homes are located near shopping and restaurants. Children attend class in person in Ocean Springs and have done so all but a few weeks at the start of COVID. The difference in house prices is so large that you could buy two houses in Ocean Springs with money left over for the price of the Garden Grove house. Many people in Orange County and other high-cost states have so much equity in their homes that they could come to Ocean Springs and pay cash for their new home and live on the remainder. I know, I lived in California where people consider all of that equity in their homes. If you sell your home you need to buy another and if it's in the same area, what's the point. Other homes will cost more. This is your chance to make a lifestyle change. Let's assume that you have at least $200,000 equity in your $950,000 valued home. Buy the home discussed above by putting down 20% of the cost, a total of $47,000. The total required to close including closing costs is about $53,000 (the seller may offer assistance). Remember you have $200,000 after selling your California home. That leaves $147,000 to invest for future income.Monthly payment comparedYour principal and interest payment on a current balance of about $693,000 on your California home are about $2,921. Add insurance of about $125 per month and taxes (1.1% of value) $600 per month. The total payment is about $3,646.The P&I for your new home is $898 per month, add taxes and insurance $490 per month and your total payment would be about $1,388 per month. A savings of $2,258 per month, and $27.096 per year. Don't forget the income (remainder after deducting buying costs from your $200,000 profit on your Garden Grove house) on your $147,000 @ 10% interest about $1.025 per month. Now add your house savings of $2,558 and your investment income of $1,225 for a total turnaround from your current situation of $3,783. Just a bit more than you are currently paying for your Garden Grove mortgage.Inflation is taking a toll on everyone. Prices are rising for everything. House prices are not immune as building costs have increased. A brewing problem in California is that prices have gone up so much so fast that incomes have not been able to keep up. The day of adjustments is coming. I was living in Southern California during the last housing downturn. The reasons are different this time, no liar loans or sub-prime loans. Homeowners in high-cost areas are nearing a tipping point on pricing. Mississippi Gulf Coast pricing has gone up as well but not at the same rate as California. The area has a shortage of properties as does California. Should you consider a change, you should do so soon, very soon. Of course, the house you live in will be the same when it's worth 20% less but if you decide to move in a few years you will have less leverage.Please visit the LoganAndersonllc.com website to about this topic.  Photos and links are available on our blog page with the same title. 

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