Toyota's Move To Plano Texas Doesn't Ease Housing Crisis Here In California

Guess how much is the above 2,200 sq ft,  4 bedroom, 1.75 bath house (built in the 60s) with a total lot size of 5,500 sq ft is listed?  $895,000!!  Yes, after closing cost and miscellaneous escrow fees, you will need over $900,000 to buy this modest looking house in the California town where Toyota's current headquarter is (which will be no more sometime this year when Toyota's move to Plano Texas is complete).  

Is this a smart investment for $900,000?  I personally don't think so unless your job is actually within 30 minutes commute away from this house.  With $179,000 (20%) as down payment, the monthly mortgage payment for a 30-year mortgage on this house is about $3,600 a month at the current fixed mortgage interest rate of 4%. This doesn't include property tax, which is about 1.2%++ on the $895,000 per year, that you will have to pay, which by the way will also increase every year.

Now for those of you who are fans of book authors who write about how home ownership will make your a millionaire, ask yourself, how much money will you make with $179,000?  If only you don't have to use that on a house's down payment?  Ask yourself if you can rent somewhere with reasonable commute to your work for less than $3,600 a month, which includes water and trash, and which will excuse you from maintenance and upkeep duties, and also the duty to pay for your annual property taxes that is subject to annual increase?

When Toyota announced in 2014 that it would leave California, I was so happy and excited because I thought home prices near Toyota's headquarter here in California will fall and I can get the chance to buy into the area.  Now that Toyota is close to completing its move, home prices near its California headquarter have increased a lot more than the home prices in Plano Texas. That's very disappointing to me.  So, to all the politicians in Texas who constantly brag about how Texas is stealing business from California, can you guys please, please lure more businesses from California to move out of state.  Please  attract Honda to go to Texas too!!  It's because home prices aren't dropping and more people and companies need to move out of California in order to keep housing affordable here in California. 

I really really hope that more companies will just move out of California...for the sake of housing affordability.  It's just too crowded here in California.