Elon Musk plans to move to Texas

[Neil Narayan]

CNBC, working off anonymous sources, reported Dec. 4 that the billionaire who also runs SpaceX and The Boring Company has put his California houses on the market this year and he has told close friends and associates that he intends to move to Texas.

Noting that Musk is the world’s second-wealthiest person behind Amazon’s Jeff Bezos, CNBC reports that Musk “spends most of his time between Austin, where Tesla and his tunnel start-up Boring Company have operations, and a coastal village called Boca Chica, home to a SpaceX facility."

SpaceX has been operating in Texas since 2003. Earlier this year, Tesla opted to build a massive car factory just east of Austin. Tesla has said it plans to create at least 5,000 jobs in Austin, although experts suggest the final figure could be significantly higher. And late this year, The Boring Company started posting jobs in Austin.

https://www.bizjournals.com/au...

[Lamont Chen]

@Neil Narayan

Joe Rogan now Elon. Nice! Definitely going to help the market there.

[Neil Narayan]

Did you see the CEO of Dropbox just moved to Austin as well.

[Paul Sedillo]

Tim Ferriss and Ryan Holiday as well. Beyond just the "famous" new Austin residents, we have a considerable amount of California real estate investment money flowing into the city. We already have a hot market, in two years my bet is that we will be looking back at 2020 and wishing we had invested even more.

[Jordan Moorhead]

I agree @Paul Sedillo! The famous people make the news but the several thousand others that move are the ones making the market explode!

[Ryan Kelly]

@Paul Sedillo @Jordan Moorhead Agreed. The bigger movers to Austin are all the mid-level employees of all the new employers coming to town. The dam has long broken, but the water flow pouring out may continue for decades to come.

[Paul Sedillo]

Not sure if I mentioned to you @Ryan Kelly and @Jordan Moorhead, my offer for a 6.5 acre land parcel was accepted on Friday. Shame that it's not in Del Valley or Buda!

As for the money flowing in, I think we've only begun to see the massive influx that's going to hit us.

[Richard Rozo]

@Ryan Kelly

Is it too late for a new investor to get their foot in the door?

[Ryan Kelly]

@Richard Rozo Not at all, so it all depends on your goals to determine if Austin is a good fit for you. Happy to chat about the market and opportunities anytime.

[Matt Stricklen]

I'm not sure I have anything available for him right now, but I'll look at my current inventory. I knew I was dropping the ball on getting EV chargers installed in all my garages. 

[Jay Hinrichs]

Originally posted by @Matt Stricklen:

I'm not sure I have anything available for him right now, but I'll look at my current inventory. I knew I was dropping the ball on getting EV chargers installed in all my garages.

I have been putting them in my spec homes this year..  although not all EV's use the same plug  Teslas is only for a TEsla cord.. I have Tesla personally but none of my buyers so far in my new community in Canby have EV's  but I tell the folks within 10 years everyone will have at least one.. and you wont have to tear into your garage wall to install one  !!  does it make  sales nope.. does it feel good sure. !

[Jay Hinrichs]

Originally posted by @Ryan Kelly:

@Richard Rozo Not at all, so it all depends on your goals to determine if Austin is a good fit for you. Happy to chat about the market and opportunities anytime.

this kind of reminds me of growing up in Cupertino when high tech just boomed.. maybe one day a 1500 sq ft 50 year old rancher will be worth 1.5 to 3 million like the bay area..  Although I do think property tax's being what they are in Texas is modulate the values somewhat??

[Bruce Lynn]

@Jay Hinrichs   Everyone complains about Texas taxes...but the 1500sqft rancher here is probably $150,000-$250,000 depending on where you buy....so the taxes might be $3000-$6000.  Not sure what they would be on $2,000,000 in CA, but I wouldn't think all that different.

Of course if you take the $1.5mil you get for it there and then spend the same here, you get one of the best houses in town, but the taxes are probably triple...or you buy a more modest house and two duplexes and let the cash flow from the duplexes pay the extra taxes.

[Jay Hinrichs]

Originally posted by @Bruce Lynn:

@Jay Hinrichs   Everyone complains about Texas taxes...but the 1500sqft rancher here is probably $150,000-$250,000 depending on where you buy....so the taxes might be $3000-$6000.  Not sure what they would be on $2,000,000 in CA, but I wouldn't think all that different.

Of course if you take the $1.5mil you get for it there and then spend the same here, you get one of the best houses in town, but the taxes are probably triple...or you buy a more modest house and two duplexes and let the cash flow from the duplexes pay the extra taxes.

well not everyone wants to be a landlord :).. and I suspect, don't know for sure.. but based on what the CA transplants buy in our market here in Oregon ( and I am a CA transplant) .. they go for nicer houses..  tax rate in CA  is about 1.25%  same as Oregon and that's on assessed value which is less than what yu paid or market value.. Also in CA with prop 13.. tax's don't get reassessed yearly and can stay very very low during your entire ownership.

So you could have someone who paid 500k for the Palo Alto rancher in the late 80s  paying maybe 7 to 8k per year.. and the house next door just sold for 2.5 million and they are paying 30k a year or so.. 

I will bet a high paid CA transplant will buy the nicest home they can get into.. they wont buy 250k ranchers is my guess .. 

really depends on new construction.. if you have unfettered new construction prices will stay lower.. keep in Mind in the Bay area there is literally no land.. the only new construction is basically tear downs.. And in Portland proper kind of the same thing.  New communities are being build around the metro fringe.. anything in the city proper is infill.  As with all things real estate its location location location and then supply demand.

[Bruce Lynn]

@Jay Hinrichs   Yes...a guy at a research company that does work for builders one time told me we have 50,000 lots that either are ready to build on or could be ready within 2 years in DFW area.  He said there were not 50,000 in all of CA due to all the different restrictions.   Some builders here are no long signing contracts since they're so backed up.  Many others are quoting 12months from contract to closing.

[Jay Hinrichs]

Originally posted by @Bruce Lynn:

@Jay Hinrichs   Yes...a guy at a research company that does work for builders one time told me we have 50,000 lots that either are ready to build on or could be ready within 2 years in DFW area.  He said there were not 50,000 in all of CA due to all the different restrictions.   Some builders here are no long signing contracts since they're so backed up.  Many others are quoting 12months from contract to closing.

our process is  2 months to get permits from first day of submission.. and 5 months to build.. production builders 4 months.  we are semi custom though .. so takes us a little longer and totally upgraded compared to the big production builders.

that 50,000 number for CA is way off there are literally millions of vacant lots.. But of course most of them are not in or within commute distance to the city centers.. these were created during the land booms of the late 1800 and up till about 1930.. Riverside county

San Bernadino county there are well over 1 million vacant lots there..  But in the Bay Area 7 counties I suspect the number to be much lower.. There are antiquated plats in the bay area that will never be developed.  Same with Los Angeles county.  The sprawl is central valley

And the aforementioned Counties surrounding LA..  

[Robert M.]

Originally posted by @Neil Narayan:

Did you see the CEO of Dropbox just moved to Austin as well.

Hewlett Packard could be added to the growing list of companies leaving California.

[Neil Narayan]

Rumor is that Mush and a few of his top Exec have already bought houses in Westlake :|

[Account Closed]

@Neil Narayan this news is about 4 months old it seems. I heard this on places like infowars a few months ago, as well as the Joe Rogan news way back before the mainstream. CNBC might be a little behind the curve if you’re looking to get ahead on trends. It seems the money makers moved from NY to FL and the CA businesses are going from CA to TX. All the money hungry are after Austin area. Austin is the new NYC.

[Wale Lawal]

@Neil Narayan

Hundreds of people are moving to Texas every month.

Elon Musk movement will not help the Real Estate that much.

The main factor is the jobs he bring.

[Paul Sedillo]

@Wale Lawal you are 176% correct. It's all about job creation, which drives buyers and ultimately deals that matter to those in real estate.

[Ryan Kelly]

@Jay Hinrichs Unlike Cupertino or Palo Alto, we have WAY more land. You can build neighborhoods in all directions. San Antonio and Austin are slowly growing together.

[Shane Jeanfreau]

Hopefully for Texas sake they will leave their voting style behind .Also remember why they left Cali in the first place.

[Jeffery Callis]

@Neil Narayan

I wouldn’t put any bets on Tesla helping the surrounding economy in TX. Musk is only moving to Texas to save on taxes, pay the employees less, and last but not least to keep taking advantage of corporate welfare from the state of Texas.

[Jay Hinrichs]

Originally posted by @Ryan Kelly:

@Jay Hinrichs Unlike Cupertino or Palo Alto, we have WAY more land. You can build neighborhoods in all directions. San Antonio and Austin are slowly growing together.

yup you can build all the way to new mexico  ,   Oklahoma and LA  only place you cant go is Mexico and the Gulf  !!!!!

[Jasmine H.]

@Robert M. Yes i think they're planning on taking their hq to Houston.