Nevada or California — Where should first-time homebuyers roll the dice?

Home is where the heart is, but what if your heart is torn between buying your first home in California or buying it in Nevada?

Generally speaking, if your decision is a purely financial one, as in affordability due to a lower cost of living and more home for your buck, then Nevada is the place for you. Though, as with everything, exceptions do apply. California is notoriously expensive, particularly the San Francisco Bay Area. It’s no wonder the Oakland Raiders are relocating to Henderson, Nevada in March.

What about the non-quantifiable decisions? Factors such as climate or food options or having family nearby are likes/dislikes that can’t be arithmetically answered. They are, however, integral to your decision-making process.

We hope the following points are helpful in discovering what’s right for you and your move. Let’s start with a simple and easy-to-figure item.

TAXES

The formula for California property tax is used statewide — 1.25 percent of the home’s purchase price. In Nevada, the formula for property tax varies by county. Las Vegas and Henderson are in Clark County, but since we are talking taxes, it’s not simple. Within Clark County, there are 112 separate tax districts. Yes, 112 separate tax districts. Henderson's tax rate is $0.71 for every $100 of assessed value. The Las Vegas rate is roughly 3.3 percent.

There is no personal income tax in Nevada; the income tax rate in California ranges from 1 percent to 12.3 percent. Nevada residency is 183 days a year, enabling some residents to have homes in Nevada and California claiming residency in Nevada, where they register their vehicles and vote.

Sales tax

California’s basic sales tax rate is 7.25 percent. Local tax rate add-ons differ, and the highest rate is 10.5 percent.

Nevada’s state sales tax rate is 4.6 percent, and, like California, some local jurisdictions have added to the rate. Las Vegas has a sales tax rate of 8.25 percent. Henderson’s rate is 8.38 percent.

Gasoline, diesel, alcohol, and cigarettes, among other consumer goods, differ in tax rates between the two states.

OTHER FINANCIAL CONSIDERATIONS

Resale value. No one can predict the future, and if someone claims to be able to, turn the other way and run. California real estate has proven to be an excellent investment. Nevada is in the process of proving itself. As with any investment, spend only what you can afford to lose.

Incentive programs. There are a variety of options available to first-time homebuyers. According to nerdwallet.com, Nevada has such a program. Check out the details here. Investing a little research on the Internet may result in an excellent ROI. A visit to your local library and a chat with the librarian may enhance the research. The City of Henderson just introduced their own first-time homebuyer program. Read more here.

Want more facts and figures? Then you’ll want to read the 2019 - 2060 Population Forecasts for Clark County. You can find it here. University of Nevada, Las Vegas authored the report, which has an economic forecast as well as a population one.

JOBS, EMPLOYMENT, CAREERS

Most of us need to earn a living. What kind of work opportunities are available where you are thinking of buying real estate? You can begin your job search online: checking out newspaper classified ads, visiting Web sites such as careers.com and craigslist.com, and talking with a real estate agent. You’ll also want to know how far your salary will go. Check out salary.com or a similar site to see how much you salary you’ll need to live comfortably.

An excellent resource is City-Data, where you’ll find an exhaustive supply of information on a variety of topics.

ARTS & CULTURE

Are you the type who regularly enjoys attending concerts, plays, lectures, and other cultural offerings? Or are you more the snuggle at home with a good book and the TV remote? See where your answer takes you.

CRIME

An area’s crime rate can be a tiebreaker in deciding where to move. All other things being equal, the place with the high crime is the one scratched off the list. A visit to a local police station or the Internet can provide necessary information. Also, just because a place is safe today doesn’t mean it will stay that way, and vice versa.

IN THE END

Don’t let all the above food for thought paralyze you. The most important thing is to determine what is most important to you. Focus on those priorities and you will find your ideal location.