U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > U.S. Forums > Texas > Austin
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Reply Start New Thread
 
Old 05-16-2015, 12:50 AM
 
Location: At the center of the universe!
1,177 posts, read 1,751,052 times
Reputation: 366

Advertisements

As for the Austin area you might check out Smithville. Austin has been booming for a long time so the prices have gone up a lot. Smithville hasn't boomed in 100 years. In Smithville there is never any growth. The town is real small and never grows so I would imagine the prices there would be pretty cheap. It's 40 miles from Austin so it's not that far away for shopping on the weekend or whatever. The thing to remember is the absence of growth in Smithville probably equates to much lower prices than in Austin.
Reply With Quote Quick reply to this message

 
Old 05-17-2015, 08:49 AM
 
Location: Central Texas
560 posts, read 1,007,020 times
Reputation: 711
Quote:
Originally Posted by blakely View Post
While property taxes are high here, they don't even approach the amount we paid in state taxes in California. So while many have posted that the absence of a state tax is wiped out by property taxes, I would respectfully disagree. It really depends where you come from.

For us, it was a huge savings to move to a no-state-tax state, despite the higher property tax rate. California state taxes continue to climb, currently 13.3% at the top margin.
I think this would be true in most cases. Median home value in California is $400,000 with a 1% property tax rate would equal $4,000. Median home value in Texas is around $150,000 with an average property tax rate of 2.57% would equal just under $4,000 in taxes with no state income tax.
Reply With Quote Quick reply to this message
 
Old 05-17-2015, 09:08 AM
 
Location: Avery Ranch, Austin, TX
8,103 posts, read 13,470,602 times
Reputation: 3421
Quote:
Originally Posted by die Eichkatze View Post
I think this would be true in most cases. Median home value in California is $400,000 with a 1% property tax rate would equal $4,000. Median home value in Texas is around $150,000 with an average property tax rate of 2.57% would equal just under $4,000 in taxes with no state income tax.
UNfortunately for those of us who moved here JUST in time for the downturn, the lack of state income tax didn't come close to the difference in property taxes($2400/yr north of Atlanta vs $10K/yr in WilCo/Austin). Certainly no fault of Texas that our income dropped almost 80% in '08 ; but that 'no state income tax' benefit was pretty much lost on us! A few years later, our meager 'retirement' income still doesn't wash out the high property tax...ONE reason we downsized almost two years ago, resulting in a $5000/yr property tax 'savings'. Our property and auto insurance are a touch lower, as is the 'ad valorem' tax on vehicles(although the Georgia rate is much lower now...used to be 1% of vehicle value EVERY year!).

The best way to 'make out' on the deal is to earn a bunch but live in a modest home(preferably in an area of modest home values )...easier said than done.
Reply With Quote Quick reply to this message
 
Old 05-17-2015, 09:12 AM
 
55 posts, read 49,930 times
Reputation: 20
Check out Lago Vista and Jonestown. Good schools and nature. MLS shows 3 bedrooms homes starting under $100k. The downside is the long drive to downtown.
Reply With Quote Quick reply to this message
 
Old 05-17-2015, 09:28 AM
 
Location: 57
1,428 posts, read 833,659 times
Reputation: 1262
Quote:
Originally Posted by smuboy86 View Post
He's had a horrible appraiser then, anything in garland worthing living in is a minimum of 200k, seriously. Most is over that, even Irving and mesquite are at that point.
What appraiser? Anyway, I thought it sounded awful cheap, too, but I just looked on Zillow and saw lots of 3-2's down in that price range in Garland. I guess your disclaimer and the variable is: "worth living in."
I would only add that the title of this thread is "suburbs for the lower middle class." An awful lot of people have raised an awful lot of Americans in houses with only one bathroom, crabgrass yards, carports and small closets, etc. It can (and is) done.
Reply With Quote Quick reply to this message
 
Old 05-17-2015, 11:42 AM
 
1,509 posts, read 1,393,509 times
Reputation: 1612
Quote:
Originally Posted by blakely View Post
No, I'm not assuming that.

I'm just saying that it's not accurate to make a blanket statement that property taxes will automatically wipe out the absence of state taxes. Either way, one needs to look at total costs all-in to make an accurate economic decision.
No one's making "blanket statements." My statement was very much directed to the question at hand and based on the facts provided by the OP. He self-identified as lower middle class. In another thread, he said his income was $45,000 per year. Given his stated maximum home purchase budget of $150,000 and the area of California he lives in, one can assume his property is in that same general range. Therefore:

California income tax (based on him being single, which is the maximum rate he'd pay) via California state's income tax calculator at https://webapp.ftb.ca.gov/taxcalc/ca...edirectURL=OTC would be $1,770. It could be as low as $910 based on the OP's information provided about having kids and probably being treated as a head of household. The property tax on a $150K home at 1% would be $1500. So you're looking at a total maximum bill of $3,270, but more likely in the $2,490 range.

If he moved to Austin and by some miracle found a $150K home in the city, his property tax bill would be about $2,880 after the homestead exemption. (And also assuming the county assesses the home at market value.) That tax bill also never goes away if one is unemployed, off due to injury, retires etc. like income tax does.

Quote:
Originally Posted by die Eichkatze View Post
I think this would be true in most cases. Median home value in California is $400,000 with a 1% property tax rate would equal $4,000. Median home value in Texas is around $150,000 with an average property tax rate of 2.57% would equal just under $4,000 in taxes with no state income tax.
These medians mean absolutely nothing. These are both very large states with extreme variations in property value. This thread is about a person who identifies as lower middle class with that kind of income and property value.
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:


Options
X
Data:
Loading data...
Based on 2000-2016 data
Loading data...

123
Hide US histogram

Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > U.S. Forums > Texas > Austin
Follow City-Data.com founder on our Forum or

All times are GMT -6.

2005-2019, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35 - Top