Looking to buy house under 150K -- any hot areas? (Austin: foreclosures, budget)

[Torrie Bishop]

I'm not clear on why you were told to avoid the south side of Austin; and as mentioned above the east side stigmas are becoming out-dated. The east side is actually one of the hottest areas for new construction and remodel projects becuase of the close proximity to downtown.
One of my clients is joining the MBA program at UT and just purchased a new condo on the east side because of the easy commute and investment potential.
Newer/Updated homes on the east side are typically priced closer to the $200's, but south Austin definitely still has homes for sale in the $150,000 range. There aren't necessarily any particular subdivisions that fit the requirement more than others, but the general area I'm referring to may be characterized as south of Ben White, north of Slaughter Lane, west of I-35, and east of Loop 1 (Mopac).

[jblutz56]

I live in "Plum Creek", Kyle TX, which is 23 miles from downtown Austin. The drive was not bad and there are many knew shopping centers being built, check out "Southpark Meadows" austin. There is a super HEB walmart starbuck all close to home. Plum creek is a great, little to no crime community. it is a great investment area. I am really sad to be leaving, I got transfered to Marble Falls TX, but the commute is killing me. About an 1hr 20 min to work. Moderator cut: advertising we really love it here, are very sad to be leaving.

[achtungpv]

A grad student really has no business buying a house unless they plan on staying here. Really, even after 5-6 years you'll most likely break even at best selling a house around the $150K price point since there's a ton of inventory and will continue to be. Plus, I know when I was in grad school there was no way I could have dealt with all the headaches of owning a house. It is much easier to live in a condo/apartment close to campus and call a maintenance guy when needed.

[sukicarl]

I just sold a house in south Austin for less than $150,000. It will be a small house but it can be done. I think you can still get a better deal there than north Austin in a safer neighborhood and very near the highly desired central Austin area, convenient to UT, etc. There are some new neighborhoods in east Austin in that price range but they're farther away in miles. Still not a bad choice if you want something new.

[scongress1234]

Originally Posted by claudelle

My son and his bride are moving to Austin to attend a 5-6 year graduate school program. I think buying a small house makes more sense than paying rent for that time period. I haven't started working with a realtor yet. Was hoping you all could tell me what areas of town we should start looking in.

Points of consideration would be:

1. ease of commute to UT
2. safety of neighborhood
3. resale
4. they are not the "fixer-upper" type people; no ability with power tools

We would like to keep the costs under 150K. They were told by an apt. locator to stay west of I-35 and avoid the south side. I assume this advice applied only to apartment buildings, but since I haven't been in Austin in 30 years, I don't know. Why would a professional tell them this???

Appreciate any and all comments.

Your realtor said wrong. Now, I presume the couple has no kids. I have an ideal scenario for them. Keep in mind I am not a RE agent, just giving good advice. Now, the best way to kill two birds with one stone in RE, per getting an affordable property, AND maxing out future home equity, is to buy a property on the margins of gentrification. Every city has those areas, where things are just starting to kick in per rehabbing of older houses, new retail, and a general rebirth of somewhat challenged areas, that are just on the edge of hot areas. The ideal candidates would be just east of I-35, from downtown north to around 35th st. That area will be huge in 5-10 years, as it is smack next to DT, and UT as well, and is already pioneered by young couples and artists. It also is very cosmopolitan, and reasonably safe, actually, far safer than fringe areas in larger cities. They most assuredly can find a house under 150K there, particularly since so many investors want to sell off, and the market is slowing.

The benefits?

1.) They will have immediate access to the central city, where most activity is centered, and most new venues will be built.

2.) They will find something affordable, which won't be the case anywhere else unless they want to engage in a long commute far out of the central area.

3.) The area will be cosmopolitan, and they will be living in an area with artists, other young pioneers, and hard-working family-orientated minorities
who keep to themselves.

4.) Their house will gain much equity in 5 or so years, as that area builds up, and becomes a de facto extension of DT, and will change before their
eyes.

So, don't listen to the conventional, racist, so silly "stay west of I-35" stuff, which is palpably absurd. If theyhave an eye to the future, they can make much money, be right in the midst of the next up-and-coming area, and be right next to the entertainment districts.

It's really a no-brainer...

[scongress1234]

Originally Posted by achtungpv

A grad student really has no business buying a house unless they plan on staying here. Really, even after 5-6 years you'll most likely break even at best selling a house around the $150K price point since there's a ton of inventory and will continue to be. Plus, I know when I was in grad school there was no way I could have dealt with all the headaches of owning a house. It is much easier to live in a condo/apartment close to campus and call a maintenance guy when needed.

I greatly disagree. If you buy at 150K in the vincinity of the near south or west, they will greatly appreciate in 5-6 years. They will easily be going for 250-300 K, if not more. Those areas will be developed beyond recognition with high-rise and mixed-use development, and the free-standing houses will be that much more scarce, viable, and desirable. Now, if someone of any age is financially challenged, and has no reserves, whether 18 or 85, they have no business buying a property. If one has the DP, reserves, and a decent income, equity is better in almost every circumstance than paying rent, unless real estate falls apart, which is unlikely, as the price points are so low in the up-and-coming Austin areas, and the neighborhoods will be booming in 5-6 years.

It all comes down to what is best for each person. Sure, its easier to rent, but not everyone wants to rent forever. Getting off the rent treadmill at an early age, if one has help from the folks, and money in the bank, ain't such a bad thing.

[scongress1234]

Originally Posted by atxcio

I'd second the idea of a condo. Unbelievably, there are downtown condos available for under $150K in older buildings! These are within biking/walking distance or a short bus ride to UT... they are not selling real well right now for some reason (I think it's because most of the potential buyers are trying to get into the new buildings), but once things settle down I doubt you will be able to ever touch downtown for $150K again.

Search zip code 78701 for less than $150K in austinhomesearch.com and you will see a few of the bargains.

I do agree that condos in the areas they are mentioning are viable situations as well......and you have the option of those up-and-coming areas just 10 minutes away from UT I mentioned.

[geoquiz3000]

I totally agree w/Socongress1234, the area just east of 35 between 1st and about Manor is where I'd look for the same reasons. North of Manor (and probably north of MLK) is out of your range until you go too far east to be convenient (bicycling) to UT, I believe.

A co-worker just out of grad school and her husband, who's getting his MS-Arch at UT, just bought in the Huston-Tillotson area (Chicon and 11th) for around $150K and they're not alone. He bikes to school and they hang out in the restaurants and clubs extending from 11th and 7th toward downtown.

We took in the East Austin Studio Tour (EAST) in the fall--there were more than 40 studios open to the public, and many housed multiple artists. Also, some of the best Tex-Mex (Angie's, Juan-in-a-Million) in town. Location, location, location--with the downtown, capitol complex, UT, and easy access to the airport that whole part of town is gradually selling, though even at that price you'd still be looking at some required fix-ups. Houses that have been re-done with designer finishes are selling for much more.

The gentrification of the area is probably inevitable regardless of how anyone feels about it, and well-documented by the City: http://www.ci.austin.tx.us/housing/d...tion_study.pdf. If you feel guilty about how this change affects the current lower income residents, you can support the City's efforts to encourage developers to include affordable units and to use City resources to preserve existing affordable units. There are also nascent community land trusts forming that might eventually have an impact on market rate housing sales in East Austin but their impact is minimal now (PeopleFund ~ Achieving social & economic equality through strategic investment :: Community Land Trust).

I plan to be shopping the area myself in the next few weeks, hoping for something in that same range ($150k or so).

[sukicarl]

If you can find anything besides a fixer upper house close in to town east side in that price range I would be very surprised. It's a few years past affordable over there. I know of one affordable condo though - I get emails about a very cute new condo community that sells a 1 bedroom in the $140,000's which sounds perfect for this couple. It's on East MLK called Chestnut Commons.

[achtungpv]

Originally Posted by scongress1234

I greatly disagree. If you buy at 150K in the vincinity of the near south or west, they will greatly appreciate in 5-6 years.

I disagree. ha ha. The OP says they are not fixer-upper people. You ain't buying anything livable and close-in east of I-35 for $150K. Most houses that are in decent condition are around $200+. To get a decent house at $150K you are looking at the burbs and the appreciation will not be there in 5 years in that price range.