Buying in 78704 vs 78702 - Pros/Cons? (Austin, Spring: real estate market, 2010, rent)

[lbny34]

Hi y'all,

I am moving to Austin from NY and have recently spent several weeks in Austin to get a feel for which area I would like to buy in. I am a single female in her 30s with no plans to have children in the future (thus good school district is not a priority). I want to be within 2 miles of downtown, but don't want to live in downtown itself. I am looking to buy a 3br/2ba townhome/condo for 400K or under and have narrowed down the areas to the Barton Springs area and a very specific part of East Austin (from I-35 to Canadian St & East Cesar Chavez St to Riverview St). I'm drawn to both areas for the same reason: quick access to the hike/bike trail.

The pros to that part of East Austin is the prices seem to be about $20/sq ft less expensive. The cons, well it is East Austin, so not much going on within the neighborhood itself, plus the general bad reputation that EA has.

The pros to Barton Springs, in addition to hike/bike, it is close access to the 360 where there is a large shoulder for road biking. It is also close to Jack & Adam's and Bicycle Sport Shop, both of which offer group rides and are involved in the triathlon/biking community. There is also restaurant row and a safer feel to the neighborhood in general. The cons are it is about $20-$40/sq ft more expensive than 78702 and it appears to be further from downtown that the area of East Austin in which I'm interested (although I never got around to walking/cabbing both to compare).

I am big on research before making any decision and would welcome any opinions on these two areas, specifically, do you think that part of East Austin will actually be revitalized? Is there anything I'm missing on either neighborhood? Is there another neighborhood that I should consider? I liked Clarksville, but it is out of my price range (400K for a 3br/2ba). I've also looked at Bouldin and Travis Heights, but they seem to be as sparse as East Austin in terms of walkable restaurants, so I'd rather pay less money and be in EA.

I also am very flexible on my purchasing time frame, so I'm curious what opinions there are on the real estate market in 78704/02, as well. I'm not moving to Austin until June 2010, but could purchase as soon as December this year, or wait to move to Austin, rent for a bit and purchase later. There seems to be a lot on the market in Austin and the townhomes/condos I looked at were on the market for 120+ days without any movement in their pricing. So, it would appear to be a buyer's market, but it seems the sellers don't agree, ha!

Thoughts on any of the above?

Thanks!

[AustinGuy]

I personally think a $20 difference is easily worth it to buy into Barton Springs. I'm surprised the spread is so small.

[lbny34]

Originally Posted by AustinGuy

I personally think a $20 difference is easily worth it to buy into Barton Springs. I'm surprised the spread is so small.

It's $20-$40 difference. I'm not sure which one is under/overpriced.

[CptnRn]

78704 is already a desirable neighborhood. 78702 is becoming more desirable, but the change is slow. It hasn't changed all that much in the 32 years I have lived in Austin. I would consider 78704 to be a better investment and a better place to live. It is closer to a much larger variety of destinations.

[atxcio]

Originally Posted by AustinGuy

I personally think a $20 difference is easily worth it to buy into Barton Springs. I'm surprised the spread is so small.

Originally Posted by CptnRn

78704 is already a desirable neighborhood. 78702 is becoming more desirable, but the change is slow. It hasn't changed all that much in the 32 years I have lived in Austin. I would consider 78704 to be a better investment and a better place to live. It is closer to a much larger variety of destinations.

I agree. The overpriced area is 78702, even at $20/sqft less. Buying in 78704, especially closer to Barton Springs, you are buying in one of the most desirable areas of Austin... not a newly desirable, or transitioning area. Even in a decline, those 78704 values should hold up while East Austin may suffer significant declines.

Besides, in this market, you can always make a lowball offer... even in 78704. You might not get it, but there will be others that come up... more so now than before.

[AustinAaron]

I like to think of it as a football game.

78702 is on their own 40 yard line. They're inching forward every down (year), but they continue to suffer quite a few turnovers every couple of downs. They easily make it back to the 40 yard line, but after a couple more inches, another turnover. They're a fighting team. Strong-willed, determined, got a bit to go in the way of future All-Americans, but they're recruiting gets better with every season. And most in the stands are really rooting for them. Austinites love rooting for the underdog. But like everyone, we can only root for so long before we change teams.

They're close to entering the opponent's territory. They just never seem to make it. They make some good runs, but those darn fumbles/interceptions get the best of them. Change out a few specific running backs and wide receivers (the ones making the plays), though, and they could put some serious points on the board!

78704 is like watching the winning team from a luxury box. Catered foods, open bar, valet parking, leather recliners, flat screen tv's to see every play from every angle, and it just feels so good to know your team is going all the way this year. Again.

[verybadgnome]

People seem to forget that crime is not that low in '04. There is tons of public housing and there exists an uneasy relationship between those folks and the people buying $300k cottages.

Also the really affordable areas ($200 sq. ft.) of '04 are below Oltorf and many of them are not in walkable areas, e.g. Galindo. Krebs Ln., Ray Wood Dr. and Locke Ln. all come to mind when thinking about areas that are relatively remote or cutoff.

The third item to bring up is that when it comes to access to the CBD '04 and '02 are equal.

Still the OP mentioned bike shops which '04 has the best selection in town and also the best park in town.

On the other hand '02 will soon have commuter rail, the lance armstrong bikeway, and possible the east walnut creek bikeway.

[centralaustinite]

Originally Posted by verybadgnome

People seem to forget that crime is not that low in '04. There is tons of public housing and there exists an uneasy relationship between those folks and the people buying $300k cottages.

Also the really affordable areas ($200 sq. ft.) of '04 are below Oltorf and many of them are not in walkable areas, e.g. Galindo. Krebs Ln., Ray Wood Dr. and Locke Ln. all come to mind when thinking about areas that are relatively remote or cutoff.

Well, to your first point, that has been the case for at least a decade = public housing and high-price point RE. Diversity of income level can cause tension but I see very little of it in 04. In fact, for some it is a huge plus. The uniformity of income is one of the things that makes me nervous in the suburbs. And I could point you to many nice homes that are both North of Oltorf and below $200 per sq ft. Prices for SF will continue to flatten in 04 because the downtown condos are absorbing the younger "don't care about the schools" crowd that used to buy in 04.

[kiacook]

I'd say near Barton Springs is the better choice. It's so easy to get on the Lady Bird Lake hike and bike trail and be on 2nd street or further downtown in just minutes. So you have the restaurants near home but can also access downtown as well.

[lbny34]

I should've mentioned that I'm not willing to go further south than Oltorf, and even that is too far south for me, actually.

AustinAaron: I don't know football, but that post was funny and I got the point, thanks!

verybadgnome: What does CBD stand for and where can I find (or can you tell me) more information about the proposed bikeways and commuter rail for EA?

atxcio: I saw in another post you replied that the better deals right now are the older condo units downtown. Which are those? I really don't want to live downtown b/c I don't like the concrete jungle of it, but don't want to be close-minded to good deals either.