Best neighborhood to buy home, considering future resale ? (Austin, Cedar Park: house, neighborhoods)

[Austin97]

Originally Posted by 10scoachrick

While some of Avery Ranch feeds into RRISD, Avery Ranch is located in the City of Austin.

While Avery Ranch has some new sections...much of AR is 5-6 years old and built out for all practical purposes. Bear in mind, AR is well over 3000 homes...each section is different. I would be looking for one of those bargains you mention...in another five years, I'm betting the value will hold(at worst).

Highland Horizon is one area that is 'dangerously' new...drove through there last week and I'll bet there are fewer than a dozen completed homes. Now, that would be scary.

There is a new section being added to avery ranch. I think it is about 300 homes.

[senormatt]

My rule of thumb for larger cities is try to get a place as close to downtown as possible. You know that area will always be desirable.

[IC_deLight]

You indicated a desire for a new home - but it's what you can't see that can create a huge risk to your entire investment.

First of all, buying into any new development means that there will be an HOA. An HOA is a real risk to your entire "investment" and it won't make your quality of life (the non-investment part) better either.

Second of all, why not consider the assessments and carrying costs of the home instead of just the selling price. There will be HOA assessments and special assessments, a substantial risk that you will have to spend $$ on attorney fees due to the HOA, property taxes, etc. Plus whether you realize it or not, the HOA has the power to obligate you to debt that you never agreed to and to use your home to secure that debt. Oftentimes these HOAs are run by the developers and even when they are not the management companies promote creating debt through "fines", "collection fees", etc.

Avery Ranch is run by Alliance and I can't think of anything positive to say about Alliance other than I'm positive Alliance will try to divert all services and payment for those services including banking, insurance, resale certificates, etc. to entities that Alliance's owners own or control without divulging those relationships at time of "researching" vendors. Alliance and most of these management companies profit from accusations of noncompliance. So you can expect that accusations of noncompliance will be routinely made and that their systems have been designed to ensure noncompliance in many cases.

With respect to Alliance, wherever this organization goes the HOAs tend to adopt a "priority of payment" scam resolution whereby the management company will apply your payments to your assessments last and first to any and all other fees that the management company can dream up. Since you can be foreclosed upon for failure to pay assessments, the management company will hold the threat of foreclosure over your property in order to collect management company fees that HOAs are not permitted to foreclose over. This is a very lucrative practice for the management companies. No court, no jury, just a private police force that profits from accusations of noncompliance and demands payment for fees they generate out of thin air under threat of foreclosure on your home. Fox News 7 On Your Side did a story on Alliance and the Texas senator that runs the show a few years ago.

Third, you might want to look at all the taxing authorities for the areas. When you have property taxes around 3% per hundred dollar valuation then your "appreciation" needs to increase pretty well to "break even" after even just a few years. The frenzy surrounding flipping homes and aesthetics and HOAs has made many homes unsuitable for their primary purpose - the use and enjoyment of the owner. There has not been any authoritative study that shows HOAs "preserve property values" and I submit to you that they do not.

Fourth, try to get financial statements from these HOA burdened properties. They often demand that you pay several hundred dollars for the information or otherwise refuse to provide the information. Information about the HOAs and the restrictive covenants are frequently withheld by the developers and/or the HOA even though they are often falsely marketed as "preserving value" or "necessary". If they were so great then the developers could make them readily available. Don't blame the seller unless it's one of the national builders who participates in these schemes.

Finally, if you purchase and discover the ugly side of the racket occurring in many of these HOA burdened properties, you might have a right to rescind your purchase contract under federal law if you are purchasing from the developer or an affiliate of the developer. You would need to consult an attorney based upon the particulars of the property that you purchase. Generally, however, in any subdivision of greater than 100 Lots to be sold, the developers are obligated to register with the Secretary of HUD and provide a Property Report to prospective purchasers. If they fail to do this and do not qualify for an exemption, then the purchaser has the right to rescind the contract if the purchaser notifies the developer that the seller wishes to exercise that right within 2 years of the purchase date. "Rescind" means that the contract is undone and the developer has to effectively purchase your house back from you. There are also provisions for recovery for fraud. Oftentimes developers makes fraudulent representations regarding size of the subdivision, amenities, existence of an HOA, costs, etc. that cannot be discovered until years later. The Interstate Land Sales Full Disclosure Act has also been extended to condos. I wouldn't doubt it if some very upset condo owners decided to use the developer's failure to comply in order to get out of those new downtown Austin condos they overpaid for.

Don't get caught up in the appearances of the property. It's the unseen legal entanglement that can really destroy all of your reasonable expectations.

[CptnRn]

Originally Posted by Jennibc

But did you hear that they are finally going to complete the 290 connection to Mopac? statesman.com | Road projects get TxDOT approval | ShortCuts That will help clean up the mess at the Y. At least I hope it will.

Please note that article is not talking about the "Y". That is the Mopac/290 intersection up near Sunset Valley. I don't think that is going to make a big difference at the "Y", the hold up there is primarily the long wait at the stop light. I have never really seen a traffic snarl there, its just a long wait at the light.

The five-member commission approved a measure to have TxDOT work out a “pass-through” agreement with the City of Austin for two flyovers at the U.S. 290/MoPac Boulevard interchange. The city would spend $16.2 million to build the two bridges — connecting northbound MoPac to eastbound U.S. 290, and westbound U.S. 290 to southbound MoPac — and be reimbursed up to $13 million by TxDOT over the next 10 to 15 years.

[CptnRn]

Originally Posted by 10scoachrick

Yeah, and every time I hear about another major traffic tie-up near the 'Y', I surely wish we lived 'down there'. Not everybody goes into town every day. There was not a compelling difference in AR and CC numbers that I could see.

I live have lived in the Oak Hill area since 1981 and other then the long wait at the traffic light, I have never seen a "major traffic tie-up near the Y". So I'm not sure what you are talking about. The morning rush hour traffic flow through Oak Hill is usually faster then what you encounter after you get onto MoPac North of 290 going into town. The afternoon rush used to bog down coming off MoPac towards the Y when TXDOT had that stupid 3 lane merging into one bottle neck, but they have eliminated that, so traffic flows pretty well through that area now.

Good point...as long as you don't want to go west or northwest...again, not everything is located 'in town'. I'll still take the numerous routes available around Avery Ranch over any sort of 'statistic' that compares AR and CC. Chocolate and vanilla.

I never have any trouble going West or Northwest (other then heavy traffic on Mopac), so I don't understand that comment either.

[austin-steve]

I live have lived in the Oak Hill area since 1981 and other then the long wait at the traffic light, I have never seen a "major traffic tie-up near the Y". So I'm not sure what you are talking about. The morning rush hour traffic flow through Oak Hill is usually faster then what you encounter after you get onto MoPac North of 290 going into town. The afternoon rush used to bog down coming off MoPac towards the Y when TXDOT had that stupid 3 lane merging into one bottle neck, but they have eliminated that, so traffic flows pretty well through that area now.

I agree. I drive through the Y at Oak Hill at around 8AM every day, and again after 4:30 each day coming the other way, and lots of other random times. Yes, it can be a bottleneck, but the bigger bottleneck is actually coming off the Mopac 290 overpass onto Mopac north. It backs up onto the overpass, narrows to one lane, and of course there is the requisit stream of cheaters who drive to the very last merge point on the right, passing the people who have properly lined up, and thus slowing us all down as they cut in front.

Circumventing the Y is easy though, during times when there might be an accident or other problem. If I see it backed up when existing Granada, I'll go through Scenic Brook instead, or Circle Drive -> Thomas Springs, across 71 and through Barton Creek and Lost Creek to pop out at 360. Adds about 10-15 minutes to a normal 290/Mopac route. Can also cut through Convict Hill or Wm Cannon to get over to Mopac North, or even take 1826 to Slaughter and then back up Mopac.

So, unlike getting "stuck" on a road like 620 coming out of Steiner, where if there is an accident and the road is closed, you have only one other option (round about through Lakeway), Oak Hill offers many relief routes or alternate daily routes.

Steve

[10scoachrick]

Well, I guess for much of the first year we were here, every traffic report mentioned the 'usual' backup at the 'Y'...perhaps that was cleared once the new lane addition was complete. Then, if you google the 'Y' in Oak Hill, the entire first page was articles from '07 about the 'plans', lack of plans, lack of funds, lack of agreement, homeowner revolt, etc. regarding proposed improvements to the 'Y'. Then, there was much discussion of the malfunction junction of 290 and the 'Mo'. Perhaps I shouldn't rely on the media for my traffic info.

Carry on...

[hound 109]

How in the heck did a thread about the real estate values of specific neighborhoods in NW Austin (Greater Cedar Park) morph & devolve into a discussion of SW Austin traffic patterns?

Too much SW Austin naval gazing on this board...& it probably isn't helpful to those inquiring about other areas.

[hound 109]

Originally Posted by llkltk

Hmm, not buy a "new" home??? All homes were new at one point. If you plan on staying in it for 5+ years you are good to go. I wouldn't take your advice, not good!

I'm not giving advice, I'm giving my opinion.


If your opinion is that 300K -350K for a NEW home in area that is still being built out would represent a better value.... than a 300K-350K home in a built out neighborhood & area... that feeds into top schools, then I would say your opinion is "not good".

New homes always have 10-30K or "air" in the price & it might take 5-10 years to recoup that. (Why not see that 10-30K in appreciation in an existing home?)

More importantly, if the economy turns south, the builders in a "new area" will slash prices or begin selling cheaper models & one's "investment" is underwater. (See Orlando, Phoenix, Vegas, San Bernadino etc.)

I'm aware that 80% of the readers & posters WANT a new home. No problem. Everyone wants different stuff. But if the question is "what home will see better appreciation in good times....or will hold value in not so good times....then the answer is NOT a new home in an area currently in construction (by national builders).

[Jennibc]

Originally Posted by hound 109

How in the heck did a thread about the real estate values of specific neighborhoods in NW Austin (Greater Cedar Park) morph & devolve into a discussion of SW Austin traffic patterns?

Too much SW Austin naval gazing on this board...& it probably isn't helpful to those inquiring about other areas.

Like most conversations, it has evolved. One person brought in an unrelated point about numbers from another thread, another person getting defensive about his neighborhood brought up traffic patterns about a specific area in SW Austin and it went from there. Oh, was that a rhetorical question? Well, then, never mind.