$8,000?!!! (Houston, Katy, Richmond: insurance, houses, established neighborhood)

[Grand in Grand Bay]

I am moving to the area at the end of the year. I have never been to Houston so I'm trying to do as much research online as possible. (thank you all who have already answered my numerous questions! ) Katy is an area that has come up many times as a great place to live with an acceptable commute to downtown Houston. However, I've looked at several houses on HAR.com and they all have taxes of about $8,000 a year! That adds about $500 to my monthly mortgage, just for taxes!! Is there an area with a lower tax rate that would still have good schools (specifically elementary) and offer a reasonable commute to downtown? I'm just so overwhelmed by the many cities there to choose from. I do plan on speaking with a realtor within the next month but as I mentioned, I'd like to have some ideas as what to expect and where I might want to look. Thanks!

[pdouglas]

Look at Lamar Consolidated School District in Fort Bend County. I live in Richmond and my taxes is 1.8%.

[astrohip]

One thing to remember is Texas generally has higher property taxes than other states (you don't say where you are relocating from). That's one of our primary revenue sources. It's offset by no income taxes.

I realize this doesn't answer your question. As you work thru your budget, you may find the $$$ you save on income taxes more than offsets the higher prop taxes.

Good luck!

[HoustonRonnie]

Welcome to sprawling Houston with many new communities still trying to recoup initial insfrastructure costs through initial high tax millage. It'll go down over time as these areas fill in. I feel your pain, my taxes are around 3.4% and well over $8000 per year.

In any event, my house and lot would cost over $1.5MM in other cities.

Ronnie

[Liljo22]

Originally Posted by HoustonRonnie

Welcome to sprawling Houston with many new communities still trying to recoup initial insfrastructure costs through initial high tax millage. It'll go down over time as these areas fill in. I feel your pain, my taxes are around 3.4% and well over $8000 per year.

In any event, my house and lot would cost over $1.5MM in other cities.

Ronnie

Ronnie hit the nail on the head. Municipality taxes are a big portion of your taxes. That number slowly is lowered then eliminated.

If you are in a levee district, that will also be another tax on top of the School, City, and MUD taxes.

I have friends that live in older areas of town that pay less than half I pay for a house of the same value.

[jimmyev]

Originally Posted by Grand in Grand Bay

I am moving to the area at the end of the year. I have never been to Houston so I'm trying to do as much research online as possible. (thank you all who have already answered my numerous questions! ) Katy is an area that has come up many times as a great place to live with an acceptable commute to downtown Houston. However, I've looked at several houses on HAR.com and they all have taxes of about $8,000 a year! That adds about $500 to my monthly mortgage, just for taxes!! Is there an area with a lower tax rate that would still have good schools (specifically elementary) and offer a reasonable commute to downtown? I'm just so overwhelmed by the many cities there to choose from. I do plan on speaking with a realtor within the next month but as I mentioned, I'd like to have some ideas as what to expect and where I might want to look. Thanks!

Wait until you see your homeowner's insurance.

[HoustonRonnie]

Originally Posted by jimmyev

Wait until you see your homeowner's insurance.

Oh, now don't start that again. I built in June 2010 in Ft. Bend County and my insurance (all in, including windstorm, named storm and disaster) is only $1100 per year. Ya'll had me scared youknowwhat-less with all this "wait'll you see your insurance costs".

[cyfairre]

Anytime you move into a newer subdivision, you will pay more taxes to pay for the buildout of the infrastructure for the community. The good news is that it will go down over time.

We moved out to Coles Crossing in the NW part of town in 1999 and our tax rate was about 3.5%. Now it is about 2.7%.

There are exceptions, but your best bets for low taxes are older, more established neighborhoods or acreage type neighborhoods where you have your own septic versus using a city sewage system.

[EasilyAmused]

The cost of your house and the taxes you spend on it is a CHOICE............

Your income isn't a choice. Look at it that way and it's not so bad, with property tax being a much better option than a state income tax. You don't have to live in the most blinged up house on the block. But if you make a good income, you are NAILED without a choice in the matter. I think that's what keeps most Texas millionaires more conservative on the scope of materialism.

[GettaClue]

Originally Posted by Grand in Grand Bay

However, I've looked at several houses on HAR.com and they all have taxes of about $8,000 a year! That adds about $500 to my monthly mortgage, just for taxes!! !

Not to pick nits, but $8000/yr. is more like $667 a month. Kudos to you though for stopping to think about the impacton your house payments. A lot of people don't, until it's too late and they' in over their heads.

As another poster already mentioned, expect your homeowner insurance rates to be higher here than most other places too. I have family in several other states who have homes with values comparable to mine and they all pay at least 40% less than what we pay here. That too will impact your house payments.