What's the Catch with Housing Prices? (Houston: apartments, house insurance, how much)

[houstoner]

Great post, Yetti! My sentiments exactly, down to the letter!

[MyG5]

We're actually looking forward to moving to HOU! We currently live in PHX. I posted this original thread is because people kept making comments to me about the inexpensive housing prices in HOU, that there had to be some kind of "catch." Thanks to all of your for your replies and honesty!

MyG5

[Wysiwyg]

many of us who moved here see that the price of housing is definitely cheaper. too *cheap* in many places. The fairy tale is the story about lower cost of living

[TheBayouCity]

Originally Posted by MyG5

We're actually looking forward to moving to HOU! We currently live in PHX. I posted this original thread is because people kept making comments to me about the inexpensive housing prices in HOU, that there had to be some kind of "catch." Thanks to all of your for your replies and honesty!

MyG5

The taxes are high, but if you put it in perpective they are not that bad. Since texas has no state income tax, we are doing better with the 3-4% annual taxes, than if we had to pay income tax. That is unless you are elderly and living in a very nice home and area.

I really like the suburb areas of houston for its "scenery." You seem to get more trees and bigger roads than in the inner city. And also the big homes. Having a car is a must, but its natural to us.

I've helped several clients move from Cali to Houston. They sell their small 500k home and buy a 200-300k big home and use the rest as savings to start retirement. Houston is a great city!

Unfortunately, its hard to depend on your homes value going up more than a modest 2-5% a year. It really all depends where you live. Certain areas of the inner loop have been rising 10% the past year. So you must invest in other areas of the money market to make a good return on your money. That is if you care about the silly thing people call retirement.

[charris911]

Great post, Yetti!

[cdelena]

Originally Posted by TheBayouCity

The taxes are high, but if you put it in perpective they are not that bad. Since texas has no state income tax, we are doing better with the 3-4% annual taxes, than if we had to pay income tax. That is unless you are elderly and living in a very nice home and area.

It depends upon your lifestyle and perspective.

For a high income renter, Texas is a fine place to not pay taxes. No income tax and for the most part rental properties are able to use a method of tax calculation that dramatically lowers what they pay in property taxes.

For those that live in high end single family housing that has appreciated far faster than salary growth, the tax burden has shifted to them and all cannot afford it.

Real estate taxes can actually set up situations where people are taxed out of their homes.

[mpbro]

Low land prices keep prices down in outlying areas. I'd say that the huge, inexpensive labor pool is the single biggest factor keeping housing costs down, though. You see bottom-of-the-barrel new construction for $50/sqft. My parents live in Western Colorado--the same quality construction out there is $100/sqft.

In established areas with tight land supply, the oil bust of the 1980's kept values depressed for many years. You didn't see a turnaround until 1997 or so, and even then, values appreciated modestly while the coasts were in a "bubble". But boy, oh boy, have prices gone crazy lately. We just sold our home inside the 610 loop for a 48% gain over 2 years, 9 months. Annualized and compounded, that's probably a 12% rate.

[Yetti0]

Originally Posted by Txstar

Try looking for a house in the "inner loop" or galleria area (where I think the most character is) where it's hard to find a decent house under 350k. Btw, this covers a large area, not just some small area hidden away in the middle of the city.

Thank you! I am an inner looper.. Try looking in the HEights,Garden Oaks, Timber Grove , Spring Branch, Montrose, and Memorial Heights townhouses or condos. When you start going inside the loop you are lucky to find a lot for that price, much less a house and lot.... There are some older houses for that price but it takes some footwork.

The inner loop is sought after by most that is why they are going Hi Rises. Three is not enough land for all the demand.

[Yetti0]

Yup! Cheap labor.... Texas is anti union. HURRAY!!!!!!

Yes Inside the Loop Land is extremely Valuable. Hi Rises are the next generation and Mid rises. Like manhattan. There is so much to do inside the Loop in a reasonable time .

Not only is city land going up... Texas Rural Realestate is also rising...My ranch property has more than tripled in the last 7 yrs . According to Tx A & M rural reports smaller subdivided tracts are selling esp to out of state investors. Many want Ranchettes or a place in the country if they live in High rises or out of state. Some are looking at Galveston , Rockport/Corpus and Padre Island as their next retirement/vacation investment. Galveston has a great medical center... great for retireees...
Land is not going to get cheaper here. Those who move in now, will be the luckiest and wisest buyers.

California is headed for trouble, hence they are advertizing out of the Gazooooo!

Originally Posted by mpbro

Low land prices keep prices down in outlying areas. I'd say that the huge, inexpensive labor pool is the single biggest factor keeping housing costs down, though. You see bottom-of-the-barrel new construction for $50/sqft. My parents live in Western Colorado--the same quality construction out there is $100/sqft.

In established areas with tight land supply, the oil bust of the 1980's kept values depressed for many years. You didn't see a turnaround until 1997 or so, and even then, values appreciated modestly while the coasts were in a "bubble". But boy, oh boy, have prices gone crazy lately. We just sold our home inside the 610 loop for a 48% gain over 2 years, 9 months. Annualized and compounded, that's probably a 12% rate.

[Yetti0]

One last thing.. In the 1990s before he died.. Johnny Carson and the Baroness from Litchenstein (in the 1980s) and many other European investors in the 1980s scoop up major parcels of land at dirt cheap prices...