78747 homes so cheap - why?? (Austin, McKinney: appointed, real estate, renter)

[nickasarbata]

I have a few questions for you guys about some real estate that I'm seeing in the 78747 zip code. I'm specifically looking at a little neighborhood that begins south of E William Cannon, right where it meets with McKinney Falls Parkway. (I'm specifically looking at a few properties on Alum Rock Dr, Tara Dr and Ipswich Bay Dr, if that helps you guys narrow the neighborhood down).

It's a small little area, but I have to say, the housing prices seem very low for the quality of homes that seem to be available there for under $150,000. Can anyone tell me why this is?

I've read that 78744 and 78745 rank rather high on the latest published list of crime statistics, but 78747 seems extremely low when compared to the other two.

And it's not particularly central, but the houses in this neighborhood seem really new, spacious and beautiful for prices that I can't seem to find anywhere else in south Austin.

And ideas why houses are so cheap here? Any reasons why I shouldn't consider this neighborhood? My partner and I are moving to Austin soon and plan to rent for six to 12 months while we get familiar with the city. Obviously our jobs will play a role in where we decide to buy, but we'd really prefer to have a nicer house a bit further from the center of the action than to have a smaller and more run-down house in a more central neighborhood.

I like that from this neighborhood it's just a short drive to the South Park Meadows shopping center where we'll be able to find everything we need on a day-to-day basis, and a 15 or 20 minute drive downtown, without needing to drive on the highways.

We'd love to keep our budget at or below $150,000 so this neighborhood seems like a great deal. But I find myself wondering, "What's the catch?"

If you guys know of any similar neighborhoods I should look into, let me know! We'd prefer to be in south Austin, but I'm open to suggestions at this point.

Thanks guys!

[jobert]

Yes, they are a great deal for the convenience and quality. The catch is that this is the higher crime area of the 78747 zip, it's and shares more in common with 78744 and 78745 than it does 78747. The neighborhood you're referring to is about 2 miles away from any other development in it's zip code, and has very poor access to anywhere south of it - I live about 3 miles south of there, and I have had an extremely difficult time getting to this part of town (McKinney Falls) without getting lost at times as the roads don't connect well, and are very rural. If you want to pay a little more (150K-200K)and have a fraction of the crime rate, look at Bradshaw Crossing south of Slaughter/west of Lockhart Hwy. Prices may also be higher near Onion Creek because they will eventually need a new elementary school in this area, and when completed, it will serve an noticeably more affluent demographic. Good luck house hunting.

[sinking]

If this is where I think it is I drive through this neighborhood every day on my way home. I have not been in any of the houses or know anyone who lives there but my impression from passing through and also being active in the market for a house in that price range is that you would probably be disappointed. You can tell a lot about a neighborhood by the types and number of cars parked outside and at what time of the day so my guess is there are a lot of renters. I see you are in NY. I recently moved here from western MA. These homes, even though they are new, are of very low quality using materials that I thought went the way of the dinosaur before my birth. The soil east of I35 has a high clay content which expands and contracts with rain and drought causing foundation failures.

[jobert]

other reasons to look at Bradshaw or other developments in 747:

1. The proximity to the amenities at Onion Creek (golf, swimming, tennis, etc.) and easier access to SPM.

2. This area of town also has more hills and feels more secluded. When I need to decompress, the countryside is available in less than 2 minutes from my doorstep.

3. Future development - This area is part of Austin's Smart Growth plan and has been deemed a "Desired Development Zone" with the Estancia Hill Country and F1 track are planned to be built within this zone - both of which will attract high-end retail and tech companies. Bradshaw would be a better long term bet.

[oldtoiletsmkgdflrpots]

Originally Posted by sinking

You can tell a lot about a neighborhood by the types and number of cars parked outside and at what time of the day so my guess is there are a lot of renters.

Really??

I find it amusing on these boards how some people still stereotype from the "dinosaur" age. When you're homeless you're stereotyped, when you're renting you're stereotyped, when you are buying a home outside of a "desired" area, (deemed desirable by a few) then you're stereotyped. On and on it goes ad nauseum.

Moderator cut: mod action discussion is off topic

But don't listen to me OP, I'm soured on people. But maybe you're just getting a good deal. Have the homes you're interested in inspected and then decide for yourself.

In other words take whatever we say here with a grain of salt. There is some good info here if you sift.

[sinking]

Originally Posted by oldtoiletsmkgdflrpots

Really??

It is not the only way to tell anything and it won't tell you everything but yes, there is a lot you can tell by the vehicles in the neighborhood. Of course you can't go by one car.

For example...you see several cars (like buicks, crown vics, etc) in the neighborhood with 20"+ wheels and you can hear their subwoofers there is a good chance that if you don't want to hear subwoofers from inside your house then you are not going to like this neighborhood.

If you are driving down the street and most cars are in the garage with the door closed there is a good chance there is a stuffy HOA.

When a regular suburban street has cars in every drive way and most of the curb has cars parks against it it is highly likely that there is a high renter population.

FWIW, I rent a house. I have multiple cars. I have a subwoofer. I am not stereotyping with made up ideas, I am being realistic.

[jobert]

Originally Posted by sinking

If this is where I think it is I drive through this neighborhood every day on my way home. I have not been in any of the houses or know anyone who lives there but my impression from passing through and also being active in the market for a house in that price range is that you would probably be disappointed. You can tell a lot about a neighborhood by the types and number of cars parked outside and at what time of the day so my guess is there are a lot of renters.

This is most likely not the neighborhood you are thinking of. The neighborhood is situated off of Thaxton, and that street is the only way to get in or out of the development. The only way one could "drive through this neighborhood every day" on their way home is if they actually lived in the neighborhood.

Originally Posted by sinking

These homes, even though they are new, are of very low quality using materials that I thought went the way of the dinosaur before my birth.

A DR Horton house is a DR Horton house regardless of what side of the highway it's on. Most of the homebuilders in 78747 (Lennar, Standard Pacific, custom) are superior to what one find on the west side of 35 (Meritage, Centex, DR Horton)

[sinking]

Originally Posted by jobert

This is most likely not the neighborhood you are thinking of. The neighborhood is situated off of Thaxton, and that street is the only way to get in or out of the development. The only way one could "drive through this neighborhood every day" on their way home is if they actually lived in the neighborhood.

Okay, I think I know what you are talking about then. I travel from E William Cannon, south down running water, then west on Thaxton, so this neighborhood must be the one I see on the south side of Thaxton.

A DR Horton house is a DR Horton house regardless of what side of the highway it's on. Most of the homebuilders in 78747 (Lennar, Standard Pacific, custom) are superior to what one find on the west side of 35 (Meritage, Centex, DR Horton)

All of the newer homes I have looked at have been east of 35 and all have had foundation damage. Also all of them used very cheap and cheesy materials. I guess that is what to expect when looking at about the cheapest you can pay for a house. It's just very different from the houses I am used to that were built in the early 1900's and built to last.

[jobert]

Originally Posted by sinking

All of the newer homes I have looked at have been east of 35 and all have had foundation damage.

Wow, what are the odds of every - single - brand - new - home you've looked at having foundation damage. hmmmm. I don't have foundation damage, and neither does anybody in my neighborhood. Our streets and sidewalks aren't cracked, I don't see cracks in the masonry or foundations of my neighbors' houses nor mine either. All the doors in my house shut with no wear or scuffs to the door frames. Interesting.

[sinking]

Originally Posted by jobert

Wow, what are the odds of every - single - brand - new - home you've looked at having foundation damage. hmmmm. I don't have foundation damage, and neither does anybody in my neighborhood. Our streets and sidewalks aren't cracked, I don't see cracks in the masonry or foundations of my neighbors' houses nor mine either. All the doors in my house shut with no wear or scuffs to the door frames. Interesting.

I didn't say they were brand new. These homes were built after 2000 though. Someone who is looking at brand new homes may not have to worry about cracked foundations but they house won't be brand new forever. It is a good idea to plan for the future. It's no secret that the soil on the east side has a higher clay content, is softer, and shifts more while the west side has more rock and you need a jackhammer to plant shrubbery.

To the OP: If you do buy a house in the east side with more clay in the soil I have had my people recommend I bury a soaker house around the perimeter of the slab to keep a consistent level of moisture in the soil to limit expanding and contraction.