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As it turns out i am next in the line and have an option to write a contract for a Meritage home at Morningstar. Not really psyched about living there tbh and the tax rate of 2.97% is not so appealing either. But given there's no inventory, the new HEB under construction and given the build time takes 4-6 months anyway, realtor says take it and decide later. Thoughts ?
Obviously, its primary only and they have a clause for 2yr residency requirement in contract. Which is kinda weird, how do they even check my residency after i close anyway ?
I personally wouldn't do it man. Especially given you're in Cedar Park. Yes you'll get a bigger house but I have a big feeling you're going to miss some of your ammenities you leave behind and I have a feeling that its going to be a one way trip for you if you close on the house.
Your realtor is going to say whatever puts money in their pocket. Take any suggestion they make in terms of long term housing decisions with a grain of salt. You have to live there, pay for the place, the taxes, and any maintenance, as well as make any committed commute, not the realtor.
Liberty Hill area is definitely going to grow, and there will be more amenities local to it in the future, but you don't sound enthusiastic about it. For me, Leander was about as far away as I wanted to live, Liberty Hill was growing then too but didn't have enough amenities for me to consider it but I can understand how the current RE market is pushing potential buyers farther away, so I definitely see Liberty Hill becoming the next Leander in terms of amenities although that may take a moment.
Just giving food for thought on this...
...You do not 'HAVE' to purchase a house right now, especially if you're not getting everything you want in one. A house is a large investment, you need to be mostly if not completely satisfied with your purchase and local amenities before committing. You already having a house in CP only solidifies this further. I could see it if maybe you didn't already own a house and needed to secure a place because you were starting work in the area soon but this is entirely a sellers market and you're going to get raked enough as is, make sure you're getting everything you want in a home if you don't HAVE to move.
...I get with the current RE Market why there would be anxiety to buy right now, so I'm not intending to discredit that and I'm unsure what the future really holds. I feel this is going to be the new normal for some time, especially as more companies relocate here. As more inventory arises, home values will hopefully start to settle but there's no guarantee that this will happen in a rate that exceeding population growth, if it does not, then values will continue to remain high or increase. So if you wait there is going to be a gamble and unfortunately there's no way to truly predict how that will play out. It may work in your favor allowing you to move to an area with more amenities or it may backfire and leave you with less options.
...Researching your original post, it seems you're currently in Cedar Park. I don't know if you commute or if you WFH but if you commute have you truly considered the additional stress incurred from the Liberty Hill? Thats going to add a considerable chunk of time to just about anywhere in Austin metro.
I feel you're being driven by anxiety and you already have a stable place to live, I don't think its a good move for you.
The upside(s) is that the lot is backing up to a greenspace, away from street, sizeable yard and comes at a total price with upgrades of $360k which is not a bad price. And truth be told my dog LOVES that dogpark in amenities center. My current home in CP is in a condo regime and have no backyard, i didnt real feel the need for one until COVID hit. I am WFH since Feb 2020 and expect this to last until August at the least. And i do have flexibility to start late/leave early from work when i do end up going to work. My realtor says even if i dont want to live there, realtor is confident we can make profit by doing a resale within a week or two we close, given the crazy market and fluidity.
Now, the flip side - I'd certainly miss not being close to the places i like in CP/lakeline and SH 29/RR has no real retail/businesses nearby and there's no Uber Eats/DoorDash deliveries.
The real question: How does builder check/enforce such asinine requirement of 2yr primary residency? If at all they can, is it even legal ?And if instead of leasing(which i cant seem to) after closing, realtor says i can do a resale and builder cant object and we're within our rights. Thoughts ?
Quote:
Originally Posted by Need4Camaro
I personally wouldn't do it man. Especially given you're in Cedar Park. Yes you'll get a bigger house but I have a big feeling you're going to miss some of your amenities you leave behind and I have a feeling that its going to be a one way trip for you if you close on the house.
Your realtor is going to say whatever puts money in their pocket. Take any suggestion they make in terms of long term housing decisions with a grain of salt. You have to live there, pay for the place, the taxes, and any maintenance, as well as make any committed commute, not the realtor.
Liberty Hill area is definitely going to grow, and there will be more amenities local to it in the future, but you don't sound enthusiastic about it. For me, Leander was about as far away as I wanted to live, Liberty Hill was growing then too but didn't have enough amenities for me to consider it but I can understand how the current RE market is pushing potential buyers farther away, so I definitely see Liberty Hill becoming the next Leander in terms of amenities although that may take a moment.
Just giving food for thought on this...
...You do not 'HAVE' to purchase a house right now, especially if you're not getting everything you want in one. A house is a large investment, you need to be mostly if not completely satisfied with your purchase and local amenities before committing. You already having a house in CP only solidifies this further. I could see it if maybe you didn't already own a house and needed to secure a place because you were starting work in the area soon but this is entirely a sellers market and you're going to get raked enough as is, make sure you're getting everything you want in a home if you don't HAVE to move.
...I get with the current RE Market why there would be anxiety to buy right now, so I'm not intending to discredit that and I'm unsure what the future really holds. I feel this is going to be the new normal for some time, especially as more companies relocate here. As more inventory arises, home values will hopefully start to settle but there's no guarantee that this will happen in a rate that exceeding population growth, if it does not, then values will continue to remain high or increase. So if you wait there is going to be a gamble and unfortunately there's no way to truly predict how that will play out. It may work in your favor allowing you to move to an area with more amenities or it may backfire and leave you with less options.
...Researching your original post, it seems you're currently in Cedar Park. I don't know if you commute or if you WFH but if you commute have you truly considered the additional stress incurred from the Liberty Hill? Thats going to add a considerable chunk of time to just about anywhere in Austin metro.
I feel you're being driven by anxiety and you already have a stable place to live, I don't think its a good move for you.
I truthfully have no idea how they check that. My imagination stems to believe they put it in the clause to filter buyers out given high demand, buyers who truly intend to live in the home and not use it as rental / investment property, which is fair given the circumstances. But I also feel it’s stipulation without teeth, in fact after the builder gets paid I heavily doubt they will care what happens to that property thereafter.
If you feel the need for more space and larger yard but are willing to wait of Liberty Hill to catch up in terms of amenities then it may work better for you, but after everything reopens and traffic returns to normal, if you ever have to do a real commute it’s going to be a bear compared to Cedar Park. I personally am not in the same boat as that kind of space won’t do much for me so it’s more difficult for me to relate. For some reason I thought the price was much higher than $360k which was a large motivator in my previous response... I guess it could work. Houston, Dallas and Atlanta have suburbs further out than Liberty Hill and Georgetown that are much more developed and people are perfectly fine with the commutes so it comes down to your preference I guess.
Yeah, at $368k the home may not be a good for rental but only equity build. I hit every builder and no one has a home in this price range that they can execute contract for, the ones that are cheaper than this are condo-regime hardiplank shacks but again with waitlist or no lot availability. Admittedly, i didnt venture out towards Manor or Hutto.
Seriously thinking if i should take it. I feel this would be a no brainer if not for the 2.976% tax rate. But admittedly there are other new communities that go past 3.01%
Quote:
Originally Posted by Need4Camaro
I truthfully have no idea how they check that. My imagination stems to believe they put it in the clause to filter buyers out given high demand, buyers who truly intend to live in the home and not use it as rental / investment property, which is fair given the circumstances. But I also feel it’s stipulation without teeth, in fact after the builder gets paid I heavily doubt they will care what happens to that property thereafter.
If you feel the need for more space and larger yard but are willing to wait of Liberty Hill to catch up in terms of amenities then it may work better for you, but after everything reopens and traffic returns to normal, if you ever have to do a real commute it’s going to be a bear compared to Cedar Park. I personally am not in the same boat as that kind of space won’t do much for me so it’s more difficult for me to relate. For some reason I thought the price was much higher than $360k which was a large motivator in my previous response... I guess it could work. Houston, Dallas and Atlanta have suburbs further out than Liberty Hill and Georgetown that are much more developed and people are perfectly fine with the commutes so it comes down to your preference I guess.
Obviously, its primary only and they have a clause for 2yr residency requirement in contract. Which is kinda weird, how do they even check my residency after i close anyway ?
After a bit of googling, and not an understanding of the subject, I think it has to do with the capital gains tax that the builder can or cannot get if you live in the house for less then two years. They can probably verify via taxes. But, again, this is just a quick google and not a thorough understanding of why they would do that. (Other then just not being a fan of investors in this given market)
I wouldn't 'take it'. If you aren't pysched about living there then why bother. 2.9% is a lot for taxes and I wouldn't live there based on that alone.
People are drawn to those far flung places like Liberty Hill and much of Leander but then don't realize that the amenities haven't caught up yet. You'll have to drive into CP to get to the nearest real shopping center. I'd forgo the new build, wait, and try and find a home in CP if you need to stay on the west side. Or, you could consider the part of Round Rock that is directly adjacent to Austin or near SH-45. Taxes are way lower and it isn't an amenities desert.
for WalMart you gatta go to Cedar Park, For HEB we have one in Leander off Hero Way but its still not worth it from Liberty Hill IMHO.
Reason Leander works for me is because I wanted to be near Cap Metrorail and I don't always have to commute, I work remotely half the time, that and I wanted new. I personally like newer homes so in a sense I understand the allure to further out places, that and more square footage per dollar compared to places closer in. I particularly am not heavily involved in the 'scene' things of Austin nor do I have a desire to be so that really had no impact on my housing decisions. Proximity to work was fair enough at the time of purchase. Liberty Hill was going to be alittle 'too' far for me personally though.
For the OP though I think he's better off in Cedar Park.
There's a 4/2, single story, 2Ksqft two year-old home in Morning Star listed at $350K. I'm guessing the final price will be MUCH closer to $450K by this weekend. Third garage bay had me interested; but it's 21 miles to Apple...dang.
Liberty Hill is going to be Hot in an year...Its time now to be there otherwise you will see its going to be double in an year and also that city has lot of access to all Highways...29, I35, 183 ...
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