Build vs Buy? (Austin, Earth: for sale, real estate market, renting)

[TexanInNYC]

I'm trying to get a flavor for the Austin real estate market, but it is difficult to do so remotely from NYC; plus, we've only taken 1 real estate due diligence trip, back in December.

Here's the basic issue: We want to live in Central Austin, probably Pemberton, but we'd be open to Tarrytown. The budget is $1-2M, so we've got a lot to work with, relatively speaking. At this price point, we're finding a lot of Texas-style McMansions. Some are atrocious, others are OK but not a homerun.

Our architectural preference is for either simple but elegant designs like Craftsman, mid-century modern, or alternatively, a sleek modern style (including that great "Austin chalk" look). We definitely dont like the faux Tuscan villa, Plantation-style, neo-Classical, etc. that so many custom build homes in Austin seem to be.

Square footage, we'd be fine with as small as 2500 sq ft., and probably are not willing to buy something larger than 3500 sq. ft. We'd expect interior finishes of extremely high design, not your standard Kohler + stainless appliances + granite countertops that a lot of custom builders pass off as luxury. This is not to say that we'd demand uber-branded finishes; instead, clever uses of less-expensive but aesthetically pleasing materials is fine (e.g., concrete or bamboo flooring, etc.) Think Dwell magazine or something similar.

So given what we're looking for, do you think it makes more sense to look for a place to tear down (or alternatively, to gut rehab), or do you think turnkey properties fitting our taste exist?

[Exiled Texan]

Personally, I think a gut reno job is a better value if you can find good bones. Most builder spec houses are just not to my style either. When you are spending at these price points, you expect it to be to your style.

BTW- Do you need to sell in NYC? We are still trying to sell our lovely little prewar on the UWS with no luck.

[TexanInNYC]

Originally Posted by Exiled Texan

Personally, I think a gut reno job is a better value if you can find good bones. Most builder spec houses are just not to my style either. When you are spending at these price points, you expect it to be to your style.

BTW- Do you need to sell in NYC? We are still trying to sell our lovely little prewar on the UWS with no luck.

We've always believed in being liquid while in NYC, because we've always felt like short-termers here. That said, our 7 years in the city has flown by, and certainly if we had bought in 2002, we'd have done well. (I sadly remember looking at a nice 2BR in the E Village for 629k.) I don't forsee good things for the NYC economy--real estate price declines of 40-50% seem completely reasonable to me, although people here have drunk the kool aid and all think I'm just a bitter renter. (Actually, I just see some wicked mean reversion, plus bad macro factors.) But whatever--time will tell.

[carolinajack]

i was thinking about this too, buying a piece of property outside of Austin and building a Strawbale, environmentally sustainable stucco home. Dont know if thats easier than Greening an existing home, but it would ensure more land and the style i wish to have.

[centralaustinite]

You need an architect! Seriously.

Otherwise, you could try to find an architect who you like (maybe Sinclair Black, maybe Emily Little or others) and see if they are working with any builders. High end builder spec can be atrocious! The Tuscan-look in particular, gives me the willies, shudder.

You are more likely to find clever use of less costly materials outside of Pemberton or Tarrytown! The lot prices are so high that anyone building spec, does what they think most people would like.

There is a clever, high-design house out there. Called the "dragonfly house" or something similar. A realtor could find it. Was feature in the Statesman over the past 2-3 months.

You also need a very good realtor!

good luck

[TexasHorseLady]

I agree that you most likely need an architect, but it's worth trying to see if what you're looking for is out there and can be renovated. It might not be in Tarrytown or Pemberton, though. Might be in Travis Heights, might be somewhere else in town entirely. (I'm thinking maybe north of UT there are some homes that might fit the bill, but that's just off the top of my head.) You'd be surprised what's tucked away in various places in Austin - the trick is to get someone to sell it to you! Might be worth finding the house and having your agent contact the owner to see if it might be available at the right price.

If you can find the style you want with good bones, you can renovate the inside to update it. Assuming it hasn't been done already.

[Dr.Mom]

"Think Dwell magazine or something similar."

If you like the style of Dwell magazine, one option may be their prefab homes. They have built an excellent reputation and many people think they're superior to homes built on site because everything is manufactured under ideal conditions. This option would save you the architect's fees plus reduces build time. Here's a link to an article about them:
Dwell Magazine, Dwell Homes - Prefabcosm
Good luck with your decision.

[Exiled Texan]

Texan in NYC -

I'm jealous you stayed liquid. We bought on the UWS in early 2003, but still stuck with an illiquid asset. Renting in Austin as a result. Dreams of buying my forever home in Austin are quickly evaporating.

You in finance? I used to be with a big IB up there. PM me anytime. We have the same tastes in homes. I'd also suggest rollingwood. There are actually quite a lot of empty lots there. A handful for sale.

I drive through Tarrytown on the way home every night. I swear the For Sale signs are everywhere and 90% seem like investor flips/specs. Most of them are not to my taste, but could get ugly.

[carolinajack]

Natural Home magazine is great, and Mother Earth News!

[modster]

There are resources for MCM style homes in Austin:

Modern Austin or The Marye Company >> Austin Real Estate