Best suburb for single professionals? (not a joke) (Dallas, Plano: houses, construction)

[lpepping]

Originally Posted by reginasmu

Thanks, lpepping, I was not aware of that. How can I find out what the homestead exemptions are? What is a "homestead exemption" and why are they given? I guess that would save alot of money. People always talk about how much property taxes are in TX I guess I never thought about any exemptions.

Below are some links that show the various exemptions that each taxing entity allows for Dallas and Collin county. Each county should have their own website with this information if you are looking in other areas.

http://dcad.org/forms/2011rate.pdf

2011 Tax Rates and Exemptions (http://www.collincad.org/taxrates_and_exemptions/2011taxrate.php - broken link)

[Squirl]

You need to decide if you want to live where you work or live where you play. If the answer is live where you work, better be darn sure your job is secure. I would probably get a place in North Dallas and have a better commute but not be stuck with living in Plano as a single. Can't comment on the new v. restored. Its always hard work to find exactly what suits you, in the meantime you might consider renting in the location where you plan to buy. Get a shorter lease and just be there to experience life at that location.....

[synchronicity]

Originally Posted by reginasmu

Thanks, lpepping, I was not aware of that. How can I find out what the homestead exemptions are? What is a "homestead exemption" and why are they given? I guess that would save alot of money. People always talk about how much property taxes are in TX I guess I never thought about any exemptions.

If you google "Dallas area property tax rates" or something like that, you should get a few websites that give a summary of all the various counties/cities/ISD rates as well as any exemptions.

If you don't already know, there are generally three entities that levy a property tax: the city/town/municipality (for example, the town of Colleyville. I know you're not looking anywhere near there, I'm just using it as an example since I have the numbers for it at hand), the county (Tarrant County, say) and the School District (say, the Grapevine-Colleyville Independent School District, or "ISD"). As you likely know already, the School districts are independent (hence the name) of the towns/counties. In the Colleyville example most of the houses in the town of Colleyville fall within that school district, but some fall within the Keller School District and others fall within the HEB school district.

Many cities and counties have no homestead exemption, although some do. I believe all ISD's are required to have a homestead exemption of at least $15,000, although some may allow for more. So, for example, for a house in Colleyville appraised at 500K that is within the GCISD:

The city tax rate is 0.3559% with no exemption, so the tax would be $400,000 * .003559, or $1,423.60
The county tax rate is 0.629537% with no exemption, so the tax would be $400,000 * .00629537, or $2,518.15
The GCISD tax rate is 1.29% and there is a $15,000 exemption, so the tax would be ($400,000-$15,000) * .0129, or $4,966.50

For a total tax liability of $8.908.25.

In general, the ISD tax rate is the highest of the three. Some cities do offer substantial homestead exemptions, but the overall impact often is only to shave a few basis points off your total rate. For example, Grapevine has a large 20% homestead exemption, but the Grapevine city tax rate is only 0.35%. One fifth of that is a whopping 7 basis points.

Other posters can chime in about appraised values for tax purposes compared to recent purchases of homes. I've been told that Southlake tax-appraiser values tend to run a little high, but don't know how accurate that is and have no idea about any other areas.

You can also hit the county websites and look for the property tax areas, as they often will note city and ISD rates as well. I looked up the rates for my areas of interest and dumped them into an excel spreadsheet for my "housing budget" calcs.

[reginasmu]

Originally Posted by Squirl

You need to decide if you want to live where you work or live where you play. If the answer is live where you work, better be darn sure your job is secure. I would probably get a place in North Dallas and have a better commute but not be stuck with living in Plano as a single. Can't comment on the new v. restored. Its always hard work to find exactly what suits you, in the meantime you might consider renting in the location where you plan to buy. Get a shorter lease and just be there to experience life at that location.....

Hi, Squirl, I understand your point, and have thought about it many times. I've come to the conclusion that living nearer to my job makes more financial sense for me. I hear you about the job security. I mean, I believe my job is pretty secure, but, nowadays you never know, which is why I'm exploring areas like Sachse and Wylie, Richardson and some parts of Dallas. I do not like traffic AT ALL, so I have to think about my commute. I don't mind a slightly further drive if I do not have to deal with traffic.

[reginasmu]

Originally Posted by synchronicity

If you google "Dallas area property tax rates" or something like that, you should get a few websites that give a summary of all the various counties/cities/ISD rates as well as any exemptions.

If you don't already know, there are generally three entities that levy a property tax: the city/town/municipality (for example, the town of Colleyville. I know you're not looking anywhere near there, I'm just using it as an example since I have the numbers for it at hand), the county (Tarrant County, say) and the School District (say, the Grapevine-Colleyville Independent School District, or "ISD"). As you likely know already, the School districts are independent (hence the name) of the towns/counties. In the Colleyville example most of the houses in the town of Colleyville fall within that school district, but some fall within the Keller School District and others fall within the HEB school district.

Many cities and counties have no homestead exemption, although some do. I believe all ISD's are required to have a homestead exemption of at least $15,000, although some may allow for more. So, for example, for a house in Colleyville appraised at 500K that is within the GCISD:

The city tax rate is 0.3559% with no exemption, so the tax would be $400,000 * .003559, or $1,423.60
The county tax rate is 0.629537% with no exemption, so the tax would be $400,000 * .00629537, or $2,518.15
The GCISD tax rate is 1.29% and there is a $15,000 exemption, so the tax would be ($400,000-$15,000) * .0129, or $4,966.50

For a total tax liability of $8.908.25.

In general, the ISD tax rate is the highest of the three. Some cities do offer substantial homestead exemptions, but the overall impact often is only to shave a few basis points off your total rate. For example, Grapevine has a large 20% homestead exemption, but the Grapevine city tax rate is only 0.35%. One fifth of that is a whopping 7 basis points.

Other posters can chime in about appraised values for tax purposes compared to recent purchases of homes. I've been told that Southlake tax-appraiser values tend to run a little high, but don't know how accurate that is and have no idea about any other areas.

You can also hit the county websites and look for the property tax areas, as they often will note city and ISD rates as well. I looked up the rates for my areas of interest and dumped them into an excel spreadsheet for my "housing budget" calcs.

Thanks for the explanation. When I opened up the links the lpepping posted, I just got completely confused and was about to ask for an explanation when I saw your post. So, now I see, each tax is calculated separately and then added together and I guess divided by 12, if you are paying your taxes monthly, correct? Great idea on the excel spreadsheet, I think I will do that as well!

[elan]

Money wise, I think a well established neighborhood is a safer investment. I've seen some meticulously kept one owner homes in Richardson in the $180's. Just make sure your realtor knows you want energy efficient windows and appliances, proper insulation and chalking, new air conditioning and heating system, well maintained plumbing and wiring, a new roof - you know all the good stuff, lol. Tell them you will accept nothing less. A good home owner will have kept their home up to date, seriously they want the same things as you. I think a good realtor is key, no matter where you go. Good luck.

[pappy97]

Sqiurl brings up a good point to the OP: If you are really thinking about Wylie/Sachse (or really anywhere, including Plano/Frisco), knowing that it's going to be a commute to both work (Preston and Legacy) and Church, including multiple weekday visits (67 and Wheatland in Duncanville), why not rent in Wylie/Sachse (or whereever) for 6 months? See if you can totally handle both commutes and like the area and all that. Then after 6 months, buy if you still want to live in the area. It is a sensible suggestion, especially if you have any inkling that both of those commutes combined will be a disaster for you.

Not trying to talk you out of anything, but if you buy and then are unhappy, it's tougher to get out (Especially Wylie/Sachse).

[reginasmu]

Okay, I think I had a dose of reality. Since I got off early today, I decided to do a little driving around to some different neighborhoods to get a feel for the areas. Today, I drove around McKinney, then Sachse and Wylie. After this drive, I am really starting to believe that Sachse/Wylie are NOT for me after all. There were some nice communities in those areas, no doubt, but the area itself seemed WAY too underdeveloped and "country" for me, not to mention the long time it took to get to 190. I don't mind suburban living, but for some reason, I really was just not feeling it. I couldn't see myself making that drive every day, especially nights coming from church when I'm tired.

For some reason, I didn't remember Woodbridge being so far down when I drove down there about a year and a half ago....lol Out of those three cities I browsed today, McKinney as a small city seems to be more of the type of area I'm looking for, it's just so far north. The only actual neighborhood I drove through today was Heights at Westridge. At first drive-thru, not really a fan, but I may give it another look. I still have to drive around Plano, Frisco, Dallas, Richardson, to explore neighborhoods, etc. but I am REALLY re-thinking the Sachse/Wylie thing now. Maybe there is a part of Wylie that I overlooked today, if so let me know. I also need to check out Garland, which I know has been suggested to me on the forum as well.


For a reference, if anyone has been to Grand Peninsula or Mira Lagos in Grand Prairie, those kind of neighborhoods are the kinds I really like. I'm open to others, but for new communities, those are probably on the top of my list for what I've seen. The problem? They are in Grand Prairie!
I have a friend who recently bought a closeout Highland home in The Cascades in McKinney. I like that neighborhood as well.

[SamiJ]

The answer is

ADDISON


Close to everything, tons of nightlife, homes and condos still reasonably priced, free athletic club to residents, and on and on, and on!

[seat21d]

Originally Posted by reginasmu

Thanks for the explanation. When I opened up the links the lpepping posted, I just got completely confused and was about to ask for an explanation when I saw your post. So, now I see, each tax is calculated separately and then added together and I guess divided by 12, if you are paying your taxes monthly, correct? Great idea on the excel spreadsheet, I think I will do that as well!

You only pay taxes monthly if you escrow with your mortgage. Otherwise, you pay the taxes annually yourself.