Anyone considering Light Farms in Celina or Windsong Ranch in Prosper? (Taylor: HOA, loan)

[TheTXGuyHere]

Originally Posted by Loraheart

TXGuy and rutgerjen - are you both in Windsong?

Yes Loraheart,

I am in Windsong Ranch. Did not move there yet, will be there next month.

[potentiallynew]

I live in Light Farms and love it. I know there is a MUD tax, but Windsong prices are higher. I just pulled 2 similar model Darling homes (used 61 foot lots in Windsong to be fair).

Light Farms
$402K (base price) * 3.04% = $12,220 per year

Windsong
$432K (base price) * 2.46% = $10,627

The difference is approximately $1,600. It would take 18.75 years to make up the the $30K price difference. Another note is taxes can only increase a max of 10% per year. Therefore, the higher price can increase at a faster rate.

[Loraheart]

I like Light Farms, too; but the point about higher taxes was to show the difference isn't as much as it first appears. Also, I'm not sure the cap pertains to MUD taxes (as it is different from city taxes).

Either way, though, it's about finding the home and neighborhood you love!

[CorporateCowboy]

I'm considering a move to Dallas as well, and my parents have already started looking in Prosper and Frisco. I'd be wondering WHY the price is so much lower, when the developments aren't that far apart and even share a school district. Generally, a MUD tax will keep prices lower which may, in the short-term, look great especially before you buy. However, in the long-term, who wants equity in their home to be suppressed, when surrounding areas are increasing at a faster rate? The bottom line is, very few would pay the higher price because of the higher tax rate, so home appreciation is less throughout the years, and the MUD development is often seen as "less desirable".

[Johnhw2]

Mud tax rates tend to go down as a development matures. There is a cap tax rate of around 1.75% for MUDs. A mud is basically providing the services a city would if the development was Ina city. City taxes tend to run in the 60 to 70% range for tax rate.

The developer puts in water and sewer for a new mud development, he can recover those construction costs as homes are bought and assessed value in the mud rises to a level where the mud can sell bonds paid by the taxes and proceeds from the bond sell is used o reimburse the developer just like a city works. Many MUDs are annexed by a city when the mud tax tax rate is down from the initial 1 plus % rate to 3/4 a %. So the Niger tax rate will decline over time as more homes are built, the declining tax rate allows the home price to rise to market rather than be depressed in value by the higher annual carrying cost with the higher tax rate.

So if your horizon to sell is a decade or so it mihpght work out good for you, if not you may sell before tithe prices rise as the tax rate drops. As always location matters most, isn't light farms further out somewhat from proper?

Good luck with your wedision and welcome to Texas.

[Telegan]

Originally Posted by Johnhw2

So if your horizon to sell is a decade or so it mihpght work out good for you, if not you may sell before tithe prices rise as the tax rate drops. As always location matters most, isn't light farms further out somewhat from proper?

Good luck with your wedision and welcome to Texas.

Light Farms is further north, but it's closer east if you work close to the "old Telecom Corridor". The drive to my old workplace around 75 & PGBT was only about a 1 mile difference between the two. However, there's also the fact that Dallas Parkway is a 2 lane road north of 380. When more houses are built way up there and assuming the Tollway still hasn't come through, the wait to get down to 380 could be murderous. I felt this when I first moved to Frisco and lived over by 423 & Eldorado. Of course, I think the traffic on 380 is also about to get heavy, not to mention the construction to expand it possibly adding to headaches. Light Farms also has lower-priced ($240k) homes around their more expensive ones, I think. I don't know what that does to values -- I'll leave that to others to tell me. Also, if you're willing to stay in your house in Light Farms for another 100 years, you may actually get to see the Outer Loop go right north of it... by that time, you may be in the holy grail of locations being sandwiched among the Outer Loop, Preston Rd., and the DNT.

They're both pretty cool communities, though.

[TheTXGuyHere]

For a similar sized house, though there is price difference, because of MUD taxes, we will end up paying the same in both communities. Until phase 2 of DNT expansion north of 380 is completed, Windsong would be better commute wise. But once DNT expansion is complete, Lightfarms commute would be better. I liked the vibe of windsong better, but your mileage may vary.

[CorporateCowboy]

Originally Posted by TheTXGuyHere

For a similar sized house, though there is price difference, because of MUD taxes, we will end up paying the same in both communities. Until phase 2 of DNT expansion north of 380 is completed, Windsong would be better commute wise. But once DNT expansion is complete, Lightfarms commute would be better. I liked the vibe of windsong better, but your mileage may vary.

For the small amount of difference in commute time, I'd opt for the better vibe of the two. I think Windsong has the much better vibe; my parents are considering purchasing a home there.

[JSwei]

We have moved into Light Farms and find it friendly and well appointed. When the Tollway completes its northern expansion, travel to Frisco, Plano and even DFW will be even better,

[CorporateCowboy]

Originally Posted by potentiallynew

I live in Light Farms and love it. I know there is a MUD tax, but Windsong prices are higher. I just pulled 2 similar model Darling homes (used 61 foot lots in Windsong to be fair).

Light Farms
$402K (base price) * 3.04% = $12,220 per year

Windsong
$432K (base price) * 2.46% = $10,627

The difference is approximately $1,600. It would take 18.75 years to make up the the $30K price difference. Another note is taxes can only increase a max of 10% per year. Therefore, the higher price can increase at a faster rate.

True, HOWEVER, the point should be made - in one case (Windsong), your money is going directly into your investment i.e. your house (and you will eventually get it back - even if both houses never appreciate and remain the same price). In the other, it's going to taxes - which is not part of your investment - and you never get it back.

So while, in theory, it looks as though Light Farms comes out ahead - it doesn't. You don't get tax money back. And even if both houses appreciate the same percentage (or not at all), the 30k would come back to you when you sell your home whereas the few additional thousand a year in taxes you paid (for however many years you lived there) is gone for good.