OK, what's the catch? Houston seems too good to be true. (Beaumont: home owners insurance, low crime)

[RNeub]

I recently returned from a week in Houston, related to my current job. Having never been to Texas before, I was not sure what to expect from Houston. Well, to say I was impressed would be an understatement. I found Houston to be very clean, friendly, and attractive. Totally not what I pictured/envisioned. (Not saying that I had a real negative image of the city, but I was not expecting to like it nearly as much as I did once I arrived there and explored it a bit).

I may have the option to relocate in the future, and now, Houston has become a possible destination.

I have done some digging around, and it seems too good to be true: Affordable housing, low property taxes, low crime, no State income tax, etc. Something seems to be missing...what is the catch?

Is car insurance excessively high? Are the housing prices an illusion? Are the prices that seem great because the housing is in bad neighborhoods? What about colleges and tuition-What is the deal with Texas and/or Houston and college-How affordable is in-state tuition for students? What am I missing, because it truly does seem too good to be true. I can't believe there is not something somewhere that I am overlooking or not seeing.

FWIW, I am coming from New Jersey, where housing and property taxes are through the roof, and car insurance is pretty pricey, too. For example, my stats are:

20 year old 4-bed room, center hall Colonial-style house, 2400 Sq. ft. Prop. taxes in Flemington, NJ about $10,000 per year. (I have septic, well water, and no sidewalk, and have to pay for garbage pickup)

Car insurance for me runs about $1600 a year on a small little Dodge Neon, no points, no accidents, no lclaims, pretty much a perfect driving record.


So, tell me, what am I missing that does not seem to add up in the Houston area? It really seems too good to be true.

Thanks in advance.

[lane_change]

Compared to NJ, Houston is very affordable. Coming from San Diego, there is a huge difference in price. Property tax can be somewhat high depending on what you are used to. Older construction in areas with no MUD taxes is not too bad, less than 3%...but some new development areas can run you up to 4%, so for a $300,000 house, you can expect to spend between $9-12k a year in taxes depending....but for that $300k, you will get a lot more house than you will get almost anywhere else in the US.

I have been very satisfied with our move to Houston and enjoy the weather, the city, the ocean (even though is't ugly, it's at least here). I do wish Houston did have some regulations on zoning, they seem to allow anything to be built anywhere, also the "bad" areas of Houston are all over instead of being in one area of town like in most cities that I have ever lived in. Houston has dozens of so called bad areas, and they border nice areas, and you simply just cross a street, turn a corner, etc...and you are now in a rough area of town. I miss having a dedicated area for the crime, poverty, and violence so that I know to simply steer clear of that area of town. Nothing here is too terrible, like certain parts of LA, but I have been in a fair share of neighberhoods that I wanted to leave as soon as I drove in.

Overall though, I would give Houston an 8 out of 10 for being just a great place to live.

[Oildog]

Houston doesnt have a lot of zoning rules so that can bring up issues. But property/school tax is around 3%. Otherwise you are correct, it is very affordable for a large city. Sure there are some less desirable areas but what city doesnt have them.

Its humid in the summer, but if you work inside its not a big deal, and a couple months a year we worry about hurricanes...but what area doesnt have weather related issues. Houston is good town to live and make a living in...but dont tell anyone.

[iamanewcomer]

There is no catch.

Better keep Hou as a secret...

If lots of people discover it ,prices may go up...

[EasilyAmused]

Originally Posted by RNeub

20 year old 4-bed room, center hall Colonial-style house, 2400 Sq. ft. Prop. taxes in Flemington, NJ about $10,000 per year. (I have septic, well water, and no sidewalk, and have to pay for garbage pickup)


Thanks in advance.

Ok here's the deal

If you buy in one of Houston's "Super Neighborhoods," close in, clean and desirable, you get:

A 40-50 year old ranch house with 3-4 bedrooms and two baths, ranging around 2,400 sf and costing 600-800k. Your taxes will run about 12-16,000. Solid public schools and private ones all around. The perks are you are IN Houston with little to no commute and close to city ammenities.

Now you can buy in a "transitional neighborhood" (aka little more dirty, some moderate crime, poor schools and highly diverse neighbors ranging from doctors to well.........not the world's best citizens) for much less and still be close in. In general those homes are usually much smaller and older and need some serious work. I really respect people that are moving into those areas though, they are taking back places that were once solid, middle class homes.

Here's the "To Good to Be true part" with the catch. If you buy out in the Burbs/ Master Planned communites you get:

A new tract home at 3500 sf for around 300k. The taxes are higher out there, 3.2- some places almost 4%, so you will still be paying 10-12,000. (Tstone says less on the low end) Also you will have to add on a MUD tax in most places (that's water and sewer) for and additional 1500-3000. .You will also be purchasing a 1 1/2 hour- 2 hour total drive time, daily commute, and will be isolated from city ammentities.


Most areas of Houston will cost you double in Home Owners Insurance than what you are paying now. We have these silly little things called H U R R I C A N E S and floods that send the insurance companies into a major fluster.

[Josci]

Is car insurance excessively high?
No, mine is very very cheap...we use Amica, but it depends on your driving record of course.

Are the housing prices an illusion? Are the prices that seem great because the housing is in bad neighborhoods?
It depends on where you want to live, suburbs or city, if you want to be zoned to good schools, etc...but compared to other places you can get alot for your money.

What about colleges and tuition-What is the deal with Texas and/or Houston and college-How affordable is in-state tuition for students?
Texas has several good choices for state schools, but I cannot tell you how much they cost. You can go to their websites and look up in state tution.

What am I missing, because it truly does seem too good to be true. I can't believe there is not something somewhere that I am overlooking or not seeing.
The weather here is great except for the summers which are hot hot hot! We also have hurricanes here which can be awful...like the recent hurricane IKE.

[iamanewcomer]

Come on guys,hot summers at 33 c ?

Only summers in Riad,Saudi Arabia,at 45 c are unbearable...

[Josci]

Originally Posted by iamanewcomer

Come on guys,hot summers at 33 c ?

Only summers in Riad,Saudi Arabia,at 45 c are unbearable...

In the summer months it can get to around 100 F...what makes it so unbearable is when you add the humidity so it is like a sauna outdoors.

[tstone]

Originally Posted by EasilyAmused

A new tract home at 3500 sf for around 300k. The taxes are higher out there so you will still be paying 10-12,000. Also you will have to add on a MUD tax in most places (that's water and sewer) for and additional 1500-3000. You will also be purchasing a 1 1/2 hour- 2 hour daily commute and will be isolated from city ammentities.

This is a bit exaggerated. Many of these new tract homes people purchased for 300k in the far exurbs like Katy, League City, Richmond, etc wound up with an appraisal value around 210-230k. And even if the appraisal came in at 300k, no one is paying 15k tax anywhere around here. That's 5%! Something around 4% (12k) might be the absolute maximum if one forgets to claim the homestead exemption.

And unless you're talking about driving to/from Galveston, Beaumont, Sealy, Cypress/Fairfield, The Woodlands/Conroe... or an accident in the morning and afternoon from a more reasonable place... the 3-4 hours/day in the car is a bit of a stretch, too. We know how much you hate the exurbs, and I wouldn't live in one of these either, but let's be for real now.

[EasilyAmused]

1 1/2- 2 hours TOTAL drive time Tstone. But I'll go back and clarify that.
Calculations are a bit off on taxes, I was just taking a swing. But when you add in MUD tax, yes often people are paying 4.5%. Not to mention some of the association fees are crazy in MPCS. As to value, I know Montgomery County hits you for full purchase value right off the bat.