Legends Run in Spring, Tx (Houston, Katy: short sale, foreclosure, renting)

[Belkin910]

I'm Planning on purchasing a starter home in the spring area around April of next year (getting the tax credit for sure). Im 22 years old, and Im really only looking to buy a house that I will be living in for about 3-5 years. My goal is to come in under 110k for the final cost of the home. Im going to be renting 2 of the 3 bedrooms in the house to my brother and a friend and Im hoping to have the house paid for completely when Im ready to move (with my current job shouldn't be a problem). This way I can put the money towards a more permanent home. I've been looking at Legends Run on Rayford, as well as Forest Village. They're both in my price range and appear to be decent looking communities. I would just like to know your thoughts on both of them and the houses in them. Do you think they will retain their value at least until Im ready to move? I know they are "cookie cutters", and the quality of the houses may be questionable. What should I expect to pay in MUD taxes, Property taxes, and HOA fees? Also, this might be a dumb question, but Im new to all this... Does the price KB homes advertises for houses include the lot? If not, how much do the lots cost in Legends Run? Same questions for Forest Village too. Also, if I have to have the house Built, when should I start construction if I want to move in around June? How much does it cost to have them start building one? Sorry again if my questions are stupid, Im just trying to get all this figured out way ahead of time. Hopefully someone that actually lives in one of these communities can answer these questions for me.

[cheryjohns]

The price does include the lot. Don't forget you have to be in contract no later than 4/30/10 - although you have until 6/30/10 to close. You can accomplish that by having them build one. You will put down earnest money and sign a contract to get them started.

That being said - you know how when you drive off the lot in a new car, your depreciation starts with a vengeance? Same thing happens with a house when they are brand new. You get a dip, then it slowly begins to come back up. Unless you are bedazzled by "new", you are better off getting a resale. The appreciation starts right away.
Legends has been building since 2003 - this means there are resales out there for less than new, not to mention the foereclosures, that are selling for less per square foot. Forest has been building since only since 2006 - however, there is a short sale there now.

Your taxes will run about $3200 (not counting your homestead exemption) annually, which you can escrow with your monthly payment. With homestead, taxes will run about $250 per month - that's all taxes.

Even if you go new, I would advise you to have an agent - and your own inspection done with a licensed inspector. Having the agent is free, having the inspection will run about $300 - and be well worth it.

[chris_ut]

Do not, under any circumstances, buy a KB home. They are the worst quality mass market builder in Houston. Also keep in mind that the advertised price is the base price of the home with no upgrades (assuming you are building new) and you will likely spend another 10-20% on top of that. It is very difficult, especially in that price range, to find a newly built home that you would be happy with and not have to put any upgrades into.

[cheryjohns]

Originally Posted by chris_ut

Do not, under any circumstances, buy a KB home. They are the worst quality mass market builder in Houston. Also keep in mind that the advertised price is the base price of the home with no upgrades (assuming you are building new) and you will likely spend another 10-20% on top of that. It is very difficult, especially in that price range, to find a newly built home that you would be happy with and not have to put any upgrades into.

You are right, but the problem is they are the ones building new homes in that price range (they are really the better ones in that price range). All the more reason to buy a resale.

[Belkin910]

Thanks for the information Cheryjohns. I would prefer not to have one built. Im just worried that there wont be one available in my price range when I'm ready to start looking and leading up to april. If I cant find one before the tax credit deadline and have to have one built, then Ill have to wait longer than I would like until I could move in. Ill look into getting an agent. I think it may be too soon right now. Im just gathering up the basic info for now.

Back to a previous question.... Will the KB home at least stay in good quality for the short time Im in it? I would really like to break even when I sell the place, and dont want to have to worry about the place falling apart while im in it. Could they really be that bad?

[RCH99]

Originally Posted by Belkin910

Could they really be that bad?

Google KB Homes. You'll find about a billion or so links. The ones that can answer your question above will most likely jump right out at you. Then, you can decide for yourself how to answer that.

[JustCinco]

I agree with cheryjohns, specially if you plan to stay only a few years, it's best to buy resale. If you buy new, you won't be able to get out what you put in, specially if the builder will still be building in the subdivision. Best thing to do is find a good deal on a resale, that way you'll have some equity from the start.

[cheryjohns]

Originally Posted by Belkin910

Thanks for the information Cheryjohns. I would prefer not to have one built. Im just worried that there wont be one available in my price range when I'm ready to start looking and leading up to april. If I cant find one before the tax credit deadline and have to have one built, then Ill have to wait longer than I would like until I could move in. Ill look into getting an agent. I think it may be too soon right now. Im just gathering up the basic info for now.

Back to a previous question.... Will the KB home at least stay in good quality for the short time Im in it? I would really like to break even when I sell the place, and dont want to have to worry about the place falling apart while im in it. Could they really be that bad?

Really consider a foreclosure - you can get a good deal. Hold back about $1800 for new carpet (about a 1600 square foot house - minus the kitchen and baths). Concentrate on the resales - you will be fine in that price range.
You seem like you are approaching buying a home in an investor mode - which is how you should look at it. Don't aim for a neighborhood to break even in a few years - aim for one that appreciates and grows value. There are neighborhoods that depreciated here, some stayed flat, and others are still gaining (some a little - some a lot). There are some neighborhoods that are sleepers right now - somewhat flat but potential.

Most KBs don't do so well.

I always ask buyers if they would prefer a used Honda Accord or a brand new Geo - pretty much clears it up.

[descovy]

I have friends who live in Forest Village. The builder is Lakewood homes... some questionable reviews on that builder. They must have had a pretty good construction crew over there because my friends' house is holding up pretty well almost 3 years later.

The houses are basic, but decent. Lots are crazy small though. At the same time my friends built this house, we built a Villiage Builders home in Katy that cost nearly 100k more. In terms finishes (drywall, carpet, etc...) both homes have held up equally well. Neither of us have had construction issues pop up either. They also have good neighbors... keep their yards up, help each other out, etc... They're happy with their home, and while I was skeptical at first, I have to agree they got good value for their money.

There are several resales on the street behind them (friend lives on Village Green rd) so you may want to check them out.

[Belkin910]

Thanks guys!

Ok so Im also looking at this Creekside Village now, what are opinions on the houses in this community? Some of them appear to be in my price range.