So, what's the catch? (Houston, Dallas: real estate, homeowners insurance, crime)

[floridasunshine111]

I am from Spring Hill, FL, home of the 14.9% unemployment rate. Our community has been badly hit by the current economic climate. My husband is an eye doctor and we have been watching his income decline with each passing month while our homeowners insurance and taxes keep going up every year. It has been very hard watching our community suffer and many of our friends move away. We are now considering a move to Houston, Texas.

I have spent a great deal of time on the internet researching job opportunities for myself (a teacher) and my husband. My jaw literally dropped open when I saw what I could make annually (nearly twice as much as my current salary here in Florida). And there are a couple of good opportunities for my husband as well.

Then I started researching home prices and could not believe what I was seeing. Is it really possible to purchase a beautiful 2,000 square foot home for under $200 in a nice area? What's the catch? Are the property taxes crazy-high? How about homeowner's insurance? (Currently our taxes are about 3 grand for a 1700 square foot home which we paid nearly $200K for. Our homeowner's insurance is about $2,500 a year. Is Houston similar?)

Also, what are some nice areas to live for young families? (I've looked into Sugar Land, which seems nice.) My husband and I are in our thirties and we have two children under the age of 13. We're Christians, so finding a good church is a priority as well. Are the public schools decent?

Thanks in advance for your help!

[cheryjohns]

Originally Posted by floridasunshine111

Then I started researching home prices and could not believe what I was seeing. Is it really possible to purchase a beautiful 2,000 square foot home for under $200 in a nice area? What's the catch? Are the property taxes crazy-high? How about homeowner's insurance? (Currently our taxes are about 3 grand for a 1700 square foot home which we paid nearly $200K for. Our homeowner's insurance is about $2,500 a year. Is Houston similar?)

Also, what are some nice areas to live for young families? (I've looked into Sugar Land, which seems nice.) My husband and I are in our thirties and we have two children under the age of 13. We're Christians, so finding a good church is a priority as well. Are the public schools decent?

Thanks in advance for your help!

Yes, you can find a nice house for that - Sugar Land and Cinco Ranch are both nice areas with good schools. Maybe more like $225K for 2000+ square feet (there are several less, maybe not in sterling shape). 1700 square feet - yes, under $200K. Taxes will run about $6000 with homestead exemption in place. Insurance will run you about the same. Out property taxes are higher - but we don't have state income tax. Both areas have a large number of churches.

[rb4browns]

Originally Posted by floridasunshine111

I am from Spring Hill, FL, home of the 14.9% unemployment rate. Our community has been badly hit by the current economic climate. My husband is an eye doctor and we have been watching his income decline with each passing month while our homeowners insurance and taxes keep going up every year. It has been very hard watching our community suffer and many of our friends move away. We are now considering a move to Houston, Texas.

I have spent a great deal of time on the internet researching job opportunities for myself (a teacher) and my husband. My jaw literally dropped open when I saw what I could make annually (nearly twice as much as my current salary here in Florida). And there are a couple of good opportunities for my husband as well.

Then I started researching home prices and could not believe what I was seeing. Is it really possible to purchase a beautiful 2,000 square foot home for under $200 in a nice area? What's the catch? Are the property taxes crazy-high? How about homeowner's insurance? (Currently our taxes are about 3 grand for a 1700 square foot home which we paid nearly $200K for. Our homeowner's insurance is about $2,500 a year. Is Houston similar?)

Also, what are some nice areas to live for young families? (I've looked into Sugar Land, which seems nice.) My husband and I are in our thirties and we have two children under the age of 13. We're Christians, so finding a good church is a priority as well. Are the public schools decent?

Thanks in advance for your help!

No catch, for many families (such as mine) Houston is a wonderful place to live. Since you are from Florida the heat should not be that big of an issue (it's IMHO probably the #1 complaint about Houston). And since you are a religious family (we're an orthodox Jewish family and appreciate the religious-friendly culture here) you will probably be very happy in one of the suburban areas. Tax rates are high, but given the low cost of the homes I don't see that as an issue.

[migee]

The catch is the quality of construction, and the amount of property.

The newer houses look nice, but the quality of the construction leaves much to be desired. If only you can see behiind the walls.

I've visited a few new homes being constructed. I worked in construction and carpentry. In the price range you are talking, I would look at some of the new developments, work out a deal with the builder to bring in your own engineer/inspector and get them to add on a little to the frame work, the roofs, insulations, etc...Pay the extra money.

The construction does conform to the laws...But, I suggest that you add your own improvements to the structure itself.

Whatever you buy, get the best inspector/engineer that you can afford. Sometimes a good, honest real estate attorney can be very helpful - It's worth the extra money. They would know a good engineer- and if there is a problem, they will get you out of the deal.

[floridasunshine111]

Thank you to everyone who posted. Your advice was helpful! Houston seems like an affordable and nice place to raise a family. (And you're right ... the heat won't be a problem ... we deal with it all the time here in Florida.) If we do decide to make the move, I am sure I will be back with plenty of other questions.

[alwaysflyin]

Originally Posted by floridasunshine111

Thank you to everyone who posted. Your advice was helpful! Houston seems like an affordable and nice place to raise a family. (And you're right ... the heat won't be a problem ... we deal with it all the time here in Florida.) If we do decide to make the move, I am sure I will be back with plenty of other questions.

Based on what you've said, I think you will love Houston, especially the nicer suburbs such as Cinco Ranch or Sugarland. You will have no problem finding a strong church family and will meet many people that way. I lived in Florida for four years while in graduate school and I find Houston people far friendlier and welcoming. The only aspect that won't be better will be your property taxes, but the cost won't be that much more (probably about $3K). Great public schools and high quality of life, and your both have professions that should allow you to find jobs fairly easily.

[cheryjohns]

Originally Posted by migee

The catch is the quality of construction, and the amount of property.

The newer houses look nice, but the quality of the construction leaves much to be desired. If only you can see behiind the walls.

I've visited a few new homes being constructed. I worked in construction and carpentry. In the price range you are talking, I would look at some of the new developments, work out a deal with the builder to bring in your own engineer/inspector and get them to add on a little to the frame work, the roofs, insulations, etc...Pay the extra money.

The construction does conform to the laws...But, I suggest that you add your own improvements to the structure itself.

Whatever you buy, get the best inspector/engineer that you can afford. Sometimes a good, honest real estate attorney can be very helpful - It's worth the extra money. They would know a good engineer- and if there is a problem, they will get you out of the deal.

The best construction in Houston was the 70's. The catch is the older type of floorplans and lower ceilings. The 80's were not so hot, floor plans starting to change but not quite there yet. The 90's construction is almost as good as the 70's and the floorplans are the newer, more open plans with high ceilings. This continued until about 2001 -2002. From that point on, construction quality took a dip for two reasons: they were throwing them up and the better quality materials were going overseas via Halliburton, etc.
The problem with sinking money into a new community to buy construction upgrades is that once a certain subdivision has the impression of poorer quality, yours will, also, even though it may not be.

That said, there are several great inspectors in the houston Metro area that will do a great job. $350-$400 for an inspection is a cheap preventative.

[modster]

I am going to disagree with you about 70's construction. My parents moved down here in 1976 & they bought a new construction completed in late '75 in Memorial Northwest. All the houses in the various neighborhoods we looked at during that time, (Greenwood Forest, Wimbledon, Fountainhead, Ponderosa Forest, etc.,) were obviously not the quality construction we were used to in our previous circa 1961 home. When you went to hang drapery rods (anyone remember those old Kirsh rods, ugh) and measured down from ceiling to the top of the windows, the rods ended up looking drunk. Nothing was ever square in those homes from day one.

The late 70's especially were such a boom time of incredible growth in Houston that builders were just slapping things up just to get them finished. There were a lot of stories of people buying homes that were not complete and then once they were done the builders were doing everything they could to **** off the buyers because within a few months they could sell the house in a flash for more than what had been contracted for originally.

[modster]

If there is a catch with the low prices, it is the brutal commute for those working in-town. If you live in Katy and work in the energy corridor, or live in the Woodlands and work out there or at Northbelt, then no, that sacrifice doesn't apply. The low-priced homes are often an hour each way during peak commute times to the major employment centers in town. Some suburbs, like Pearland, are closer. Cypress, Woodlands, Katy, etc. are all a huge trek and anyone who tells you otherwise is fibbing big time.

That said, it is a sacrifice many are willing to make to have the great public schools, newer homes, clean well maintained neighborhoods and at least the perception of safety.

The closer in alternatives are a whole lot higher in price, especially for newer construction and add newer construction and good schools in town and more often than not you are looking at close to 7 digit prices. Obviously cheaper alternatives in older homes do exist, but if you are looking for a safe area with good schools for $200's then the suburbs are the best choice. If you can find work close, then it's all good.

[hsw]

Not many free lunches in life...

Need to pay more for land in a desirable locale, with less risk of flooding in any hurricane and away from crime zones..and close to high-income job centers

Need to pay premium for a home built well by one of the more reputed builders in town (in any major region, only 3-4 builders are known for good work)...and older houses, no matter how well-built >10yrs ago, are archaic from a tech/energy efficiency standpoint vs new, well-built houses

Balancing it out, Houston and Dallas suburbs clearly have US' lowest COL but highest QOL for most well-educated, middle-income families

One will find, vs FL, far superior demographics (and education focus) in Houston's middle-income suburbs like Cinco or Sugarland, simply because of the enormous energy industry based in Hou, with many well-educated professionals....stuff a place like FL that has a low-wage/low-skill tourist/retiree (and higher-income scam artist) economy will never have