|
| Anonymus,
I
didn't
s
|
|
 |
|
 |
Anonymus, I didn't say the bill passed yet. It has faield for three years. That is why a law suit was file and challenged school funding and the Texas Supreme court ruled that funding schools only through property tax was unconstitutional and instructed the state legislature to pass a new bill correcting this deficiency or that schools will not be allowed to open in August 2006. The legislatrue is suppose to meet in Jan to try and work out a deal. The Democrats have been obstructionist in the battle with Republicans and neither party seems willing to do what is in the best interest of the taxpayers of Texas or schools. The high cost of property taxes is the most regressive form of taxation and the most counter-productive. This is why Texas ranks near the bottome for home ownership. The fact that there is the possiblity of reform and a significant reduction in property taxes bode well for the market in Texas. If Texas can escape any significant home price run up and the speculative plague that has hit other prime markets and stay with the healthy PE ratios for rents, Income to mortage ratios, and normal iinflation adjusted annual return (which is in effect a zero increase and zero decrease) then this tax reform makes homes even more affordable. Texas has some 22 million people. It is continuously growing and is in the sunbelt. It is home to three of the largest cities in the country. It has a diversified state economy and oil, ports, beaches, agriculture, high tech, telecommunications, manufacturing. Texas has a NORMAL economy not built purely on Real Estate like Phoenix. It has absorbed a lot of people from New Orleans reducing bloated inventories of apartments in Houston and a lesser degree in other Texas cities. People will move to Texas to LIVE not to Speculate. Austin is a Great city to live and an influx of people and money will help the cities over all economy which is currently growing naturally and whose High tech industry is much healthier than in 2000. Recently an office building in Austin sold for $245 a sq ft, the highest price for any commercial space in Texas. Samsung is building a new fab plant, the office vacancy and retail space vacancies rates have dropped to healthy levels compared to the bubble of 2000. Though rents for commercial and retail and housing are rising they haven't risen enought to over stimulate speculative building. Coming at the end of a bi-coastal bubble they are better poised to prevent the same thing happening there as lenders and builder position themselves to prevent further bubble induced losses. With a lot of people cashing out of their high priced homes in other markets and using that cash to move to Austin with substantial down payments on high quality homes that will insulate them better against any price declines. Would you rather buy a 3300 sq foot home on a large lot with all the bells and whistles for $330,000 or less and put $200,000 down and have a $130,000 mortgage at 6.5% fixed for 30 or even less at 15 years? Or even (for those lucky enough to really have cashed out of CA or Florida) and pay cash and have no mortgage? What city will suffer more? Las Vegas? Phoenix or other cities in the bubble markets where people bought high and have no options but to live like the Japanese for the next 15 years paying off their over-inflated notes?So, if any investors read this, beware. Texas is not for dummies. The market is unique. There are plenty of homes at affordable prices that you can't buy and flip fast and make a killing nor buy and charge excessive rents to cover you 0 down investment. Until the tax bill is passed next year you will have very high tax bills on top of any other carrying costs. The benefit of any tax reduction won't be in effect until 2007 tax year and won't be actualized until that bill comes due Jan 1, 2008. Texas and Austin are for those individuals who are tired of their over-priced cities and are looking for a better quality of life and who buy to LIVE in their home in Texas. Those who think they can do a Phoenix flip will be burned. No city in Texas is building 60,000 houses a year or experiencing 100,000 new residents a year to push up demand.Austin Metro is 1.2 mil and Austin about 680.000. The market has plenty of housing units, only 6600 realtors and many neighborhoods that won't be appreciating at even 1% a month. The hot neighborhoods are still high for Austin and Texas and can still suffer a price reduction as people look to the new areas of Austin that are "hot" and "affordable" and price concious. If you can buy new 9 miles from downtown in South or SW or SE Austin for $105 a sq ft or less you'd have to be crazy to buy in the old "hot" areas of 2000 where homes go for up to $500 a sq ft and need a lot of updating. As in any market you need to evaluate value, location, distance from employment and competition. That large Master Planned community is a sure loser as you'll be competing with new build for up to ten years. But if you look for quality at prices per sq ft that are near the historic norm adjusted for inflation and a home and not an investment then Texas has many viable options to those seeking a better quality of life.
|
 |
|
 |
|
|
|
|
|
|
(VISITOR) AUTHOR'S NAME
Maria
MESSAGE TIMESTAMP
16 december 2014, 08:57:30
AUTHOR'S IP LOGGED
62.210.78.179
|
|
|
|
