A thread to discuss Central Texas real estate

[TheX]

1 hour ago, Chief said:

I had a state income tax in NY. It wasn't really that much compared to my property taxes. I think it was around $1500 a year.

My last house there was 1400 sq ft on a 40'x100' lot. in 2004 my property taxes were $5600.

Not much of a bargain considering how poorly kept the roads were. Potholes as big as your tires.

I would be paying over $18,000 a year for state income tax in California.

[AntonioGG]

Had to look up what kind of income gets $18k tax bill in CA.  That's nice! 🙂

So the part that sucks about property tax vs income tax is that you can make $60k a year and now your neighborhood is gentrified and your $150k home is now worth $400k and you can't afford the tax bill so you have to sell and move out 1 hour away.  I know we have a cap but 10% a year adds up really fast.  It's a joke.

In the end the differences between states/locations are not as huge as you would think once you add all the taxes up (income, sales, property).  I live in CoA, Travis County, and RRISD.  Maybe short of Rollingwood we may have the highest property tax rate in the area, but I think property tax is a messed up way to fund schools.  If we had the same effective income tax rate as CA I'd pay roughly about the same per year as I'm paying in property taxes now.  The difference would be 0.74% property tax adder and an extra 1% sales tax compared to TX.

[mack_turtle]

1 hour ago, AntonioGG said:

I think property tax is a messed up way to fund schools. 

unrelated but, I'll add that funding schools this way is the most incredibly undemocratic and socially paralyzing force American society uses to intensionally keep poor people poor. it's gross and I hate it and I will not apologize for feeling that way about this fact.

Edited March 14, 2021 by mack_turtle

[TheX]

9 minutes ago, mack_turtle said:

unrelated but, I'll add that funding schools this way is the most incredibly undemocratic and socially paralyzing force American society uses to intensionally keep poor people poor. it's gross and I hate it and I will not apologize for feeling that way about this fact.

We used to be able to put tree branches, etc at the curb and the city would come by with a big chipper truck, and remove them for free. That got taken away because it was unfair for people that didn't need/use it to pay for it in their taxes. 

Odd, I have never had a child in a Texas school, yet I certainly for for schools in my taxes.

[mack_turtle]

Comparing access to the luxury of wood-chipping services to a basic, equitable education for children is kind of a weird comparison.

[TheX]

1 hour ago, mack_turtle said:

Comparing access to the luxury of wood-chipping services to a basic, equitable education for children is kind of a weird comparison.

Not at all. The reason given for one, should apply to the other. Kinda like things between races and/or genders. Things should apply to both, or neither.

[4fun]

On 3/12/2021 at 5:57 PM, throet said:

I expect this bubble to last 5+ years. Aside from the general demand in Austin, here in Cedar Park we have Dell Children's breaking ground, Bell District breaking ground, and Lakeline Park in late planning stages. Our house in Red Oaks has great conveniences on Cypress Creek Rd, great access via Little Elm to Lakeline and via Bell to the 183A / 45 Tolls, and for me a mile ride to the Brushy Creek trails from my driveway. I'd love to get further out with an acre+ lot, but as you mentioned, there is no longer anything available. We could probably clear $300K on our house but would have to get on a waiting list to pay $700K for something further out that gives us everything we want. I'm not sure who's winning in this situation, other than maybe the folks from CA who view housing here as a bargain. They may be in for surprise though given the much higher property taxes here. 

For now I was able to take advantage of the peak low interest rates, refinancing at 2.5% while drawing out $60K in cash and keeping the term of my loan and my P&I nearly equivalent. Hoping I can squeeze a new Izzo out of those proceeds.     

Ironically we sold our house 2 years ago In Red Oaks. I didn't want to move. I liked my neighbors, and loved the immediate access to the west side of the brushy Creek trail system. My wife's argument was if we wait any longer we won't be able to afford the house on the acre lot. With great reluctance I conceded. 2 years later I am realizing that she was more right in that moment than she has ever been before or will ever be again! Only wish I would have rented that house out for 2 years and sold it now! We made 55k on it after living there 5 years. I imagine we would had made at least 200 if not 300k now. 

I figure if some kind of cap on property taxes doesn't pass we will be priced out of our house in 10-14 years even if we pay it off in the next 10 years as planned.

[4fun]

Nothing to see here

Edited March 14, 2021 by 4fun

[4fun]

44 minutes ago, TheX said:

Not at all. The reason given for one, should apply to the other. Kinda like things between races and/or genders. Things should apply to both, or neither.

I'm typically pretty moderate. My wife's family (multi generation oil industry) think we are the most liberal people they are willing to associate with and our friends here in Austin think we are the most conservative people they would be willing to claim as friends🤣. That being said we need to decide as a country if we want equal opportunity or equal outcomes. It is impossible to have both! I hope we don't decide equal outcomes. It hasn't turned out well for any country that has tried it before to my knowledge.

[4fun]

3 hours ago, mack_turtle said:

unrelated but, I'll add that funding schools this way is the most incredibly undemocratic and socially paralyzing force American society uses to intensionally keep poor people poor. it's gross and I hate it and I will not apologize for feeling that way about this fact.

I'm not following your logic. Are all states public schools funded by local property taxes?  

And let me clarify. I also think the public school system in the US is gross, intended to keep poor people poor and we should provide better opportunity to our kids.  Not sure about the undemocratic part?

Edited March 14, 2021 by 4fun

[AustinBike]

20 hours ago, Chief said:

I had a state income tax in NY. It wasn't really that much compared to my property taxes. I think it was around $1500 a year.

My last house there was 1400 sq ft on a 40'x100' lot. in 2004 my property taxes were $5600.

Not much of a bargain considering how poorly kept the roads were. Potholes as big as your tires.

State income tax in Illinois was ~7-8%. That stings when your property taxes were high as well. Living in Chicago sucked because all of those state tax dollars flowed downstate to all of the rural counties.

[AustinBike]

While I have no kids, I believe that funding public education is critical because eduction is critical to a functioning society.

I just have issues in general with Texas' execution of "eduction" because we spend a lot on this and are ranked at the bottom of the list. I'd prefer to see tax rates aligned to education outcomes. If we looked at test scores, attendance, graduation rates and college admissions, I'd be a lot happier. Instead we spend all of our time trying to figure out how to back door prayer into the classroom and keep critical thinking out.

[Chief]

My biggest gripe with many school systems not just in Texas is the focus on standardized testing. Schools are trying to get as much federal money as they can so they seem to focus on standardized testing more so than actual learning and critical thinking. This hurts everyone in the long run because our kids go through school and come out with a sub par education. Especially kids in lower socioeconomic groups. Federal funding should just be a given and our education system should be the same anywhere you go in the country. When we moved here from NY my kids were about two years ahead of what was being taught in the schools here. When we moved here I specifically looked at the best school systems to put my kids in, we shouldn't need to do that as a nation it's ridiculous. We can't excel as a so called "great country" without giving our kids the best education they can get and we can't do that if we leave it up to state and local governments who are always scrambling to get federal funding so that once again the people at the top can continually increase their wealth. How did we get to a point in the school system where teachers are using personal money to provide supplies that the kids need? This is a failing state.

Rant over.

Edited March 14, 2021 by Chief

[TheX]

If everyone should contribute to schools, why don't people that rent have to help? 

[The Tip]

12 minutes ago, TheX said:

If everyone should contribute to schools, why don't people that rent have to help? 

They do. Either indirectly as the undocumented part of the rent on residential property, or directly, like commercial renters do. Most commercial leases have the renter paying the exact amount of the  property taxes. 

[Chief]

15 minutes ago, TheX said:

If everyone should contribute to schools, why don't people that rent have to help? 

Or at least whoever owns the apartment building. Oh wait I forgot those are usually billion dollar corporations and are exempt from any taxes.

[TheX]

The year my wife turned 65 we applied for, and received the over-65 exemption. That was 2 years ago. 

[ATXZJ]

11 minutes ago, Chief said:

Or at least whoever owns the apartment building. Oh wait I forgot those are usually billion dollar corporations and are exempt from any taxes.

Paging Blackrock investments........

[AntonioGG]

2 hours ago, Chief said:

My biggest gripe with many school systems not just in Texas is the focus on standardized testing. Schools are trying to get as much federal money as they can so they seem to focus on standardized testing more so than actual learning and critical thinking. This hurts everyone in the long run because our kids go through school and come out with a sub par education. Especially kids in lower socioeconomic groups. Federal funding should just be a given and our education system should be the same anywhere you go in the country. When we moved here from NY my kids were about two years ahead of what was being taught in the schools here. When we moved here I specifically looked at the best school systems to put my kids in, we shouldn't need to do that as a nation it's ridiculous. We can't excel as a so called "great country" without giving our kids the best education they can get and we can't do that if we leave it up to state and local governments who are always scrambling to get federal funding so that once again the people at the top can continually increase their wealth. How did we get to a point in the school system where teachers are using personal money to provide supplies that the kids need? This is a failing state.

This 100%!!!

[AustinBike]

4 hours ago, Chief said:

My biggest gripe with many school systems not just in Texas is the focus on standardized testing. Schools are trying to get as much federal money as they can so they seem to focus on standardized testing more so than actual learning and critical thinking. This hurts everyone in the long run because our kids go through school and come out with a sub par education. Especially kids in lower socioeconomic groups. Federal funding should just be a given and our education system should be the same anywhere you go in the country. When we moved here from NY my kids were about two years ahead of what was being taught in the schools here. When we moved here I specifically looked at the best school systems to put my kids in, we shouldn't need to do that as a nation it's ridiculous. We can't excel as a so called "great country" without giving our kids the best education they can get and we can't do that if we leave it up to state and local governments who are always scrambling to get federal funding so that once again the people at the top can continually increase their wealth. How did we get to a point in the school system where teachers are using personal money to provide supplies that the kids need? This is a failing state.

Rant over.

Yes, this is a viable argument. However, the other side of that coin is that without some type of standardized testing, we have no way to assess if Billy from Alabama who got straight A's is anywhere near as smart as Jenny from Ohio that got a B- average.

Teaching to the test is a waste of time, but 50 individual methodologies that don't intersect helps nobody. There needs to be a balance.

And for god's sake, start teaching them about credit cards, how to balance a checkbook, and how to change a flat tire. Oh, and how to change a flat tire on a car would be good too.

[AntonioGG]

1 hour ago, AustinBike said:

Yes, this is a viable argument. However, the other side of that coin is that without some type of standardized testing, we have no way to assess if Billy from Alabama who got straight A's is anywhere near as smart as Jenny from Ohio that got a B- average.

Teaching to the test is a waste of time, but 50 individual methodologies that don't intersect helps nobody. There needs to be a balance.

And for god's sake, start teaching them about credit cards, how to balance a checkbook, and how to change a flat tire. Oh, and how to change a flat tire on a car would be good too.

How about where their food comes from?  "Bacon is from pigs?"

[AustinBike]

Ssssshhhh.

All good meat comes from pigs but we need to keep that to ourselves. Otherwise the schweinhaxe futures go through the roof. It will be our little secret.

[AntonioGG]

15 hours ago, AustinBike said:

Ssssshhhh.

All good meat comes from pigs but we need to keep that to ourselves. Otherwise the schweinhaxe futures go through the roof. It will be our little secret.

Speaking of futures, my wife has never watched Trading Places!  We watched Coming 2 America with our son (after watching the original) and they had some Duke brother references in it that I had to explain to them.  Now it's on the list for this weekend.

[Cafeend]

I live in NW Austin . Parmer and Anderson Mill area. New Apple Campus adjacent and across from 7700 Parmer that's about to add almost a million sq ft.
Couple weeks back a house went pending at 600k in my hood. A newer section of the hood listed a house for 879,900. Nice home but really? I dont begrudge the sellers at all. Told my wife we should just pick a number and when homes consistently hit that range then we sell then rent. We can't move for 6 more yrs then we are out.

Sent from my SM-N960U using Tapatalk

[TheX]

Anyone that sells at these prices is smart to do it, as long as they can relocate at a more realistic price.