I realize that I may sound like an "old", but there are a few things I'm not fully understanding about what's happening with the Austin housing market.
I realize people are flocking here in the droves...I get that, and yes I do understand many come from areas where houses are $600K-1M already. However, Texas has higher property taxes than most because we don't have state income tax. The property taxes in a lot of Austin central neighborhoods is ~2.5%.
I took a drive around east Austin between 10th street and 28th+, and couldn't believe how many homes we found listed at $600+. Then we went over to Barton Hills and Bouldin Creek and found other crazy prices for smaller homes. Who is it that is buying these houses?
20% down on a $700,000 house with a 3.9% 30 year note + 2.5% property tax still results in a $4100/monthly payment. I thought I made pretty good money, but after all of my 401K contributions and savings funds...that would eat up the majority of my take-home pay. Are all of these folks successful business owners, doctors, lawyers? I'm pretty sure we are in the top 7-8% by house hold income. I know the housing market for $600K+ homes are not limited to top earners like that, so what gives? Folks just plunking more dollars into their home?
I realize people are flocking here in the droves...I get that, and yes I do understand many come from areas where houses are $600K-1M already. However, Texas has higher property taxes than most because we don't have state income tax. The property taxes in a lot of Austin central neighborhoods is ~2.5%.
I took a drive around east Austin between 10th street and 28th+, and couldn't believe how many homes we found listed at $600+. Then we went over to Barton Hills and Bouldin Creek and found other crazy prices for smaller homes. Who is it that is buying these houses?
20% down on a $700,000 house with a 3.9% 30 year note + 2.5% property tax still results in a $4100/monthly payment. I thought I made pretty good money, but after all of my 401K contributions and savings funds...that would eat up the majority of my take-home pay. Are all of these folks successful business owners, doctors, lawyers? I'm pretty sure we are in the top 7-8% by house hold income. I know the housing market for $600K+ homes are not limited to top earners like that, so what gives? Folks just plunking more dollars into their home?