Austin Texas Real Estate Blog

For the second year in a row, Houston, Texas, ranks second among major US cities for the average cost of obtaining a mortgage. Houston is topped only by New York City, while Buffalo, NY, comes in third, according to a survey done by Bankrate, Inc.. Based on a hypothetical $200,000 mortgage, Bankrate, Inc. surveys the city with the highest populations in each of the fifty states throughout the nation to come up with the rankings. Bankrate also included some of the smaller cities to get a better idea of the state’s averages. The fees paid at closing time that they surveyed don’t include taxes, insurance or miscellaneous prepaid items – homeowner association fees, for example. The survey also assumes 20 percent down payment and a good credit rating.

In New York City, mortgage closing costs topped the $4,000 mark, with Houston close behind at $3,975. North Carolina was at the bottom of the list, where the average closing costs are $2,650.

Buyers often overlook the closing fees as part of the expensive in buying a home, and they can often be quite high. It’s worth the homeowner’s time to really read documents closely and question the fees he or she is writing checks out for. Some fees, such as origination and title search, can be negotiated. Also, as the housing market remains soft, certain fees have risen and certain other fees have been added on as lenders seek to cover their losses. Appraisal fees, in particular, have risen sharply as lenders request a more thorough, time consuming job – including prices tends in with the usual market comparison.

The list of fees is extensive and it behooves the homeowner to look closely at where their money is going.

In addition to arguments over raises and health benefits - disagreements school boards throughout the country deal with every year - the Austin school board must tackle a third issue in deciding its budget this year: property taxes.

Currently, the district operates at the highest property tax rate it can, 1.04 percent, without turning to the board for a vote. And with property values rising, it is expected that taxes will bring in added revenue in the upcoming year. However, much of that revenue will be given to the state to be distributed among property-poor districts. In fact, Austin must send $61 million to the state, so any additional money resulting from higher property values won’t last long.

The district, therefore, is requesting a budget in which taxes are raised to $1.0765 per $100 of assessed property values, for a total of $1.1995 including debt. This will couple with an overall budget increase of 8.8 percent to $862.5 million for the 2008-09 year. Employees would also get a three percent raise, and full health coverage would remain intact.

Whether this increase will occur is yet to be seen, as there are several other proposed budgets, each with its own take on property taxes. Education Austin, for example, is looking for a budget increase with a 5 percent raise for employees, in addition to family health coverage (the district’s plan covered employees only) and a wage increase for hourly employees. The budget would call for a property tax rate of $1.243 including debt.

If there were no tax increase, there would be no raise for employees and employees would have to contribute $348 a year for health insurance.

The school board was scheduled to vote on August 6 at an evening meeting. The results of that vote are as of this posting unknown.

Mexicans Are Buying Back Texas, One Piece at a Time

The rise of the peso against the United States dollar has some Mexican developers looking north to invest in Texan property. The Mexican economy is growing steadily, and faster than the US economy, at about 2.6 percent a year and the peso has gained 3.2 percent on the US dollar since January of 2008. In comparison, the US economy is expected to see a 1.4 percent growth in 2008.

Mexicans are seizing an opportunity to purchase foreclosed properties in the southern Texas areas close to the US-Mexican border such as Mission. Mexicans with money to invest are seeing the housing and real estate slump as a perfect time to diversify their holdings. Investors are finding bargain prices in the current sluggish climate. All that’s needed are the funds and a valid entry visa into the US.

Even though Texas hasn’t taken as bad a hit as other regions, home sales in the first quarter of 2008 have dropped 12 percent and foreclosures rose 20 percent from the same quarter a year ago. Investors from Monterrey, Mexico, are eying the southern Texas area as an excellent investment opportunity, and most are purchasing property with plans to develop it in two or three years when the real estate market is expected to begin to turn around for the better. Some, on a more personal level, are looking for retirement homes or for housing for their children studying at Texas colleges and universities.

Regardless of the reason, southern Texas needs an infusion of cash to boost its flagging economy and investors from Monterrey are glad to help out. Thus a new Tex-Mex connection is being forged.

One of the most frightening of the natural phenomena, the tornado is capable of devastating wind speeds of more than 300 miles per hour and can appear with terrifying suddenness. Most tornadoes contain winds speeds of between 65 and 100 miles per hour. Still, no other weather event can cause quite the destruction and death of a strong tornado and one would be well advised to take tornado watches and warnings very seriously.

Should you hear report of a tornado watch or warning, stay close to a news source for more information. A watch means weather conditions are right for a tornado forming. A warning means that an actual funnel cloud has been sighted by either an eyewitness or weather radar equipment. If you hear a warning, you should be prepared to take cover.

Contrary to popular myths, the underside of a highway overpass is not the best place to take cover from an approaching tornado. The overpass serves as a wind tunnel, effectively increasing the wind speed thereby raising the chance for serious injury or death to anyone who tries to shelter under one.

The safest place from an approaching tornado at home is the corner of a basement, under a strong table or staircase; or a windowless room, such as a bathroom or closet. If caught out in the open, your best chances of survival is in a ditch or culvert, face down, with hands clasped over the back of your neck. If you’re in a vehicle, don’t try to outrun the storm. Leave the vehicle and hit the ditch!

It’s often said that first impressions make the most impact on the typical human being, whether it involves a new acquaintance, a perspective employee, or a house. It’s true: the exterior of a house is the factor most often cited as influencing their decision when a potential buyer is looking at properties. There are a number of simple, yet effective ways to enhance the curb appeal of the home on the market and this article lists a number of unique and interesting products designed for just this purpose. Here are a few samples:

There’s no question that a slate roof appeals to most aesthetics, but few home owners are inspired enough to pay for the high cost of installation and maintenance. Atlas Roofing has a solution: StormMaster Slate shingles. They give the beauty of a slate appearance while minimizing the cost and weight of an actual slate roof.

That old reliable manufacturer of secure entry systems, Kwikset, has come out with its SmartSeries line of keyless and “smart key” locking systems. The futuristic SmartScan system features a subdermal fingerprint scan, providing both convenience and security. SmartCode requires a personal identification code for entry and SmartKey allows you the security of re-keying your own lock without having to call a professional locksmith.

Composite materials are becoming more popular as manufacturers get better at mimicking various natural substances. Products that look and feel like wood, stone, ceramics, and even cement, add not just beauty and value to a home’s exterior and decking, but safety as well, because many of these products are fire resistant. Faux stone for home facade and chimney facing, wood composite deck boards, and wood-like vinyl siding are just a few of the products available.

What happens when you get to the point in your life when you realize your home is much too big and you’re ready to move from that 3,000 square foot monster to a more manageable 1,200 square foot townhouse? What do you do with all that stuff you have? Joanne O�Donnell, Chic Home Interiors, has a few good tips for deciding what to keep and what to let go.

The first rule of thumb she cites is if you haven’t touched it, looked at it, or used it in a year, you don’t need it. This is especially true for those packrats who collect mountains of stuff and squirrel it away for years, often forgetting it even exists. If an item is really that badly needed, the downsizer can easily go out and purchase a replacement.

Does your furniture go with your new smaller digs? Does it even fit in your new smaller digs? Different room sizes and configurations will dictate the decision on this one. Make sure, when purchasing new items, that they match the decor and size of the new place.

Family heirlooms, mementoes, photo albums, baby albums, things that are intensely personal and irreplaceable should be set aside and preserved. Putting a “must keep” label on these things helps in letting go of those items that are probably not as significant.

As with the suggestion above, be very clear about what your new home’s decor and theme is. For example, don’t bring along that heavy mahogany dining table if your new place is a light and airy stucco affair.

Lastly, it almost goes without saying that, when packing up the stuff you’ve decided to keep, stay organized. Pack by room and unpacking will be a breeze on the other end of your move.