Easton Park vs Addison South

[Kendal L Rogers]

Just signed to build a "condo" home in Easton Park (more like a detached single family home with a very small yard, but technically considered a condo (I believe it's a PUD)), and I'm realizing how expensive the 3.2% property tax will end up being. It's a $263,000 2bedroom 2.5 bath home, but I could build a much bigger $300,000 3 bedroom home up the road at Addison South (a nice but Much smaller and much more bland and boring neighborhood compared to Easton) with a yard, a driveway, and 2.15% property tax. So essentially, I'm looking at paying a higher mortgage (~2000) for a 2 bedroom condo at 263,000, versus getting a very upgraded 300,000 4 bedroom home for about $100-$150 a month cheaper, in a neighborhood that's not as cool, and a little further out into the Southeast Austin fields. The question is this- is the awesome master planned community vibe of Easton (kind of Muellerish feel) worth the higher price over the long term, compared to the very affordable Addison prices, which would easily allow me to rent above mortgage? We could only do 10 percent down, so it looks like I wouldn't be able to rent the condo for above the mortgage, since I highly doubt that a 2 bed condo in Southeast Austin would rent for over $2000 for quite some time. Both homes are with the same builder, so we may be able to move the earnest over, if we decided to move on to build at Addison.

[Joe Scaparra]

@Kendal L Rogers I'm sorry Kendal but you have this website wrong. This is for investors, not personal consumers of real estate.  Your first post didn't feel right and was confirmed when you posted later that you don't plan on renting it out for 5 years as you are going to live in it.  

You see, you hit the nail on the head and this is classic.  Emotional decision are made when you are going to live in the property.  And all your questions are subjective emotional desires.  Investors have goals which relate to numbers to compare competing properties.  Usually decisions favor which property is best for my INVESTMENT GOAL.  

But let me give you my two cents since I have already invested some time in this post.  My advice come strictly from an INVESTORS POINT OF VIEW.    Condos, especially new condos are NOT GOOD INVESTMENT VEHICLES.  Condo association fees are killer and your 3.2% property tax is stupid (from an investor point of view).  For ten years or more the only way you will make money is if the property appreciates NICELY.  Which in Austin could do, but the market MUST move in your direction for a LONG TIME.  New and Condo is not INVESTOR FRIENDLY.  Not to say it won't work, hey when the tide comes in ALL BOATS float, it is when the tide goes out some boats are left high and dry (condo in bad conditions don't do well).  

My advice is go buy the dream home you want to live in and don't confuse it with an investment property. When your ready to address investment choices, write out your goals and pick the property that best meets the INVESTMENT GOALS and don't compromise it with personal living desires for said property. This is an investors website, your personal desires conflict with maximizing your investment. House hacking might have some consideration for personal desires but even so most house hack (especially using a duplex) defer to their investment goals to kick started their journey. Willing to give up the two car garage, live in a lower income area with poor schools and smaller unit as compared to a SFH because they want to become investors first. It is those people that realize, a little sacrifice now will pay LARGE DIVIDENDS later.

Sorry to come across a little strong, I am trying to wake you up and get on the investment bandwagon, not the I want the perfect condo for me now bandwagon.  You might be able to have one or the other but not both at your stage.  Good luck!  I just tells them as I sees them!  Cheers.