Senna hills garden homes (Austin, Lakeway: days on market, transplants, sales)

[sri701]

Hi,

I have been in Austin for about 8 years. Got married recently and we are on the lookout for a home. We have been doing market analysis and looking at different areas in and around SW, S and W Austin.
We looked at the new garden homes at Senna hills and were interested. They would take 6-7 months to complete building. It falls under Eanes ISD. We do not have kids yet and so the school will not be useful to us for the next couple of years. However, we thought it would be good for resale.
Does any one have opinions on this?
We have been quite nervous to get a house in this economy and housing down trend. The folks there are not really offering good discounts compared to the rest of the builders even in this economy. Price per sqft comes to around $165.
Is that ok?
Also we have been debating about 1 vs 2 story. My wife prefers the 2 story but it is quite high priced and above our budget. We looked at 2 story homes in other areas and can get for the same price about 1000 sq ft more area. From a lot of forums I have read 1 story is a good way to go. Is it good for resale?
How do you think will be the appreciation in this area? Also in case we relocate would it be possible to rent it out easily and what would be the typical rent for a 1 story 2200 sq ft home here.

Thanks for all your help and advice.

[llkltk]

Austin is NOT in a housing downtrend. Prices continue to rise. People will try to tell you differently but don't compare Austin to other parts of the country. There might be more days on market but prices are not coming down anytime soon except in less desirable areas which Westlake is not.

[Trainwreck20]

Eanes ISD is almost always good for resale. The lower priced homes in the ISD will probably always be popular with people trying to get their kids in District w/o paying $1MM. Really, buying into a good school district anywhere is almost never a bad idea.

You will get a hundred different opinions from 'the sky is falling' to 'no way to lose' and everything in between. Imho, if you are looking at staying put for 5 years or more, buying is generally the odds-on way to go. Trying to time a home purchase is more luck than knowledge. It sounds like you are renting somewhere right now, and there is zero equity build up and no tax breaks. Of course, there is no maintenance cost, either.....

1 story vs 2: If it doesn't matter to you, don't worry about it too much. Generally, the same sq. footage in a 2-story house costs less than a 1-story, so you get more space for your money. Also, your footprint is smaller, so you may get more yard. If you are looking for garden homes, it sounds like yard is not a priority, though. In a given neighborhood, the 2-story houses will usually have more sq. ft., so if you want one of the larger houses in the area, you might have to go 2-story.

As for the price, are the 1-storys also more expensive then 1-storys elsewhere? You have to keep your comparisons in the same area, if that is where you are looking to go. As for resale, some people will be looking for 2s, others for 1s, you are always going to limit your group of potential buyers, whichever way you go.

Not being mobility impaired in any way, the stairs are no big deal, I don't even think about them anymore (I did notice them when I first moved into the house from a 1-story).

My BIL (who is a financial manager) just sent out his newsletter, and he predicts that, across the country, rents should increase right around inflation or a little above, while sales prices on homes will drop 12-15% (his historical analysis and current basis makes interesting reading). Of course, this is on a national average and will not necessarily reflect where you are looking.

[2austin]

Originally Posted by sri701

Hi,

I have been in Austin for about 8 years. Got married recently and we are on the lookout for a home. We have been doing market analysis and looking at different areas in and around SW, S and W Austin.
We looked at the new garden homes at Senna hills and were interested. They would take 6-7 months to complete building. It falls under Eanes ISD. We do not have kids yet and so the school will not be useful to us for the next couple of years. However, we thought it would be good for resale.
Does any one have opinions on this?
We have been quite nervous to get a house in this economy and housing down trend. The folks there are not really offering good discounts compared to the rest of the builders even in this economy. Price per sqft comes to around $165.
Is that ok?
Also we have been debating about 1 vs 2 story. My wife prefers the 2 story but it is quite high priced and above our budget. We looked at 2 story homes in other areas and can get for the same price about 1000 sq ft more area. From a lot of forums I have read 1 story is a good way to go. Is it good for resale?
How do you think will be the appreciation in this area? Also in case we relocate would it be possible to rent it out easily and what would be the typical rent for a 1 story 2200 sq ft home here.

Thanks for all your help and advice.

Westlake / Eanes ISD is generally a very desirable area because of its location and schools. Investment-wise, I dont think you can go wrong with a realestate purchase there. This is an area a lot of people within and outside of Austin relocate to. Senna Hills has a sizeable number of transplants from West Coast and Europe.

Unlike other areas, such as Dripping springs and Lakeway which have a lot of land to build on, the remaining land in Eanes is little and very pricey. A colleague purchased a very average *lot* for $500k recently.

1 or 2 story house is a personal preference and when it comes to sell, you'll have buyers in both categories -- but for peace in life, I would make the wife happy first

I would imagine a newish 2200 sqft house in Senna Hills would rent out at $2500-3000 per month.

[sri701]

Thanks a lot for all your replies. We went ahead and finalized to get the 1 story home in the location.
This forum is really great!

[sri701]

Hi,
This is me again the author of the question. Our house in Senna hills garden homes is almost finished with construction and we are getting close to a closing in a couple of weeks. However with the economy and this financial crisis, we are very concerned whether we are doing the right thing in buying a house in Austin. How is the current market in Austin? Is getting a home in the high 300's ok in Senna hills garden homes? We really did not get much of a discount like I read in the news.
Thanks for your comments!

[sri701]

Is it a good time to buy home in Senna hills garden homes in this economy?

Thanks

[2austin]

Sri,

I understand your confusion. Here is what I would recommend you think about before making a decision:

1. If you want to live in Eanes ISD, would you find another house in the same price range, built just like your future house in Senna Hills?

2. While no-one can tell when we have hit bottom, there are more indications today that we are at a bottom.

3. How is Senna Hill stacked against other developments in Eanes ISD? Are you concerned about your house being a Garden Home?

4. What $$ discount would make it worth moving into your new house? Without this discount is it worth losing the time, effort and memories associated with building your house? Is the stress to you and your family worth it? If you walk away, you would lose your deposit with the builder. So factor that as well.

Hope this helps.

[neolin100]

Originally Posted by sri701

Hi,

I have been in Austin for about 8 years. Got married recently and we are on the lookout for a home. We have been doing market analysis and looking at different areas in and around SW, S and W Austin.
We looked at the new garden homes at Senna hills and were interested. They would take 6-7 months to complete building. It falls under Eanes ISD. We do not have kids yet and so the school will not be useful to us for the next couple of years. However, we thought it would be good for resale.
Does any one have opinions on this?
We have been quite nervous to get a house in this economy and housing down trend. The folks there are not really offering good discounts compared to the rest of the builders even in this economy. Price per sqft comes to around $165.
Is that ok?
Also we have been debating about 1 vs 2 story. My wife prefers the 2 story but it is quite high priced and above our budget. We looked at 2 story homes in other areas and can get for the same price about 1000 sq ft more area. From a lot of forums I have read 1 story is a good way to go. Is it good for resale?
How do you think will be the appreciation in this area? Also in case we relocate would it be possible to rent it out easily and what would be the typical rent for a 1 story 2200 sq ft home here.

Thanks for all your help and advice.

Hello - Congrats on your purchase.

We too are looking for single storey homes. A few questions

- What is the final rate/sq ft they offered. We are looking at santa barbara. YOu mentioned $165/sq ft in your note above, is that base price or base price + upgrades, fullly built
- Any discounts on lot premium, base price disc, upgrades or others they offered.

thanks in advance.

[Betina Foreman]

Dear Neolin100,
In my opinion, I see more people asking for one story homes for two reasons. One they are looking for a home they can retire in or live in during their "golden years". Two they have children and don't want to be seperated from them, or carry infants up and down stairs for fear of falling and hurting the baby. The only time you see two story home priced higher per square foot than a one story is if it has a view from the second story.

Also you are smart to consider the schools before you buy a home. While it may not be important to you right now, should you decide to sell it will absolutely come into play. Often I have clients that don't care about the neighborhood as long as it feeds into the "right" school.

I cannot help you determine if the price per square foot is accurate as I am not sure what level of finish out you have selected. If you can tell me more about what you told the builder you wanted, I can run comps for you so you can feel comfortable about making a home purchase. Typically "green features" may cost a little more upfront, but will provide a financial pay off in the long run with reduced operating costs.

Let me know if I can help and I wish you the best with your home search!
Sincerely,
Betina