Trying to budget for these property taxes (Houston, Spring: HOA, insurance)

[Houstonbound15]

Hello, we are moving to Houston early next year, from Florida. We know that Texas, like Florida, does not have state income taxes, but the property tax comparison is significant. With our current appraisal and exemption, we pay less than 1000. With some research, we see that in order to live in what we think is a decent neighborhood in Houston, we will pay apx 6k, yowza! But we will have to come to terms and just wanted some help by getting feedback on subdivisions.

Here are some more details, appreciate any info we receive.

Job location is on JFK blvd, so it is off Beltway 8, near airport.
Home budget is 250-265k.
Prefer home lots that are not so close to each other, say 8k plus.
We do not have children. Though would love to now get a dog
We are under 65.
Personally, we dont need to be near nightlife, we want a friendly, peaceful neighborhood, where we can drive to a good restaurant every now and again. Our main concern at the moment is finding a comfortable home, does not need to be brand new, but can afford a monthly payment with the taxes and not be house poor! We also dont know what the utilities will average, and where to find this info.

Also,

Do the taxes increase every single year, and significantly? Is a MUD district better than a non-MUD? What is RUD and PUD? And I have seen Houston traffic, looks pretty busy, is Beltway 8 better at certain times?

Thank you in advance for responses.

[chris_ut]

Atascocita area, go on har.com and check Eagle Springs. There is a link on the right side that tells you your property tax although it won't give you a good number if it's just built this year and not yet reappraised.

[trbstang]

The basic taxes (county, school, city if applicable) are pretty much the same in the whole Houston area, it is the MUD districts that make some areas have a higher tax rate than others. Our total tax rate is about 2.9%, while other newer areas with all of the fancy amenities have taxes in the low to high 3% rates. So if you don't want all of the fancy extras, you can find a place with a lower tax rate. The MUD district provides the utilities and infrastructure, and in areas within the city, city taxes take the place of the MUD taxes.

As for tax increases, once you file for your homestead exemption (you qualify when you own the home on Jan 1 of that year), your taxes can only increase 10% max per year, unless you make improvements to your house (addition, pool, major renovations requiring permits) and then they can increase it more than 10%.

We are at BW8 and Hwy 290, about 20-30 min from the airport depending on the time. During rush hour BW8 is backed up a good bit, but it has less traffic from my place towards the airport than the other way. Off peak it flows very well. There are plenty of homes in 77064 and 77040 that fit your criteria.

For a 250K house, expect about $550-750 a month in taxes (depending on the tax rate), $150-250 a month in insurance, and an average of $250-500 or so for utilities, depending on the house size, efficiency, and how much you use (water, AC, gas). Your taxes will drop a bit with the homestead exemption too. My total taxes are about 19% less due to being in the Cy-Fair ISD with the homestead exemption. My school taxes are based on about $164K due to the discounts, on a $225K house. Other school districts don't give as much of an exemption.

Good luck with your search!

[houstonfan]

^^Great advice up there. You can save also by not being in a neighborhood with expensive H.O.A, which could be over 1k per year. MUDS add to your tax burden. I agree with the above zipcodes suggested. Large yards mean high water bills so think about buying a house with smaller yard or less grass. Recently built houses often are more energy efficient. My utility bills are usually 80-150$/mth because newer house, little lawn. File for homestead exemption as soon as you move in. Once you reach 65, you also get capped in the taxes. You can go to hcad.org and type in the address to get a sense of how much the current owner is paying. Remember that if you pay more for your house than current taxed value, I believe your taxes will increase proportionally....we are in a bubble right now. Ie, if the house is appraised and taxed on 200k value, and you buy it for 300k, I believe next yr, your house will likely be appraised and taxed on 300k. (Ask your realtor though, I'm not sure)

[Houstonbound15]

Great info, I will check those zip codes, really appreciate this, @chris_ut, @trbstang, and @houstonfan.

[dd1153]

You can't go wrong in Eagle Springs

[Lowexpectations]

You won't be paying 3% of market value hardly anywhere unless you can't file for the homestead. The county appraisal districts will give you the tax bills on a property if you look them up

[Houstonbound15]

I have been researching eagle springs and have to agree, it looks nice. I wonder if anyone can share any concerns with HOA, there seems to be one in most subdivisions. I do not currently live in an HOA neighborhood, and while I prefer not signing up for a list of regulations, I realize there could be some benefits to having one. We are not worried about keeping up our property, but submitting for color choices etc would be very different.

Again, appreciate any views on this. So far, the advice shared has been so helpful during this anxious time.

[trbstang]

Most people don't have problems with a HOA as evidenced by the hundreds of thousands of people living in neighborhoods with them. It is there to protct your property values, but some people on the HOA boards can use it as a power trip. Luckily I've never experienced anything adverse, except for a request to submit an architectural approval form for improvements we did not get approved first (added 2'x40' on to driveway, kid's fort, trampoline) and those were just paperwork for their files so they could not say that we got away with them not approving the requests. Oh, and a couple of "weeds in the sidewalk/driveway cracks" or "garbage cans visible" letters. Annoying, but things we already took care of before getting the letter! Though I'll probably get a "mildew on side of house" letter soon.

Now if you like a hot pink house, with 15 statues/ornaments in the front yard, and a disabled car in the driveway on blocks, then a HOA neighborhood is not for you.

[Houstonbound15]

Ha, point taken, trgstang. The questions are more stemming from some horror stories. And you figure, you work hard to pay for your home, and then an association with poor management can cause you headaches. Other than that, we expect the HOA is there to help keep the neighborhood up. Thanks