Buying a house in Texas? (Dallas, Amarillo: sales, homeowners insurance, layoffs)

[lostsoul62]

I am or was thinking about buying a house in Amarillo but at 2.5% property tax and about $100 per $10,000 in House Insurance which is about 4 time more than in Phoenix and the Property tax is more than twice that in Phoenix. It sounds like between the Propery tax, House Insurance, Home owners and what ever else they can tak on would cost me as much as the house so it sounds to me that buying a house in Texas is somewhat expensive even when the prices look low?

[Willsson]

Yeah, but you can't beat the state income tax plan.

[TurtleCreek80]

Texas' tax benefits cater largely to the wealthy- who don't pay income taxes on large incomes as they would in many other states AND can control their other taxe bills by buying less expensive homes. For middle & lower class incomes, you are correct- the total tax burdens are often a wash once you add up the high property tax and sales tax rates in TX.

[hound 109]

Originally Posted by lostsoul62

I am or was thinking about buying a house in Amarillo but at 2.5% property tax and about $100 per $10,000 in House Insurance which is about 4 time more than in Phoenix and the Property tax is more than twice that in Phoenix. It sounds like between the Propery tax, House Insurance, Home owners and what ever else they can tak on would cost me as much as the house so it sounds to me that buying a house in Texas is somewhat expensive even when the prices look low?

Buying the house isn't expensive......staying in the house is "somewhat expensive".

Are you suggesting that we all move to Phoenix?

[getmeoutofhere]

The "Texas is super-cheap" myth is just that, a myth. Just because there is no state income tax doesn't mean they don't get you in other ways.

[Willsson]

Originally Posted by getmeoutofhere

The "Texas is super-cheap" myth is just that, a myth. Just because there is no state income tax doesn't mean they don't get you in other ways.

The myth is what you make it. Buy a house in Dallas Park Cities, you'll pay some taxes. But a house outside city limits, you're property taxes may be less. As well has what you pay for the home. And insurances.

[jbiggs]

Originally Posted by TurtleCreek80

Texas' tax benefits cater largely to the wealthy- who don't pay income taxes on large incomes as they would in many other states AND can control their other taxe bills by buying less expensive homes. For middle & lower class incomes, you are correct- the total tax burdens are often a wash once you add up the high property tax and sales tax rates in TX.

EXACTLY! Let's not forget the high home insurance, car insurance, and just about any other insurance rates. There are also the multitude of toll roads to clip Texans on. Also with the crunch in the education budgets, and the freewheel spending during the last 10 years, there are many districts that will most likely be trying to obtain property tax increases to pay for expensive schools, stadiums, etc., etc. Now that the State is in the hole for $10B - $25B (depending on whose figures you use) they too will begin to search for new revenue sources to clip the people with!

I hear a lot of people say that the sales tax rates are capped by law as are the property taxes and many other revenue generators. Yes that is true but when the red ink flows the laws are easily changed so these caps are nothing more than imaginary!

Originally Posted by getmeoutofhere

The "Texas is super-cheap" myth is just that, a myth. Just because there is no state income tax doesn't mean they don't get you in other ways.

Many people are unable to look around them and see just all the ways they can and/or do add to the expenses here.

[TurtleCreek80]

Originally Posted by tofurkey

The myth is what you make it. Buy a house in Dallas Park Cities, you'll pay some taxes. But a house outside city limits, you're property taxes may be less. As well has what you pay for the home. And insurances.

FWIW, the tax rates in Highland Park (1.95%) and University Park (2.0%) are the lowest tax rates in North Texas....the tax bills are high due to high property values, NOT high tax rates. A $750k home in Coppell carries the same tax dollar bill as a $1M home in Highland Park.

[getmeoutofhere]

All I'm saying is that people in Texas pay some of the highest property tax rates in the nation. As well as the highest homeowners insurance rates. As well as astronomically high auto insurance rates. As well as one of the highest sales tax rates around. Etc.

So it sounds like a good deal from the outset (and if you're coming from a place like New Jersey or NYC it probably is a good deal), but the media makes it seem like Texas is the cheapest place on Earth to live because there is no state income tax. And if you move to the middle of nowhere, it is cheap. But most people need jobs to get by, and jobs typically are associated with the larger cities. And you're going to pay to live there.

[jbiggs]

Originally Posted by getmeoutofhere

All I'm saying is that people in Texas pay some of the highest property tax rates in the nation. As well as the highest homeowners insurance rates. As well as astronomically high auto insurance rates. As well as one of the highest sales tax rates around. Etc.

So it sounds like a good deal from the outset (and if you're coming from a place like New Jersey or NYC it probably is a good deal), but the media makes it seem like Texas is the cheapest place on Earth to live because there is no state income tax. And if you move to the middle of nowhere, it is cheap. But most people need jobs to get by, and jobs typically are associated with the larger cities. And you're going to pay to live there.

You're exactly right! Many people are selling their homes in other locations, with many losing money on them, just to move to "The land of milk and honey". But that costs money to sell, move here and then buy again if that is their plan.

I've seen so many posts of people moving here without even a job in hand expecting jobs and good times to be here when they arrive! So many on this board are touting that Texas is the best place to be but they just don't look around and see what is happening. I would expect that many of those praising Texas right now have steady jobs, plenty in the bank, go out to eat three times a week, blah, blah, blah. Yes to them it is "The land of milk and honey". However for someone coming down here, even with a job transfer and job in hand, it is a huge gamble. For those with nothing they are in for a huge surprise!

Another thing I keep hearing is how many jobs that Texas has created even though the economy is so poor. What a load of hooey! How many jobs did Texas lose in the last 10 years? Does anyone recall the Tech Bubble burst earlier in the decade?? In 1999 through about 2001 you could pick up the local Sunday paper and the "Help Wanted" section was as large as the rest of the paper!! The job boards on the WEB were loaded with jobs and it would take you half a day just to sort through them. Since the Tech Bubble burst the local paper Want Ads have shrunk to on average 6 pages with most of that being training schools and large ads from a few big companies. The WEB job boards now take an hour to run through all of them. Now we are getting ready to see massive layoffs in the education field which was considered to be one of the more secure fields to enter.

PEOPLE LISTEN UP! Nobody is saying don't come to Texas. All people are saying (those that can see beyond their own nose) is to do your research and forget about the hype being pushed that Texas is "The land of milk and honey"!!