Austin Real Estate News

It’s that time of year again – time for those interested in benefiting from the Travis County Homestead Exemption to file an application. The information in this post applies to any homestead exemption request in the State of Texas.

What is a Homestead Exemption?
For those new to this, a Texas homestead exemption reduces the taxes you owe on your home. For example, Texas school districts are required to offer a $15,000 tax exemption for qualified applicants, which means if your home appraises for $200,000 as of January 1st, the amount you pay in school taxes is based on $185,000 ($200,000 home value less the $15,000 school tax exemption). Austin’s school district rate for 2010 was 1.227, so in this example, if you filed for a homestead exemption on a $200,000 home, you would save $184.05 in taxes. Other taxing authorities (e.g. county, city) may offer exemptions of up to 20% of your home’s value, so filing for a homestead exemption is worth your while.

Who is eligible for a Travis County Homestead Exemption?
Homestead Exemptions in the State of Texas are granted to home owners who apply for the exemption on the home they consider their primary residence that they were living in as of January 1st of the year in which the exemption is requested. If you are 65 or older, or disabled, there are exceptions to this rule that are described in the application.

What is the Travis County Homestead Exemption Application process?
To apply for the Texas Homestead Exemption:

1. Fill out the application: Travis County Homestead Exemption Application.
   Helpful Info: For married couples, either person may be listed at the owner (the other owner blank is for 3rd party owners), just be sure the submitted required documents in Step 5 are for the person listed as owner. To obtain the Legal Description and acreage information requested on the form, you may want to look up your home’s tax record on using the Property Search on the Travis County Appraisal District’s Website.
2. Include the required proof of residency documentation (see NOTES below) required by the new law that went into effect in September of 2011.
3. Submit the application to the county appraisal district where your property is located no later than April 30th of the year for which you are requesting the exemption. For Travis County residents, you can mail, fax (512-834-8651), or hand deliver the application and required documents. For questions, or to verify any of this information, call the Travis County Appraisal District at (512) 834-9138. There is no charge to submit the application.

IMPORTANT NOTES:

The new proof of residency requirement is stated on the Texas Comptroller’s website: “House Bill 252 requires a copy of the homeowner’s Texas driver’s license or state identification card and the homeowner’s vehicle registration receipt be sent with the homestead exemption application. If the homeowner does not own a vehicle they can send a current utility bill showing name and address, along with an affidavit provided in the application indicating non-ownership of a vehicle. The address on the documents must match the address for which the homestead exemption is requested.” (Texas Comptroller)

If you do not have a copy of your vehicle registration receipt, you can request one from the Texas Department of Motor Vehicles. For Travis County residents, call 512-854-9473 to request a copy over the phone and have it sent right away via email. You will need your license plate number when you call. The charge is $5 ($2 plus a $3 convenience fee) for a phone order. To request a copy via the mail, see the TxDMV Vehicle Registration FAQ page or go directly to the request receipt form.

Please also note that additional information is required for those filing for the exemption on a manufactured home.

Do I have to reapply for the Texas Homestead Exemption each year?
Once you are granted the exemption, you do not have to reapply for it annually unless the Appraisal District notifies you that a new application is required.

Disclaimer and Additional Information
The information above is not to be considered tax advice, but is provided as a helpful reminder to our site visitors and clients. For the official rules and details on Texas Homestead Exemptions, see the Texas Homestead Exemption Application and visit the Texas Comptroller’s website for additional information on Texas Homestead Exemptions.

Austin continues to make lists of great places to live, this time appearing in Yahoo!’s “5 Places with Good Jobs and Cheap Housing”.  The author gathered data from the U.S. Office of Management and Budget, the U.S. Bureau of Labor Statistics, Forbes, CNN, and Sperling’s Best Places to create the list.  Read the full article on Yahoo! at http://tinyurl.com/3t87vvc.

We love hearing about Austin in the news, and this weekend the Wall Street Journal published a nice view of Austin on the front page of its Life and Culture section. SoCo, the Broken Spoke, Allen’s Boots, Jo’s Coffee, Fonda San Miguel – all were mentioned in this hour by hour look at spending a long weekend in our favorite city. Read it here: Take Monday Off: Austin. What we liked most was the lead-in:  “The Brookings Institution recently found the capital of Texas to be the country’s most popular destination for the 25-34 demographic.” Not that age matters – we just like seeing that people all over love our city…that’s good for all sorts of Austin businesses, it’s good for Austin home sales, and it’s proof that Austin has it going on. Love that.

Interested in making Austin home? Let us know. Call Reilly Realtors at 512.600.1800 and we’ll help you get to know our great city…or if you already live here, we’ll make your home sale or purchase a great experience.

A recent article on The Atlantic website lists the “30 Most Dynamic Cities in the World” and Austin makes the list. In fact, Austin was the only American city to make the list and only one of three cities in the developed world to rank. Reasons? Austin has not been hit as hard as most places by the recession and the housing market here is still strong. Austin benefits from being the seat of the Texas government, home to the University of Texas (and therefore home to jobs in education and research), and a draw for high-tech businesses.

That’s good news for us…and another reason why buying and/or selling Austin real estate may be a great move for you. Let Reilly Realtors know if you are ready to buy or sell in the Austin area. Our expert Realtors would love to hear from you. Call us at 512.600.1800 today!

Kiplinger’s Personal Finance Magazine’s says their “number-one Best City for the Next Decade [Austin] is a hotbed for small business — and music.” To make the case, Kiplinger’s cites the city’s network for entrepreneurs (angel investors, networking events, community programs, educational opportunities), talent pool, and atmosphere (” lakes and parks, plus its unique and funky businesses”).

Get the full story at Best Cities 2010: Austin, Texas.

Ready to move? We hope you will call us at 512.600.1800…one of our Realtors is ready to assist you today!

CNNMoney.com ranks Austin as #8 out of 50 best places to launch a small business. You can read the full story at Best Places to Launch, but the reasons for Austin making the list include:

• Business friendly tax environment (no state income tax and no corporate income tax)
• Strong support for business (especially technology)
• Fast population growth (doubled in 20 years)
• Skilled workforce (thanks to being home to the University of Texas)

Builder Online just updated its top healthiest housing markets, and Austin came in at #1. Here’s why:

“Even though it took a step backward during the last six months, Austin happens to be the only market on our list that is genuinely close to healthy. Home prices, which rose in 2008, finally declined this year—they are down 4.6% through September—as this Texas metro ended a long run of employment growth and lost some jobs. But its population has expanded by 4.3% during the first half of 2009, which should add housing demand and help firm up home pricing. It was the same story with Austin-area employment numbers, which remained in positive territory until mid-2009, when its manufacturing segment began losing jobs. Still, unemployment in this progressive city runs only about 7%, significantly below the national average. Dell Computer is Austin’s largest employer, with about 17,000 jobs. Austin continues to draw population, especially retirees, with its low cost of living, inexpensive housing, and warm-weather climate. The city had the third highest household growth rate in percentage terms among the top 100 market. Even so, permit activity fell by 38% during the first half of the year.”

Read the whole story here:  Healthiest Housing Markets 2009: Fall Update

The Wall Street Journal reported last Wednesday that Austin ranks #5 in its list of “11 Post-Recession Boomtowns”.  “The Wall Street Journal sought out six of the nation’s leading experts to rank the 10 U.S. cities they see as most likely to emerge as ‘youth magnet’ cities after the recession—popular target destinations among young, college-educated, often single people setting out to start a career, find a mate or both.” While the Journal itself notes that the rankings are not scientific (calling the effort a “parlor game”), expert demographers, economists, geographers, and urban issues authors were among the panelists.

The rankings appear below, as well as the details on why Austin made the list.

1. Washington D. C. (tie)

2. Seattle (tie)

3. New York City

4. Portland, Ore.

5. Austin, TX

6. San Jose, CA

7. Denver

8. Raleigh Durham, N.C.

9. Dallas

10. Chicago (tie)

10. Boston (tie)

“Fifth Place:  Austin, Texas

Topline: Nobody ever has anything bad to say about Austin. At least that’s what its fans say.

A state capital and site of the University of Texas’s biggest campus, Austin has become a gathering place for tech- and arts-minded young adults. The city has significant high-tech, computer and electronics sectors, helping make it “a model for a thriving 21st-century knowledge-based community,” one panelist says. Its annual South by Southwest media and arts conference and the yearly Austin City Limits music festival draw hundreds of thousands of visitors. Plus, the climate is cooler than most of Texas, and the cost-of-living is well below other cultural hot spots.

Downside: Some panelists have doubts about how strongly Austin will rebound after the recession. ”

See the full story at The Next Youth-Magnet Cities.

The Austin Business Journal reported on Tuesday that IHS Global Insight, an economic research firm in Massachusetts, shows Austin and San Antonio topping the list for recession recovery in the United States. According to the research firm, both cities should be back to their pre-recession employment levels sometime next year.

That’s good news for Austin and our housing market. For those of you looking to buy, this could be a sign that now is the time…while sellers, perhaps the grass will be greener next year if you are able to wait to sell.

Read the full report on the ABJ site at: Austin among best performing U.S. Metros

If you are interested in buying or selling in the Austin area, please give us a call. Our real estate experts would love to help! 512.600.1800.

Forbes.com is speaking highly of Austin once again. Our city just ranked #1 on their “Best Cities for Recession Recovery” list posted on June 10, 2009. Forbes gives credit to our relatively low unemployment rate and diverse economy that includes the University of Texas, Texas government, and high-tech employers like Dell.

Other good news more specific to the real estate market is that nationwide pending home sales are up for the third month in a row. The National Association of Realtors® says “buyers are responding to very favorable market conditions.” These conditions include more affordable home prices, record low interest rates, and the rush for first-time home buyers to purchase homes before November 30th in order to benefit from the up to $8000 tax credit.

Sources: Forbes.com The Best and Worst Cities for Recession Recovery and NAR’s Pending Home Sales Up for Three Months in a Row