Hi,

I have built several homes in the Austin area, and due to the price of lots, I think building is not an option.

If you want to live morgage free and live IN Austin, then I think your choices are going to be in the northwest area of Austin in the 183/McNeil/Parmer area. You could find a ranch style 3 bed 2 bath in the area and then "atomic ranch" it. There are some cool floor plans there with vaulted ceilings in the living space. I recently located a one story 2200 sq. ft. 4 bed 2 bath with 2 big living areas and have it under contract at $183,000. I have seen some deals for 3,2's in the $160's.

Another area would be east Austin. You can buy a cool condo there in the 850 to 900 sq. ft. range in a the modern open style for around $160K, or you could buy a house that might need a little cosmetic work. The east Austin area is where alot is going on in art, music and home renovations. It is the new "South Austin" if you will.

Im a Realtor, my web site is http://scottbettersworth.com  Let me know if you want some help. I would advise you to have me or someone set up some well defined searches that will automatically notify you of homes that fit you criterea within the areas that interest you. That way you don't have spend alot of time looking for homes on the net.

If you are moving to Austin to get away from the sprawl factor, i'd stay away from NW Austin. 183/McNeil/Parmer area has been developed to the gills. ApartmentLand CondoVille to the max. IBM and Dell  are up there and it shows.  More Big Boxes than you can throw a stick at.

South Austin has much more character, a little less traffic, and due to the SOS and Barton Creek watershed, fewer development has encroached. Also more chances to have greenbelt, views, and slightly bigger acreage.

The Capitol View Corridor Study has shown that S and SW has better view corridors too.

Note, All of Austin has it's share of over development, but North of the River is much more compressed and you will be stuck on either 183, I-35, or MoPac for a large portion of your commute.

Lastly, I'll mention crime statistics. Since N Austin grew North first, those cheaper housing units (i.e. Apartmentland) are now 20+ years old and is in severe decline. Crime statistic for those zip codes has skyrocketed.

My .02

Agave just began a new all modern, Agave design series. These are still designed by some of Austin's top modern architects, but not as high in price as the Agave architectural series. I think they may be a tad over what you mention...maybe 200k; but might be worth a look.

Agave is an entire neighborhood that is uber modern...

you might just get prequalified and see what you can afford or if there are certain lending programs you are not aware of that could help you afford more (I dont mean an ARM!! Unless you plan to move in 2 years or less!)

Personally I always recommend Gray Buffington but there are lots of good Austin lenders...your realtors can recommend some. I also personally like Robert Shaw; he sold my house when we moved to Agave. In 4 days. He is a 24/7 kinda worker.

Even if you do find your dream home in your price range, please be aware of the property taxes.  TX (and WI) have the highest property taxes in the nation.  TX also has the highest title insurance rates in the nation (when buying or selling property).  My house is in Central Austin and my property tax rate is 2.5%, which means that I must set aside approx $500/mo on a house that is appraised in the upper $200,000s.  Also, I'd recommend you find employment in your field BEFORE moving to Austin.  On the surface, Austin may appear prosperous, but the job market is tight and layoffs and hiring freezes abound.  Of course, timing is everything, but alas, opportunities are few.  It's nice to have a dream, but realistic research is key before relocating, which is very costly.