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Austin has no gang issue or crime issue like we hear about in LA (You have to decide how much that issue in LA is exagerated :) ). Some areas have worse crime than others, of course, and that crime rate tends to center on level of income. Your biggest problem is that you are looking in a price range that is considered lower income for Austin housing, so if you want to be crime free, you'll have to move a little out of town.
The areas most often labeled as "bad areas" are in the area east of I-35 between Hwy 71 on the south and Hwy 290 on the north (Hwy 290 can be confusing--it runs from Houston to just north of Austin until it hits I-35, then it become I-35 south until south of Austin, where it become 290 West, for a little ways running together with Hwy 71. So I'm talking about the part of 290 on the north that runs eastward towards Houston). Also, 183 on the east side is the edge of that area.
I don't really agree with that label of "bad area," though, since it seems to be based more on race than crime or drugs or whatever. There are some bad areas in there, and some good, especially south the old airport (east of the old airport is one of the scariest). And there are some areas just to the northeast of Hwy 183, around Lamar, that have some bad incidents, though mostly around the apartments. Also, some of the areas white folk might be afraid of on the east are actually some of the more fun parts of Austin, without a lot of crime--especially just east of downtown.
Once you get out of Austin to the south or north you run into very conservative, sometimes redneck and racist areas. Kyle and Buda, for instance, though both of those areas are growing so fast it's hard to say what they'll be like in five years. Round Rock and Georgetown are both traditional "White Flight" areas, so if politics is part of your concern about "undesirables," choose those areas carefully.
About traffic--yeah, it's much worse in LA, and Houston, and Dallas, and New Orleans, and most cities I've been too. They are also working on some big projects that will make it better, mostly to the north, so I wouldn't avoid any areas because of traffic if you are thinking long term. Traffic from the cities to the north and the far northwest (out Hwy 183 past 620) are annoying, but not compared to LA.
Some areas you might check out--east of 183 towards Manor (a town name, said MAY-ner) and Decker Lake there are some relaxed housing and trailer areas where you might get the land you are talking about for the right price, and not be very far from the center of town. If you don't mind moving further out, you could look at Elgin (with a hard 'g--'east, along 290, past Manor). I used to live there and loved it--you can hear coyotes and still get to town in about forty minutes. Bastrop is a nice town, too, and the area along Hwy 71 towards it has some nice property. All the fun stuff is west of Austin, with the hills and views and creeks, but it's getting pricey. You might get lucky, though, if you get off the beaten path.
I live in northwest Austin, and there are some areas somewhat affordable around the McNeil and 183 area. I like northwest, because it is easy access to everything, and is also self-contained as far as shopping and dining and such go. It votes more conservative than the rest of Austin, but not too bad. There are some stunning parks. Also, north Lamar around Parmer Lane, and then Decker Lane just east of 35.
Another way to search is on WWW.REALTOR.COM. If you follow the link to "Map Search," then click on Texas, then Austin (it's right in the middle of the map ;) ), you can click on four areas, then highlight certain zip codes (while seeing them on the map), and enter price ranges and rooms and such. For instance, I just clicked on the area north of the river and got all the MLS listings for all houses under 125K (there were 200) in all zip codes. It has addresses so you can see where the are, and pictures and school info.
One last source: www.auschron.com/ It's the local free entertainment and politics mag, but has good classified listings.
Welcome to Austin!
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