How far will $200,000 go in Dallas? (Garland, Richardson: 2014, for rent, HOA fees)

[aggie972]

I was reading this article on CNN about how Fannie Mae and Freddie Mac are changing their guidelines such that they'll buy mortgages from banks when people put 3% down (I know this is probably going to spur a debate about potential housing bubble round 2, but that's not the focus of my post).

Getting a mortgage is about to get easier - Dec. 9, 2014

Unlike FHA mortgages, these are considered standard loans that qualify for lower interest rates, and allow PMI to be canceled at 20% equity.

I ran some numbers, and on a $200,000 house, assuming 4% interest and 4% closing costs, I'd be looking at a mortgage payment of $1,172 a month, which is about what my SO and I pay for rent (this estimate is probably a little low, as the site I'm using doesn't account for higher property taxes and homeowners insurance premiums in Texas).

We are 27, so if we found a house in Dallas proper (would consider the suburbs, but not ideal right now for lifestyle considerations and work commute) that had a good elementary school (no kids yet, but planning on it later), then we could probably stay in it for about 15 years if we wanted to. What would be the best areas to look at? I work at coit/churchill and she works at greenville/walnut hill. If getting near a good elementary is a stretch for $200,000, buying something without regard for schools and moving in 10 years would also likely be a better financial play than renting over the same time period. I should probably also mention that I'm torn on single family home vs condo. I think I'd prefer single family home because it's a better investment, but part of me could also see giving up a little financially to not have to worry about mowing the grass or replacing the roof.

[TurtleCreek80]

I would look in 75229 (northwest Dallas roughly from Walnut Hill north to Forest, Midway west to Webb Chapel). On the western edges, you can find good single family homes for low $200k's (not under $200k, but definitely under $250k). Two good elementary schools cover that area (Withers and DeGoyler). Lots of young families. I wouldn't look west of Webb Chapel b/c safety becomes a concern.

You could also look east of White Rock Lake (Casa View neighborhood @ roughly Garland & Peavy). No good public schools but less expensive housing than 75229.

Other than that, $200k is pretty much priced out of single family homes in safe, well-kept neighborhoods south of 635. I didn't include any neighborhoods south of I-30 due to your commute. If you're willing to drive from North Oak Cliff to your job locations, there are several more neighborhoods to add to the under $200k house list, but they aren't zoned to Rosemont (the one good elementary school there).

I would not recommend a condo. You would be forced to look in Uptown to have any chance of price appreciation and $200k is kind of the dividing line between nice 1/1 or outdated/small 2/2.

[aggie972]

Originally Posted by TurtleCreek80

I would look in 75229 (northwest Dallas roughly from Walnut Hill north to Forest, Midway west to Webb Chapel). On the western edges, you can find good single family homes for low $200k's (not under $200k, but definitely under $250k). Two good elementary schools cover that area (Withers and DeGoyler). Lots of young families. I wouldn't look west of Webb Chapel b/c safety becomes a concern.

You could also look east of White Rock Lake (Casa View neighborhood @ roughly Garland & Peavy). No good public schools but less expensive housing than 75229.

Other than that, $200k is pretty much priced out of single family homes in safe, well-kept neighborhoods south of 635. I didn't include any neighborhoods south of I-30 due to your commute. If you're willing to drive from North Oak Cliff to your job locations, there are several more neighborhoods to add to the under $200k house list, but they aren't zoned to Rosemont (the one good elementary school there).

I would not recommend a condo. You would be forced to look in Uptown to have any chance of price appreciation and $200k is kind of the dividing line between nice 1/1 or outdated/small 2/2.

Thanks, this is good info. We may have to decide if we should set the budget at $250,000 instead.

[RonnieinDallas]

Originally Posted by TurtleCreek80

I would look in 75229 (northwest Dallas roughly from Walnut Hill north to Forest, Midway west to Webb Chapel). On the western edges, you can find good single family homes for low $200k's (not under $200k, but definitely under $250k). Two good elementary schools cover that area (Withers and DeGoyler). Lots of young families. I wouldn't look west of Webb Chapel b/c safety becomes a concern.

There's a few nice houses east of Marsh in 75220 zoned to Withers for 200k. 250k if they've been redone.

[bencronin04]

[mod cut]

Mortgage Calculator that will let you input tax and insurance: Mortgage Calculator

Just remember there comes a lot more expense with owning outside of just your monthly payments as opposed to renting. Maintenance can get expensive...FAST. Also, make sure to look at HOA fees as well especially if you're going to look into condos.

[aggie972]

Originally Posted by bencronin04

[mod cut]

Mortgage Calculator that will let you input tax and insurance: Mortgage Calculator

Just remember there comes a lot more expense with owning outside of just your monthly payments as opposed to renting. Maintenance can get expensive...FAST. Also, make sure to look at HOA fees as well especially if you're going to look into condos.

Yeah, that's the site I used. It assumed 1.25% property tax though, and I assume that's low for Dallas. I ran the numbers on the NYT rent vs buy calculator accounting for maintenance and insurance, and factoring in opportunity costs like foregone investment returns.

[bencronin04]

Originally Posted by aggie972

Yeah, that's the site I used. It assumed 1.25% property tax though, and I assume that's low for Dallas. I ran the numbers on the NYT rent vs buy calculator accounting for maintenance and insurance, and factoring in opportunity costs like foregone investment returns.

Dallas area property tax with everything included is going to run you between 2-3%....Dallas itself is around 2.7%. I'll PM you a chart.

[orangecat1]

If you go to the suburbs, I maintain that the property taxes are closer to 3%. The state maximum for schools is $1.67, and very few school districts are actually at the max. They are Royse City, McKinney, and Prosper.

You will see city property taxes around the .60 to .90 range. Your county tax rates are nice and low, maybe the low .20s.

Then you will see community college tax rates, and they are even lower. Collin college's rate is around .08.

1.67 + .63 + .22 + .08 = 2.60. That's pretty standard I would think.

[BigDGeek]

Originally Posted by orangecat1

If you go to the suburbs, I maintain that the property taxes are closer to 3%. The state maximum for schools is $1.67, and very few school districts are actually at the max. They are Royse City, McKinney, and Prosper.

You will see city property taxes around the .60 to .90 range. Your county tax rates are nice and low, maybe the low .20s.

Then you will see community college tax rates, and they are even lower. Collin college's rate is around .08.

1.67 + .63 + .22 + .08 = 2.60. That's pretty standard I would think.

Sounds right.

Mine breaks down thusly:

Dallas County: 0.2431
City of Richardson: 0.63516
DCCD: 0.124775
RISD: 1.34005
Parkland: 0.286
Dallas County School Equalization: 0.01


Total per $100 of valuation: 2.639085

http://www.telecomcorridor.com/commu...ta/tax-rates-1