What happens when rent gets too high? (Houston, Plano: transplants, 2013)

[MurphyPl1]

Originally Posted by JimGarrison

Why don't you buy a house??? Renting is only for people who do not plan on being there long-term. Now if you want to leave Plano and the DFW area because it's lame, then you can disregard my suggestion.

Because they don't "live" in Plano, they "stay" in Plano - therefore there is not a mindset to invest in anything.

[TheOverdog]

Do you realize a house payment on a $175K purchase is going to be several hundred dollars less per month than what you pay in rent?

Home sales in east Texas not going so well? You getting hungry or something?

[JimGarrison]

The madame indicated that she likes Plano. Therefore it suggests she will be here for at least several years. If so, she is foolish from a financial standpoint to rent and pay $1600 per month rent when a home would be much less and she is building equity.

Originally Posted by MurphyPl1

Because they don't "live" in Plano, they "stay" in Plano - therefore there is not a mindset to invest in anything.

[aggie972]

Originally Posted by MurphyPl1

Because they don't "live" in Plano, they "stay" in Plano - therefore there is not a mindset to invest in anything.

lol, I don't think this dog whistle fooled anybody.

[TurtleCreek80]

Originally Posted by Shayne_

Something that I've noticed about living here is the fact that rent seems to go up EVERY year (I stay in Plano). My landlord has tried to raise my rent by quite a bit but I always manage to talk her down. Her husband mentioned that I was the only tentant on the block whose rent is the lowest but its her property and he will let her do what she wants (They own 5 units in my complex).

I also notice that each year the "market" seems to be higher than the previous year. Whe I moved here 3 years ago, the property across from me was renting for $1200. This year it is renting for $1500s.
Last year a property I missed out on rented for $1650. I was excited when the agent called to tell me its up for rent again.......for $1900.

My good friend out here had to move because her rent went up by $200. In fact, she has moved every year for the past 5 years due to rent increasing. One of the parents at my son's school was telling me how she was using a friend's address in Plano because wasn't making enough to stay in Plano any longer.


Will there ever be some kind of cap that rent cannot exceed? Is there no regulation on how much rent can go up? Maybe thats what I am missing. What I can't help but to wonder if what happens if rent gets too high to the point that most people will not be able to afford it? (I know, if they can't afford it, they shouldn't be there. Ok, sure.....but I know its some "rich" people out there who wouldn't wan't to pay X amount either if rent continued to increase).

Prices can't rise if there aren't people willing to pay the higher prices. People who can't afford the higher prices live elsewhere. Texas is not NYC so you won't see any rent controlled laws here. We are a free market economy.

If your rent is in the $1500 range and you have good credit, you could buy a $250k home with 10% down. Your rent is equal to a mortgage payment + property taxes + insurance on a $250k home.

I agree with whomever said you're throwing your money away by being a long-term renter. If you buy, you lock in that $1500/mo payment (with small increases for taxes & insurance) and will eventually have a completely paid for home where your only monthly expenses are around $500 for taxes & insurance. You'll never have to deal with unexpected rent increases or worry about being priced out of an area you like.

Lastly, "rich people" tend to be property owners, not renters. About 64% of Americans own a home; but 80% of people with greater than the median household income own vs fewer than 50% of people who make less than the median. Rich people make good financial decisions that will build wealth for themselves. Owning real estate is the #1 way to increase your net worth. About 60% of an average - not rich- person's net worth is the value of their primary home. If you don't own a home, you're going to accumulate less wealth.

[TurtleCreek80]

Originally Posted by Shayne_

I considered that but I feel that housing is too over priced in Plano. The fact that I would have to pay 200k plus for a box bothers me. Even a condo out here is over priced, most are are going for 175k plus for a little 2 bedroom. No thanks.



DFW is awesome. I love all of my friend's I"ve made here

But the rent your paying NOW could buy you a $250k home!!! I don't understand your logic. Help grow your own wealth, not make your landlord richer!

[#1soonerfan]

OP why are you sold on Plano? It is the hot area and I wouldn’t expect it to be cheap.

Let me just say, I attended PISD schools from 6th-12th grade and graduated in 2004. I felt I got a very good education, but I also went to college with several other people who went to "lesser" schools who were just as smart if not smarter than me. I also know plenty of people I went to high school who struggled through college, if they went at all, are now poorly adjusted adults. A common theme is mom and dad shoved them into PISD thinking these world renowned schools will somehow correct whatever deep issue their child had (it didn't).

I'm going on a tangent here, but my point being I would not expect someone to put some level of economic hardship on them just to get into Plano. That goes for HP, Coppell, Carroll or any other “hot” area. There is nothing magical about these areas. Frankly, there’s too much emphasis that parents have to send their kids to the school, or else little Aiden or Olivia will become a juvenile delinquent. At the end of the day, Plano is a nice but nondescript new money sunbelt suburb that you can find in Houston, Atlanta, Phoenix, etc. There are many other cities in North Texas that are much more affordable that will provide your kids with a good education and you won’t be sweating over the rent.

[BstYet2Be]

Originally Posted by Shayne_

...I also notice that each year the "market" seems to be higher than the previous year. Whe I moved here 3 years ago, the property across from me was renting for $1200. This year it is renting for $1500s. Last year a property I missed out on rented for $1650. I was excited when the agent called to tell me its up for rent again.......for $1900.

Yup, that's exactly what happens when renting, and more so in any area where the demand meets/exceeds the supply. If you want a static monthly payment, you're going to have to have a fixed mortgage, like it or not.

Originally Posted by Shayne_

My good friend out here had to move because her rent went up by $200. In fact, she has moved every year for the past 5 years due to rent increasing. One of the parents at my son's school was telling me how she was using a friend's address in Plano because wasn't making enough to stay in Plano any longer.

FYI, that's called fraud... Per PISD admission doc:

Presentation of false information or neglecting to notify the school district of a change in residency status that results in lack of proof of residency in Plano I. S.D. will cause immediate withdrawal from school.

While I can understand a parent's desire to keep their child in the same school with classmates they've made friends with, this is only a short-term fraudulent fix that will serve neither the child or the parent in the long run.

Originally Posted by Shayne_

Will there ever be some kind of cap that rent cannot exceed?

No

Originally Posted by Shayne_

Is there no regulation on how much rent can go up?

No

Originally Posted by Shayne_

Maybe thats what I am missing. What I can't help but to wonder if what happens if rent gets too high to the point that most people will not be able to afford it? (I know, if they can't afford it, they shouldn't be there. Ok, sure.....but I know its some "rich" people out there who wouldn't wan't to pay X amount either if rent continued to increase).

Back to my first answer above... as long as there is a demand that meets/exceeds the supply, there is no such thing as "too high" for that particular market, people will pay what the market will bear and demand, simple economics.

What begs to be looked at - realistically - is one's own personal finances and what one can and cannot afford. If it's above one's means, then their wallet does not meet their wants and desires, simple as that. Then it's time to adjust those wants and desires to what in reality is actually needed. Let's face it, one's needs can definitely be satisfied in a lower-economical area, regardless of whether that's what one desires or where one might "think" one ought to be.
.

[Shayne_]

Originally Posted by JimGarrison

West Plano is expensive yes and snobby. Central Plano is reasonable but a little old. Little Elm, Aubrey are cheap and you can get a new home for much less than what you pay in rent. Even in many parts of Plano your rent will drop.

Do you realize a house payment on a $175K purchase is going to be several hundred dollars less per month than what you pay in rent?

I'm in the 75075 zip code. Not too sure if this is considered west.


Yes 175k is less however its not what I want......

[Shayne_]

Originally Posted by MurphyPl1

Because they don't "live" in Plano, they "stay" in Plano - therefore there is not a mindset to invest in anything.

Once again, its NOT what I want. I will continue to "stay" out here until I find what I want. Majority of the houses I would want are in the 300k range. So far we have 35k saved for a down payment and the goal is to keep on goin until we have about 50k to 100k to put as a down payment.


Where I came from you can get a whole of house for 150k. A WHOLE LOT OF HOUSE.