First time home buyer question (Dallas, Howe: real estate, condos, transfer to)

[Gb20]

Hello everyone. I am a 24 year old married individual looking to potentially purchase a home in the DFW area in the next few years (but not this year and likely not next). I should have between 30-40k for a down payment. My question is given the swift home appreciation in the area is it still possible to get a solid starter home in a safe neighborhood for around 140-150k? I don't expect something extremely nice. It is a starter home after all. Maybe just a decent 3 bedroom that's in good shape. I'm also unsure how homes will be priced in 2017 (who possibly could?) so 150k in two years could be even worse. Thanks for any input.

[bencronin04]

It's possible, but you will either be
A) Living an hour + from Downtown Dallas
B) In an unsafe area
C) In a very old house in need of multiple updates.

*You could possibly look into town homes or condos?

[Gb20]

I am not opposed to a town home or condo. However, I am not tied to the downtown area necessarily either. How does the metro area as a whole fare in terms of starter homes?

[Rakin]

I have sold several "Starter" homes recently that have seen a 30-40% increase in value the last 2-3 years.

The next 2-3 will probably be the same.

It's already difficult to find much below $200k in a decent area.

[bencronin04]

Do you want a new and shinny home? I mean you can do a search online for what you want and find it pretty quick.

This is an idea of your options in "Dallas" itself.

[dallas89]

You can definitely find a place in the DFW area. What specific areas are you interested in?

If you want to remain in Dallas, you could probably look in far east Dallas in the area bounded by Buckner (Loop 12), Ferguson, and Interstate 30. If you don't find something that works in this area, you will probably find something east of this area on the other side of Buckner

[TurtleCreek80]

Originally Posted by bencronin04

It's possible, but you will either be
A) Living an hour + from Downtown Dallas
B) In an unsafe area
C) In a very old house in need of multiple updates.

*You could possibly look into town homes or condos?

This.

OP,
Assuming current appreciation rates continue for the next 2 years (which they are forecasted to do so), a $150k home in 2017 is a $125k home today.

Unless you have chosen an incredible income-inelastic career, I wouldn't worry about buying a house now. I bought my first place in my late 20's and at that point, my income had already doubled since graduation. At age 24, I would have been looking at a $125k home (and it would have been a tight budget!), but by age 28 I was able to easily afford a $200k home. IMO, most professional incomes accelerate at a faster rate between age 22-35 than the housing appreciation we're currently seeing....maybe you're not getting a 10% raise every year, but you can easily get a 20-25% bump every 3-5 years by company hopping. Now, if you're a teacher or on a government salary scale, this isn't true, but for most professions it is.

[TurtleCreek80]

Originally Posted by Gb20

I am not opposed to a town home or condo. However, I am not tied to the downtown area necessarily either. How does the metro area as a whole fare in terms of starter homes?

"Starter homes" in most of DFW cost $250k+.

If you have any dreams of a new/newer construction starter home, you're pretty much looking at $300k+ these days unless you're willing to live in a bedroom community an hour from Dallas.

If you want a $150k home, maybe try Ohio or Michigan....

[Gb20]

It's certainly true I may be able to afford a 200k+ home in a few years, but it's hard to plan for that. I am coming from Kansas City, but my parents recently moved to the area and I am thinking of joining the family (especially as they are getting older). I can transfer to a position with the Federal Reserve, but moving close to downtown commute could be expensive. Basically it sounds like if I can't get together enough for a 200k home things do not look good. Correct me if I am wrong. Also, I live in downtown KC right now, but I do prefer suburban lifestyle (nothing against urban living).

[unknown00]

I miss the days the stereotype of Texas having nice cheap real estate was true...sigh...

like everyone said, you really need to save up and make your budget $200k+ for anything decent