U.S. CitiesCity-Data Forum Index
Celebrating Memorial Day!
Go Back   City-Data Forum > U.S. Forums > Texas > Dallas
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Reply Start New Thread
 
Old 07-23-2015, 07:48 AM
 
27,447 posts, read 44,947,050 times
Reputation: 14041

Advertisements

Anecdotal evidence--
Someone who married a friend of friend put her house in Keller on market at time of her marriage last month. Probably more than a basic home since she bought it while married so 2 income earners but no kids. Priced over 300K.
On market 1day--more than 8 offers--she and realtor told bidders they were taking bids until 5pm that day and taking best offer--period...no haggling. Winning bid was all-cash and for (I think) 8-10k over list. The part that surprised me was the all cash since I would think most people wanting that area would be couple in 30s w/kids--- not type to buy all-cash.

My son and his wife have entry level home (price/sq ft) in Denton. About best elementary school area but house/lot have some drawbacks...one of which is that couple of other homes in their cul de sac look like squatters like there. They want to sell this Fall and move closer to jobs in Richardson and are debating if it is better to rent or buy. They definitely would be looking under 300K and competition is fierce.
Reply With Quote Quick reply to this message

 
Old 07-23-2015, 08:30 AM
 
201 posts, read 158,364 times
Reputation: 175
Quote:
Originally Posted by aggie972 View Post
Why is it "a happy thing for property owners"? Some property owners, yes. The ones who are landlords and are not occupying their homes. The ones looking to downsize, or to move from a high CoL area to a lower CoL area.

But why should Joe Blow rationally get excited when his formerly $200k house is now appraised at $300k if he doesn't fall in the above buckets? Maybe he thinks that his newfound equity will help him "trade up", but here's the problem. If his house went from $200,000 to $300,000 then the house he wants to trade up to that was previously $400,000 is now $600,000. So while he made $100,000 due to appreciation, his new purchase will cost him $200,000 more than it would have prior. Yes, the new equity will help him make the downpayment on the more expensive house, but in the long run, he's paying more for housing than he would in a market with more modest appreciation.

If he simply stays in the $200,000 house, then when it goes up to $300,000 he ends up owing more property tax. I think a lot of people like seeing their home appreciate because it's their biggest investment, and a bigger number looks better on paper. But it seems irrational to me unless you fall into a very specific group of homeowners.
Joe Blow can take out his equity using refinance and invest in stocks or real-estate and generate additional income?
Reply With Quote Quick reply to this message
 
Old 07-23-2015, 08:33 AM
 
201 posts, read 158,364 times
Reputation: 175
Quote:
Originally Posted by dhakaia View Post
Good effort by OP to help out the Dallas forums! And I honestly hope he didn't use Zillow, as they seem to be the worst in updating "listing status"! We have been looking for over a year and found Ziprealty and Realtor to be the most accurate/ up-to-date.

We have personally experienced how "hot" this housing market is . After losing out on 20+ bidding wars... we finally got a contract on a house in Plano, 75075. 4/3/2, 2100 SQFT, Harrington elementary for sub 220k.
You got a good house in nice school area. My kid will go to that school for a while till our house is built. Currently we live there in an apartment.
Reply With Quote Quick reply to this message
 
Old 07-23-2015, 09:00 AM
 
27,447 posts, read 44,947,050 times
Reputation: 14041
Quote:
Originally Posted by lovethisarea View Post
Joe Blow can take out his equity using refinance and invest in stocks or real-estate and generate additional income?
That is against the law in TX specifically to precent people putting their homesteads in jeopardy to speculate in the market...
People did that in states with high appreciation like CA and got slammed when the market fell, economy tanked, businesses laid millions off, and home values fell without a way to sell for the higher refinanced "value" of a home with heavy mortgage(s)...

Not very smart advice IMO
Reply With Quote Quick reply to this message
 
Old 07-23-2015, 09:00 AM
 
443 posts, read 339,081 times
Reputation: 272
The real question is how many people should be purchasing a home equal to $300k?

Given a generous ratio 2X your gross income, you should make $150K a year ($75K each for 2 incomes).

Seems like a stretch for a lot of people hmmmm
Reply With Quote Quick reply to this message
 
Old 07-23-2015, 09:16 AM
 
Location: Dallas, TX
2,828 posts, read 3,385,586 times
Reputation: 1815
Quote:
Originally Posted by gocubs418 View Post
The real question is how many people should be purchasing a home equal to $300k?

Given a generous ratio 2X your gross income, you should make $150K a year ($75K each for 2 incomes).

Seems like a stretch for a lot of people hmmmm
Two times your income is not super generous. 3-4 times you income is more the norm.
Reply With Quote Quick reply to this message
 
Old 07-23-2015, 09:19 AM
 
443 posts, read 339,081 times
Reputation: 272
Quote:
Originally Posted by bencronin04 View Post
Two times your income is not super generous. 3-4 times you income is more the norm.
Wow.... 4 times your income... talk about the Joneses.... jesus christ.

I would lean towards 1.5 as perfect. 2 as a stretch. 2.5 you are pushing it. 3-4 you are nuts.
Reply With Quote Quick reply to this message
 
Old 07-23-2015, 09:19 AM
 
485 posts, read 519,907 times
Reputation: 828
Quote:
Originally Posted by bencronin04 View Post
Two times your income is not super generous. 3-4 times you income is more the norm.
I think that's why he bolded "should" though. Carrying a balance on a credit card may be the norm, but that doesn't mean it's a good idea.
Reply With Quote Quick reply to this message
 
Old 07-23-2015, 09:26 AM
 
Location: Dallas, TX
2,828 posts, read 3,385,586 times
Reputation: 1815
Quote:
Originally Posted by gocubs418 View Post
Wow.... 4 times your income... talk about the Joneses.... jesus christ.

I would lean towards 1.5 as perfect. 2 as a stretch. 2.5 you are pushing it. 3-4 you are nuts.
Oh I'm not saying that is what you should do, just that it's what the "norm" is.

https://www.mainstreet.com/article/r...ch-spend-house

http://www.businessinsider.com/how-m...a-home-2014-12
Reply With Quote Quick reply to this message
 
Old 07-23-2015, 09:27 AM
 
443 posts, read 339,081 times
Reputation: 272
Quote:
Originally Posted by aggie972 View Post
I think that's why he bolded "should" though. Carrying a balance on a credit card may be the norm, but that doesn't mean it's a good idea.
Indeed.

For example,

$100k Salary = Gross $8,700 = take home = $6,300 cash maybe.

Best case: $400k House (20% down, $320k mortgage, $1800 mortgage plus $833 property taxes) = $2,633 = 41% income.

Most normal case: $400k House (5% down, $380k mortgage, $2,400 mortgage plus $833 prop tax) = $3,233 =51% income. Not to mention, PMI gets added in there and Home Owners Insurance.

So $3,000 to pay for everything else and save for retirement. Pretty tight.
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:


Options
X
Data:
Loading data...
Based on 2000-2016 data
Loading data...

123
Hide US histogram

Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > U.S. Forums > Texas > Dallas
Similar Threads
Follow City-Data.com founder on our Forum or

All times are GMT -6.

2005-2018, Advameg, Inc.

City-Data.com - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35 - Top