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Old 07-23-2015, 04:41 PM
 
11,675 posts, read 21,250,268 times
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Quote:
Originally Posted by MckinneyOwnr View Post
But what you were also assuming is that there was no significant downpayment.

I know people who live in $500k+ homes, making less than $100k a year. However, they've purchased several homes during their life, and have built up equity, so what they actually end up financing is well within their reach.
Exactly. People can come up with down payments through other sources of income, too. Even a small inheritance of $50k can put someone within down payment range.

Or working for a company that experiences an equity event. You could be a big box retail store general manager, making less than $90k/ year, but have received stock options or grants worth over $100k due to high performing stock in recent years like TJ Maxx, Ross, Macy's ($8 to $71/share since 2009), or Home Depot ($16 to over $100/share in the last 5+ years), etc. Some companies like the one my husband works for award stock grants annually to every level of the company, including hourly admins. Save that for 5-10 years and someone making $25-30k has a year's worth of salary in stock, not counting share price growth.

Do most people get stock grants or get a $50k inheritance? I don't know, probably not, but it illustrates the point that income is only part of the story.
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Old 07-23-2015, 04:41 PM
 
485 posts, read 520,631 times
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The best apples to apples comparison would be annual income (W2 wages, investment income if any, gifts from parents/inheritances, whatever) / total housing expense (principal, interest, taxes, insurance, maintenance/upkeep/repairs, renovation, utilities, etc). It all matters, there are people who couldn't afford their "free" upgrades on that show Extreme Home Makeover because their new houses had so much higher property taxes and utility costs.
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Old 07-23-2015, 06:40 PM
 
1,528 posts, read 844,898 times
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Quote:
Originally Posted by MckinneyOwnr View Post
But what you were also assuming is that there was no significant downpayment.

I know people who live in $500k+ homes, making less than $100k a year. However, they've purchased several homes during their life, and have built up equity, so what they actually end up financing is well within their reach.
No, I was just questioning where that downpayment came from.
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Old 07-23-2015, 06:45 PM
 
Location: Woodlands, TX
1,171 posts, read 595,681 times
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Take a look at neighborhoods / home quality and prices in 75126.

The north suburbs are not the end all be all ya know.
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Old 07-23-2015, 06:46 PM
 
1,528 posts, read 844,898 times
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Quote:
Originally Posted by TurtleCreek80 View Post
Exactly. People can come up with down payments through other sources of income, too. Even a small inheritance of $50k can put someone within down payment range.

Or working for a company that experiences an equity event. You could be a big box retail store general manager, making less than $90k/ year, but have received stock options or grants worth over $100k due to high performing stock in recent years like TJ Maxx, Ross, Macy's ($8 to $71/share since 2009), or Home Depot ($16 to over $100/share in the last 5+ years), etc. Some companies like the one my husband works for award stock grants annually to every level of the company, including hourly admins. Save that for 5-10 years and someone making $25-30k has a year's worth of salary in stock, not counting share price growth.

Do most people get stock grants or get a $50k inheritance? I don't know, probably not, but it illustrates the point that income is only part of the story.


I am not arguing against any of that. The only thing I said that in that income range, even with 20% downpayment, 2 kids, that amount of mortgage and all other costs would be stretching it, assuming that's all of the income and available funds. Now obviously, if somebody is just independently rich, or just cashed 500k in stock options, or sold the house they bought for 10k 40 years ago in Silicon Valley, South bay, or pick your favorite one for 2 mil everything changes.
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Old 07-24-2015, 09:51 AM
 
Location: Dallas, TX
2,828 posts, read 3,388,050 times
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For what it's worth I found a few houses in RISD (close to Dallas, "safe" area, good schools) for under 300K. All updated and with pools.

http://www.realtor.com/realestateand...1_M81067-95747

http://www.realtor.com/realestateand...1_M85023-64982
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Old 07-24-2015, 10:18 AM
 
443 posts, read 339,594 times
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Quote:
Originally Posted by TurtleCreek80 View Post
Exactly. People can come up with down payments through other sources of income, too. Even a small inheritance of $50k can put someone within down payment range.

Or working for a company that experiences an equity event. You could be a big box retail store general manager, making less than $90k/ year, but have received stock options or grants worth over $100k due to high performing stock in recent years like TJ Maxx, Ross, Macy's ($8 to $71/share since 2009), or Home Depot ($16 to over $100/share in the last 5+ years), etc. Some companies like the one my husband works for award stock grants annually to every level of the company, including hourly admins. Save that for 5-10 years and someone making $25-30k has a year's worth of salary in stock, not counting share price growth.

Do most people get stock grants or get a $50k inheritance? I don't know, probably not, but it illustrates the point that income is only part of the story.
I think you are really reaching on this example....

What I truly think is happening is people are buying homes with >5% down payment.
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Old 07-24-2015, 10:19 AM
 
Location: North Texas
23,603 posts, read 31,169,837 times
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Quote:
Originally Posted by bencronin04 View Post
For what it's worth I found a few houses in RISD (close to Dallas, "safe" area, good schools) for under 300K. All updated and with pools.

http://www.realtor.com/realestateand...1_M81067-95747

http://www.realtor.com/realestateand...1_M85023-64982
There's a handful in my neighborhood with "For Sale" signs out front under $300k. Better schools than in 75081, too.
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Old 07-24-2015, 10:34 AM
 
Location: Dallas, TX
2,828 posts, read 3,388,050 times
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Quote:
Originally Posted by BigDGeek View Post
There's a handful in my neighborhood with "For Sale" signs out front under $300k. Better schools than in 75081, too.
Yea, I know Berkner isn't a top choice, but I'm still more comfortable with it than any open enrollment DISD school. I love Richardson and think it will be our next home.
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Old 07-24-2015, 11:09 AM
 
Location: North Texas
23,603 posts, read 31,169,837 times
Reputation: 26673
Quote:
Originally Posted by bencronin04 View Post
Yea, I know Berkner isn't a top choice, but I'm still more comfortable with it than any open enrollment DISD school. I love Richardson and think it will be our next home.
Sure, but you can buy in the RHS or JJ Pearce zones for under $300k if you don't mind a smaller house, one that needs a little updating, or just get really lucky.

You're definitely not going to get a 2k+ sq ft 3-2 or 4-2 house that's updated and move-in ready for under $300k in Richardson in a nice school district. That ship has sailed for the most part! If you're content with living in less than 2k sq ft and can deal with doing some cosmetic updates or even tearing out a couple of bathrooms or the kitchen...now we're talking.

Richardson's a great area. Not fancy, not rich, not shiny and new. But it's a solid, safe, and demographically diverse area with great schools and a kickass location.
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