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Old 10-02-2015, 07:35 PM
 
619 posts, read 533,379 times
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People tend to buy houses in plano/frisco for a higher mortgage to get into a good school district. But can't you just save that extra monthly payment and send your kid to private school? A 100k difference in the mortgage would make around 1k on monthly payment including taxes/insurance. And private school tuition comes under 10k (non high school rates). Am I correct here?
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Old 10-02-2015, 07:51 PM
 
11,671 posts, read 21,231,508 times
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Quote:
Originally Posted by nitynity View Post
People tend to buy houses in plano/frisco for a higher mortgage to get into a good school district. But can't you just save that extra monthly payment and send your kid to private school? A 100k difference in the mortgage would make around 1k on monthly payment including taxes/insurance. And private school tuition comes under 10k (non high school rates). Am I correct here?
You have to weigh the pros & cons of both. Also, most decent schools are over $10k for K-8....I'm not even talking the elite schools but ones like The Kessler School, Schofield, Prestonwood, FBA, etc. Catholic schools are under $10k IF you are Catholic; if not, they are $10k & up once you include mandatory fees & other expenses. And high schools across the board are in the $15-25k range. Plus, this only works for 1 child. If you have 2 or more kids, the tuition cots would require buying a home $200k++ less than the public school equivalent. In your example, you'd also lose around $2500 in tax breaks each year for having lower decuctions.

We bought our house in PH based on your thesis, but we didn't buy a home that was $100k less, we cut our budget by almost 50% so that we'd have plenty of cash for 2 private school tuitions and all the expenses that come with private schools.
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Old 10-02-2015, 08:01 PM
 
619 posts, read 533,379 times
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Thanks turtlecreek. 100k was just the lower cutoff, the house we bought, an equivalent in Plano/frisco definitely cost 200k+
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Old 10-02-2015, 08:03 PM
 
Location: Shady Drifter
2,444 posts, read 1,730,452 times
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What kind of hit would you take in appreciation in an area without a good school district, too? One of the local realtors can chime in, but quality of schools is (I would imagine) a very significant factor in not only what a home costs, but how much it appreciates over the years.
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Old 10-02-2015, 08:18 PM
 
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If you can do it and still live in a nice area like TC, sure. If to make it work you have to live in Pleasant Grove then no.
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Old 10-02-2015, 09:10 PM
 
Location: Southlake. Don't judge me.
2,809 posts, read 3,564,894 times
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One of the tradeoffs is that the mortgage is money spent to purchase an asset that will (hopefully) appreciate in value over the 12 years Junior (or Juniess) is getting their good education, but the private school tuition money just gets the education, not the more valuable asset.

Obviously there can be other expenses with "bigger house" than just the mortgage, but if we're talking in general about "similar house, but more expensive" in Good ISD vs. Notsomuch ISD, then that factors into things.

You just have to run the numbers and figure things out. Also non-financial considerations come into play - will it be more difficult for kid to interact with classmates outside of school at Private because everyone is scattered around vs. Public? Depends on the school and the neighborhood environment. That's just one thing, there's many others. Private vs. Public isn't just about SAT score averages - there may be religious/philosophical considerations. There may be athletic programs. And dozens more people could probably come up with.
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Old 10-02-2015, 09:56 PM
 
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Homes in top public school districts are better investments. They are easier to sell, rent and do appreciate better. Good private schools are $20k+ for each kid so this only works for people with one kid, otherwise you loose too much money. Not good for middle class parents.

What you can do is to buy in a good district but don't go for house too big, too new or too many upgradeds. If you buy a modest home then you can save money and still give kids good education. I'm living in a small HP condo because private schooling for two boys didn't make financial sense for me and I didn't want to put them in second tier public or private schools. By the time they leave schools, I'll have good acuity in my condo and meanwhile we are living in a good area and they are going to best public schools that my income can buy.

You can do HP, SL, Plano or Coppell, whatever suits your finances. All give good schools and good neighborhoods, who cares if your homes isn't the biggest showcase of latest upgrades. Your retirement and your children's education come first.
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Old 10-05-2015, 08:59 AM
 
Location: Plano 75024
409 posts, read 841,464 times
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Quote:
Originally Posted by nitynity View Post
People tend to buy houses in plano/frisco for a higher mortgage to get into a good school district. But can't you just save that extra monthly payment and send your kid to private school? A 100k difference in the mortgage would make around 1k on monthly payment including taxes/insurance. And private school tuition comes under 10k (non high school rates). Am I correct here?
Not when you have 4 kids and you want them to grow up in a nicer neighborhood around like minded peers and don't want to drive 30 mins to take them to school.

I actually went to a top notch private school growing up and b/c of this I would never ever send my kid to private school. I am 100% against it.
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Old 10-05-2015, 04:54 PM
 
Location: Dallas, TX
2,828 posts, read 3,385,586 times
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I went to both public and private. My parents moved me out to private and into HPISD solely based on having classmates/friends near by, even though I was a year ahead in math and English coming from private.
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Old 10-05-2015, 05:03 PM
 
421 posts, read 306,323 times
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Think resale. A lot of folks will buy more house in a good district that would never consider sending their kids to private school. Better district here is a big deal. The house is going to appreciate... private school tuition is money spent and gone.
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