Purchasing Property (Townhome and SF Homes) (Dallas, Plano: real estate market, renting, HOA fees)

[Dallas12]

Hope you all are doing great this morning!

Just curious to know if it's smart to buy a home in this current market. I believe I'm mentally prepared to make drastic moves, but maybe holding back would be a smarter decision.

Primarily a townhome or a single-family home peaks my interest in buying, but open to suggestions regarding pricing. Plano, Richardson, Dallas, and Allen are my target areas.

Quick glance at my finances:

• 31 year-old male; single

• 65k salary with large upside

• Over 810 credit score

• Zero debt (no student loans)

• Roughly 100k net worth (80% in investments; 20% in high yield savings)

• Goal to save an additional 12k in four months

[rabbit33]

Well, let's run this pop fly out.

Wtih 65k salary (let's not consider bonuses) you've got 5400/month gross. 1/3 of your gross is 1800/month, so that's what you can afford in payments. If you put 20% down you won't be paying PMI. I get from an online calculator that at 7% - 30 year fixed, your 1800 payment a month gets you a $285,000 purchase price with 20% = $57,000 down which you have on hand.

There's probably very very little in the cities you listed in single family houses for that, unless you want to live in the very skankiest areas. But attached townhouses are probably doable.

[Threestep2]

Please remember real estate taxes, maintenance, insurance, emergency repairs.

[ChristieP]

Originally Posted by Threestep2

Please remember real estate taxes, maintenance, insurance, emergency repairs.

Absolutely. With these to consider, you are still better off renting.

[Dallas12]

So basically, find a way to increase my overall income.

Also, is there any sign that the market is going to adjust and become more affordable? Homes in all shapes and sizes are overinflated!

[Threestep2]

Originally Posted by Dallas12

So basically, find a way to increase my overall income.

Also, is there any sign that the market is going to adjust and become more affordable? Homes in all shapes and sizes are overinflated!

Homes sell for what buyers are willing to pay. if you were a seller would you call it over inflated?

Get a real budget. write down every penny you have coming in and going out for the next six months.

Learn about homeownership - maintenance, yard, emergencies, insurance, utilities. How well stocked is your tool box? Are you familiar with closing costs and HOA fees?

What do you have to do to move the 65k base higher?

[rabbit33]

Originally Posted by Dallas12

So basically, find a way to increase my overall income.

Also, is there any sign that the market is going to adjust and become more affordable? Homes in all shapes and sizes are overinflated!

Or, size your expectations to your income, live below your means, and grow your savings/investments year by year rather than always scuffling.

It appears you're interested in the northern half of the area. If it were me I'd go shopping with that $285k budget and be open to other neighborhoods. A quick scan of Zillow turns up several possibilties in Garland, for example.

[move4ward]

Originally Posted by Dallas12

So basically, find a way to increase my overall income.

Also, is there any sign that the market is going to adjust and become more affordable? Homes in all shapes and sizes are overinflated!

If you are in a corporate job, $65k is a bit low for DFW for your 30's. You may be able to get a $15-25k raise, depending on your industry.

Unfortunately, many companies have a hiring freeze this year. Keep looking around for a higher paying job.

[ChristieP]

I agree that $65k is on the low end for a DFW salary. I'd shop around in this job market and see if you can find another company that is paying better. Or, increase your skills, such as using your employer's tuition plan to get your MBA.

[ChristieP]

Originally Posted by Dallas12

Also, is there any sign that the market is going to adjust and become more affordable? Homes in all shapes and sizes are overinflated!

Not going to happen.
1. People from all over the USA and the world are still moving to DFW in droves. Many of them are loaded with cash after selling a home in California and want to buy a home here. As long as those people are still coming, which shows no signs of slowing down, the DFW real estate market will remain high.
2. Corporations continue to relocate to DFW to escape higher-tax states such as California and Illinois, and they bring employees with them who also want to buy homes here. As long as that continues, the DFW real estate market will remain high.