Any advice for short-term delegates?

[GoPadge]

In Collin county at least, homestead exemptions are $15,000, but only for the ISD portion of the tax bill. The following taxing identities also offer a homestead exemption.

Taxing Entity.......HS exemption..Tax rate
Lucas City................8%......0.375000
Plano....................20%......0.473500
Seis Lagos Utility Dist..20%......0.450300
Westminster.............5,000.....none listed

Tax rates for the ISD's run between 1.54 and 1.8, but that will drop next year.

twojciac
I had figured in taxes and insurance in my figures, but I wasn't aware of the decline in prices. Either way it's a trade off, with a purchase you typically get more sq footage for your money, but then you do have to deal with maintenance and the potential loss when you sell. The only real negatives with renting a home are the loss of $$, the potential to be evicted (or not having your contract renew), and having to wait for a problem to be fixed.

I just wanted to point out that at the price point of $2500 a month for rent, there might be other options that would fit their needs. But it would require them to actually save the $500 a month difference. Something that most people find hard to do.

[socketz]

"Purchases of pre-owned homes fell by 4% in January, median prices were down 2%."

I believe your quoting NAR stats for the entire US. Sure, with Fla, AZ and CA making up like 1/2 that number, I'm sure prices overall will be down.

The stats I see for our market specifically has us up about 4-5% in 2006 and predicts another 4% in 2007. Dallas is one of the only markets in the US predicted to grow at this rate (Austin/Houston and El Paso are in the same group).

Sure, the market is slower than usual now, but it's winter and this is always a slow time of the year. I honestly belive that in Spring into Summer, we will receive yet another pop, just like the one we saw last year.

There is no bubble to pop in North Texas, so if you buy smart in the right areas that will see more appreciation than others (recall the 10 year growth trends between the 75 and Tollway), you'll be ok.

[CoolNJMom]

Thank you very much for your help. I guess the easiest and safest solution would be to just rent then. We will have to look at some places and if there is nothing we like, we can still buy something. We would try to stay in the areas you recommended. We are not looking to make money, if we break even after a year, it would be a great scenario.

[KantLockeMeIn]

I was quoting the Fort Worth Telegram's statistics for the Dallas + Fort Worth metro area.

Real estate is extremely regional, national figures aren't very useful.

I am actually surprised at the decline because I thought the market would be dictated by the area growth, job market, and income to debt ratios. In reading the articles, the problem in the area is supply. There are so many homes being built that supply and demand is kicking in, driving prices lower and increasing average days on market.

Like you I figured areas in California would see a huge decline because it's already way out of wack when looking at income to debt ratios and the number of interest only adjustable mortgages... it has nowhere to go but down. And DFW looks like it can only go up with the low cost of housing, decent salaries, and the number of people moving into the area.

Sorry to sidetrack the conversation!

[socketz]

"And DFW looks like it can only go up with the low cost of housing, decent salaries, and the number of people moving into the area"

You hit the nail on the head. I simply don't see the area slowing down over the next 2 years. Right now, it's exploding because people in areas with depressed real estate prices are flocking here (NY, CA, AZ, NV, Fla) trying to cash out what equity they have left. However, this CAN'T go on forever. TX will never cost more to live than say CA or Fla. So at some point, the prices here will increase enough to where the facade of 'cheap housing' vanishes and people just hunker down and remain put where they currently reside. It's then that the migratory effect will cease the beating it is causing these desirable areas along the coast and overall Real Estate prices will once again be at somewhat of a Market/local specific equilibrium.