Cinco Ranch Homes appreciate or depreciate in value? (Houston: foreclosure, renting)

[Mom2Feebs]

Not all real estate agents are devious, cunning, and manipulative. Most of us know the tax laws and will give you sound advice based on the neighborhood and home itself without trying to sell you a bill of goods. I maintain my license, but won't be going back to work for a few more years...but there are really good agents out there. I hate that the impression people get here from a few folks is that we're all criminals.

There are many neighborhoods in Houston and the area that are great investments--not just a place to "live". That said, having a good agent or at least a good market "eyes and ears" with you helps in that regard. Cinco Ranch is an extremely stable market that will most likely only grow over time. You won't see the growth that you'd get inside the loop, for instance, but you'll still see a growth, above what you'd see in some of the newer, run-of-the-mill subdivisions. Most master-planned areas are that way, though some are better investments than others.

Good luck with your search.

[Cookiekaikai]

Originally Posted by Rick4Life

I would have to dissagree. If you are talking about flipping a house in a year, then I do agree, I wouldn't do it. However, if you were to find a section of Cinco Ranch where builders are about to break ground I would want to be one of the first ones to build a home in there. Builders always raise prices just about every month in that community. If you buy it right when they break ground I wouldn't be suprised if you could make back 10% in 2 years.

5% per year before tax and broker fees and other ownership cost? Not impressive. For investment money, you are better off owning a CD or mutual fund.

[BearBranch]

Originally Posted by Cookiekaikai

5% per year before tax and broker fees and other ownership cost? Not impressive. For investment money, you are better off owning a CD or mutual fund.

You are leaving out the many tax advantages of home ownership.

[wheretogo]

Originally Posted by BearBranch

You are leaving out the many tax advantages of home ownership.

and for that 'Tax advantage', a home owner has so many 'Monthly dis-advantages' too.... HITIM (HOA, Intrest,Tax, Insurance,Maintenance)

[wheretogo]

Originally Posted by Mom2Feebs

but you'll still see a growth, above what you'd see in some of the newer, run-of-the-mill subdivisions. Most master-planned areas are that way, though some are better investments than others.

Good luck with your search.

Would you care to be more specific about your thougts on what are the run-of-the-mills' and what are the 'better investments' MPCs ?

[tstone]

I'll give you my own personal tax example here. I bought a house 2 years ago, so interest is all I really pay. Principal is very small due to how far this has amortized, and equity is low due to the fact values are stagnant.

I spend ~ $10,000/yr in interest and $4,000/yr in property tax to save ~ $1,500/yr in federal tax. Itemizing helps me over the standard deduction. I gradually lose the deduction year after year, and after some years once I pay down the balance, and as the IRS keeps raising the standard deduction, the ''tax advantage'' becomes nil. (You can find out when by studying an amortization table vs. the tax codes specific to your situation.)

Maintenance, for example: I only had one thing this year. I spent $6,200 (for 2/3rds of my HVAC system) so I can save $300/yr in taxes ("green" credit). If I would've gone with the regular system, it would've cost me $5,900. I figured since it costs the same overall, may as well go "green" since I'm into high efficiency home stuff. The electric bills are cheaper, anyway.

Now HOA + insurance runs me about $2,000/yr total. Money is poof, gone... no tax advantages here.

So tally it all up - I spent $25k this year in housing to save $1,800 in taxes. I don't consider this an ''advantage'' at all. The only ''advantage'' is no one can tell me what to do with this place as long as I keep the bank happy.

The "advantage" people talk about is buying vs. renting. You can spend a couple hundred $$$ more per month buying and be in the same financial situation overall compared to renting. Bad credit/subprime? Different story altogether.

[BearBranch]

Originally Posted by wheretogo

and for that 'Tax advantage', a home owner has so many 'Monthly dis-advantages' too.... HITIM (HOA, Intrest,Tax, Insurance,Maintenance)

My monthly mortgage, (complete with PITI,HOA and maintenance) is cheaper than what it would cost to rent my home. Plus, I have all the tax advantages. For maintenance issues I use homebuyers protection with a fixed cost at $40 per month ( handles issues like HVAC). I also pay an avg of $100 per month for gardening service.

[Wysiwyg]

Originally Posted by tstone

The only ''advantage'' is no one can tell me what to do with this place as long as I keep the bank happy.

mmm nope. the HOA makes sure you can't do everything you want

[tstone]

Originally Posted by Wysiwyg

mmm nope. the HOA makes sure you can't do everything you want

Well that is true to an extent. I pay $450/yr to let some HOA lackey bully me into trimming my trees @ 9 feet and to fix the sidewalk. I guess they at least keep our property values stagnant. It could be worse. As far as doing what I want inside the house, different story. I can do pretty much anything within reason in here. And the best part is, I don't have a landlord to sue for my deposit when I need to move out.

[Mom2Feebs]

I'd like to throw in something to consider other than tax advantages, because I don't think they're strong enough to be used for a lot of people. BUT--owning a home, in comparison to renting? That's like apples and oranges when you're talking about a 10 to 30 year span. Let's just say you're a smart person and never live beyond your means, either never upgrading to a bigger house or doing it the right way (every 5-10 years or so). You're building something you will never get with renting--equity. When it comes to retirement and you're ready to scale down or just maintain, which do you want? To keep paying rent for the rest of your life, or to have a home that's paid off so you can sell it and make money, or keep it and just pay your taxes (remember at 65 you get a huge chunk lopped off) and HOA fees? I don't want to pay rent the rest of my life. I have a 42' boat to buy when I'm 60.

If you plan it right, you'll get more than you ever thought. Don't waste your money renting!