Why Would Anyone Rent in Houston???? (apartment, for rent, insurance)

[Visitor2007]

Housing seems to be soo affortable in Houston. In suburbs, one can get a 2 bedroom condo for about 65K. Even if it's 100% financing, it will only cost about $400/month. If property tax is 3.75%, it will cost about $200/month. Home insurance may cost another $125/month. That would add up to about $725/month for 2 bed/2 bath condo.

Isn't that much more affortable than renting?

[johnsmith]

The porblem is where you are working. Sometimes, the house is more expensive than 65K for 2/2 in your working area. Also, the house is old. Remember, the electricty and water is higher in price when you live at house. I lived at apartment before, $26 for water and $65 for electricty per month in 750 sq ft.

[Visitor2007]

johnsmith, I'm talking about a condo, so the water and electricity should be about the same as an apartment. Yes, it's old, build in the 70s or so, but, it still beat renting an apartment that's just as old and you may even pay more than $725/month for rent.

[Wysiwyg]

reselling maybe an issue

[johnsmith]

you don't need to pay all the repairs in the apartment, but you need in condo. For $725/month, you can have a new apartment and good facility.

[Trainwreck20]

Bad credit and/or no cash reserve will keep you out of a house.

[Visitor2007]

Originally Posted by Wysiwyg

reselling maybe an issue

Tell me more about this. Is it harder to sell in Houston than in other states?

[Redrover]

Another thing to factor in is that if you expect to be moving any time in the foreseeable future you may have a heck of a time unloading that property. It is a buyer's market so unless your condo shines like a diamond and smells like a rose it will largely be ignored.

[Trainwreck20]

Selling the house is probably not a problem in of itself...but there is little in the way of appreciation and you are unlikely to get the price you want. So if you plan to live in a house for only a few years, it is difficult to recoup the initial costs (realtor fees, closing costs, financing costs, etc.). I have heard that the rule of thumb is it takes 5 years to recoup these costs (mainly through itemized tax deductions) without considering appreciation.

[Vicman]

Also, when first moving to a metropolitan area, one should generally rent in order to get a "feel" for the area before buying a house.