price of housing in Houston (sales, real estate market, new house)

[pete0428]

Hey guys,
I was looking at houses online and was shocked by the size and quality of homes that go for 200k in houston. I'm from NJ and 200k where I live seriously wont get you a shed in a decent area. It wont even get you a decent fixer-upper in a bad area. What gives? Is the salary difference that drastic or is the price difference due to other factors? I expect to make around $50-55k when I graduate in a year(accountant). What should I expect to make in Houston at a midsize or large public firm?

ps..just for comparison this is a house I saw in Houston for 200k
Single Family Home - 13203 JESSICA LN, HOUSTON, TX, 77069 - Realtor.com (http://www.realtor.com/search/listingdetail.aspx?ctid=4&mxp=20&typ=7&sid=d8c6bb6 a3ef444639e6ce052719f7412&sdir=0&sby=2&pg=1&lid=10 98321617&lsn=2&srcnt=12304#Detail - broken link)

this is a house in a town near me in NJ
Single Family Home - KEANSBURG, NJ, 07734 - Realtor.com (http://www.realtor.com/search/listingdetail.aspx?sby=2&ctid=24932&ml=3&mxp=20&ty p=7&sid=c5a8ce525b134b938898f1d5835a64cc&lid=11013 62520&lsn=5&srcnt=67#Detail - broken link)

[EasilyAmused]

My guess is that Jersey house is kinda close in. Small houses in nice hoods close to the Business districts are priced outrageously here in Houston as well. Not uncommon for 2300 sf homes to be over 550k in the most desirable neighborhoods.

Your Houston listing is in a bedroom community....unless you have employment out that way.

Houston suffers from major sprawl.

[pete0428]

I see, thanks for your post. I figured something had to be wrong because a house like that in most parts of NJ would be well over 500k. The house I posted from NJ is about an hour to NYC by train by the way.

[tstone]

Location location location. It's cheap because that's gonna be a long commute. It may even be unincorporated? I live a few miles outside the beltway in the outskirts of the city limit and 200k would get you 1000 less sq ft than that one.

And from what I understand & data I have access to, the salary for your degree (BBA) is generally going to be in the mid 40s down here, give or take. Realize also that degree is a dime a dozen and you will among a bunch of people with 3.5 GPA's jocking for positions, many of which probably don't pay that much, have benefits, or permanent status even. I know more floundering, 23 yr old BBA's than I'd like to admit.

Best to get your CPA & make some connections.

[EasilyAmused]

Originally Posted by pete0428

I see, thanks for your post. I figured something had to be wrong because a house like that in most parts of NJ would be well over 500k. The house I posted from NJ is about an hour to NYC by train by the way.

Yeah and the Houston house you posted is about an hour + to downtown or medical center by car during peak rush hour. We don't have trains. And I don't think that area runs express buses to downtown.

[pete0428]

Originally Posted by tstone

Location location location. It's cheap because that's gonna be a long commute. It may even be unincorporated? I live a few miles outside the beltway in the outskirts of the city limit and 200k would get you 1000 less sq ft than that one.

And from what I understand & data I have access to, the salary for your degree (BBA) is generally going to be in the mid 40s down here, give or take. Realize also that degree is a dime a dozen and you will among a bunch of people with 3.5 GPA's jocking for positions, many of which probably don't pay that much, have benefits, or permanent status even. I know more floundering, 23 yr old BBA's than I'd like to admit.

Best to get your CPA & make some connections.

Ya but there is a great demand for CPA's. I have around a 3.5 at Rutgers University. I doubt its known down there but it has a very good reputation up here. I'm also a double major and will be eligible to sit for the CPA Exam upon graduation. I have an internship this summer and will have one next as well.

Im confident that I will have a job lined up before I graduate up here, no idea what the situation is over there. Maybe its best to plan on staying in Jerz

[HTownNearNative]

Pete, if you really want to come to Houston, be sure to interview for Houston based oil and gas companies. Many large companies recruit all over the U.S. You'll want to take advantage of the on-campus interview opportunities and any other recruiting events companies set up at your university.

[Topaz]

Originally Posted by pete0428

Maybe its best to plan on staying in Jerz

The houses in Houston suburbs ARE nice for the money, despite the bias of many on this Forum against anything but close in residences (same city vs. suburb tension that exists in many other cities).

HTownNearNative's idea is a good strategy. Another one would be to explore companies that have offices in both Jersey and Houston. You could start there and after a couple of years, ask to transfer to the Houston office. Much easier than long distance job hunting.

[Supermac34]

My wife graduated from a PPA accounting program (you go five years, graduate with your BBA and MS, then immediately sit for the CPA exam). She came out of school at around 50K for a big four firm. She left and went to a small oil and gas firm about 2 years later, and after 3 years there, she makes nearly six figures.

I'd get my CPA and then the sky is the limit if you are willing to make a little less at first at an public accounting firm. You can then pick and choose where you want to work in as little as 2 to 3 years.

In my corporation, almost all finance and corporate business jobs, whether they do actual accounting or not, prefer CPAs and people with accounting degrees. You aren't limited to audit, tax, or doing books with a CPA.

Check out 77379 on www.har.com. It is in a nice area, has great schools, and has a close by park and ride for a commute downtown.

[professorsenator]

One thing to keep in mind, too, about houses in the Houston 'burbs is that asset appreciation can be iffy (or non-existent in some instances) and selling can be difficult. And some 'burbs that were hot at one time not too long ago have seen significant declines in house values (the FM 1960 area, for example). More often, price appreciation may only barely keep up with inflation for many houses, if that (this is due to the ever increasing amount of news housing being built -- your used home is in sales competition with the legions of new houses being built).

In NJ, your entry price will be much higher. But in most instances in good areas your home will hold its value better and have better opportunity for real asset appreciation. In Houston, lots of people own lovely houses in the outer 'burbs that are comfortable places to live, but their home is often a lousy financial investment in the long run. The places that have the best ROI potential are in the desirable closer in areas that are -- no surprise! -- much more expensive.

Houstonians often rationalize this by saying something like "I buy a home for a place to live, not an investment." But its common for poeple in NJ (and other places) to "cash out" when they retire, sell their home at a decent profit, and use the proceeds to fund their retirement. That's a lot less common among Texans because their home just doesn't appreciate in value in the same way.

The bottom line: its a VERY different real estate market with VERY different rules and expectations.