Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Actually I found him on a website, and choose him due to him being honest in his answer to a question asked. He was not attempting to coerce or push the person into getting into a mortgage until he is ready.
After thinking about things, I feel that a townhouse would be a better fit for me. I have read several people on here mentioning house burglary and the thought of someone breaking into my house terrifies me. I feel a Townhouse would feel safer, similar to an apartment setting.
I have found several townhouses that would fit my budget. I was speaking to a female friend who is a police officer in NYC. She advised me that any female who lives alone, should have a pistol in residence for protection.
I spoke to my RE agent and expressed everything that I was advised on this site. He said when he first moved to Dallas he rented for a year and half/ He felt it was NOT a good idea in this market to rent for a year.
Yes- this is because HE wants a paycheck from the commission HE'LL make by selling you a house......whether it's a good decision for you or not.
Why is it not good to wait it out for another year? Bernake (the Fed) has promised interest rates aren't budging for 2 more years so mortgage interest rates are going to stay around 4%. The Dallas market is stable, not really going up or down, and it looks like that's going to hold true for at least the next 12-24 months. YOU have nothing to lose by waiting another year.
Quote:
Originally Posted by Mishie723
He said that if I took the route of renting a house, I would have to look at a house in the $150 range which would be simpler to just own in that price range. He felt I would do better if I go for a house in the $200 range versus the $150 range. He also explained that a house around $200 range would be around $1700 a month with everything included.
Yes, this shows he knows NOTHING about the rental market. What your r/e agent doesn't realize/know is that in the established neighborhoods, many landlords have owned their rental properties for years and keep rents at FAR BELOW what it would cost to buy the property today & rent it out. The first listing below (on Martel Street) has been owned by the same person since 1993 - 18 years!! It's a safe bet to say he paid under $100k for the building (now appraised at $225k with market value closer to $275k) and is making plenty of money at $1,150/mo.
Here are some rental listings (duplex or house, both with yard) near your office:
He also explained that the cost of living is much cheaper in Texas than in NYC so you are ultimately living a better lifestyle in Texas versus NYC. He also pointed out that there are NO state taxes.
I have lived in both NYC and Dallas. Yes, it's easier to live in Dallas. IN DALLAS. Not an hour north in Anna or Melissa or Little Elm where the brand new homes are $150k- then your quality of life SUCKS because you're spending 2+ hours driving to/from work every day, $1,200 annually on tolls, and putting approx 15,000 miles a year on your car. All to have a brand new home in the middle of nowhere.
There are no state income taxes here, but property taxes are high (they pay for things your NY state income tax pays for). Car insurance can be high (hailstorms & lots of uninsured motorists). Home insurance is high (hailstorms, tornado, wind, flood plains and other "weather" threats). Sales tax is 8.25%. Once you get outside the center city, there are a LOT of tollroads (ie, Little Elm to downtown Dallas is currently about $6-7/day and the tollroad is pretty much your only option).
Texas becomes a lot cheaper than NYC once you're making big-time money ($150k++) and you can CHOOSE to buy a less expensive home (ie, $300k vs the $450k you qualified for) therefore controlling your property tax bill, CHOOSE to buy a less expensive car (ie, Toyota Highlander vs Range Rover) therefore controlling your sales tax exposure, etc. If you're middle class, it takes a bit less money to live in Dallas but it's certainly not like $57k is going to make you feel upper-middle class. Just hopefully less paycheck-to-paycheck.
Quote:
Originally Posted by Mishie723
That since I earn $57G a year and have no debt. That I should be able to manage the $1700 without a problem.
You need to do your own budget to decide if you can do $1700 "no problem" - as he says.
This is a helpful website for you to figure your Texas net paycheck. You can plug in your expected 401k contribution, expected health insurance costs, etc and it spits out your net pay (monthly, weekly, etc). Texas Salary Paycheck Calculator | Payroll Calculator | Paycheck City
With no deductions for 401k, etc, a $57,000 annual income yields $3,737/ mo. The "rule of thumb" is to not spend more than 30% of your net pay (25% of gross pay) on housing- whether it's rent or a mortgage. $3,737 x .3 = $1,120 / mo. I'd say your realtor is WAAAAAY off in his "advice" about what you can afford to spend on housing. You're going to need a car, which can easily add up to $700+/ mo for payment/gas/tolls/insurance. You're going to need to heat & cool your home & pay for misc other home bills (est $250/mo). Cell phone, savings, health care, food & entertainment, etc- it all adds up!
I just would caution you not to over-extend yourself so you can keep saving up to afford a nicer home in a better location when you buy- and have money left over for furniture, decorating, and to keep your savings account healthy!
Quote:
Originally Posted by Mishie723
I explained that I did not want to be house poor and as a result find myself in foreclosure. He explained that he would INSIST that I get a good house inspector and not advise me to buy without a house inspection. He also agreed that older does not mean unkempt and not up to today's standards.
Of course you're going to not buy a home without an inspection! I can't even belive he had to "advise" you not to do so. That's just a given.
I just really don't get a good vibe off your realtor. How did you find him?
Yes- this is because HE wants a paycheck from the commission HE'LL make by selling you a house......whether it's a good decision for you or not.
Why is it not good to wait it out for another year? Bernake (the Fed) has promised interest rates aren't budging for 2 more years so mortgage interest rates are going to stay around 4%. The Dallas market is stable, not really going up or down, and it looks like that's going to hold true for at least the next 12-24 months. YOU have nothing to lose by waiting another year.
Yes, this shows he knows NOTHING about the rental market. What your r/e agent doesn't realize/know is that in the established neighborhoods, many landlords have owned their rental properties for years and keep rents at FAR BELOW what it would cost to buy the property today & rent it out. The first listing below (on Martel Street) has been owned by the same person since 1993 - 18 years!! It's a safe bet to say he paid under $100k for the building (now appraised at $225k with market value closer to $275k) and is making plenty of money at $1,150/mo.
Here are some rental listings (duplex or house, both with yard) near your office:
I have lived in both NYC and Dallas. Yes, it's easier to live in Dallas. IN DALLAS. Not an hour north in Anna or Melissa or Little Elm where the brand new homes are $150k- then your quality of life SUCKS because you're spending 2+ hours driving to/from work every day, $1,200 annually on tolls, and putting approx 15,000 miles a year on your car. All to have a brand new home in the middle of nowhere.
There are no state income taxes here, but property taxes are high (they pay for things your NY state income tax pays for). Car insurance can be high (hailstorms & lots of uninsured motorists). Home insurance is high (hailstorms, tornado, wind, flood plains and other "weather" threats). Sales tax is 8.25%. Once you get outside the center city, there are a LOT of tollroads (ie, Little Elm to downtown Dallas is currently about $6-7/day and the tollroad is pretty much your only option).
Texas becomes a lot cheaper than NYC once you're making big-time money ($150k++) and you can CHOOSE to buy a less expensive home (ie, $300k vs the $450k you qualified for) therefore controlling your property tax bill, CHOOSE to buy a less expensive car (ie, Toyota Highlander vs Range Rover) therefore controlling your sales tax exposure, etc. If you're middle class, it takes a bit less money to live in Dallas but it's certainly not like $57k is going to make you feel upper-middle class. Just hopefully less paycheck-to-paycheck.
You need to do your own budget to decide if you can do $1700 "no problem" - as he says.
This is a helpful website for you to figure your Texas net paycheck. You can plug in your expected 401k contribution, expected health insurance costs, etc and it spits out your net pay (monthly, weekly, etc). Texas Salary Paycheck Calculator | Payroll Calculator | Paycheck City
With no deductions for 401k, etc, a $57,000 annual income yields $3,737/ mo. The "rule of thumb" is to not spend more than 30% of your net pay (25% of gross pay) on housing- whether it's rent or a mortgage. $3,737 x .3 = $1,120 / mo. I'd say your realtor is WAAAAAY off in his "advice" about what you can afford to spend on housing. You're going to need a car, which can easily add up to $700+/ mo for payment/gas/tolls/insurance. You're going to need to heat & cool your home & pay for misc other home bills (est $250/mo). Cell phone, savings, health care, food & entertainment, etc- it all adds up!
I just would caution you not to over-extend yourself so you can keep saving up to afford a nicer home in a better location when you buy- and have money left over for furniture, decorating, and to keep your savings account healthy!
Of course you're going to not buy a home without an inspection! I can't even belive he had to "advise" you not to do so. That's just a given.
I just really don't get a good vibe off your realtor. How did you find him?
This, all of it, every word. TurtleCreek80 is WISE.
Thanks for all the sound advice!!!!!!!! I was on a website where potential sellers can ask questions of Real Estate agents. I felt that he was different from other RE and was not saying "call me let's discuss it further or I can get you into a house".
That is why I did not want to go over $150, would I be able to find a nice townhouse in a safe area?
By the way, no need for car payment, my car is paid off. This is really sounding like this is not a doable situation for me. My sister retired and had her house built in Mira Lagos. I came to visit and feel in love with the atmosphere in Texas, felt it would be a wonderful place to relocate to.
Not I am not to sure able Dallas being a good choice.
Thanks for all the sound advice!!!!!!!! I was on a website where potential sellers can ask questions of Real Estate agents. I felt that he was different from other RE and was not saying "call me let's discuss it further or I can get you into a house".
That is why I did not want to go over $150, would I be able to find a nice townhouse in a safe area?
By the way, no need for car payment, my car is paid off. This is really sounding like this is not a doable situation for me. My sister retired and had her house built in Mira Lagos. I came to visit and feel in love with the atmosphere in Texas, felt it would be a wonderful place to relocate to.
Not I am not to sure able Dallas being a good choice.
Once again THANKS for all the advice.
.
Two things->
1. townhomes are GENERALLY not a good purchase in the DFW area because outside of a few very dense neighborhoods in central Dallas, townhomes & condos do not appreciate at all. In some suburbs, they just continue to drop in value as single family homes are only a bit more expensive - say maybe $150k for a townhome but $225k for a home. It's not like NYC where a condo/coop may be $300k and the single family home next door is $800k or $1M.
If you can find a townhome in the following zip codes in your budget that you like, it could possibly be a good candidate- 75204, 75219, 75206, 75205. Not all townhomes in these zips are good buys. You'll have to study up on how well run the HOA is and track their value over time. But generally those are the zips where condos/townhomes at least hold their value.
2. DO NOT move to Dallas if you're not interested in living here. Just because it's more affordable than NYC does not mean you're automatically going to love it here. Finances are only one contributor to quality of life. Come, spend time, figure out what neighborhoods you like & feel "at home" in, and then find out what the real estate market is like in those neighborhoods. That alone may answer your buy vs rent question if you fall in love with a neighborhood where homes cost $300k but rentals are in your budget.
Where in NYC do you live? What are your favorite neighborhoods? What do you like about them?
There's more to life than being able to afford granite countertops or a 3rd bedroom
By the way, no need for car payment, my car is paid off.
Uh, what happens if the transmission in your car dies, and it costs $3000 to rebuild? What happens if one of those aforementioned uninsured motorists wrecks and totals your paid off car and your insurance company only gives you $7500 to get another car?
Don't EVER put yourself in a situation where you do not have the ability to make a car payment. You NEVER know what will happen...
I live in Queens, I like the neighborhood due to it being in an area that is predominately homes in my area. Only three apartment building in the area. All the expressways are accessible to me within 10 minutes time. I also like that it is 4 stops on the train to my job and 30 minutes on the bus. SSA gives their employees a subsidy for transportation. Due to lack of parking availability. Why I do not want to have to drive long distances to work, I have reverted to a Sunday driver. Sunday drivers do NOT belong on Dallas Expressways
I like that the neighborhood is low in crime, I feel safe coming home. The areas I like to visit is the South Street Seaport and downtown Manhattan. Anywhere that is far from the hustle and fast pace of city living.
What I did enjoy about Texas was the quiet life, that was far removed from the fast pace of NYC. You are right it is more than 3 bedroom and granite countertops.....thanks for the laugh
As of Last week, the median income for households in Dallas was $36,403, The average salary $32,000. How is it possible for a household, which is more than one person is $36,403 and that hh is able to purchase a house in a very good area. I am single, debt free and excellent credit, and I am not able to find a nice home to purchase in a good area. That I am being told that it would be a struggle for me. I read on hear a few days ago a person saying her spouse was relocation to Dallas and that she was a stay at home mom with two kids. She said her spouse would be the only income coming into the household. She was told that with $60 that her spouse would be earning would be hard, but doable
Thank you for the suggestions, the reason I mentioned a newer home was due to less repair in the near future. For example: new roof, New heater and things that come with an older home. With a newer home, I felt I had a few years before I would have to replace or repair.
I don't mind leaving the 75202 area, I just would like not to be far from work. I was in Dallas last years, and I am not used to Dallas drivers. People not signaling and cutting right in front of you. I had people blowing horns on me on the expressway, which is against the law in NYC. I am not a speed demon driver and people were riding my bumper. I was unaware of where I was going and driving to listen to the GPS and drivers cutting me off and blowing horns and riding my bumper is NOT for me.
You are right old buildings are excellent and I presently like in a brick building over 60+ and is excellent condition. Feel safe and no worries although Hurricane Irene will be here in a few hours..
The apartments that were mentioned were very cheap, you can't even get a room for that in NYC. Those prices are Great, I have a one bedroom apt and pay $1100 a month.
I have several people advising me to rent an apartment and then search for an area to purchase a house. I am just so ready to own my home. To relax in my backyard after a hard day at Social Security. Which I would not be able to do in an apartment complex.
Older homes that have been maintained and kept updated can actually be less of a maintenance nightmare than that in a newer home. Depending on the builder and the quality of items and subcontractors they use, you may end up replacing a 5 year old AC unit or water heater. But if you bought the 1978 house we moved out of, you'd have gotten a new higher end water heater and AC unit and probably wouldn't have to worry about it for 10 years. AND that house is in a decent neighborhood with decent schools, developed parks and in that price range you were looking at.
Some other financial statistics to help you understand Dallas:
The median household income in Dallas is $45k- that means 50% of households make more, 50% make less.
Nearly 20% of Dallas households are below the poverty line.
Only 55% of Dallas households own their homes. This is LOW- the Texas rate is 65% own.
Dallas is largely a city of "haves" and "have nots". There are entire neighborhoods where homes cost less than $50k. Some even as low as $10k or $15k. Most of the nice, safe neighborhoods start around $250-275k. Some neighborhoods are entirely over $1M. So when you read that the "average" or even "median" home price in Dallas is $150k, it's VERY misleading as there really aren't many city neighborhoods where homes actually cost $150k. It's either quite a bit less (and probably not in a neighborhood you'd want to live in) or quite a bit more. So to answer your question, the people making $39k either aren't buying at all, are buying in cheap neighborhoods, or are super-over-extended (think sub-prime loans, foreclosures, etc).
From what you described about NYC, I do think you'd probably like some of the East Dallas neighborhoods or the near-north suburb of Richardson. Both are largely single-family home neighborhoods- the apartments that are there are quaint and not mega-complexes. Lots of locally owned restaurants (few chains), lots of ethnic foods and people of various backgrounds. Close to fun things to do on the weekend- outdoor activities at White Rock Lake in East Dallas or the several running/biking trails in Richardson, the Farmer's Market downtown, cute coffee shops, cultural outlets (theatre, Musuem, galleries, live music), etc. East Dallas meets your commute requirements as you wouldn't even need to get on the freeway to get to work. Richardson is a 20-30 minute commute on US75, but it will have more homes in the $150k range. I think you can probably find a life you'd like here IF you can become less focused/rushed on the housing front.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
