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Once again, there is absolutely nothing I like in the 200k and under price point. They are too small. I was turned off when my sister entered into a bidding war for a house that was priced well above what it was worth. She offered 10k more than what was being asked and still did not get the house.
I agree. Everybody keeps screaming at the OP to "Buy a house!" and "Stop throwing away money on rent!" But with how ridiculously hot the housing market is now in North Texas, a lot of people are renting a LOT longer because it's extremely hard to find a nice house in a decent area that isn't too outdated and too small for less than about $300, unless you look closer to Oklahoma than Dallas. This is the dilemma for the average person living in North Texas long term these days who didn't relocate to DFW with $500,000 in cash to bid on and buy skyrocketing North Texas homes, that they made from selling an overpriced California house before they moved down here.
Last edited by NoClueWho; 04-28-2015 at 11:34 AM..
I agree. Everybody keeps screaming at the OP to "Buy a house!" and "Stop throwing away money on rent!" But with how ridiculously hot the housing market is now in North Texas, a lot of people are renting a LOT longer because it's extremely hard to find a nice house in a decent area that isn't too outdated and too small for less than about $300, unless you look closer to Oklahoma than Dallas. This is the dilemma for the average person living in North Texas long term these days who didn't relocate to DFW with $500,000 in cash to bid on and buy skyrocketing North Texas homes, that they made from selling an overpriced California house before they moved down here.
It is frustrating--saving for a down payment is saving for a moving target. The best plan is to already be rich to begin with. But nonetheless, I think the advice to go ahead and buy is good assuming you can stay in the house for at least 5 years. It's the way capitalism is, and I don't see the trends in DFW changing any time soon. Maybe the home price appreciation will cool off, but I don't see any declines in the near future. May as well get in now before it gets even more expensive.
I agree. Everybody keeps screaming at the OP to "Buy a house!" and "Stop throwing away money on rent!" But with how ridiculously hot the housing market is now in North Texas, a lot of people are renting a LOT longer because it's extremely hard to find a nice house in a decent area that isn't too outdated and too small for less than about $300, unless you look closer to Oklahoma than Dallas. This is the dilemma for the average person living in North Texas long term these days who didn't relocate to DFW with $500,000 in cash to bid on and buy skyrocketing North Texas homes, that they made from selling an overpriced California house before they moved down here.
Apparently OP doesn't really care about buying Her own house; she started this thread to find out whether it's ok to tattle on her friend who couldn't afford the rent increase in Plano ISD and moved, but is lying about residency to keep her kids in PISD.
I agree. Everybody keeps screaming at the OP to "Buy a house!" and "Stop throwing away money on rent!" But with how ridiculously hot the housing market is now in North Texas, a lot of people are renting a LOT longer because it's extremely hard to find a nice house in a decent area that isn't too outdated and too small for less than about $300, unless you look closer to Oklahoma than Dallas. This is the dilemma for the average person living in North Texas long term these days who didn't relocate to DFW with $500,000 in cash to bid on and buy skyrocketing North Texas homes, that they made from selling an overpriced California house before they moved down here.
It's a chicken and egg problem though. Ridiculously hot housing market generally causes an equally ridiculously hot rental market too. If people are bothered about rising rents right now, it's only going to get a lot worse very quickly as the big corporate moves approach closer.
I don't understand the "overpriced" argument either. A ****ty house priced at $250/sq ft in Frisco would be overpriced in today's market - because no one is willing to pay that. But if there are more than a few people willing to get into a bidding war for a 3500 sq ft. house priced at $450k, it's anything but overpriced.
It seems people are having a hard time grasping the fundamental principles of the free market economy. It sucks to be on the receiving end of it, but that's just the way it works.
I have some bad news for those of you with a pro-renter mentality. What would have cost you $200K five years ago is now going for $250K. And in another five years that same house may be will over $300K. Plano property values have shot up over the past year and if you want a home in Plano, and if you plan on being here a while, now is the time to buy. Rates are still very low. If you wait, you'll be 1) buying a more expensive house and 2) paying a higher interest rate.
So if you cannot afford a house payment in Plano, now you better revisit other areas like Carrollton, Lewisville, Little Elm, Aubrey, etc because you are pissing away money every month on rent, you could build equity in a home and you will pay much more in two years for a home that you will pay now.
I have some bad news for those of you with a pro-renter mentality. What would have cost you $200K five years ago is now going for $250K. And in another five years that same house may be will over $300K. Plano property values have shot up over the past year and if you want a home in Plano, and if you plan on being here a while, now is the time to buy. Rates are still very low. If you wait, you'll be 1) buying a more expensive house and 2) paying a higher interest rate.
So if you cannot afford a house payment in Plano, now you better revisit other areas like Carrollton, Lewisville, Little Elm, Aubrey, etc because you are pissing away money every month on rent, you could build equity in a home and you will pay much more in two years for a home that you will pay now.
That's true, but the big caveat is that you have to know that you'll stay in the house for 5 years in order to come out ahead buying over renting. Not everybody who could have bought 5 years ago would have managed to stay in that same house all the way until now. It's not always easy to know what the future holds, especially when you're in your 20s. If you're single, you may not want to buy a house until you're married and you can choose a house together with your SO. Or you may not want to plant roots in one city when taking a job in another city could get you a huge salary increase (salary bumps are all about taking new jobs these days--if you stay in your current role at your current company, expect a 2% COLA adjustment). Or you may not want to buy if you're planning on attending grad school (MBA) in another city when you're 28. Or you may be saving up for a 20% downpayment so that you can get the best interest rate, avoid PMI, and give yourself a cushion in case prices fall.
Also, if rent is "pissing away money", then so is paying interest, PMI, homeowners insurance, property taxes, and closing costs. Also utilities if your house is bigger than you actually need, lawn care, furnishings for the larger space, renovation projects with a negative ROI, etc. Only your payment toward your house's principal ever goes back into your pocket, and (conscientious) renters have the advantage of being able to put away the difference between PITI+maintenance and monthly rent into stock index funds that historically return about 9% a year (vs about 3% annual home price appreciation).
I think eventually, yeah, buying a house and planting roots is in everyone's best financial interest, but there's a price to pay if you do it too soon and end up needing to move 2-3 years after buying a house. So not everyone who rents is some shortsighted idiot who doesn't get the benefits of home ownership. Come to think of it, you did say "if you plan on being here for awhile", so I'm not really contradicting anything in your post, just sharing the view of a renter.
Buying home equity is an investment and sometimes it will win, sometimes it will lose. I know plenty of people who, upon having to move, lost money on their home equity (one coworker lost 25%).
If you think about moving costs, closing costs, realtor fees, property taxes, property insurance, mortgage interest, home maintenance... everything adds up and may net you zero factoring everything. If you factor in lost other investments and dividend income on all the money you put into a home, that gap can be larger.
OP needs to think of a home as a place to live, not as an investment. Homes as investments aren't worthwhile for the average person, unless you are in the biz. If it really was a true win, you would hear many more success stories than loss stories. Probabilistically that isn't the case.
Buying home equity is an investment and sometimes it will win, sometimes it will lose. I know plenty of people who, upon having to move, lost money on their home equity (one coworker lost 25%).
If you think about moving costs, closing costs, realtor fees, property taxes, property insurance, mortgage interest, home maintenance... everything adds up and may net you zero factoring everything. If you factor in lost other investments and dividend income on all the money you put into a home, that gap can be larger.
OP needs to think of a home as a place to live, not as an investment. Homes as investments aren't worthwhile for the average person, unless you are in the biz. If it really was a true win, you would hear many more success stories than loss stories. Probabilistically that isn't the case.
Again, OP clearly doesn't care about owning v renting, she's just pissed off that her friend doesn't live in Plano anymore and is forging school records so her kids can stay in PISD. If you'd like to tell her it's ok to tattle on her friend, she'll reply. IF you try to reason with her about buying vs renting, she'll flat out ignore your advice so save your breath.
I agree. Everybody keeps screaming at the OP to "Buy a house!" and "Stop throwing away money on rent!" But with how ridiculously hot the housing market is now in North Texas, a lot of people are renting a LOT longer because it's extremely hard to find a nice house in a decent area that isn't too outdated and too small for less than about $300, unless you look closer to Oklahoma than Dallas. This is the dilemma for the average person living in North Texas long term these days who didn't relocate to DFW with $500,000 in cash to bid on and buy skyrocketing North Texas homes, that they made from selling an overpriced California house before they moved down here.
This!!!!!! I have exactly 35k cash in hand for a down payment but even with that, absolutely nothing looked nice for under 200k. My realtor agreed, just wait until I have more for a down payment, then try again until I find something I LOVE. So I will continue to save so I can look in the 300k+ range and run from there. My credit is in the mid 700s so that is not an issue either.
There are lots of California people who are ecstatic with how cheap houses are out here due to it being very over priced in California.
Again, OP clearly doesn't care about owning v renting, she's just pissed off that her friend doesn't live in Plano anymore and is forging school records so her kids can stay in PISD. If you'd like to tell her it's ok to tattle on her friend, she'll reply. IF you try to reason with her about buying vs renting, she'll flat out ignore your advice so save your breath.
Reading is fundamental.
Unless someone in here has a secret magic MLS list of homes with more than 5 beds and 4 baths for under 200k, I will happily move forward with the process....even with 35k for a down payment, I still have not found anything. If I wait for another 2 or so years, I'll have over 100k cash in hand. What's wrong with wanting to do whats best for me? I might "throw away" X amount in the process but in the end, I am getting whats BEST FOR ME.
What works for you doesn't mean it will work for me.
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