Am i ever going to buy house in DFW? (Dallas: rental market, loan)

[TurtleCreek80]

Originally Posted by stan4

You stay in an apartment until purchasing the home is a responsible and financially feasible thing to do. No matter what year it is.

Have some sense and have some discipline. That's what being a grown-up is about.

Yes, this. Owning a home is a privilege, not a right. Renting is not throwing money away- it's putting a roof over your head with no additional financial burden of maintenance & upkeep. In the Op's situation, renting is clearly a good move for now because it is allowing him to live in a neighborhood where he can't currently afford to buy.

[frisco19542]

Originally Posted by TurtleCreek80

Yes, this. Owning a home is a privilege, not a right. Renting is not throwing money away- it's putting a roof over your head with no additional financial burden of maintenance & upkeep. In the Op's situation, renting is clearly a good move for now because it is allowing him to live in a neighborhood where he can't currently afford to buy.

What you are saying is in theory correct. The problem is in a rising market what will rent cost vs you mortgage after a couple of years. If you look at the last 5 years renters have a decrease in standard of living due to rent increases.

Buying a house is a better bet because of inflation. If you can buy a house that is affordable and maintain it for 10 years you will be way ahead then renting long term. Not only that you will have built equity.

The only time time you should not buy a house is you feel like your going to be moving after a 1 or 2 years. This is because with transaction costs you are likely to lose money if you have to sell. The only other time is if you think the near term you will see house prices collapse like in 2008. Remember though that was a once in 60 year event.

If the OP wants to live here long term they should buy as soon as possible.

[Treasurevalley92]

Originally Posted by TurtleCreek80

I guess what I'm trying to say is I just don't understand why people continue to compare Dallas to these MUCH smaller cities and expect housing costs here to be the same as a city that's 1/5 the economic size. That's just unrealistic, as is the expectation that life is 90% the same in a city that's a fraction the size of DFW.

Because, if you live in one of the far flung northern burbs, it is no different than living in one of the nice suburbs in any other mid-large city. I understand if you are a top tier earner whose job is here in the metroplex that that would make sense, but for the rest of us middle class folks, dallas has become expensive and wages have remained low.

I understand the comparisons with Chicago, but they only work on paper. The cities in real life are physically totally different. As much as I love dallas our cultural amenities arnt even close to Chicago, and I live downtown and frequent our arts district.

When it comes to compare lifestyle of people living in a suburb, dallas is more like Indianapolis or KC than any of the top ten metros (except Houston)

So yes, if you live a typical middle class suburban lifestyle, suburban KC or Indianapolis do offer %90 of what suburban dallas does.

[frisco19542]

Originally Posted by Treasurevalley92

Because, if you live in one of the far flung northern burbs, it is no different than living in one of the nice suburbs in any other mid-large city. I understand if you are a top tier earner whose job is here in the metroplex that that would make sense, but for the rest of us middle class folks, dallas has become expensive and wages have remained low.

I understand the comparisons with Chicago, but they only work on paper. The cities in real life are physically totally different. As much as I love dallas our cultural amenities arnt even close to Chicago, and I live downtown and frequent our arts district.

When it comes to compare lifestyle of people living in a suburb, dallas is more like Indianapolis or KC than any of the top ten metros (except Houston)

So yes, if you live a typical middle class suburban lifestyle, suburban KC or Indianapolis do offer %90 of what suburban dallas does.

You can't compare the suburbs to like living in KC or Indianapolis. Those cities are much much smaller. You have to remember that people living in the DFW area have multiple places with good paying jobs. If you live in Indianapolis or KC and need to change jobs it means you have to move to another city.

You can't compare the culture part. It based on the business that is here. In many ways DFW is more like NYC or Los Angeles in shear size of good paying jobs and in many ways a much more diverse mix of business then Chicago. It's why you see the Chicago metro area losing population while Dallas will have over 10 million by 2030.

[Treasurevalley92]

Originally Posted by frisco19542

You can't compare the suburbs to like living in KC or Indianapolis. Those cities are much much smaller. You have to remember that people living in the DFW area have multiple places with good paying jobs. If you live in Indianapolis or KC and need to change jobs it means you have to move to another city.

You can't compare the culture part. It based on the business that is here. In many ways DFW is more like NYC or Los Angeles in shear size of good paying jobs and in many ways a much more diverse mix of business then Chicago. It's why you see the Chicago metro area losing population while Dallas will have over 10 million by 2030.

Indi and KC are big cities, changing cities for careers isn't a given.

If you switched careers in Dallas you might find yourself moving as well, Allen to say, Ft Worth would be a miserable commute.

And no, you can't compare the culture part because dallas would loose. I think people around here loose their minds when thinking about Dallas and try to compare it to NYC or something.

On the top ten metro list Dallas has the second worst CBD (Houston has the worst). I'm not saying I don't like it, I live down here and love it, but even if you count uptown it isn't in the top 10. there are many smaller cities like San Fran that beat us in cultural amenities.

There is no "punching above our weight" as far as urban amenities, the arts etc. we do have awesome local artists, great musemes etc, but what do you expect we are the 4th biggest metro in the country?!

Dallas's main appeal is jobs and low cost of living, but as the COA goes up and wages for most people don't, Dallas is loosing its key advantage.

[NoClueWho]

Originally Posted by Treasurevalley92

Indi and KC are big cities, changing cities for careers isn't a given.

If you switched careers in Dallas you might find yourself moving as well, Allen to say, Ft Worth would be a miserable commute.

And no, you can't compare the culture part because dallas would loose. I think people around here loose their minds when thinking about Dallas and try to compare it to NYC or something.

On the top ten metro list Dallas has the second worst CBD (Houston has the worst). I'm not saying I don't like it, I live down here and love it, but even if you count uptown it isn't in the top 10. there are many smaller cities like San Fran that beat us in cultural amenities.

There is no "punching above our weight" as far as urban amenities, the arts etc. we do have awesome local artists, great musemes etc, but what do you expect we are the 4th biggest metro in the country?!

Dallas's main appeal is jobs and low cost of living, but as the COA goes up and wages for most people don't, Dallas is loosing its key advantage.

Amen.

[J800]

The thing is, even with the factors mentioned above, Dallas will still appeal to Northerners and people from California because our COL will STILL be lower than other big metros.

[NoClueWho]

Originally Posted by J800

The thing is, even with the factors mentioned above, Dallas will still appeal to Northerners and people from California because our COL will STILL be lower than other big metros.

Yeah, but for how long if they keep flocking here and driving up the cost of living closer to theirs than to ours? One day, even they are going to look up and go, "Hey, Dallas is not such a great deal anymore like it used to be. It pretty much costs the same as back home does now." As many have noted, that's already happening with Chicago. One day it will happen with parts of California and other metros that people have flocked to DFW from for the "low cost of living," too.

[Zync33]

Originally Posted by stan4

It's not a bubble.
West Plano real estate didn't even take a hit in 2008.

It did not . Bcoz dallas never had overvalued prices before.

Give me few reasons why these are not overvalued.

Unlike SFO, NY and many other places, Dallas region is very big place and it can expand in any direction. There is no space limitations.

I know dallas is growing, so many companies are moving. Economy is good. Unemployment rate is very low.But still , 40% increase in home prices in just 2 to 3 years is ridiculous.

And moreover we pay very high property taxes compared to many other states. Our salaries are very low. atleast 30% low compared to other metro cities.


There will be big market correction. It is definitely bubble and it will burst. Dont know when. it may be in 3 months Or 3 years.

[TurtleCreek80]

Originally Posted by Zync33

It did not . Bcoz dallas never had overvalued prices before.

Give me few reasons why these are not overvalued.

Unlike SFO, NY and many other places, Dallas region is very big place and it can expand in any direction. There is no space limitations.

I know dallas is growing, so many companies are moving. Economy is good. Unemployment rate is very low.But still , 40% increase in home prices in just 2 to 3 years is ridiculous.

And moreover we pay very high property taxes compared to many other states. Our salaries are very low. atleast 30% low compared to other metro cities.


It is definitely bubble and it will burst. Dont know when. it may be in 3 months Or 3 years.

If you're SO confident that we're in a bubble, why are you even entertaining buying a home right now? Put your money where you mouth is and keep renting.