Your opinion for $500k House with $150k Income (Austin, Spring: sales, 2013)

[katie0123]

Hello,
I'm currently looking into buy a new house in Riverstone, Sugarland (specifically, Arden Spring with Westin Home builders). I checked most of model houses in Riverstone and that was the only one catches my eyes considering closed to hwy, new schools and house quality within my budget.

Our house income is $150k with two little kids total debt is 60K in current house mortgage and 10k in auto. We are not going to sell the current house when we move out, planning to rent it out.

Spoke to the loan officer and sales person from Arden Spring, for $500k house with 20% down, our monthly payment will be around $3,500.(**including taxes n insurance**) There is no problem to afford that payment, but it's not a comfortable amount though since I'm used to save a coulpe of thoughsands every month, but with new house it is going to be alot less.

Just curious about others opinion. With that income range and debt, what will be your price range for primary home shopping?

Thank you for your opinion in advance.

[mikeyyc]

Don't forget the additional $15K a year in property taxes. Call it an additional $1250 a month. Your $3500 is now pushing $5K.

You'll want newer furniture, decorating, moving costs...and on and on.

[Meyerland]

Lots of people do that, so it is doable. I would not sleep well though. Let's say you can't find a renter or the AC goes out in one house and the roof on another. That's tricky.

i would look for a cheaper house personally. Maybe $350,000 or $400,000.

[ipuck]

Buy what you are comfortable with. Since you are bring it up here maybe you should look at something with lower monthly payment.

You are paying about 1.25% or more in property tax than your neighbors in Sugarland. This basically means you are paying 1,000 more every month that will not going into the house equity. So instead of buying a 500k house, you are paying making monthly payments for a 600k house with the added property tax.

Also, the little kids will not be going to the Commonwealth Elementary which probably attract you there in the first place. The new school is being built and it might be 2 years before it get done. I heard they are changing plans again so it might even be more delay.

There is some big changes in the zoning for the First Colony area. The school system is having multiple meetings regrading this. Riverstone is one of the big reasons for this. Some of the parents in the original Commonwealth area are furious what their elementary have turn into due to the influx of new families coming into Riverstone. There should have been better planning done by FBISD instead of 1200 kids packed in a 700 kids school. And now they have overflow another school with Austin Parkway.

If you ask me the best bang for the buck right now is one of the older houses in the First Colony area. The elementary school will not be as packed, property tax is lot lower, and you basically lower your monthly payment by at least 1k a month with lower property tax. The Sweetwater area are beautiful with tree forest lined roads and nice lots instead of the little lots you get in Riverstone.

[DSL_PWR]

No way I'd do that.

Just with home expenses potentially you will be looking at almost 50% of your monthly income.

[hendersj31]

With 20% down that 3500 would most certainly include taxes correct? I line in Riverstone so I know the taxes are high but I doubt 3500 is just the mortgage payment.
If you don't get caught up in fancy cars or overextend yourselves I think you will be fine. Be better if you could find an area with lower taxes though.

[ToraG]

Ah, the typical american mindset..... You can do this, but expect to be foreclosed if anything happens to one of your incomes.

[gwarnecke]

Agree with ipuck - I'd look at closer-in, older-but-not-old areas with established, stable schools and lower property taxes. Some neighborhoods in SL w/o MUDs have <2.3% tax rate.

[swopoe]

We live in Riverstone, and ipuck has some good points. We moved here in 2013 and really love it though.

As for the school situation, I guess it depends on how old your little kids are. My kids all go to Commonwealth, but that will change when the new school is built.

Personally, with your income, I think $500k for a house is high. When we bought, our income was higher, and our house was less than that. I wouldn't go above $400 especially since you aren't selling the other property (being a landlord makes me nervous).

Good luck.

[MalteseYorkie]

I am of the mindset that one should always try to live beneath his/her means. Be very careful not to over extend yourself. Things can change within the blink of an eye...