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Re: Housing prices
Originally Posted by Lynne
(Post 4280741)
House prices around here have gone up stupidly, in my opinion. They are building new houses like there is no tomorrow. There are two new subdivisions going in by me. One the starting price is $300,000.00 and the other starts at $500,000.00. For $500,000.00 you will get a 2,800 square foot home on less than half an acre. If you want to buy just the lot, half acre lots range from $85,000.00 to9 $97,000.00 depending if you have a view of the lake. I think a lot of these builders are hoping to make money from those moving down here from Virginia, but I think they probably will get burnt just a little. Even older houses are not going cheap. I am just glad I am not having to find somewhere to live. Apartment rental has also gone up, a two bedroomed apartment on a nice complex will set you back $699.00 a month, unfurnished.
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Re: Housing prices
Originally Posted by Dan725
(Post 4281715)
I bet most people on this forum outside Alabama are just quaking in their boots at those outrageous prices, particularly those in California and New York! ;) ;) $699 for 2 bed apartment in a nice complex? Stupid, just stupid! ;) 2800 square feet on less than half an acre? Robbed, we were! :)
LOLOL and what makes it worse is you could end up with almost a thousand dollar a year property tax bill. :eek: |
Re: Housing prices
Originally Posted by Lynne
(Post 4280741)
House prices around here have gone up stupidly, in my opinion. They are building new houses like there is no tomorrow. There are two new subdivisions going in by me. One the starting price is $300,000.00 and the other starts at $500,000.00. For $500,000.00 you will get a 2,800 square foot home on less than half an acre. If you want to buy just the lot, half acre lots range from $85,000.00 to9 $97,000.00 depending if you have a view of the lake. I think a lot of these builders are hoping to make money from those moving down here from Virginia, but I think they probably will get burnt just a little. Even older houses are not going cheap. I am just glad I am not having to find somewhere to live. Apartment rental has also gone up, a two bedroomed apartment on a nice complex will set you back $699.00 a month, unfurnished.
How do I get there? :D |
Re: Housing prices
Every market is different. One thing to look at is how much it would cost to buy, rather than rent, the same house.
Another is the fact that if you own a home, your mortgage interest and taxes can be written off your federal income taxes. Depending on your income bracket, this can be a HUGE tax savings.... or a little tax savings. Houston's rental market HAS been pressured by New Orleans evacuees, but in general they are going to buy and rent at the lower end of the property spectrum. In cities in the South, there may be an incredible difference between what $150,000 buys vs $200,000 -- simply because there are exponentially fewer buyers as the price increases. I would not go into the real estate market in Houston to make money owning just your own home, but if you're going to live there, you may as well do the maths on renting vs buying. You must also factor in desirable neighbourhood vs the location of your job, as commute times in Houston are horrible and you cannot depend on public transportation. In fact -- your FIRST purchase or rental needs to be a car so you can even begin to have a look around! I am biased towards the Clear Lake/NASA area as a nice place to live but that comes from having family and friends there. If I had a lot of money? Bellaire. |
Re: Housing prices
One thing I could never understand is why to rent?
After all, if you spend $20,000 (or more) over two years on rent, what do you have to show for that? While a condo, if you are not buying at the top of the market just before it falls, will not be likely to drop in price by that amount over the same time. So why does renting make sense? Someone needs to explain it to me (in short sentences!) lol... Cheers Mike |
Re: Housing prices
Originally Posted by MikeK
(Post 4282213)
So why does renting make sense?
Someone needs to explain it to me (in short sentences!) lol... Investors are buying these homes not only for rent, but for the appreciation in their value (which can be huge). A good percentage of properties, then, are not for sale -- but they are for rent, so the investor can get some return for their money. In a market like this, the number of properties for rent outnumbers those for sale and I have seen friends able to rent far, far more inexpensively than the cost of the house down the street! Contrast this to a market where the houses are not appreciating and the average income isn't that good. There are fewer houses for rent since there are fewer investors. Rental rates can then *exceed* that of a mortgage payment, simply because fewer rental houses increase the average rent. A renter in this situation can obviously afford the mortgage payment on a house, but they cannot afford the down payment, not even with the "creative" loans on offer today. They also cannot afford to make any substantial improvements or repairs -- anything more than $100 could exceed their budget, and when you own a home, even with homeowners insurance, there are a lot of costs associated with upkeep. In these cases renters rent because they simply can't buy. Make sense? |
Re: Housing prices
Originally Posted by snowbunny
(Post 4282291)
I'll try to explain the market in the area near San Francisco, California for an "average" family house.
Investors are buying these homes not only for rent, but for the appreciation in their value (which can be huge). A good percentage of properties, then, are not for sale -- but they are for rent, so the investor can get some return for their money. In a market like this, the number of properties for rent outnumbers those for sale and I have seen friends able to rent far, far more inexpensively than the cost of the house down the street! Contrast this to a market where the houses are not appreciating and the average income isn't that good. There are fewer houses for rent since there are fewer investors. Rental rates can then *exceed* that of a mortgage payment, simply because fewer rental houses increase the average rent. A renter in this situation can obviously afford the mortgage payment on a house, but they cannot afford the down payment, not even with the "creative" loans on offer today. They also cannot afford to make any substantial improvements or repairs -- anything more than $100 could exceed their budget, and when you own a home, even with homeowners insurance, there are a lot of costs associated with upkeep. In these cases renters rent because they simply can't buy. Make sense? I bought a house in FL for cash , which has been static in value for the past two years , I have spent a small fortune on maintenence/ remodelling ,and on top of that am now faced with a realtors bill of nearly 6% of the sale price, some $30,000. I for one wish that I had rented , during the past two years. When I bought the place I really thought that FL was for us, after nearly 3 years here now know that I was mistaken. |
Re: Housing prices
I suppose that it makes sense to rent if you are not very sure about your area...
I will give that some thought.. Although, I am planning on making a trip over to check a few places out..But I suppose it would not hurt to rent for a few months, at least.. But once you are in a place, there is the added hassle of actually moving again! lol... by the way, I have lived in the US several times, so I know much about 'things' in general...Just nothing about Houston.. Cheers Mike |
Re: Housing prices
Originally Posted by MikeK
(Post 4283458)
by the way, I have lived in the US several times, so I know much about 'things' in general...Just nothing about Houston..
Cheers Mike http://houston.com/ |
Re: Housing prices
Originally Posted by MikeK
(Post 4282213)
One thing I could never understand is why to rent?
After all, if you spend $20,000 (or more) over two years on rent, what do you have to show for that? While a condo, if you are not buying at the top of the market just before it falls, will not be likely to drop in price by that amount over the same time. So why does renting make sense? Someone needs to explain it to me (in short sentences!) lol... Cheers Mike Convenience - not having to deal with household crap You are paying for a service. Proiperty taxes in many parts of the USA are very high, so once that is factored in, it can be cheaper to rent straight off the bat Give you an example one of my tenants family has grown larger and she told me she wanted to look at buying a house, I said no probs, I'll help you find one - how much do you want to pay? The same as my rent right now.... I then explained to her that her rent on a nice 3 bed 2 bath duplex with a garage and a big yard would get her a 2 bedroom shack in a shitty part of town if she was paying a mortgage and taxes/insurance... simple math - $725 a month is not gonna get you a house worth more than $90k especially if you are in most people situations and can;t come up with a deposit, and in her case with mid 500's fico scores... |
Re: Housing prices
Originally Posted by MikeK
(Post 4282213)
One thing I could never understand is why to rent?
After all, if you spend $20,000 (or more) over two years on rent, what do you have to show for that? While a condo, if you are not buying at the top of the market just before it falls, will not be likely to drop in price by that amount over the same time. So why does renting make sense? Someone needs to explain it to me (in short sentences!) lol... Cheers Mike Purchase Price = $800,000 Down Payment = $160,000 Financed = $640,000 Monthly Note = $3,735 (30 years @ 5.75%) Monthly Taxes = $1,666 (2.5% of the home's value; paid annualy) Monthly Insurance = $200 TOTAL Monthly = $5,601 (not to mention the down payment) :mad: Similar Rental - as listed today in the Austin American Statesman: "Classic 3/3 , in Old Enfield , near Dwntwn/park. Beautiful, hrdwds, lovely grounds. $1750 . 474-2204" :) You ask who would rather pay $1,750 monthly to rent vs. $5,601 to own? I would think most anyone on a tight budget who prefers living in a desirable neighborhood (i.e. best location, schools, shopping) rather than owning in a lesser area. |
Re: Housing prices
Originally Posted by Biscuits
(Post 4283617)
Renting vs. Buying a house in a desirable Austin, TX, neighborhood (e.g. Tarrytown/Old Enfield/Pemberton Heights). For Houston, I would guess West U., Tanglewood, and Memorial would compare (nothing in Austin, or most of the world, comes close to comparing to River Oaks).
Purchase Price = $800,000 Down Payment = $160,000 Financed = $640,000 Monthly Note = $3,735 (30 years @ 5.75%) Monthly Taxes = $1,666 (2.5% of the home's value; paid annualy) Monthly Insurance = $200 TOTAL Monthly = $5,601 (not to mention the down payment) :mad: Similar Rental - as listed today in the Austin American Statesman: "Classic 3/3 , in Old Enfield , near Dwntwn/park. Beautiful, hrdwds, lovely grounds. $1750 . 474-2204" :) You ask who would rather pay $1,750 monthly to rent vs. $5,601 to own? I would think most anyone on a tight budget who prefers living in a desirable neighborhood (i.e. best location, schools, shopping) rather than owning in a lesser area. But then there is no income tax in Texas? But certainly in Boulder, rental prices for 'Executive Houses' are very negotiable. Some friends had a leaflet delivered, somebody really looking to move to their particular area. So they thought, well why not if they pay enough, and they did. They rented, so much choice and paid half the listing rent. Can not remember exactly how much, I think a bit more than the example given, $2,000 a month? Or to put it another way, 2 years rental was the same as the Realtor fee if they had had to use one. Just as well as they were divorced within the year. |
Re: Housing prices
Originally Posted by Boiler
(Post 4283675)
I had to re-read that, property taxes 6x that in CO, give or take.
But then there is no income tax in Texas? |
Re: Housing prices
Originally Posted by anotherlimey
(Post 4281917)
Holy crap... mine's double that now!
How do I get there? :D |
Re: Housing prices
Originally Posted by Biscuits
(Post 4283617)
Renting vs. Buying a house in a desirable Austin, TX, neighborhood (e.g. Tarrytown/Old Enfield/Pemberton Heights). For Houston, I would guess West U., Tanglewood, and Memorial would compare (nothing in Austin, or most of the world, comes close to comparing to River Oaks).
Purchase Price = $800,000 Down Payment = $160,000 Financed = $640,000 Monthly Note = $3,735 (30 years @ 5.75%) Monthly Taxes = $1,666 (2.5% of the home's value; paid annualy) Monthly Insurance = $200 TOTAL Monthly = $5,601 (not to mention the down payment) :mad: Similar Rental - as listed today in the Austin American Statesman: "Classic 3/3 , in Old Enfield , near Dwntwn/park. Beautiful, hrdwds, lovely grounds. $1750 . 474-2204" :) You ask who would rather pay $1,750 monthly to rent vs. $5,601 to own? I would think most anyone on a tight budget who prefers living in a desirable neighborhood (i.e. best location, schools, shopping) rather than owning in a lesser area. Add the other costs and they are not even covering their direct costs never mind making a return on the capital invested. Something does not add up. |
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