I currently live in the Carrolton area and I am faced with the dilemma of either pulling the trigger now on a home or face paying an extra 15-20k for the same type of home, if not more, the same time next year.

I have been currently looking all along the PGBT (Bush) and SR (Sam Rayburn) corridor as they essentially give me free passage to work in Irving. This market is nuts. I do not have 20% atm but I certainly feel if I wait for it to come around I would actually lose equity within a 1-2 year span. The market may level off and come back to reality but I do not see it honestly.

This keeps me up at night lol.

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Posted by LNCHBOX

70448

Member since Jun 2009

84094 posts

Posted on 6/21/16 at 7:46 am to baldona

quote:
Tomato tomatoe. For a loan like a heloc yes, but as a long term investment on the rent/ buy perspective it certainly matters. At the end of the day it does you no good to have $15,000 in equity if you are going to have to spend $18,000 in closing costs.

You're missing the point. The scenario being discussed isn't whether to buy or rent forever. It is whether to buy now and pay PMI or rent while saving the extra 10%. So in either scenario, the closing costs are getting paid.

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Posted by baldona

Florida

Member since Feb 2016

20447 posts

Posted on 6/21/16 at 8:14 am to LNCHBOX

quote:
You're missing the point. The scenario being discussed isn't whether to buy or rent forever. It is whether to buy now and pay PMI or rent while saving the extra 10%. So in either scenario, the closing costs are getting paid.

I understand that completely. My point is that they are still very young and don't have kids, buying their first house and expecting to live in it for 20 years in their mid 20s is not realistic at all unless they are living in their small home town where they group up.

The average mortgage is less than 5 years, yeah a lot of that includes refinancing. But the realistic time frame on average for them to be in their house is under 5 years for a first home purchase. So not having 20% down with so many life changes in the future is especially risky.

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Posted by tlsu15

Capital of Texas

Member since Aug 2011

10019 posts

Posted on 6/21/16 at 1:51 pm to baldona

quote:
Op I think you are way overthinking it personally

I am a classic overthinker. I get it from my father. We make big decisions very slowly after a ton of research, and end up doing what our initial instinct told us to do at the end of the day anyway.

quote:
Kids change so much. Does your wife work now? Is she planning on after you have birth? Are you sure she'll be able to handle kids in day care if so?

Yes, my wife and I work together. She will continue to work even after children. She is the type who really enjoys the grind of a job.

quote:
I would look at moderately 'good deals' in a house you could live in for at least 5 years

This is good advice.

quote:
Any 3/2 in a fun young neighborhood for single folks but also good with kids. Trying to buy a house that you would live in for 10-20 years before you even have kids is idealistic but not realistic. Its hard to plan life perfectly.

I understand where you are coming from and it's not that I disagree, but both of our parents raised us in the house we were born in until we reached high school. That's a good 15 year stretch. Maybe my wife and I will do the same, maybe we won't. I just feel a lot more comfortable knowing that we have good schools around if it works out that we do stay for a decade or so. The property tax in the Dallas area is 4 or 5 times higher than it was in Baton Rouge, where I'm from. I'd like to take full advantage of that extra money I'm dishing out.

This post was edited on 6/21/16 at 1:52 pm

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Posted by tigers444

Member since Jun 2009

3083 posts

Posted on 6/21/16 at 3:17 pm to tlsu15

quote:
I understand where you are coming from and it's not that I disagree, but both of our parents raised us in the house we were born in until we reached high school. That's a good 15 year stretch. Maybe my wife and I will do the same, maybe we won't. I just feel a lot more comfortable knowing that we have good schools around if it works out that we do stay for a decade or so. The property tax in the Dallas area is 4 or 5 times higher than it was in Baton Rouge, where I'm from. I'd like to take full advantage of that extra money I'm dishing out.

You have state income tax in BR so that offsets some of the "advantage".

I was in your situation a few years ago. I ended up buying a condo that was in my budget and I don't regret it. I'd find a good starter home and build from there. Hopefully, the equity you have in a few years will help you get a bigger house when you are ready for a family.

I don't see North Dallas area slowing down soon. I'd also look off 121 between 35/DNT. That area is growing non-stop. My company buys land and does land development for residential and commerical lots in the North Dallas area. They are selling like crazy. That area has Top Golf, Nebraska Furn Mart, huge Kroger, etc. It isn't that far from the Frisco/Plano area. Quick access to all the highways. Good luck.