Real Estate in Dallas

People say real estate is a goof investment over the long haul. I’m not so convinced as a millennial who could  possibly move in a few years. The Dallas housing market is also on fire. Some homes are selling within 48 hours. This wasn’t the case when my ex-partner and I bought our first home in 2012. Everyone’s gone mad since.

Some of the fees I don’t have to worry about as a non-home owner:

  • Maintenance – Roof, hot water heater, foundation, hail damage, floods, plumbing, HVAC
  • Housing Association / Transfer Fees
  • Property Taxes
  • Mortgage Interest
  • Alarm / Security
  • High utility bills – more square footage means higher bills to heat / cool
  • Closing Fees
  • Appraisal

It just seems to me that in many instances, the overhead doesn’t guarantee you will end up ahead. I also have friends who were caught in the housing bubble and had to do short sales.

The main appeal to me with home ownership is saying I own a piece of land / property, having my own garage and know that over the long term my money is building equity and not making someone else wealthy.

On the other hand… The homes I would consider are close to 200k. With a 20% down payment that would be $40k of up front costs. I can see the value if you have a family. For a single guy with my income it doesn’t make sense. So I’ll keep renting unless all of a sudden it becomes a buyer’s market again. The main appeal to me is a garage but that’s just because I’m a geek and like to fiddle with things in a garage lol.

Maybe I will buy someday. Just after 3-4 years after I’ve put enough aside. My rent is $800/mo now. If I save that for 4 years that’s enough for a down payment on a home. Even on a home that needs work I still think the overhead would be more than rent.

Rhetorically, there is a certain level of pride that comes along with saying “I am a home owner”, but also a high amount of stress. Everyone in my family who has bought one complains about the high taxes in New York, difficulty in finding tenants should you choose to rent and even then the troubles with evictions. Then the county comes up with more and more fees / surcharges that just makes you feel like a slave instead of a financially prosperous individual.

Here’s an interesting article from 2014 :

10 Things Millennials Won’t Spend Money On

Thoughts?

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One thought on “Real Estate in Dallas

  1. A good friend of mine and I go back and forth on this issue a lot. We have realized that we might want to be able to say we could “afford” a home, in that we would have the down payment in our savings accounts, but don’t really like the problems that come with actual home ownership. As you know, from owning a house before, the down payment is not the only thing to worry about up front – the closing costs can really add up as well. I agree with you, right now, it just doesn’t make sense for alot of us in this world to own homes.

    When I was married, we bought a house. Six years later, we split. We’d put a lot of money into the house but with the downturn in the market, if we had sold the house to someone else, we would have had to pay money to get out of it. Luckily, my ex decided to buy the house on his own and was able to afford it with his good credit and good salary.

    By the way, thank you so much for the shout out on your last post. I’ve not been online on my computer so much since I moved into the studio since to do so works off of my mobile data on my phone, but I wanted to say thank you. That was so nice of you to mention my blog. As for my commenting, I know how much I appreciate comments on my blog (and thank you for your recent one!) and hearing from folks. Makes me know I”m not just writing for myself, and sometimes, people can see things in a way that we can’t, for ourselves. I’ve also made some really good lasting friendships with folks who started reading another blog of mine many years back. WE’ve kept in touch and even met in person!!

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