Home buying thread

Aychamo BanBan

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School district is the #1 factor that will drive house price year over year. Its like investing in AAPL.

We have this new development in town, large, trying to have little shops etc. Attractive and affordable homes. I would live there … except the middle and high school are the trashy ghetto ones. So the only affordable up and coming place has the shitty school district. Exactly like you said!
 
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Falstaff

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I remember getting majorly shit on in this thread when I bought my first house 9 years ago and said it was a starter home... lots of people here used to be completely against the idea of a starter home and how dumb that was.

3BD/1Bath 1300 sq ft with half finished basement. Worked great until the wife and I both started working from home.
 
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OU Ariakas

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We have this new development in town, large, trying to have little shops etc. Attractive and affordable homes. I would live there … except the middle and high school are the trashy ghetto ones. So the only affordable up and coming place has the shitty school district. Exactly like you said!

If the developer was smart they were talking with the city/county to see what sort of changes they could get made to the schools to attract more buyers. It is a weird chicken-egg scenario as the more people buy in that attractive part the better the school will get as more active parents get involved. That will drive home prices and investment which will drive up the school ratings. This also works the opposite way, and even faster.
 

Lanx

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We have this new development in town, large, trying to have little shops etc. Attractive and affordable homes. I would live there … except the middle and high school are the trashy ghetto ones. So the only affordable up and coming place has the shitty school district. Exactly like you said!
what about the elementary school? if that district has a good elementary school then it could get ppl to move in there for a few years, then jump to another hood when the kids are reaching middle school or hoping that it'll improve and up it to the point that it'll be good in a few years.

(i mean 10years is a long time)
 
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Cad

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I mean... So, what do people like me do?

Mid 30's. Just married. Want to have kids soon. We probably pull in $140k combined, but rent is $2k - $2.5k for something decent. And to get what we can grow into, in a decent area, we'd have to spend $500k-600k on a mortgage.

Both options seem like really big limits to us saving/investing.
What did you do with all the money you saved by not getting married and not having kids until mid-30's or later? That is your house money.
 

Sanrith Descartes

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If the developer was smart they were talking with the city/county to see what sort of changes they could get made to the schools to attract more buyers. It is a weird chicken-egg scenario as the more people buy in that attractive part the better the school will get as more active parents get involved. That will drive home prices and investment which will drive up the school ratings. This also works the opposite way, and even faster.
Back during the building boom of the 2000's S Florida builders were actually building their own schools just for their sub-divisions and gifting them to the county to make sure they got top dollar for the houses.
 
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OU Ariakas

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What did you do with all the money you saved by not getting married and not having kids until mid-30's or later? That is your house money.

It is hard to blame Tmac Tmac for not saving aggressively during those years unless he comes back and tells us that his parents and family hounded him to do it and he ignored them. I say this coming from a lower-middle class (half the time upper-lower class) family/neighborhood where exactly 0 of the parents discussed money with their kids. I get the feeling that most of our parents were embarrassed about how poorly they managed their own lives that they might have thought it better to let school teach us that. The folly was thinking that schools teach financial discipline (really financial anything) at all. It is honestly the biggest failing of our school system that there are no required financial classes starting at 6th grade and until high school graduation.
 
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Tmac

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Now is not the time to buy a house unless you have to. Rent sucks, but the housing market is irrational right now. Wait and save. If you havent, run your front and back end DTIs and keep an eye on them while you wait for the markets to normalize. If you plan on staying in whatever town/city you are in for the future then focus more on land than house. Look for the right property even if it has the less than perfect house. A house can always be modified/wrecked down the road. If you want to have kids you will be paying the premium for good school districts unless you opt to private school/home school. If so you can save money buy focusing on good neighborhoods with mediocre schools. Honestly though, the good school district houses will appreciate over time better than the mediocre school districts.

tldr: be patient, save money, cut debt and wait for housing to cool off. You may need to wait out the mortgage rises this year.

ps.. I cant stress enough to make sure you like the local governments/school boards/state governments where you want to own. Nothing worse than owning a great house but living with shitty government policies.

Thanks for the feedback. We're in a rural area that my wife hates, so I don't see us being here much longer, but we may end up back here on day bc my entire family is here. The places we're looking to move in the foreseeable have $2k+ rent, which is over twice what I'm paying now. So, it's quite the gut punch.

Currently all my money goes into investing. So, I'll probably go 50/50 with saving/investing and think more long-term about home buying, which also sucks bc I'm just losing that savings to inflation.
 
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Khane

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$2k/mo in rent on $140k combined income won't hamstring you too badly on investing while you wait for more affordable homebuying opportunities. Take home should in the $7k-$8k range per month if you aren't contributing anything into retirement accounts, which leaves plenty of breathing room to do just that.

Renting might be a tough pill to swallow but you're not in dire straits at those numbers. Not even close.
 

Lanx

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Thanks for the feedback. We're in a rural area that my wife hates, so I don't see us being here much longer, but we may end up back here on day bc my entire family is here. The places we're looking to move in the foreseeable have $2k+ rent, which is over twice what I'm paying now. So, it's quite the gut punch.

Currently all my money goes into investing. So, I'll probably go 50/50 with saving/investing and think more long-term about home buying, which also sucks bc I'm just losing that savings to inflation.
is the rent that high just b/c of the districting? if you haven't even pooped out any kids yet, youre not even gonna take advantage of the schools yet anyway
 

Ishad

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Maybe all of this will have people rethinking that they need 4000 square feet for a family of 3.

A 'starter house' should be 2 or 3 bed and 2 baths at the most but there are none of those being built anymore.

The current idea of a starter house being 4 bed 3 bath and an extra room (media/game) is beyond insanity.
Starter houses in the north texas burbs are 20 year old 2 bed 2 bath 1700 sqft houses listed at $400k.


A 4000 sqft house is going to pull $1.3 million plus.
 

OU Ariakas

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Starter houses in the north texas burbs are 20 year old 2 bed 2 bath 1700 sqft houses listed at $400k.


A 4000 sqft house is going to pull $1.3 million plus.

Then the North Texas burbs are not a place to look at a starter house. At those prices it would be more attractive to switch jobs, make less, and move to a new city/state but pay less in housing than to bite the bullet and overpay for a house that comes with problems (and all 20 year old houses have problems).
 

TJT

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I remember getting majorly shit on in this thread when I bought my first house 9 years ago and said it was a starter home... lots of people here used to be completely against the idea of a starter home and how dumb that was.

3BD/1Bath 1300 sq ft with half finished basement. Worked great until the wife and I both started working from home.
Pretty much. I got a similar house a 3bd/2bath 1450 SQFT but no basement because its Texas. I never considered mine a starter home. But it was what I could afford at the time.

Now that we are both committed to WFH and the fam has expanded we are moving into a 4/3 with a dedicated study (for me). Its going to be sweet.
 
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Ishad

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Then the North Texas burbs are not a place to look at a starter house. At those prices it would be more attractive to switch jobs, make less, and move to a new city/state but pay less in housing than to bite the bullet and overpay for a house that comes with problems (and all 20 year old houses have problems).
Maybe I’m wrong in my assessment, but I view the north texas burbs as the quintessential uninteresting suburbia. It’s not like Dallas is a super cool town so proximity to other cool cities isn’t there. So the current prices just seem wacky. Maybe it’s just being here for a decade plus skews the perspective.
 

Loser Araysar

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Looks like we are doing a letter of intent on a company with an office in Houston. This might offer. Move location for me besides Fla. Is Houston a blue shit hole or is it real Texas?
10 years ago they already had a lesbian mayor and its the 4th biggest city in US

1650043481121.png
 
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OU Ariakas

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Houston is just a shit hole.

Look at this Dallas snob.

The second you get outside of Houston proper the county is purple and every mile out you go from there it gets more red. Sanrith Descartes Sanrith Descartes you would probably want to look at The Woodlands or Cinco Ranch (Katy) as your destinations. Both are nice but it really comes down to what types of things you are looking to do or not do.
 
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