Rent is Increasing! Why You Should Look Into Homeownership.

Recently, WFAA released an newcast stating that the rent rates in DFW are increasing month-to-month.  All across DFW, you will see development happening. The developments are for new businesses, new apartments, and/or new homes. There isn’t too many places where you don’t see that in DFW. Currently, Dallas is the land of opportunity.

The newly published April 2017 Dallas Rent Report shows prices across the city remain above the national media. On average, one-bedroom apartments were leasing for $1,260. Two-bedroom units were renting at $1,760.

There are thousands of people relocating here monthly (so yes, people are coming here and they need a place to live). As a Realtor, I have people coming from everywhere. It isn’t a specific place that people aren’t migrating from. They come from the East and West Coasts, other Southern states, and the Midwest.

My biggest motto from a financial standpoint is that if you are paying $1000+, you should consider purchasing a home. Why? The benefits of being a homeowner outweighs being a renter. Let’s take this example.

Let’s say your monthly rent is $1200/month. For a whole year, you’ve paid $14,400 in rent. However, if you had a home that was $1200/month for your mortgage, you could have tax benefits from property taxes, mortgage insurance, mortgage interest. The $14,400 you spent with a mortgage with a tax benefit of $3,600 means that you technically have paid $10,800 for a whole year. That’s basically $900/month. What’s even better? You are build equity while buying and equity = wealth. With an apartment, you are making the developer/builder wealthy.

Homeownership is an investment. Yes, you can invest in stocks and bonds but homeownership provides you a tangible asset. Homeowners in DFW have seen an increase in their asset of 8.5%. That’s extra money that you have made and all you did was live in a home. Can you say the same about your apartment? I live with the financial sense of wanting to make money while I sleep. That is EXACTLY what a home does. Check out the graph below on the status of DFW homes from 2014 to now.

The market has went from homes having a median sales price of $162,000 to $255,000 in June 2017. That’s a $93,000 increase in 3 years. Listen to me, that’s $93,000 increase in THREE years. Imagine what you could do with $93,000 if you had a home to sell. That’s 20% down for a move-up home and some left over to decorate and pay Navient (Sallie Mae’s wicked sister) a nice chunk of change.

Bottom Line: You could look into purchasing a home instead of renewing your lease. Homeownership can be a condo, townhome, or a house. The first two really depends on a person’s lifestyle and what they prefer. All three can be considered a home that you’ve purchased. I think condos/townhomes are great for turning into easy rental properties whether short term (Heard of Airbnb or Homeaway?) or in the long-term. You have to weigh your options and what works best for you. The easiest way to get to the McMansion is to purchase your first home and build yourself and your wealth from there.

For more detailed information for your personal situation, contact me at 972-813-9788 or [email protected].

 

 

Buying a Home? Do Your Research

One thing that I do with all new and potential clients is to schedule a consultation. The consultation helps each party set expectations but most importantly, it helps to properly educate a buyer or seller.

I never want to sell my clients just anything or any service. I want to be the one who helps you make the best educated decision in life’s biggest financial transaction. I value the relationship I have with my clients so I treat everyone as if they are a dear friend that I want the best for.

However, with so many things available at our fingertips, it is hard to not have knowledge on some things.

The market in Ohio may be a totally different market in Texas. The market in Dallas is a totally different market than Houston. You cannot take what person A in New Mexico said compared to where you are buying in let’s say Georgia. Markets differ. One market may have an abundance of foreclosures and another one not so much.

For consultations, I like to break down all myths and help a client know what’s happening in Dallas/Fort Worth. An example would be the southern suburbs and the northern suburbs of Dallas. The same home in Lancaster may cost $100K less than the same home in Little Elm. Dallas has one of the hottest real estate markets in the country and foreclosures are rare at the moment. What may have been available in 2009 may not be available in 2017. I get it. I miss the cheap housing of DFW too. Imagine the days where you can get a home in The Colony, Little Elm, or even McKinney for $150K? I was helping people find them in 2014. That’s the last time I’ve seen homes in those prices in the northern suburbs.

So you’re interested in buying a home and want to know where to start?  I like some tips on the best way to start researching your market below. 

Here’s the best way to start your research in the market.

  • A. Find areas that you like (Do 3-5 areas).
  • B. Look up homes in those areas. What do they cost? What do you like about them? We all have areas we desire but in today’s time that area may not fit our budgets. If you barely find a home available under $200K or even under $150K in these areas, the market is higher. If that may not be your budget, find other areas that fit your price range.
  • C. Know your OWN coin. Look at your gross or net income for the month. Subtract the expenses you have from bills (excluding rent). What is left over? That may be the amount you have realistically to pay for a home. Rule of thumb is to spend no more than 30% on mortgage/rent. Lenders generally include this as well. This is called debt to income ratio. They include housing expenses (mortgage) and debt expenses to help you know what you can afford. This also may be the time to find what you can eliminate to afford a home that you want.
  • D. Get Pre-Approved. It’s one thing to dream of the lovely $450K home but it is more responsible on knowing if you can afford it or not.
  • E. After getting pre-approved, go back to A and see if you are able to realistically do A. This becomes a one-on-one conversation with yourself to realize what you can and cannot do. Look at other areas that have more availability in your price range. Venture out to visit the areas and see if it is something that you can do. People are generally surprised what other areas offer.
  • F. Get a Realtor. Online research can only go so far. Find a knowledgeable Realtor that you can connect with.

The key to homeownership is to start. Your first home is not your forever home. YOUR FIRST HOME IS NOT YOUR FOREVER HOME. It is your first home. You second home may be that dream home you’ve always wanted. It may be your third or fourth. If you ever want to sit down and have a discussion with me about the DFW housing market, contact me today via phone or email at 972-183-9788 or [email protected]. Book an Appointment here to schedule a consultation.

Home Owner’s Guide to Remodeling – Bedroom

Remodeling of a house is one of the Joys of being a home owner. Not only does it give your home a make over, it also gives your home a little bit of “you” in every room that you customize. This week’s Home Owner’s Guide to Remodeling  is all about the Bedroom. We spend 1/3rd of our lifetime asleep, which is why comfort is the number one goal we must keep in mind in remodeling the bedroom.

traditional-bedroom
Got lots of room? Create a spacious area in your living room for a more relaxed feel or for personal activities.

master-bedroom-remodel-ideas-master-bedroom-remodel-ideas-a-plus-contractor-llc-on-bedroom-beautiful
Keep it simple but classy! Wooden frames and great lighting is a good combination for that bedroom in you bachelor pad!

 

 

 

 

 

 

 

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A mix of study room and bedroom for individuals who likes to read and relax right before bedtime.
Bedroom1a
Children’s bedrooms are ever changing as the child that sleeps in it. Keep them engaged by letting them design and add stuff they like in their room.

 

 

 

 

 

 

 

Roger DeWeese, Peachtree Architects
Creating a theme for your bedroom is always a good idea, go crazy in colors or match your furniture to the color of the bedroom.

*CROWNED* – Kimberly Allen

Good News! Another homeowner has been crowned in Royse City and her name is Kimberly Allen. Last year, I helped Kimberly’s daughter and son-in-law purchase their first home in Royse City. This year in 2015 I was able to do the same for Kimberly as she purchased her first home in Royse City as well. Congratulations Kimberly!

Congratulations to Kimberly Allen!
Congratulations to Kimberly Allen!