Buy a house or rent an apartment? (1 Viewer)

[Joe Szott]

Robert,

Read the Dummies book, I did before we bought our house. It gives you a great set of pros and cons for living in apts, condos, townhomes, houses, etc. It doesn't assume that one is better than the other, it just breaks down which ones are good for different situations.

You might be better off renting...

 

[RobR]

Ken brought up a good point. However, don't forget to factor in the other itemized deductions [property taxes, state income taxes (for federal return only), personal property taxes, etc.]. These other deductions alone can in some case exceed the standard deduction for married filing jointly.

 

[MikeAlletto]

Everyone who is talking about the tax deduction I would suggest you keep in mind that the real interest deduction only kicks in beyond what your normal standard deduction would be anyway.

Also property tax is deductable as are points paid on the loan. We aren't talking about huge $10k refunds here, maybe a grand or 2. But that grand or 2 and mainpulating ones W4 levels everything off so the person doesn't feel the impact of buying the house.

And being in a state with no income tax is wonderful

 

[Jose Arellano]

Robert, I can help you discuss options if you want. I work for a mortgage company here in Austin, and just wanted to give you some info regarding previous posts. First of all, disregard what everyone is saying about state income taxes since, as you know, Texas doesn't have a state income tax. Also, disregard someone telling you you need a huge amount of money to get into a home. If you have the money, great, but if not, it is not a problem if your credit is good. There are 100% LTV programs at great rates right now, or some others that just require either $500 down, or a max of 3% to help with closing costs. There are hundreds of programs out there for everyone. For example, I just closed a loan last month where the borrower only put $3000 down, and he got a $150000 home, for 30 years at a rate of 6.25%, and his credit wasn't too great. I bet you could do better than that. Just find someone you feel you can trust, and who discloses everything. If you have any questions, give me an email. I can do loans for any location in Texas, and I am located in central Austin. My company's name is Suntree Mortgage. Even if you only have general questions, look me up in the phone book, and I'll help you with whatever I can. Thanks!

Lenny Arellano

 

[Colin Dunn]

Robert -

In Texas, beware of property taxes. The rates are a lot higher than where I used to live (Colorado).

Property tax rates in the city of Austin are about 2.5% of the value of the property, per year (with the homestead exemption for primary residences). That means a $150K house has an annual assessment of about $3,750 per year or $312.50 per MONTH. In Colorado, the property-tax rate was 0.9% per year ($1,350 per year on a $150K home).

This is usually included in your house payment unless you have a >20% down-payment. If you can put down 20% or more, you can avoid escrowing your property taxes ... but then be prepared for a BIG LUMPY BILL every January.

José/Lenny -

Do you do refinances? I am looking to refinance my mortgage. Please send me private E-mail if you want to talk about specifics...

 

[MikeAlletto]

Property taxes here absolutely suck, big time. If you don't escrow they usually charge you more also.

 

[David Preston]

Didn't read all the other replys but I suggest buy a house even if you have to lengthen your commute. Then get a roommate charge him a fair amount and utilities. It makes it so much easier. Good luck.

 

[Mark Sherman]

Buy a Condo. Then get a roommate and charge Him/her what your payments are or a little less. I just did a RE-FI on my condo where I took out some Equity and paid off my credit cards and my car. not only am i saving close to 900 a month in payments, another 1500 a year in interest on credit cards. I just got a new roommate who's giving me 450 a month. try doing that renting.

 

[Mark Zimmer]

Anyone who's posting on HTF should want a house so they can do the full-blown home theater thing. If that's not important to you, why are you here? Mmmm, Subwoofers.

 

[Jose Arellano]

Colin, check your email. Thanks!

 

[Robert_Z]

I am going to try to get prequalified tonight. I hope I am doing the right thing. With my luck, I'll get laid off and my car will break down the day after I sign.