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Living Big in The Big D

With Tara Deming
Wednesday, June 01, 2016 1:59 PM

5 reasons to buy a house in DFW NOW!!!

By: Tara Deming

#1-You are worth more as a homeowner than a renter 

According to the Federal Reserve a typical homeowner will be ahead of a typical renter by a multiple of 45 on a lifetime financial achievement scale.  What exactly does this mean?  In 2013 the average net worth of a homeowner was $195,400 while that of renters were $5,400.   The wealth gap between homeowners and renters will more than likely have widened by the end of 2016.

 

#2 Low Rates

Interest rates for a 30 year fixed rate Conventional mortgage loan with Legacy Mutual Mortgage is currently 4.0%. With 5.0% down you could purchase a $220,000.00 home.  According to Greg Reichel over at Legacy Mutual your total monthly payment including taxes & insurance would be $1,504.00 per month.  The tax benefits, privacy, & ownership rights that come along with purchasing a home make spending the $1500/month a smarter investment than paying that amount in rent each month.   

 

#3 Home prices are expected to rise

Dallas-area home prices in December were 9.4 percent higher than December 2014. Home prices across the nation have been rising at 5 to 6 percent annually for the last couple of years. Home appreciation in Dallas is growing at a more rapid rate than most metropolitan areas with the exception of cities like San Francisco, Denver & Naples Florida. This is great for sellers who could see a significant return on their investment.  I recently sent a friend a Comparative market analysis letting them know what homes in her subdivision were selling for.  She was overjoyed with the possibility of making almost 100k over a 10-year period if her family was to sell their home.  On the flip side, some believe that with the right economic conditions, in two years, home affordability could get close to the same level seen before the financial crisis, making it difficult for people to afford a home.  Waiting a year to purchase a home could make a big difference in what you would pay for the same home.  That beautiful house you are looking at that cost $250,000 today could cost you $273,500 next year.

 

#4 The Lease Market is Not for The Faint at Heart

I ran a search for a two-bedroom lease property in Dallas County today using the Multiple Listing System.  There were 654 matches.  Based on experience I’d bet a good 20% already have multiple applications or have picked a tenant in the last 24 hours. That leaves 523 combined condos, townhomes, duplexes, & single family homes available for lease in Dallas County.  There are currently over 2.3 million people in Dallas County with the population rapidly increasing due to the influx of people relocating from out of state. Dallas is the 3rd fastest growing city in the U.S. with a projected population growth of 1.58%. With roughly 487,000 housing units available and an average of 2.78 people per household finding a lease home can be somewhat of a challenge. Since the supply doesn’t meet the demand landlords are able to pick from the cream of the crop when deciding which tenant they will allow to rent from them. Submitting multiple applications to secure a lease home is becoming the norm. Good luck finding a lease property that meets your needs, especially if your credit is less than perfect! 

 

 

#5 Great Economy

Dallas has one of the best economies not only in the U.S. but in the world! The area is home to 21 Fortune 500 companies and 7 of Forbes’ largest privately held companies. The unemployment rate was roughly 3.8% in March 2016 with thousands more jobs coming as companies such as State Farm, Toyota and Liberty Mutual consolidate operations and relocate to the area.  With the cost of living at 95.8% of the national average, average weekly wages of $1,000 and no personal income tax, Dallas is a very affordable places to live and own a home.  

 

 




Sources

#1-http://economistsoutlook.blogs.realtor.org/2015/10/19/how-do-homeowners-accumulate-wealth/?om_rid=AAP3J6&om_mid=_BWKUBJB9G0$ZOd&om_ntype=NARWeekly- Net worth information

#2-http://www.census.gov/quickfacts/table/PST045215/00,48113—Dallas County housing stats

http://www.bls.gov/regions/southwest/summary/blssummary_dallasfortworth.pdf


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