With the housing market right now in Dallas, we are considering continuing to rent or buy. We know we will be here 3-4 more years. Rent or buy?

Asked by Abby.hatteberg, Allen, TX Sun May 1, 2011

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Manuel Crist…, Agent, McKinney, TX
Sun May 8, 2011
Buy if you can. Rates are great and home prices are still affordable. If you decide to move in a few years, you can always rent it out to someone that was in your same shoes 3-4 years ago.
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Kenneth "Ken…, Agent, Dallas, TX
Fri May 6, 2011
Go with what your gut tells you. You probably already know if you and your partner want to buy a home now or keep renting. Interest rates are at all time lows and so are pretty much all housing prices. But, if it is not good for you or you can't find a house you really like. THEN WAIT. Call a lender first and make sure you can buy an home and what price range is best for your pocket book, then make sure you have your down payment. You will need at least 3.5% down or more plus your closing costs which can range another 3%. This can vary. Just check with any lender. Most Realtors can put you on a ongoing mailing system that you can get homes in your price range and your area of choice each day if something new comes to the market. Very simple for us to do. I hope that helps some. BEST OF LUCK.
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T.E. & Naima…, Agent, Dallas, TX
Mon May 2, 2011
If you expect the price of your house to rise quickly, then it can be a good thing to invest in a home and re-sell it after only 3 or 4 years.

During the time you own the home, you will be able to deduct the real estate taxes you pay and the interest on any loans you use to buy the home. If, for example, your monthly payment is $1,200 including taxes and insurance, then probably about $1,000 of that can be deductible for most people. That helps with your overall cost of investing. Just so you get this point, if you rent for $1,200 you can't deduct anything. If you buy for $1,200 a month, after deductions your payment is really only about $920. True, you don't get the $280 back until you file, but it will come (unless Congress changes the law).

The downside is that buying and selling have transaction costs.
For a buyer you can expect to drop about 5% of the selling price in expenses related to closing, as a rule of thumb, but it could be less or more.
For a seller you can expect to drop about 8% of the selling price in expenses related to closing, as a rule of thumb, but it could be less or more.

So, 5% on the front end, mostly tax-deductible payments, followed by 8% on the back end. The price would have to rise by the 13% over the 3-4 year period for the investment to make sense. Of course, living in the house is a total bonus - it's mostly deductible, and you're living there: cool. But will the market rise by 10-15%? That no one can guarantee. It seems likely that inflation is coming. No one knows, though.
Web Reference:  http://www.SumnerRealty.com
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Rosalyn Tray…, Agent, Dallas, TX
Mon May 2, 2011
Hello Abby,
You have an incredible opportunity to invest in real estate at record low interest rates and great prices with all the foreclosures, short sales, and distressed sellers. Talk with your CPA to learn the tax advantages you will have as a homeowner. The question is this. Do you want to pay for your home, or do you want to pay for your landlord's house.
To help you in your decision, talk with a mortgage officer first, to see if you are in a position to purchase, then talk with your CPA to learn what you will gain by purchasing real estate, and then, call me to talk about the process of home buying and how I may help you.

Rosalyn Traylor
RE/MAX Premier Group
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Peter Colt, Agent, Irving, TX
Mon May 2, 2011
'The Worst is Over," RE/MAX CEO Says on TV

Margaret Kelly appeared in a live interview on Bloomberg TV Wednesday.

With home sales increasing in three of the past four months and prices rising in many U.S. markets, there is reason to be hopeful about housing, RE/MAX CEO Margaret Kelly said in a live interview on Bloomberg TV Wednesday morning.

"We're going to bump along the bottom, but I think the worst is over," Kelly told host Margaret Brennan during the "On Business" program.

Kelly noted several encouraging elements of the March RE/MAX Housing Report, which surveys housing data in 54 metro areas. In an astonishing 53 of the 54 markets, home sales March over February increased by double-digit percentages.

Also, 35 of those cities experienced month-to-month increases in price, continuing an early 2011 trend. In January, the number was zero; in February it had risen to 17.

"That's very encouraging," Kelly said.

She noted that the RE/MAX Housing Report generally focuses on year-over-year figures, but comparing March 2011 to March 2010 isn't truly relevant due to the "tax credit that artificially stimulated the market" last year.

And although housing must still work through a "glut of foreclosures ... one bite at a time," Kelly cited heavy investor activity as a sign that price bottoms have been reached in many places.

"I'm cautiously optimistic," she said.
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, ,
Mon May 2, 2011
Prices for homes and commericial real estate are falling again. We may not see meaningful improvement until there are fewer distressed properties for sale. No one can tell you where property values will be in 3 years and if you would be able to recoup the cost to purchase and down payment. It is a good time to purchase a property that may be need of improvements or is a distressed sale. Even better if you would be willing to keep as an investment property.

Melissa Bachmann
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Jimmy R Conw…, , Dallas, TX
Mon May 2, 2011
Buy, without a doubt, interest rates are incredibly low. They will go up. They are typically below 5 as of last week.
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DeAnne Fite, Agent, Waxahachie, TX
Mon May 2, 2011
BUY BUY BUY!!!!! Home prices are at an all time low! Interest rates are at an all time low!! It you look back through history. I am sure you have Buy Low Sell High. This is the moment in history that it is time to BUY LOW!!! Do not wait! I can help! DeAnne Fite 972-741-5885 call or text any time!
Web Reference:  http://www.DeAnneFte.com
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Peter Colt, Agent, Irving, TX
Mon May 2, 2011

I agree with the agents below. The last time there was such a great buying opportunity was 20 years ago and I have benefited handsomely from having bought then. I have a crew of guys that can do a total rehab to minor stuff to get the property looking ship shape again. My prices are extraordinarily low and the work is very good quality. I have lots of photos to show before and after and refrences for these clients so you can hear first hand how it went. A recent property we did was a foreclosure in Allen. If you would like the services of an agent that can provide turn key services please let me know how I can help.

Peter Colt
469 569 4120
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Dallas Texas, Agent, Dallas, TN
Mon May 2, 2011
Always purchase for fact you receive annual tax benefits confer with your CPA OR you can continually assist in making your landlord richer

Lynn911 Dallas Realtor & Consultant, Loan Officer, Credit Repair Advisor
The Michael Group - Dallas Business Journal Top Ranked Realtors
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Bruce Lynn, Agent, Coppell, TX
Sun May 1, 2011

Buy if you can get a super deal and perhaps if you would like to keep it for a rental in the future as part of a broad financial plan. If you can buy a beater and fix it up over the next 3-4 years that's an idea too. None of us have the crystal ball to know what prices will do, but in general most of us probably want to hear that you will be more on the 4-5 year plan to buy.
There are a lot of unknowns though. Where will inflation take us? Low right now, but could take off at any time. During inflationary times real estate has been the place to make the best returns. What will be the availability of loans 4 years from now? Rental prices are strong in DFW area, so if you rent, what will they be in 3-4 years? There are just lots of questions none of us can answer that can affect your decision.
Are you absolutely sure you will move in 3-4 years?
Web Reference:  http://www.teamlynn.com
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Monir Mamoun, Agent, Denville, NJ
Sun May 1, 2011
Dallas has had better housing market conditions than the rest of the country, but really you still have to make sure you are getting a "relatively" good deal.

If so -- I'd recommend buying. You'll never see interest rates as low as they are now, cause the US deficit is going to result in serious inflation in the next couple of years. We already see this with the dollar getting weaker and weaker.

If you can borrow now, it is likely you will be able to pay that mortgage with very "cheap" dollars in the future. A great deal IF you feel secure in your job, or have stable self-employment.

For more information check my blog about whether now is a great time to buy. Link below.
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Anne Bokalo, Agent, CANTON, TX
Sun May 1, 2011
It would be pertinent to know what you will do with the property after 3 or 4 yrs, if you will lease it, then buy now but if you will want to sell it you probably wont make any money on it so it's a personal preference.
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Kathleen Tes…, Agent, Plano, TX
Sun May 1, 2011
Prices are good at this time.
Mortgage rates are at a historically low rate.

And huge inventory.

There has never been a better time to buy/
That is my professional opinion.
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Guy Gimenez, Agent, Austin, TX
Sun May 1, 2011
Buy ONLY if you get a super deal. Values, and therefore prices, have declined but that is not a good reason to buy. Don't believe the hype on TV and newspapers. Prices won't see any kind of meaningful upward tick for at least 3 to 4 more years. So, unless you get a super deal now (and they are out there), you could end up bringing money to the table when you go to sell.

Remember, you make your money when you buy...and you collect it when you sell.
Web Reference:  http://www.phgbrokers.com
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Ellen Taylor, , Dallas, TX
Sun May 1, 2011
I think it is a good time to buy because prices are low. We think (hope) prices will start rising soon.
Ellen Taylor, Realtor in The Dallas Metroplex since 1983
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John Safstrom, Other Pro, Allen, TX
Sun May 1, 2011
Good question. It all depends on what type of property you are looking for and where. If you are renting a residential house now and taking care of the normal maintenance (mowing/landscape) you know what that is all about. If you are thinking about going from an apartment to a house that is a change - good and bad.
It all comes down to your personal preferences and how much $$ you are willing to put into updating and maintaining the property you buy.

On a conventional 30yr mortgage, you are paying mostly interest the first 3 years and you will have realtor fees of around 6% when you sell your home. Although with renting, you have nothing to show as far as an investment goes and that can be a lot of $$ depending on how much your monthly rent payment is.

If you decide to buy, get a thorough home inspection. It can keep you from buying a property that is a money pit and maximize your investment in a home.
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Ron Luna, Agent, Colorado Springs, CO
Sun May 1, 2011
One must look at property as an investment process. Therefore, if you are able to put a down payment and make the monthly mortgage (as well as interest, taxes and insurance), you really should consider investing.
The more you rent - the more time you have to build up credit as well as save for the necessary funding to purchase. Please email Ron@RonLunaRealty.com or visit http://www.ronlunarealty.com for further information. We as consumers always want more out of our hard earned dollar. Proper planning can make your process of obtaining your property a smooth and rewarding one. Have A GREAT Day!
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Kim Nwachukwu, Agent, Irving, TX
Sun May 1, 2011
Hi Abby - there are a lot of questions that go into helping a client decide which of those choices is right for them. The answer varies based on a couple or family's personal situation, needs and outlook. It can also depend on the property. Are you working with an agent? If you would like have a no obligation chat with me about what might be right for you, I can help you. Please click on my profile if you would like to get in touch - it would be my pleasure to speak with you. Best regards, Kim
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Susie Reichl…, , Dallas County, TX
Sun May 1, 2011
I would want to look at both options, interms of how much rent you pay and what price home you want. A rent vs. own comparison can trhen be run.
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