• The KillerFrogs

OT - Home addition or moving

W

Wexahu

Full Member
YA said:
My wife sold a home in Burleson recently that was $40k over asking price. In fact there were 9 offers with all over the asking price and 6 of them were moving from California.
Click to expand...

It'll be interesting to see what happens to the housing market if mortgage rates get to even 5% again, much less 6-7%. There are other factors involved I know, but this current craze seems highly, highly, highly driven by low rates.

My house is worth a lot more. Yay!!! Except my tax bill has also doubled in the past 10 years and we have to live somewhere.
 
Peacefrog

Peacefrog

Degenerate
Moose Stuff said:
Agree with the above comments about home prices. We've considered moving to take advantage of how much our home has gone up in value since we bought it 7-8 years ago but the immediate next question is where do we go where we can get a similar house for a price we're happy with and then we immediately decide to stay where we are.
Click to expand...
I could sell my house for a killing without listing it right now. But there isn’t anything to buy where we live. So we are stuck.
 
L

Longhorn from Aledo

Active Member
Remodel if you can do most of the work. Otherwise no. The only way one can sell in this market is if you have a large enough downpayment to get what you want to put you in a similar payment/tax bracket.... or move just west of Lake Buchanan.
 
ticketfrog123

ticketfrog123

Active Member
jake102 said:
Question: where is all the money coming from?
Click to expand...

california / tech employees cashing in on IPOs or high stock prices

Tech companies compensate in equity at much higher % and frequency (low level or all employees) than your average company on S&P 500 or located in Texas
 
M

Mean Purple

Active Member
MAcFroggy said:
This is totally an off-topic question, but has anybody dealt with doing a second floor addition to a home in DFW. We love the neighborhood we live in, and are struggling making a decision between adding onto our house or moving. I assume a lot of people on this board have dealt with similar situations. What was your experience like adding a second story/remodeling. Are you glad you dealt with the hassle or do you wish you would have just moved?

Thanks again for any advice.
Click to expand...
Do yourself a favor and review your city's building codes. Some of it will get real tech and you may want to seek a reputable builder/construction firm or engineer's opinion on part of it. Some cities have added changes regarding foundation. Some of this is due to wind speed changes for the frame, etc. (Contractor should know what that is). It is really just more of a permitting headache. There are also some cities that have limited what you can do with an upstairs addition. If you already have some stuff upstairs, probably not as big a headache. Also, remodeling costs per square foot are through the roof right now, if it is a reputable contractor. Don't just pick anybody. Remodels are not time for chuck in a truck.
There are benefits to buying new. But if you like the neighborhood, that is a big plus.
Just know that lumber costs really high right now. Because of some production related shortages, lumber packages are way up. Also, recent delays impacted other components that will be used. But lumber costs will affect new homes too.
Good luck.
 
M

Mean Purple

Active Member
cheese83 said:
States where people are used to these prices, they’re moving to TX for work and are getting bigger homes for equal or less and saving on state tax.
Click to expand...
a lot of it has to do with what they got for their home in CA. It is now affecting down payments here (for natives looking to buy a next home in state)
 
F

flyfishingfrog

Active Member
jake102 said:
Question: where is all the money coming from?
Click to expand...
have you looked at the monthly mortgage on a $1 million house at current interest rates if you do a 10 yr interest only?

That will tell you where a lot of it is coming from....

After the last bubble burst - the fed almost killed all the "alternative" instruments for home financing beyond 15 and 30 yr conventional but did open up more options for low income, 1st time, DEI buyers, etc.

Now the market is moving back to offering more options like interest only, variables, etc. more often to attract customers and when combined with low or non-existent interest rates - buying a home can be pretty cheap by comparison to what it would have been a buyer been forced to do a conventional.

Plus as others have said - if you move to a place like Texas from either coast - our home "prices" seem really cheap and you can get a lot of house for the money, especially when you have a lot of cash from a high sale price relative to homes here.

But I have had a few conversations with people who migrated to Texas from out west and were able to pay cash or mostly cash for their new home - but didn't realize until they seriously started looking here that they would have the equivalent of another house payment for their property taxes.

Many of the other states with high home values also have locked or limited increase restrictions for property values - so someone living in a house in California for the last 15 years may have seen their house quadruple in value but their taxes barely when up because of regulations.

Then they come to Texas and start looking for a $1+ million home in Ft Worth and find out they $30k a year tax bill for the pleasure of acquiring that large home in our state.
 
jake102

jake102

Active Member
flyfishingfrog said:
have you looked at the monthly mortgage on a $1 million house at current interest rates if you do a 10 yr interest only?

That will tell you where a lot of it is coming from....

After the last bubble burst - the fed almost killed all the "alternative" instruments for home financing beyond 15 and 30 yr conventional but did open up more options for low income, 1st time, DEI buyers, etc.

Now the market is moving back to offering more options like interest only, variables, etc. more often to attract customers and when combined with low or non-existent interest rates - buying a home can be pretty cheap by comparison to what it would have been a buyer been forced to do a conventional.

Plus as others have said - if you move to a place like Texas from either coast - our home "prices" seem really cheap and you can get a lot of house for the money, especially when you have a lot of cash from a high sale price relative to homes here.

But I have had a few conversations with people who migrated to Texas from out west and were able to pay cash or mostly cash for their new home - but didn't realize until they seriously started looking here that they would have the equivalent of another house payment for their property taxes.

Many of the other states with high home values also have locked or limited increase restrictions for property values - so someone living in a house in California for the last 15 years may have seen their house quadruple in value but their taxes barely when up because of regulations.

Then they come to Texas and start looking for a $1+ million home in Ft Worth and find out they $30k a year tax bill for the pleasure of acquiring that large home in our state.
Click to expand...

But selling a $1.5mm house in California doesn’t mean anything unless you have equity in it. Price appreciation? Or are incomes that much better?
 
W

Wexahu

Full Member
flyfishingfrog said:
have you looked at the monthly mortgage on a $1 million house at current interest rates if you do a 10 yr interest only?
Click to expand...

Adjustable rate, right? I would think a fixed rate IO loan could only be had with a very large down payment, but I may be wrong.

There's the rub I guess.
 

Latest posts

Top