RE: Anyway, I must say, realty continues to make a good investment -- particularly, your principal residence, where you get good appreciation, tax deductible interest, and you would have been out of pocket for living expenses either way.
And, in my new house, PITI that is less than AVG rent for a dump out here. That is key. As long as it is cheaper to own than rent, housing prices are not excessive. The toughest part about owning a house out here, is the down payment. What I have achieved, is a good down payment (25%). Also, we are buying a house for only $25K more tha the house we sold. We will have to invest $30K before we move in to get it fixed up. That is where I have done well. We did the same thing on our last house. Bought a dump in a good neighborhood, and did the work to make it nice. Now, we are buying a jewel in disrepair in a historic neighborhood with $1M homes. I guarantee you that as soon as we complete the first round of renovations, our house will have a mkt value well above $400K. Which will be inline with the similar houses onthe street that are in good condition. Which will givee us nearly 50% equity. I think that I do not have to worry about losing my shirt onthis one:-)
Dallas is a great place, but remember, in California Land and water are in short supply, money is plentiful. This is not likely to change anytime soon. |
