Buying a Home In Austin Podcast: Recent Episodes
Shane Blackshear
Thinking of buying a home in Austin, Texas, but don't know where to start? You've come to the right place. We'll break it down and at the end you'll feel comfortable about buying that house.
Home Ownership as a Part of Overall Financial Health
-Appreciating Assets vs Depreciating Assets
-Electronics -most expensive MacBook is over $50k!!! -base model MacBook desktop is $5,999.00 (no monitor?!) -Iphone -most expensive iPhone 11 Pro, $1,449.00 -base iPhone 11, $999
-Things you can drive -boat -RV -CARS! - The average car payment for a new vehicle is $554, and the average for a used car is $391
In Austin $250k with 3.5% downpayment = $9,625 (17.37 months of $554 new car payments)
A 250k, appreciating at 6% for 30 years = $1,435,872.79 value
Renting 3 bed $1,100 x 12 months x 30 years = $396,000 spent
What are prices doing in Austin? Is this a terrible time to buy? What is Freddie Mac saying and what do stats in Austin say?
http://www.freddiemac.com/research/forecast/20200413_quarterly_forecast_housing_challenges.page
Covered in this episode:
-Great interest rates -less available but less competition -more eager sellers -Will prices keep appreciating?
Q&A:
I have been wondering what will happen to the housing supply and mortgage rates. If I were to guess I would think that it would make this summer a good time to buy... But maybe everyone else will think that and it won't be?
We were planning to buy before this, but it's off the table now for a few different reasons that I won't get into on a public post. If you have any practical hacks for us early 30-somethings who finished college during a recession and for whom the finish line keeps getting moved, I'd listen to that. I'm also really interested in housing that models inter-generational care. I think a lot of us are going to have to explore different avenues to homeownership and having a stake in the community.
Follow along at https://www.facebook.com/yourATXrealtor/
Is It a Good Idea To Wait and Save Up for a Larger Down Payment?
Most people know that most owner-occupied homes can be bought with just 3% down, but often I hear from people who want to delay purchasing so that they can save up and put down a bigger down payment to reduce their monthly mortgage payment or avoid paying mortgage insurance. Many times this is a good and responsible idea, but it’s important to do the calculations to see if that’s a good idea for you and your market, because as I’m about to show you in certain situations it could actually cost you money.
Let’s say the size and location of the type of house you’re looking for is around $350,000 (near the Austin median). You have the minimum 3% ($10,500) required to buy now, but you think in a year you can save 10% ($35,000) so that your monthly payment will be lower.
So far so good.
So a year later you have your $35,000 saved and you start looking at the same type of houses, only in the last year those houses have appreciated 8% (a very normal if not conservative rate of appreciation for Austin). So now they aren’t worth $350,000, they’re worth $378,000.
In this scenario waiting a year cost you $28,000 in the purchase price.
You might say, “Yes, but I still have a larger down payment so won’t my monthly payment be lower.” The answer is, in this scenario, NO!
Using a mortgage calculator, we can see that putting 3% down, on a $350k property, assuming 4% interest, your monthly payment comes out to $1,621.00
Now if you put down $35,000 on a $378k property, using the same 4% interest, your monthly payment comes out to $1,638.00
So in this scenario, you waited a year to own a home and it cost you $28,000 in the purchase price plus $17 a month for the life of your loan!
If waiting to save for a bigger downpayment makes sense for you depends on many factors including the appreciation rate in your area, and how fast you can save money. To find out what makes sense in your situation, contact me at shane@centralmetro.com.
I'm teaching a home buying class on March 31. Get all the details and register at: AustinHomeBuyersClass.com
Welcome Friends! This is the first episode under the new name "Buying A Home In Texas Podcast"! Thanks for joining us. On this episode I interview an excellent Realtor in Houston, TX, Evan Compean. Evan's been a Realtor for 4 years and been in Real Estate for 12. Evan educates us on the Houston market. If you want to contact Evan, you can reach him at:
office 281 901 0140mobile 281 901 0140email evan@thebayoucity.comaddress 2323 S Voss St Suite – 120Houston, TX 77057 His website is: http://www.thebayoucity.com/
Remember if you're looking to buy or sell real estate in Austin, TX you can contact me at:shane.blackshear@kw.com512-550-8765
4 Steps Covered in this Episode 1. Stick with it, and perservere. 2. Shop for houses listed lower than what you can afford. 3. Don't ask the seller to pay any closing costs. 4. Have a particular mindset about the inspection.
On this episode I talk to Kim from Gracy Title about title insurance. What it is, and why you need to get it. We also talk about HOA's, and everything you need to know about closing day. Enjoy and as also email me if you have questions & feedback or if you need a referral for a Realtor in your area.
shane.blackshear@kw.com your-atx-realtor.com
Twitter & Facebook: youratxrealtor
-Shane Blackshear, Keller Williams, Realtor