Real estate prices in Texas crazy cheap?

[LevelUP]

Fannie Mae/FHA rules are that if there 50% rentals then the condo/townhouse doesn't quality for a loan.  

There are hundreds of listings in the Houton area.  What percentage of those listing are you claiming don't qualify for Fannie Mae/FHA loans?

I don't know. OP's premise is that this listing seems unusually low in price for a condo in Houston.

Reasonable explanations include that it's non-warrantable, and that it's been listed lower than the seller's true reserve price to encourage a bidding war or similar.

There could be another explanation, or the premise could be mistaken: maybe this isn't unusually low in price for a condo in Houston. What do you think explains the observation?

I am not living in the US, so I don't know if that is a reasonable price for a small condo in Houston or not. When comparing it to my current country of residence it just seems too good to be true considering the purchasing power in that area ($60,000 for a soviet style 2 room apartment in Belarus earning $400-$800 per month vs $60,000 for a decent 1 bedroom condo in a US metropolis with far better weather and much higher salaries). That's why I asked you guys for your opinion

If $60,000 to $80,000 is a realistic budget for a small condo in Houston in an area where I don't have to expect any extreme circumstances (severe crime, homelessness, etc.), I would actually consider trying to move there and using this opportunity.

There are a lot of people who enjoy pushing fear.

What if there’s a lot of crime in a big city?
Many suburbs around these big cities can have lower crime rates than some of the safest cities in the U.S.

“Rentals and homes cost way too much” (often citing prices in Manhattan, NY, or San Francisco).
Not every place has high prices.

The American Dream is alive and well in 2024. People here often don’t realize they’ve already won the lottery simply by being born in this country. Instead, they focus on the negatives and victimize themselves.

Here’s an example: a brand-new home listed for $120,000, just a 30-minute commute from Houston, TX.
https://www.realtor.com/realestateandhom...5583-60223

[David1477]

Wow, this is really crazy for non-Americans.



In my country, a somewhat ok apartment costs like 12 to 20 times the annual median net salary. Also, our local mortgage rates are 16-22% interest PER YEAR.

Being able to buy a house on a low interest rate for about 2 to 4 times your annual net salary seems insane in contrast to this.

[LevelUP]

Wow, this is really crazy for non-Americans.



In my country, a somewhat ok apartment costs like 12 to 20 times the annual median net salary. Also, our local mortgage rates are 16-22% interest PER YEAR.

Being able to buy a house on a low interest rate for about 2 to 4 times your annual net salary seems insane in contrast to this.

A college graduate here can easily earn $40,000 to $60,000 a year as a starting salary. Buying a home is quite attainable.

Some people use a strategy called house hacking, where they purchase something like a duplex and rent out the other side. The rental income often covers most or even all of the mortgage.

[bjcheung77]

I don't really focus on specific states for housing, just wondering which states have inexpensive housing (not condos, but either a duplex or house)... Maybe even a lot where you can build on, something to that nature. Then there are areas that are better to own versus renting, that's another debate altogether...

[sanantone]

Houston is cheaper than Austin and Dallas. You do have to consider the safety of the neighborhood whenever you see super low prices. Condo prices have been dropping because they're undesirable. The HOA fee is $350 per month, which isn't too bad for a condo this old. The HOA fee can increase significantly at any time, and there can also be a special assessment if the HOA doesn't have enough funds for repairs. Special assessments can be thousands of dollars. You don't really own the building you're living in. Currently, there are people being forced out of their condos in Florida because the HOA sold to a corporation.

This condo is small, has old appliances, and mold in the shower. This might seem like an upgrade for some people coming from another country, but this is not appealing to American buyers, which drives the price down. This property has been on the market for 98 days, which is a long time. They also dropped the price a month ago and still couldn't sell.

[LevelUP]

I don't really focus on specific states for housing, just wondering which states have inexpensive housing (not condos, but either a duplex or house)... Maybe even a lot where you can build on, something to that nature.  Then there are areas that are better to own versus renting, that's another debate altogether...

People living in places like L.A.—I would honestly prefer living in the worst slum of a third-world country over some of the homes that sell for $400,000+ there.

Example:
This home is comparable to buying the worst trailer in the worst trailer park in the Midwest, which might cost $5,000 at most.
https://www.realtor.com/realestateandhom...-list-card

Texas is a rapidly growing state projected to surpass California in population and GDP within the next 20-30 years. In areas with abundant open land for development, housing prices can stay affordable.

[sanantone]

I don't really focus on specific states for housing, just wondering which states have inexpensive housing (not condos, but either a duplex or house)... Maybe even a lot where you can build on, something to that nature.  Then there are areas that are better to own versus renting, that's another debate altogether...

People living in places like L.A.—I would honestly prefer living in the worst slum of a third-world country over some of the homes that sell for $400,000+ there.

Example:
This home is comparable to buying the worst trailer in the worst trailer park in the Midwest, which might cost $5,000 at most.
https://www.realtor.com/realestateandhom...-list-card

Texas is a rapidly growing state projected to surpass California in population and GDP within the next 20-30 years. In areas with abundant open land for development, housing prices can stay affordable.

Houses in many big cities are unaffordable for the average person when you factor in the typical salary. Most locals can't afford a home in Dallas and Austin, but prices have been coming down nationally. If someone really wanted to live in California, there are cheaper cities, such as Fresno. I wouldn't want to live in California, but I've also considered leaving Texas. We don't get a whole lot for the high property taxes we pay.

[LevelUP]

Houston is cheaper than Austin and Dallas. You do have to consider the safety of the neighborhood whenever you see super low prices. Condo prices have been dropping because they're undesirable. The HOA fee is $350 per month, which isn't too bad for a condo this old. The HOA fee can increase significantly at any time, and there can also be a special assessment if the HOA doesn't have enough funds for repairs. Special assessments can be thousands of dollars. You don't really own the building you're living in. Currently, there are people being forced out of their condos in Florida because the HOA sold to a corporation.

This condo is small, has old appliances, and mold in the shower. This might seem like an upgrade for some people coming from another country, but this is not appealing to American buyers, which drives the price down. This property has been on the market for 98 days, which is a long time. They also dropped the price a month ago and still couldn't sell.

Houses in many big cities are unaffordable for the average person when you factor in the typical salary. Most locals can't afford a home in Dallas and Austin, but prices have been coming down nationally. If someone really wanted to live in California, there are cheaper cities, such as Fresno. I wouldn't want to live in California, but I've also considered leaving Texas. We don't get a whole lot for the high property taxes we pay.

A licensed real estate agent cannot say things like "this is an undesirable neighborhood" or "this is unsafe," as such statements could be considered discriminatory and may violate other regulations.

That is the standard size for most apartments built in the 1980s and 1990s in many cities. New homebuyers want the most they can afford, and if better options are available elsewhere, they will choose those instead.

Many big cities are not affordable, and high interest rates make it even harder to buy a home.

[fmsoa]

Hi guys.
 
I currently live in Belarus, but I consider moving to the US for better career prospects.
 
I am used to boring Soviet commie block houses, so my standards for "a good place to stay" are comparatively low.
 
A 1-bedroom/studio apartment with about 300 square feet would be totally fine for me.
 
 
I heard that Zillow seems to be a common website to look for housing, and I checked a couple of cities. 
 
I found several condos in Houston, TX, for like $60,000-$80,000. Example: https://www.zillow.com/homedetails/2832-...5390_zpid/
 
This seems crazy affordable to me, since 2-3 bedroom apartments in Belarus cost roughly the same, but these buildings were built like 50 years ago, and the local monthly median net salary is like $450 (roughly a tenth of the salaries in Houston).
 
So, are condos in Texas just so crazy affordable, or am I missing something important? It seems too good to be true, and I know that most people on this forum live in the US, so maybe you can help me understand the situation. I would be very thankful!

Stay away from those Hearthwood condos unless you want to be burglarized every other week! For 30 years those units were selling for ~$20,000. Now sellers are asking for 4 times as much. 

I owned 2 condos in Texas Medical Center that I purchased 15 years ago for <$80,000. Now both of them are listed >$200,000. You would not find any remotely decent 40+ years old 2/3 BR condos that are under $150,000 in Houston. Factoring in condo association annual maintenance charges (esp. after hurricanes) on top of monthly dues those condos are anything but crazy cheap

[sanantone]

Houston is cheaper than Austin and Dallas. You do have to consider the safety of the neighborhood whenever you see super low prices. Condo prices have been dropping because they're undesirable. The HOA fee is $350 per month, which isn't too bad for a condo this old. The HOA fee can increase significantly at any time, and there can also be a special assessment if the HOA doesn't have enough funds for repairs. Special assessments can be thousands of dollars. You don't really own the building you're living in. Currently, there are people being forced out of their condos in Florida because the HOA sold to a corporation.

This condo is small, has old appliances, and mold in the shower. This might seem like an upgrade for some people coming from another country, but this is not appealing to American buyers, which drives the price down. This property has been on the market for 98 days, which is a long time. They also dropped the price a month ago and still couldn't sell.

Houses in many big cities are unaffordable for the average person when you factor in the typical salary. Most locals can't afford a home in Dallas and Austin, but prices have been coming down nationally. If someone really wanted to live in California, there are cheaper cities, such as Fresno. I wouldn't want to live in California, but I've also considered leaving Texas. We don't get a whole lot for the high property taxes we pay.

A licensed real estate agent cannot say things like "this is an undesirable neighborhood" or "this is unsafe," as such statements could be considered discriminatory and may violate other regulations.

That is the standard size for most apartments built in the 1980s and 1990s in many cities. New homebuyers want the most they can afford, and if better options are available elsewhere, they will choose those instead.

Many big cities are not affordable, and high interest rates make it even harder to buy a home.

I am aware that real estate agents can't mention crime rates or demographics; that's why you have to do your own research. Locals are familiar with which areas are undesirable, which is why this property has been on the market for a long time. 

This might help someone: Neighborhood Scout is a top search result when you search for crime stats. You'll see a color-coded city map. Neighborhoods with higher crime rates are a darker blue. The issue that confuses people is that Neighborhood Scout is only comparing neighborhoods within the city to each other. It's not comparing to the national or state average. Sometimes, you could be looking at a city that has low crime all over, but because a neighborhood is colored dark, people think it's a high-crime neighborhood when it's not. This doesn't apply to Houston. If a neighborhood is a darker blue, you can be sure that crime is high.

---

Hi guys.
 
I currently live in Belarus, but I consider moving to the US for better career prospects.
 
I am used to boring Soviet commie block houses, so my standards for "a good place to stay" are comparatively low.
 
A 1-bedroom/studio apartment with about 300 square feet would be totally fine for me.
 
 
I heard that Zillow seems to be a common website to look for housing, and I checked a couple of cities. 
 
I found several condos in Houston, TX, for like $60,000-$80,000. Example: https://www.zillow.com/homedetails/2832-...5390_zpid/
 
This seems crazy affordable to me, since 2-3 bedroom apartments in Belarus cost roughly the same, but these buildings were built like 50 years ago, and the local monthly median net salary is like $450 (roughly a tenth of the salaries in Houston).
 
So, are condos in Texas just so crazy affordable, or am I missing something important? It seems too good to be true, and I know that most people on this forum live in the US, so maybe you can help me understand the situation. I would be very thankful!

Stay away from those Hearthwood condos unless you want to be burglarized every other week! For 30 years those units were selling for ~$20,000. Now sellers are asking for 4 times as much. 

I owned 2 condos in Texas Medical Center that I purchased 15 years ago for <$80,000. Now both of them are listed >$200,000. You would not find any remotely decent 40+ years old 2/3 BR condos that are under $150,000 in Houston. Factoring in condo association annual maintenance charges (esp. after hurricanes) on top of monthly dues those condos are anything but crazy cheap

Home insurance is also high in Texas. I only found one insurance company that wasn't charging an outrageous rate; I received probably over a dozen quotes. New builds in Houston are required to meet specifications to minimize flood damage. If you're buying a pre-Hurricane Harvey home on the first floor, good luck.