Is a home that feeds into Jollyville/Deer Park/McNeil a good investment? (Austin: real estate)

[DangerousBeans]

I'm considering a home in the 78729 zip code that feeds into the schools mentioned above. While school quality is of no importance to me at this time, I'm keeping it in mind knowing that any young families who purchase this home after me will be VERY interested in the topic.

While McNeil seems pretty highly ranked, I notice that Deer Park and Jollyville are more middle of the road. However, I have no context to know whether or not this has been a longstanding status, or if the increased affluence in the area is in turn bringing the quality of the schools up.

So, folks with knowledge of these things, a question: has the quality of Deer Park and Jollyville been on the rise over the last few years, and if so, do you think they're on track to matching the quality of the neighboring "good" schools in the next four to five years?

Thanks for your time!

Edit: To clarify, I'll be living in the house and not flipping it. I just want to know what kind of appreciation I can expect with a home that feeds into those schools, assuming that schools are important to the potential buyer.

[jwynne2000]

I've lived in 78729 since 2008. We bought here *just* before the national real estate bubble popped (great timing!).

I don't know if the schools have improved, i.e. where to find objective data points that show that kind of thing. Others on the forum can probably chime in there. But what I can tell you is that if schools are important to people moving into this neighborhood, they're looking at "Round Rock ISD" overall, and probably not specifically Jollyville Elementary vs. Pond Springs Elementary.

Since you're asking about overall investment in this neighborhood, and what might make it attractive to a future buyer, here is what you need to know:
Pros:
- Round Rock schools
- Most of the neighborhood is in North Austin MUD #1, and not the City of Austin, which means a lower tax rate and really nice park & rec facilities at Rattan Creek Park
- Convenient to Howard train station and soon-to-be Mopac toll lane.
- Tucked in close to major employers
- No HOA (also see Cons...)

Cons:
- This is a mid-80's builder-grade neighborhood, so most homes that hit the market are in need of some cosmetic work. The pressboard siding on these homes is really starting to show its age.
- No HOA. Most people here keep their properties pretty nice, but obviously some do not, and there's not much that can be done about that.
- Kind of goes without saying, but it's pretty far from downtown and can be a pretty tough commute.
- The number of renters in the neighborhood has increased over the years, but I think that's probably following a national trend. Although I have a couple on my street that maintain the nicest yards on the block.

Unless you're looking to buy a home to rent it back out, I wouldn't get too optimistic about the home as an investment. You'll see modest appreciation, especially as central Austin becomes further and further out of reach for most, but nothing stratospheric. It's still basically a suburb.

Good luck and welcome to the neighborhood!!

[DangerousBeans]

Thanks for the info! I've had my eye on Milwood for a while, so I'm glad to know it's a good choice.

[eirenecat]

Given the expansion of Apple and Visa very nearby I think it would be a decent choice for appreciating in value. I bought a house in this area in December and houses on the market since we bought ours are listing for 30-40K above what the list price for ours was. Someone bought something at a much higher price in between December and now.

[10scoachrick]

Originally Posted by eirenecat

Given the expansion of Apple and Visa very nearby I think it would be a decent choice for appreciating in value. I bought a house in this area in December and houses on the market since we bought ours are listing for 30-40K above what the list price for ours was. Someone bought something at a much higher price in between December and now.

Yep...unless someone comes across a 'deal', the first hunk of appreciation may have already appreciated! I reckon you could find a fixer, put $50K into it and come out ahead in a few years. All bets are off if the land on the east side of Parmer along there is ever seriously developed...could be good, could be bad.