Looking to purchase condo at Lake Highlands - thoughts?

[SandyJet]

Originally Posted by esk1

The one I was thinking about is the complex right behind the new trader joe's (i think this is the red tiled one on greenway, they got a new roof in the last two years). There are a couple in that area which are great because they have easy access to uptown without the parking nightmares of uptown, but offer really good shopping and food nearby. I actually own a condo there as a rental property and I think a ~900 sq feet 1 bed room was going for like 110k-114k last I looked this past summer, a little bit more for a 2 bed. Make sure you look for special assessment history with more established condo's as some are not very good at managing their money while others are. That particular complex has never had a special assessment and only raised the monthly fees like once by a very small margin in the last 5 years, but there are plenty of good ones.

As far as condo values vs single family homes its true that they don't have the same level of appreciation, however because of their low barrier to entry they could end up being a better value for your long term financial output. I wouldn't really recommend buying a condo if your going to be paying the bare minimum mortgage payment monthly and not sure your going to live there > 5 years. However condos to offer a good opportunity to pay down an asset quickly that you can help turn into a much nicer second home (or rental property) if the time arises assuming your not stretching your budget as much as you would if you looked at single family homes and plan on paying extra principal monthly.

it is true condos appreciate less than single family homes. But the low price point also makes it possible to pay for it cash.

I was looking at a second home to use as a vacation home to rent out when I dont use it. Single family homes in this town in good shape were like 550K, I was able to get a condo in that town for 290k.

The Banks wanted 20% down at least and 10K closing costs. So the house required 110K down and 10K to close. Around 120K. Then I would have a 30 year mortgage for around 430K.

In the end I scrapped together an extra 170K and bought the condo cash. Yes I have a lot less appreciation. But I also have no mortgage payment and over 30 years a 430K mortgage was around $1,700 a month not counting taxes or insurance. So that would be 612K payments over life of loan.

Trick is the mortgage is forced savings. The condo I have to keep investing my profit each year till I earn back the 290k.

Big downside of condo is I can never expand it. The house down the road I could blow it out or something but the condo will always be the same size.

Other downside condo gets into financial trouble or maint shoots up.

[esk1]

Originally Posted by SandyJet

it is true condos appreciate less than single family homes. But the low price point also makes it possible to pay for it cash.

I was looking at a second home to use as a vacation home to rent out when I dont use it. Single family homes in this town in good shape were like 550K, I was able to get a condo in that town for 290k.

The Banks wanted 20% down at least and 10K closing costs. So the house required 110K down and 10K to close. Around 120K. Then I would have a 30 year mortgage for around 430K.

In the end I scrapped together an extra 170K and bought the condo cash. Yes I have a lot less appreciation. But I also have no mortgage payment and over 30 years a 430K mortgage was around $1,700 a month not counting taxes or insurance. So that would be 612K payments over life of loan.

Trick is the mortgage is forced savings. The condo I have to keep investing my profit each year till I earn back the 290k.

Big downside of condo is I can never expand it. The house down the road I could blow it out or something but the condo will always be the same size.

Other downside condo gets into financial trouble or maint shoots up.

I'm not down on condos as options for people as other posters, they can be really good opportunity for buyers to get ahead on mortgages that turn into either much nicer properties or real estate investments. My issue with this particular one is I would be timid to buy a condo in that area. There's not a whole lot of companies or general business around there that drive multi-family residents or full reinvestment into the area to clean it up. Even the single family homes have plateaued in proximity to other areas nearby. The 7+ years lake highlands town center has basically been a paved street shows that. I lived in that area for a bit so I'm definitely biased against it. I was trying to find what unit he was looking at but the only one I see in that area is a block of 9 units being sold as investment properties (available as singles) that look basically unlivable in their current state.

[WestcoasterDFW]

Good news is they have made that area a Public Improvement District (Solutions: Kathy Stewart explains how the Lake Highlands PID will make our lives better - Lake Highlands) much like they did with Lower Greenville and Deep Ellum years ago. It made a difference in those areas and hopefully it will in Lake Highlands as well. Like others said, I would suggest driving around in the day and night to get a real feel for the condo you're looking at as well some of the surrounding apartments. The shopping center where MiCocina is good, not sure what it would be like in the actual condo complexes though.

[SandyJet]

I would actually recommend renting a condo in a building you like. Often estate sales, bankruptcy, short sales, owners forced to sell pop up and if you are in the complex you can get first work of them. Plus you get to see if you like it and talk to neighbors. Do a one year lease and maybe you hate it and the money you blew on rent will be nothing compared to money saved by not making a bad decision

[hbdwihdh378y9]

Originally Posted by movingtodallaswoo

I posted a thread earlier and have taken everyone's advice to heart. I found a condo that fits all my requirements! The unit is off Skillman, between Church Rd and Walnut Hill Ln in the White Rock Elementary district. From my research, I hear mixed reviews about the area. I've read that the condo is across the street (Skillman) from Merriman Park (a great place to live) and the Elementary school (and subsequently that area) has great scores. For what it's worth, I am a 28 years old, single (no kids either), male professional from the Midwest.

With that being said, I have a few questions
-Is the area REALLY as dangerous people claim to be? Does its close proximity to Vickery Meadow have any effect on the crime in Lake Highlands?
-I will be commuting for my 8:30 to 6 job at North Dallas Parkway and I-635, would I be fighting traffic?
-Anyone know if the Lake Highlands Town Center will be finishing anytime soon?

Thanks!

1. Technically, the area across the street is not Merriman Park, but it is a great place to live. I lived there for 10 months.

2. If it's the condo complex that has the steep driveway that runs from Skillman to the pool, I think it's fine. I've been in there a number of times in the last 6 or 7 years, and I didn't see anyone who looked shady.

3. Vickery Meadow is way too far away to have any effect. It's the other apartments and condos on Skillman that you need to think about. If it's the complex I think it is, the apartment complex to the south is Huntington Lakes. In 1992, I had a girlfriend who lived there, and it was totally safe. Since then it's undergone some change, but it's still not too bad.

4. You will be fighting traffic to get to the Tollway, but you'll have lots of options. If 635 looks bad, you can cut across on Forest, Royal, or Walnut Hill. I live seven tenths of a mile from the condo you're looking at, and I would not think twice about doing that commute. My rule is no commutes longer than 20 minutes.

[LHmom]

There are roughly 35 condominium complexes in Lake Highlands going by voting district boundaries for District-10. Ratio of occupancy by owners vs. renters varies and quality of environment depends in large part on temperament of people occupying units in these de facto neighborhoods. It being that condos resemble HOAs, there are lots of factors to consider... how governing documents read, business sense of board of directors, money management record, track record of agent management company, maintenance history, property age, crime stats, etc.

I've researched the local market and have now been an owner/landlord at Skillman Bend Condominiums for over five years. Feel free to contact me or post in this forum and I will give you a consumer's perspective if you have questions.