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Old 10-13-2015, 09:19 AM
 
7,283 posts, read 8,116,246 times
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Quote:
Originally Posted by BabyDoctor77 View Post
I agree with DallasG's post. From a purely financial standpoint, it makes more sense to buy in the Park Cities rather than in Preston Hollow and send kids to Private School. That being said, there a lot of families who live in the Park Cities and send their kids to top tier private schools. The education at Hockaday/St. Marks is no doubt at a higher academic level than any public school in DFW, including HP/Plano/SL. It boils down to a personal decision, whether it is "worth it" for a given family to pay the premium.

As a general rule of thumb, buying a house in the Park Cities is a better investment than buying one in Preston Hollow in terms of appreciation, resale, etc.

Speaking from a set of personal decisions.

We opted for PH over HP/UP. When we bought in 2010 the market was already stiffening in both places. Our set of requirements were a 4,000sf house or bigger, we have two kids and we entertain a time or two per month, a 4 car garage, with a lot between .75 and 1.25 acres.

We found homes in HP UP that fit be bill and the least expensive one was $2 million and it needed $200/250K in work - everything from sewer pipes to a new roof. The lot IIRC was .69 acres.

At the time my wife worked downtown so HP had a clear advantage there.

We found all sorts of homes in PH that fit be bill some were millions many were $800k-$1.250 million.

In the end we bought a 1 story ranch that had been nicely rehabbed a few years earlier, lot of right at 1 acre etc. for a shade less than $800K it needed about $100K in work to fit our needs. For us not spending the $1.3 million would have allowed us to send a lot of kids to private schools - the kids were going to privates anyway though.

Aside from that I'm finding much convincing evidence that buying in HP/UP is a better deal than PH.
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Old 10-13-2015, 09:32 AM
 
485 posts, read 520,081 times
Reputation: 828
Quote:
Originally Posted by hbdwihdh378y9 View Post
None. The (predicted) future value of a home/lot is reflected in the current price.
Two things: First, nobody can accurately predict the future. So in investing terms, we've ruled out strong form efficiency. I think with houses (unlike stocks), we can rule out weak form efficiency too. With stocks you have most of the market driven by institutional investors who are often being represented by Ivy League PhD quants who react intelligently to every piece of news about the market, and you have other institutional investors and retail investors who are piggy backing off their trades by holding index funds. You also have some Joe Blow types using eTrade, but they are the minority of activity in the market. So while stocks may not always be priced "correctly", it's fair to say it's not wise for the vast majority of people (Warren Buffet, PhD quants excepted) wouldn't be wise to try and "beat" the market. With houses, things are different. Most buyers are not sophisticated experts the way hedge fund managers are.

All that being said, I do think you're right to push back on the assertion that "good schools" always means more appreciation going forward. In theory, good schools are the reason a house is already expensive, not why it's going to get more expensive in the future. It may still be case that the rich get richer and the poor get poorer, but I think it depends on the specific school and area.
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Old 10-13-2015, 09:39 AM
 
485 posts, read 520,081 times
Reputation: 828
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Originally Posted by taroberts View Post
Not when you have 4 kids and you want them to grow up in a nicer neighborhood around like minded peers and don't want to drive 30 mins to take them to school.

I actually went to a top notch private school growing up and b/c of this I would never ever send my kid to private school. I am 100% against it.
You definitely have to consider culture. Private schools tend to be more conservative, more religious, and since they're smaller, more dominated by football. If you have a kid who is liberal, not religious, wants to be on the debate team, and/or doesn't feel like they fit in with the "rich kids" lifestyle, they may not fit in at a lot of private schools. What's nice about a public school is even if the predominant culture is religious/conservative/football crazy/buy new clothes at the mall every Saturday, there's so many people that you should still be able to find your "tribe" pretty easily.

Last edited by aggie972; 10-13-2015 at 10:33 AM..
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Old 10-13-2015, 09:53 AM
 
233 posts, read 221,250 times
Reputation: 130
Quote:
Originally Posted by aggie972 View Post
Two things: First, nobody can accurately predict the future. So in investing terms, we've ruled out strong form efficiency. I think with houses (unlike stocks), we can rule out weak form efficiency too. With stocks you have most of the market driven by institutional investors who are often being represented by Ivy League PhD quants who react intelligently to every piece of news about the market, and you have other institutional investors and retail investors who are piggy backing off their trades by holding index funds. You also have some Joe Blow types using eTrade, but they are the minority of activity in the market. So while stocks may not always be priced "correctly", it's fair to say it's not wise for the vast majority of people (Warren Buffet, PhD quants excepted) wouldn't be wise to try and "beat" the market. With houses, things are different. Most buyers are not sophisticated experts the way hedge fund managers are.

All that being said, I do think you're right to push back on the assertion that "good schools" always means more appreciation going forward. In theory, good schools are the reason a house is already expensive, not why it's going to get more expensive in the future. It may still be case that the rich get richer and the poor get poorer, but I think it depends on the specific school and area.
It is always easier to sell or rent out homes in good school district.
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Old 10-13-2015, 09:57 AM
 
Location: Shady Drifter
2,444 posts, read 1,731,180 times
Reputation: 4060
Quote:
Originally Posted by aggie972 View Post
Two things: First, nobody can accurately predict the future. So in investing terms, we've ruled out strong form efficiency. I think with houses (unlike stocks), we can rule out weak form efficiency too. With stocks you have most of the market driven by institutional investors who are often being represented by Ivy League PhD quants who react intelligently to every piece of news about the market, and you have other institutional investors and retail investors who are piggy backing off their trades by holding index funds. You also have some Joe Blow types using eTrade, but they are the minority of activity in the market. So while stocks may not always be priced "correctly", it's fair to say it's not wise for the vast majority of people (Warren Buffet, PhD quants excepted) wouldn't be wise to try and "beat" the market. With houses, things are different. Most buyers are not sophisticated experts the way hedge fund managers are.

All that being said, I do think you're right to push back on the assertion that "good schools" always means more appreciation going forward. In theory, good schools are the reason a house is already expensive, not why it's going to get more expensive in the future. It may still be case that the rich get richer and the poor get poorer, but I think it depends on the specific school and area.

My comment was meant more as question about what effect a good school district has on the rate of appreciation. Homes within a good school district should appreciate a higher rate than ones without a good school district.
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