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View Poll Results: which place should i buy a house for reselling purposes?
addison 4 17.39%
frisco 10 43.48%
grapevine 0 0%
coppell 2 8.70%
other... please specify 7 30.43%
Voters: 23. You may not vote on this poll

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Old 06-13-2007, 08:15 PM
 
Location: Lake Highlands - Dallas
614 posts, read 2,306,250 times
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you should take a look into properties that will be close to the DART rail stations that are under construction. avoid far out areas as many are getting tired of the long commutes and new construction is plentiful
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Old 06-14-2007, 05:58 AM
 
3,035 posts, read 13,021,868 times
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You can make money in the northern suburbs but you need to be very careful about where you buy.

Stonebridge in Mckinney, West Allen, parts of SW Frisco, all have very good resale potential.

Remember, in this part of the country, you can't pick a city and paint the entire city with the same brush. Take Garland.....in Gaarland there are 25k homes people can't give away, but then there is Firewheel that has done extremely well over the past few years.

East Frisco, same thing. Go west in Frisco, resale is MUCH better near the tollway. Mckinney, check out Craig's Ranch, struggling, but in the area I bought they are selling homes as fast as they can build them. Not much of a deal being offered, but that's the way things work because perception is 99% of value. If you move where others want to live, then put together the right house that others will want, you can sell.

The problem I see in your scenario is that within your price range, you are limited to the number of exclusive areas that you can afford. In this price range, I'd find a Dallas city expert and attempt to map gentrification/rebuilding paths and buy early in one of those paths.
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Old 06-14-2007, 09:30 AM
 
1,519 posts, read 4,680,767 times
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You're incredibly way off. Houses don't appreciate much with cow pastures beside them and plentiful amounts of new housing. People will buy the new house and your will remain unsold. Developers will turn the cow pastures into new housing.

Buy in Dallas. Landlocked cities will always have higher appreciation. East Dallas North Dallas / Uptown / Downtown are all good places to invest.
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Old 06-14-2007, 09:47 AM
 
Location: Topeka, KS
1,560 posts, read 6,456,541 times
Reputation: 487
Quote:
Originally Posted by hamiltonpl View Post
You're incredibly way off. Houses don't appreciate much with cow pastures beside them and plentiful amounts of new housing. People will buy the new house and your will remain unsold. Developers will turn the cow pastures into new housing.

Buy in Dallas. Landlocked cities will always have higher appreciation. East Dallas North Dallas / Uptown / Downtown are all good places to invest.
I think you two may be approaching the same task (buying a house) with different intents (home ownership vs investment). I know from my research in the Lakewood area, that I can't afford as much home there as I can in Plano.

Of course there are opportunity costs of living anywhere. Milford was relatively speaking dirt cheap, I had a 2800+ sq ft home on 1/3 an acre for less than $120K. But dining, shopping and entertainment always involved 10 - 30 minutes on I-35E. (Well sometimes being on the fire department was entertaining.)

In Plano I have 3200+ sq ft but it's on a smaller lot and it's not as interesting or stately a home as the one in Milford. But now I have 4 Walmart's within 5 miles, not to mention people will actually bring food to my home now. I have a variety of dining, shopping and entertainment available.

I looked at Lakewood, (after the influx) and I would have to trade square footage, money, and/or renovation costs to live there. Plus it would be more commute than I want.

Of course if I had money to invest in real estate, I'd consider some of the inner city areas and some of the pasture land in the outlying areas too.
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Old 06-14-2007, 09:50 AM
 
549 posts, read 1,972,731 times
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in 5-10 years I would assume these suburbs will be built out.
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Old 06-14-2007, 11:32 AM
 
Location: The Big D
14,874 posts, read 36,248,249 times
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The problem w/ areas like Frisco is that there are WAY TOO MANY homes on the market. On MLS alone there are over 1800 homes for sale in the city and this does not include homes that are fsbo's (for sale by owner) or under contract but have not closed. Pull it up on realtor.com and see for yourself. Then read the descriptions: "Motivated Seller", "Listed Below Appraisal", "Seller Pays All Closing Costs", "$1-5K Bonus". etc. There is a GLUT of homes on the market in that area and that includes WEST Frisco that has more homes in this boat than the east side. Someday it may be built out and at the rate the builders are overbuilding the city it may be sooner than later. Most of these homes are less than 5 years old. The turnover rate is WAY TOO HIGH too.

One would have better luck buying a rundown home in Garland for $50K and fixing it up and renting it out or selling it. Actually per MLS there are only 4 homes for salen IN Garland under $50K and the cheapest is listed for $42K. If you can find me those $25K homes I'd probably buy them as an investment and make a killing . Then you look at the number of homes for sale TOTAL in Garland including commercial property and there are only 1609 for the ENTIRE city and it is much larger than Frisco. Hmmm........

Yes it is probably way too late to find a house in the "hot" areas of Dallas like Lakewood but there are a few other areas that are coming around that are attracting young families. The area of north Dallas that is south of LBJ around Marsh and Midway and Forest is coming back.
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Old 06-14-2007, 11:45 AM
 
Location: Allen, Texas
670 posts, read 2,674,353 times
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Originally Posted by momof2dfw View Post
The problem w/ areas like Frisco is that there are WAY TOO MANY homes on the market. Most of these homes are less than 5 years old. The turnover rate is WAY TOO HIGH too.
ITA. Why would I purchase a 5 or 10-year-old home for the same price in the same zip code with more amenities that I can at least semicustom build on? I know most of us have known someone who can just drive an extra 5 minutes max, have the same home, same price or less, and be brand new. Texas just doesn't appreciate as quickly as some markets. It's good and bad IME.

Quote:
Originally Posted by momof2dfw View Post
One would have better luck buying a rundown home in Garland for $50K and fixing it up and renting it out or selling it. Actually per MLS there are only 4 homes for salen IN Garland under $50K and the cheapest is listed for $42K. If you can find me those $25K homes I'd probably buy them as an investment and make a killing .
That's what a few of our friends do and he sells the homes off each time a daughter starts a new semester in college. It's a pretty good nest egg. Their family was raised it was better to have 5-10 rental properties for $100K or less each than two or three $200K ones. I need to take lessons from him
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Old 06-14-2007, 12:03 PM
 
Location: The Big D
14,874 posts, read 36,248,249 times
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Originally Posted by USA_Mom View Post
ITA. Why would I purchase a 5 or 10-year-old home for the same price in the same zip code with more amenities that I can at least semicustom build on? I know most of us have known someone who can just drive an extra 5 minutes max, have the same home, same price or less, and be brand new. Texas just doesn't appreciate as quickly as some markets. It's good and bad IME.



That's what a few of our friends do and he sells the homes off each time a daughter starts a new semester in college. It's a pretty good nest egg. Their family was raised it was better to have 5-10 rental properties for $100K or less each than two or three $200K ones. I need to take lessons from him

I know and totally understand. When we were looking for our first home at the same time as planning our wedding - talk about STRESS! We started out looking at older homes. Then realized we could build a brand new home for the same price and pick out everything we wanted including the lot. When it was time to move 5 years later we did the same even though we had looked at existing homes. Then 5 years after that (see a trend ) when we wanted to move we had a contract on a lot to build a custom home that we would design just for us to fit our needs in a GREAT area. When it got down to dealing w/ building again and the building and expanding going on w/ business we decided to look at existing homes. Problem w/ us in our price range THEN there were only SIX homes in the entire city to look at. Did not care for any of them. Then one day my mom called about a house that just came on the market but I kept telling her it was the one on the corner w/ the dinky yard. She was right, I was wrong . So we looked at it and made an offer. It was PERFECT!!! The guy that had built it was a landscape architect and had already landscaped the entire yard like an oasis in it's own tranquil setting and put in a to die for pool. Custom drapes matched our furnishings, nice plantation shutters throughout (things I know dadof2 would have made me wait for, lol). The price was the same we would have spent to build but w/o the headaches and a totally furnished media room to boot. When he found out the media equipment stayed he was ready to write the contract and paid full price. LOL!!! But that is the exception rather than the rule. There were a few things we changed like the paint in the kids rooms and stuff but the other stuff that costs the big bucks was perfect. BTW, we just made the 5 year mark in this house this month. Hubby would move if he found the right property. And he is the one that said he is NEVER moving ever again. LOL!!!


The problem w/ Frisco now is that it has been built TOO FAST by the builders. They are throwing up houses TOO FAST and then the fact that it has attracted a lot of transient people. The ones that move here only for the length of a job assignment then will be ready to move to the next location. When you add it all up you can see where the problems can be. It won't be until the entire city is built up and the people that move TOO FAR out realize they don't like driving over an hour to work if they are downtown. But will concede to drive less than an hour from somewhere like Frisco. Oh, and the fact that the builders and developers went in and made the lots there too small does not help either.

We had a rent house once. We have enough headaches w/ business that rental homes is NOT a business we want to get into. But I've always liked the idea of flipping if the amount of work to be done is min. and just needs basic things like flooring, paint, appliances, yardwork but not total remodel jobs. If the price is right of course.


BTW, there are markets in Texas that DO appreciate at a good clip. I however do NOT want our markets to appreciate and get out of hand like those in California or Florida. That is why we are not hurting as much because our appreciation rates are lower.
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Old 06-14-2007, 12:12 PM
 
Location: Allen, Texas
670 posts, read 2,674,353 times
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LOL you sound like us as far as home buying, but you know I always look at preexisting too because you never know when you will come across something (like the oasis and media area). In fact back in 2004-05 we found a great house in Allen that had a koi pond and this tea house outside that I adored, I would have purchased that in a second but the rest of it needed a major overhaul as far as paint and I'm lazy when it comes to that stuff.

I know there are pockets that appreciate faster, but as general rule I wouldn't tell people to invest there.

I'm with you on the flipping too. I really don't know how my husband's friend does it because he works 40 hours a week for benefits (and money obviously), takes care of 32 houses, and deals with that all the time. I couldn't or would not really want to do it. But we've talked about it before as an idea to throw around.

My mom's in Frisco and I just can't help but think that it is going to fall out from under her, although she had a substantial down and equity; but, I wonder about those who went in with 5% or less down and need to sell. They just can't.
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Old 06-14-2007, 12:19 PM
 
Location: The Big D
14,874 posts, read 36,248,249 times
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Quote:
Originally Posted by USA_Mom View Post
My mom's in Frisco and I just can't help but think that it is going to fall out from under her, although she had a substantial down and equity; but, I wonder about those who went in with 5% or less down and need to sell. They just can't.

As long as she does not want to sell w/in a few years of buying. That is when it can really hurt. That is why even looking at realtor.com and seeing how desperate some of these people are is going to really make it come crashing if something is not done.
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