Why invest in Houston? (Montgomery: appointed, real estate, foreclosures)

[snowballCN]

Hi and thanks in advance for anyone who offers their insights!

I am considering investing in real estate in Houston. I intend to buy a house in North Houston area, such as Renmington Ranch. Alaso, anyone can tell me the best place to invest in North Houston? Why do you think this area is best? Do you think the property values will increase in the future?

Thanks!

[DANNYY]

New Caney, because real estate profits are about to skyrocket like no other there in the next several years from now. Anywhere in Montgomery County actually, its just a extremely fast growing place where prices are steadily going up.

[AmberAzeneth]

Originally Posted by DANNYY

New Caney, because real estate profits are about to skyrocket like no other there in the next several years from now. Anywhere in Montgomery County actually, its just a extremely fast growing place where prices are steadily going up.

^^^^DANNYY is right. Mongomery County is on the upswing right now. Now would be a good chance to get in while the getting is still good.

[travelguy_73]

Sorry, am I missing something? Are the suburbs running out of land to develop?

To the OP, if you are thinking that you are investing in a home like you would invest in a financial asset, i.e., looking for a return, then you are probably going to be disappointed. Buy a home for you and your family to live in, and enjoy. If, in 5-10 years you make some money on it, then great. But get past the idea that buying a tract house in the suburbs is going to net you anything more than a nice place to live.

Or are you talking about buying to rent out?

[astrohip]

Yeah, I'm confused too.

Real estate can be a smart investment. You need to have deep pockets and a long time frame. And it should not be your first investment.

But a home is not an investment. It's a place to live, that hopefully will appreciate over time. It can turn into one of your larger investments, but it takes time, and if appreciation is your primary goal, you will almost surely be disappointed. Flipping real estate is not for the weak of heart, or thin of wallet.

[City Love]

It really depends on your strategy. Remington Ranch has had quite a few foreclosures which has brought down the values. If you wanted a simple investment, you could buy there and then rent it out. Just keep in mind that the values would rise very slowly over the next 10 years. Don't expect anything too rapid.

If you wanted to invest, I'd do so in an area that expects appreciation and where new communities aren't popping up nearby.

What are you expecting from an investment?

[modster]

The areas which have historically seen the best appreciation have been the ones closest to the major employment centers of downtown and the Galleria. The next county will continue to see growth, however, used single-family homes will have to compete with shiny new builder product for years to come. If you are looking for a home as a residence, then areas like the Woodlands will hold their value well. If you are just looking at investment property for an investment, you need to look at someplace like Oak Forest.

[cheryjohns]

Is it too late to stop you from buying in Remington Ranch? It has the smell of doom. Many foreclosures - many investors buying and renting them out. Wasn't built well to begin with. When those investors get tired of them, they have no one else to sell them to but other investors, who will want them cheap.

Smart investors buy rental housing in solid communities with a low number of rentals. They wait a couple (or more ) years for the upswing and then sell, if they even want to sell.

The current market is not good for flipping - generally. There are exceptions - if you were to find a foreclosure in Cinco, for example - and could get it cheap enough to warrant it. Those opportunities are rare now. Most are buying and holding - but not in doomed neighborhoods.

Modster gave good advice - buy one in Oak Forest and do just enough to make it a good rental. Then wait a couple of years, upgrade and sell. You can do it for less further from downtown - again, just look for a solid neighborhood with few foreclosures and few rentals.