Is it a good investment to buy in 77077? (Houston, Briar: real estate, apartments) - Texas (TX) - City-Data Forum

julia1999 · 11-05-2013, 11:09 AM

Hi everyone, I was recently relocated to Houston, Texas from the UK. I was gifted with some money (around $180k) from my parents before I moved to Houston and was planning to invest the money to a Buy to Let property here. I just started the property hunting for an investment opportunity in Houston. After reading tons of thread from this forum, I narrowed down two optional areas: 77077, 77450.

Personally I prefer 77077 area, especially between Eldridge Pawy and Westheimer Road or along the Briar forest Drive. This is close to where my husband is working now, the Energy Corridor. However these one-story bungalow type houses were all built around 1970's. As a newcomer to Houston, I am sure about their resale values after another 10 years. Will they appraise after 10 years with reasonable maintenance?

For 77450, my money could stretch a lot further, newer buildings, better fittings and better community facilities. However I am concerned about the rush-hour transportation and the rental market in this area. I talked to one realtor friend, he recommended 77450 over 77077 and said houses in this area had better resale values and potential than these 1970's houses at 77077.

For properties in the UK, their prices are usually determined by their LOCATIONS. I was confused by my friend's suggestion that 77450 may have better resale value than 77077 since 77077 is closer to energy corridor and downtown. Maybe people in the US value new houses a lot more than their locations?

Could you please help to decide which area to buy as an investment? 77077 or 77450? My budget is between 180k to 200k.

Schumacher713 · 11-05-2013, 11:48 AM

I would not expect that area to appreciate a lot. I am sure it will appreciate over a decade. Do you really want to live in that area for 10 years? I would look at some townhouses closer to the city. I guess it depends on where your job is. If you really want to buy a place that will appreciate you should be looking at areas on the edge of the Heights. Otherwise I would just rent and live in a fun area. I used to work in that area. There is nothing there. It is really far from everything fun. You sound like you are single. Enjoy life. At least rent an apartment for a year and get a feel for the city before you buy a house. You could end up hating where you live. I know I would hate it there.

Cabot · 11-05-2013, 12:02 PM

Are you here permanently or just a couple of years assignment? If it is the latter I would NOT put my money in real estate. Actually, I would think about this very carefully as property in Houston doesn't seem to appreciate a great deal (with a few exceptions). The real estate people on here will give you a better idea about that though. I would talk to a financial advisor before doing anything.

Sugar Land Yak · 11-05-2013, 01:21 PM

1) It depends on what the price of oil is doing in 10 years
2) Has the area gotten hot in a "Teardown or Fixup"
3) Investing in anything is what did you pay to start with not what did you sell it for.

The newest Hot area being talked about now is the East End of course the is probably old news to the movers & shakers in the redevelopment world in Houston.

Not trying to be a jerk but trying to be realestic. I know of a subdivision out in the suburbs that might have been worth $150/165 five years ago, today because of a new Master Plan Development that is being built beside it prices have gone up 60 to 70% this past year for the lower end subdivision. Prices are flat in the higher end homes.

Good Luck to you nobody has a crystal ball.

bronstew · 11-05-2013, 02:11 PM

I bought a house in 77077 for $405K a little over a year ago. If I sold it tomorrow, I'd probably get $425-50. The area has appreciated that much in just a year. Our taxes have gone up, which is a reflection of the rising lot values. East of here, in the Memorial area, they are tearing down 1970s houses and building brand new houses on the lots. All around us there are corporate apartments and office buildings going up. No new houses. We are zoned to Barbara Bush, which is ranked #6 in the state among elementary schools. You're going to have a hard time finding a house for that price that you actually want to live in. So I guess it depends on where in 77077 you're talking about. As far as this neighborhood goes, the only way we're not going to make money on this house is if the bottom completely falls out of the oil and gas industry.

That said, I agree with Cabot. Houston is not a good bet for property investment. It depends too much on the fortunes and busts of the oil and gas industry. There's nothing else here to draw people in.

Bad Haggis · 11-05-2013, 02:38 PM

Quote:

Originally Posted by bronstew

I bought a house in 77077 for $405K a little over a year ago. If I sold it tomorrow, I'd probably get $425-50. The area has appreciated that much in just a year. Our taxes have gone up, which is a reflection of the rising lot values. East of here, in the Memorial area, they are tearing down 1970s houses and building brand new houses on the lots. All around us there are corporate apartments and office buildings going up. No new houses. We are zoned to Barbara Bush, which is ranked #6 in the state among elementary schools. You're going to have a hard time finding a house for that price that you actually want to live in. So I guess it depends on where in 77077 you're talking about. As far as this neighborhood goes, the only way we're not going to make money on this house is if the bottom completely falls out of the oil and gas industry.

That said, I agree with Cabot. Houston is not a good bet for property investment. It depends too much on the fortunes and busts of the oil and gas industry. There's nothing else here to draw people in.

So it went up 6-11% in the last year, while the whole of Houston and really the whole US went up 10-12% according to what I've been hearing on the news. Sounds pretty mediocre, not that its a bad thing.

cheryjohns · 11-05-2013, 06:46 PM

Like has been said already, if you are just here for about 2 years, it might be better to just rent. If longer, 77450 over 77077. Not because location is not important - but because it IS. That budget will put you in sketchier areas of 77077 - or homes that need a mountain of work.

bronstew · 11-05-2013, 06:51 PM

Jesus, Haggis, I have no idea about percentages. I am guestimating big time. But yeah, they've gone up. I don't see the prices going down anytime soon as long as they continue to make housing (not apartment or condo housing) so scarce in this area. I have heard people on this board talk about buying a house as a commodity, and that is something I never wanted to do. So we found a balance between a place that will not devalue but is also comfortable and spacious.

julia1999 · 11-06-2013, 06:26 AM

Quote:

Originally Posted by bronstew

Jesus, Haggis, I have no idea about percentages. I am guestimating big time. But yeah, they've gone up. I don't see the prices going down anytime soon as long as they continue to make housing (not apartment or condo housing) so scarce in this area. I have heard people on this board talk about buying a house as a commodity, and that is something I never wanted to do. So we found a balance between a place that will not devalue but is also comfortable and spacious.

I like your concept of buying a house: buying a house for better life quality. I think that is the reason why houses in Houston are so much more affordable than UK. Barbara Bush Elementary is also an area I am eyeing on. Unfortunately houses fall within my budget in this area look dilapidated. So I extend my hunting to East side of 77077, with school zone to Ray Daily Elementary/ West Briar Middle.

One thing I am curious is: how is the quality of these houses built in 1970's? do they suffer from Lead or other toxic? I know the energy efficiency of old buildings is not good anyway.

Moving to a new country poses new challenge to us at the moment. In the UK, we live in a soul-less new built and envy these thatch-roof old buildings. Now we are told new built are usually more expensive than older houses in the US. What a interesting world!

julia1999 · 11-06-2013, 06:41 AM

Quote:

Originally Posted by Cabot

Are you here permanently or just a couple of years assignment? If it is the latter I would NOT put my money in real estate. Actually, I would think about this very carefully as property in Houston doesn't seem to appreciate a great deal (with a few exceptions). The real estate people on here will give you a better idea about that though. I would talk to a financial advisor before doing anything.

More information to supplement to the OP: My family plans to stay here instead of going back to UK. We like the sense of spaciousness in Houston. We live in a 1600 SQRT four-bed house back in the UK, (near London) you could imagine the bedroom size.

We plan to buy our future family house near to the rental property, such as 77079, so it is easier for us to maintain the rental property without much hassle. That is the reason I only consider 77077 and 77450 for the time being.

I did not expect to make a substantial over-night profit from this rental property, but as long as it could generate 7% from the annual rent and also appraise 3% annually by itself, it sounds good enough for me. I tried my luck several times at stock market, but never be able to maintain a constant 10% profit from my investment.

If anyone is familiar with the rental market at 77077 or 77450, please feel free to correct me about my naive profit calculation. I am a newbie to the Houston rental market.