U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > U.S. Forums > Texas > Houston
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
 
 
Old 01-08-2009, 02:16 PM
 
3 posts, read 14,138 times
Reputation: 11

Advertisements

This is what my take on Shadow Creek Ranch and beyond in Pearland. Unless you plan to live there for another 10 years, don't buy a house there because you will lose money. Here is why?

There is still good 30-40% of shadow creek still to be developed, which under current economic conditions take until 2-3 years. One of my friends built a home one and half year ago and still left with three houses on his street (both sides). 70% of lots in his community are still available for sale. (No houses yet, only lots are available so that builder will build once someone commits to buy it )

When new construction coming up in the community, property values don't go up. Another friend who bought around 2002, when the community has just started, saw his property value remain the same and will face 4-5 months of listing time to sell it.

Another friend east of 288 is still holding to his house because he couldn't sell for 4 months and try to rent it for a loss of couple of hundred per month. Another one considered selling their house and move into a condo in the inner loop before they relocated elsewhere.

This is the best part. West of SCR is till up for grabs. I doubt about the sale value of that because it is close to the landfill. Whether the landfill expansion will go ahead or not, that will affect the resale and future home building. There is a huge acrage of land north of 2234 (Shadow creek parkway) that will planned into another master plan community or individual developents once SCR, ST and Manvel are done. So, new construction will always be there in that area for another 4-6 years depending on the demand so the values of existing homes do not go up beyond the inflation adjusted values.

Also, all we are away is one report of ground water contamination or increase in foul smell to see property values drop because of the land fill. Remember, we also have chemical plants near Almeda which doesn't make things easy.

Currently, property tax out paces the appreciation so you don't build any equity until next 4-5 years (consider the MUD taxes too).

Did anyone travel on Broadway near 288 on Saturday and Sunday? Its insane. The amount of traffic around those shopping malls is ridiculous. I would rather sit at home and enjoy than sitting in the car to get into Kohl's or Walmart. There is very little room for Broadway to expand.

Real part is commute. Unless commute at odd hours, leaving to work between 6-7 AM or coming back after 6:30, travling on 288 is a nightmare.

People of thinking of expanding 288 into five lane each way (they have enough space to do that). This will take anywhere between 4-5 years to come by if it is approved in 2009-2010. Its a long shot now.

Probably, extending Houston light rail till Pearland and establish few Park & Ride will surely help. But thats till a dream.

Considering all this, unless you plan to live for atleast 5-7 years and willing to break-even, able to withstand commute (probably bareable depending on the time, but not the best choice) buy a home in Pearland area. It doesn't matter which subdivision. It is not a place to invest in Real estate.

The real value of home in Shadow Creek Ranch is round $65 per Sq. ft., unless you have granite covered home or gold plated door knobs. So, when you buy, multiply with Sq. ft, and add 15%-20% depending on the subdivision and then make an offer. Otherwise, you are overpaying in the current market conditions.

Please offer your input so that it can be a good discussion for future home buyers.

All you are looking for is completing an American Dream, go ahead. But its no longer an investment or a vehicle to increase your wealth unless you hold on to it for 10+ years or your area sees 4 to 5 % appreciation every year.

Last edited by nfappa; 01-08-2009 at 02:45 PM..
Quick reply to this message

 
Old 01-08-2009, 04:19 PM
 
201 posts, read 796,248 times
Reputation: 108
What you're saying about SCR can pretty much be said about any master planned community. That is, until the community AND SURROUNDING communities are built out, it's hard to expect much appreciation when someone can buy a brand new home rather than your 'used' home. It's kinda like buying a new car - it loses value right after you purchase it.

We live in Silverlake, across 288 from SCR, and we've seen very little appreciation in our home as well. We purchased for $203K in 1999, and I think our home would sell for around $210K-$215K today. We'd barely get our purchase money back after commissions, but that's fine because that's the compromise we made: buy a newer, larger, CHEAPER home in the burbs in exchange for a longer commute and less chance at appreciation.

That being said, I think SCR is a good value if you buy a "used" home because the prior owner will have already taken the "new home" depreciation hit. Just don't expect much if any appreciation.
Quick reply to this message
 
Old 01-08-2009, 06:09 PM
 
3 posts, read 14,138 times
Reputation: 11
Default I agree

You are right on the money. If I break even in 5 years, its an achievement, provided I could sell it on time without making two mortgage payments.

Price you pay for living in a nice community, in a large home of your choice, decorate it the way you want, with a yard for kids to play etc.
Quick reply to this message
 
Old 01-09-2009, 08:12 AM
 
101 posts, read 265,210 times
Reputation: 73
Smile A home is not just an investment

A home is just that a home. You need shelter, food and clothing to survive. no one complains about thier furniture, car, wedding ring, clothes, Television etc. depreciating and we buy these things on credit????? Do you complain about eating out at a fine restaurant and paying with your credit card??? Now you owe for something that is worth nothing!!

Why is a home different??? Why did we start making a home an investment?? This is a fundamental problem stimulated by sheer greed!! And fortunately corrected by the free market.

If you really wanted to make some progress you should try to do something about the things that drive the price of home ownership up.
Quick reply to this message
 
Old 01-09-2009, 08:19 AM
 
Location: Charleston Sc and Western NC
9,274 posts, read 22,768,361 times
Reputation: 4684
Houses In MPC's shouldn't never be purchased with even the slightest hope of appreciate. Yet purchased for affordable family living/home while the kids are in school. JMHOIf you over extend yourself to live there......what's the point?

The reality is MPC's are places were people can land temporarily to buy cheaper housing to raise their kids in homogeneous schools. After the kids go off to college, the parents move in or retire to other parts of the country. This is why you don't see too many retirees in Houston Metro MPCs.


True Appreciation ( not the over inflated stupid housing market that has gone on for the past 5 years) usually takes place during a neighborhoods second cycle. IE. after it's been built out for 10 years, there are no more new builds around and remodeling is starting.
Quick reply to this message
 
Old 01-09-2009, 03:00 PM
Status: "Pearlander" (set 5 days ago)
 
Location: Pearland (Southern Trails)
470 posts, read 1,394,225 times
Reputation: 365
Quote:
Originally Posted by nfappa View Post
This is the best part. West of SCR is till up for grabs. I doubt about the sale value of that because it is close to the landfill. Whether the landfill expansion will go ahead or not, that will affect the resale and future home building. There is a huge acrage of land north of 2234 (Shadow creek parkway) that will planned into another master plan community or individual developents once SCR, ST and Manvel are done. So, new construction will always be there in that area for another 4-6 years depending on the demand so the values of existing homes do not go up beyond the inflation adjusted values..
You are forgetting that if the Waterlights District is actually developed, (and it looks like it will be as of this post) this will help to increase property values (some).

Quote:
Originally Posted by nfappa View Post
Did anyone travel on Broadway near 288 on Saturday and Sunday? Its insane. The amount of traffic around those shopping malls is ridiculous. I would rather sit at home and enjoy than sitting in the car to get into Kohl's or Walmart. There is very little room for Broadway to expand.
I don't see what this has to do with house appreciation, as traffic in Houston sucks everywhere. But to address your specific example, txDot is currently doing a study of that 288/518 interchange to justify modifying the light timings. When that happens, it should help the traffic problems at that location (I said 'help', not solve).

Quote:
Originally Posted by nfappa View Post
Real part is commute. Unless commute at odd hours, leaving to work between 6-7 AM or coming back after 6:30, travling on 288 is a nightmare.

People of thinking of expanding 288 into five lane each way (they have enough space to do that). This will take anywhere between 4-5 years to come by if it is approved in 2009-2010. Its a long shot now.

Probably, extending Houston light rail till Pearland and establish few Park & Ride will surely help. But thats till a dream.
The city of Pearland is now paying for a study of building toll lanes down the middle of 288. In my opinion, that appears to be the solution that is going forward to solve the 288 traffic problem. Toll roads are the fastest and cheapest to build. (I agree they are not necessarily the best solution.) So I believe something will be done with 288 before your projected dates.
Quick reply to this message
 
Old 01-09-2009, 05:16 PM
 
201 posts, read 796,248 times
Reputation: 108
Traffic isn't actually that bad in the area. It may seem horrible if you have to sit through 2-3 cycles of a light to get through, but this is a regular occurrence in many parts of town. At the risk of saying too much, there are some great backroads in the area that allow you to avoid the the high traffic areas as well. Look and you will find...

288 is heavy during rush hour - no way to dispute that. It isn't as bad as 290, for example, but it's getting worse every year. A tollway would help, but I bet it'll take a few years just to DECIDE to do it, then another 5 years to actually build it.

Fortunately, I don't take 288 to get to work
Quick reply to this message
 
Old 01-10-2009, 09:55 PM
JL
 
7,310 posts, read 11,476,348 times
Reputation: 7167
It might not appreciate, but then your property taxes will be lower. When people sell, it is never at the property appraisal price. It is usually a few % higher anyways.
Quick reply to this message
 
Old 01-12-2009, 09:58 AM
 
Location: Hougary, Texberta
7,827 posts, read 10,351,961 times
Reputation: 9322
The OP's argument can be applied to about 90% of the greater Houston area. All the more reason that the "crash" doesn't really have any effect here. Housing is priced at the cost of the housing. There is not enough demand here for the thousands of homes to justify outrageous inflation of prices.
Quick reply to this message
 
Old 01-12-2009, 10:42 AM
 
354 posts, read 2,216,424 times
Reputation: 255
Quote:
Originally Posted by josehernandez017 View Post
a home is just that a home. You need shelter, food and clothing to survive. No one complains about thier furniture, car, wedding ring, clothes, television etc. Depreciating and we buy these things on credit????? Do you complain about eating out at a fine restaurant and paying with your credit card??? Now you owe for something that is worth nothing!!

Why is a home different??? Why did we start making a home an investment?? This is a fundamental problem stimulated by sheer greed!! And fortunately corrected by the free market.

If you really wanted to make some progress you should try to do something about the things that drive the price of home ownership up.
reps for that...well said!!!
Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


 
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:

Options
X
Data:
Loading data...
Based on 2000-2016 data
Loading data...

123
Hide US histogram

Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > U.S. Forums > Texas > Houston
Similar Threads
Follow City-Data.com founder on our Forum or

All times are GMT -6.

2005-2018, Advameg, Inc.

City-Data.com - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35 - Top