About to purchase a Ryan Home. Am I making a mistake? (Ellicott City: section 8, real estate)

[mapmd]

Very High prices (especially for a townhouse) at very low quality = bad news. I would not be buying any homes built by Ryan, Ryland, Pulte, or any of the other national brands in the area. Townhouse living may appeal to some people, but as far as I'm concerned: no thanks.

These communities start out somewhat nice (as far as the neighbors go) when they're built too, but ask any police officers you may know in the area (if you're a local) and they'll gladly tell you that these cookie-cutter communities turn to garbage in 15-20 years as the majority of the original owners upgrade and many of the properties turn into rentals.

These things are slapped together by basement barrel, low-wage workers, where management and supervisors cut costs. Now some of this has an advantage, such as your electrical, plumbing and hvac work being done so as to minimize materials and time spent installing it all, but....how does that advantage you the buyer? All the profit goes to Ryan and in no way gets translated into a lower price for the consumer. These things should be selling for 100k (who knows, bargain them down to it) and these companies would still make money on them. All that bare-bones construction makes it very hard to upgrade and update in the future should you decide to do so (though I'd still take it over something that's 50 years old).

If I may ask a question, and I'm prior Army here, but why would you buy in one of the most expensive areas of the country when you are just going to move in a couple years? Maryland is about to see a huge surge in foreclosures come on the market (because of the pent up judicial backlog) over the course of the next few years (hey, it's already started folks, just go on zillow and look at all the pre-foreclosures, there are more than there are regular sales) and when it comes time to move on to your next duty station....then what? Sell into a huge down market? Rent it out? Hard to do from a distance and not as profitable as people think, especially with a mortgage. What do Ryan townhomes go for anyway? 300k? No thanks, I'll pass.

[goldenage1]

Originally Posted by mapmd

I I may ask a question, and I'm prior Army here, but why would you buy in one of the most expensive areas of the country when you are just going to move in a couple years?

Thanks for asking that question. Your points are valid. Maryland also has very high closing costs. It will be hard to get enough appreciation to cover the costs if you own the house less than 5 years.

[Ben A. Roundawurld]

Mapmd, interesting take, especially the fact that despite all your misgivings, you would still opt for a Ryan TH over a 50-year-old SFH (my thoughts exactly; homes that old have absolutely no appeal for me).

As far as moving in a couple of years - not the case for me at all. I've come to the end of the road in my military career, hence the big decision to plant roots

[Beretta]

So first of all thank you for your service and Welcome Home! I just have to say to you that because you are even asking this question you already know the answer. Don't let the pretty model home staging fool you. As the saying goes "you can put lipstick on a pig but it is still a pig". Ha, crude but you get the drift.

Go for a quality home in a great location. Location trumps everything in real estate. Find a killer agent that will get you the very best deal knowing that you may want to resale within X years. Granted, this may not be your plan but will get you the best value for your dollar. Go for quality in everything in life. Wishing you all the best in your home search!

[tgs_bg]

Originally Posted by Ben A. Roundawurld

Thanks tgs_bg. That helps a lot.

Just curious...are you in Maryland?

Yes.

[cjmeck]

Of all the builders in the local area, your research on Ryan homes is fairly accurate. If you do choose to go forward, hire your own independent home inspector. Your choice for Ellicott City was great though! My husband will be retiring from the Air Force in the next few years and we too have planted our roots in Ellicott City. Welcome back to the states!

[Seaponies]

Ben - Please let us know what you decided to do.

I wholeheartedly agree with Mapmd's assessment of the real estate market.

From what I've been studying the last few years, there is going to be a repeat of the 2008-2009 financial crisis but a lot worse. That includes the housing markets and stock markets. This my opinion.

If you haven't signed with Ryan yet, one option you might consider is rent for a year, at least through 2015 and see what happens to the markets. I think 2015 is a very critical year.

[Ben A. Roundawurld]

Thanks to everyone. You've all been a big help.

Lot of factors to consider - cost, quality, location, old vs new, etc.

We've been renting since February, so at some point we'll have to end that madness (speaking of quality - renting a good place in HoCo is not cheap).

Many folks ask, "Why HoCo? It's so expensive!" Yes, it is. But I've been here long enough to see what you get for those taxes - a (relatively) nice, safe place to sit back and exhale after nearly 20 yrs of globetrotting with good schools, shops, and restaurants to boot.

My military service taught me to endure a lot of stuff, which I gladly did over the last two decades. Hoping now to transition from enduring to enjoying.

[alfoa]

I have friends who are in a newer (about a year old) Ryan townhouse. The main issue is the walls. They can hear everything through the walls. Its as bad as an apartment. Apparently the code where they live, the walls only have to be a single thickness (?)--I am not an expert at these things, so bear with me. There are other builders in the same neighborhood who made the walls double thickness (?), so those people cannot hear their neighbors. Ryan only did what is code for the area, while some of the other builders went above and beyond. Maybe Ellicott City's code is different? Anyways, do not go off of internet reviews. Every builder I looked up has horrible reviews...its not unique to Ryan in any way. Just ask about the walls.

[SEP01]

Ben:
A good real estate agent can help you determine quality, value and re-sellability of the home and have the insight the builders to, even new homes. It would be beneficial to talk to one. If interested, send me your contact and I can put you in touch with one.