Which area would you put your money for 2 yr appreciation? (Mobile: lawyer, rv parks)

[jblanknc]

I will be moving to Mobile in next few months (Jun-Aug), and plan to be in the area for about 2 years. Considering the local economy and expected growth I would rather buy than rent.

1. Where would you put your money over the next 2 years? Mid-town, West Mobile, North (Saraland, Satsuma), Baldwin County?

2. Which price point of homes do you think will increase in demand over the next 2 years?

3. Has the Mid-town rehab market played out? Any good deals to be had that would return a nice profit in an extremely safe street?

We like the conveniences of a newer home, but we also like the charm of mid-town historic homes, so we are trying to base it on a strictly investment decision.

So if you had $200k-$300k to invest for 2 years, where would you buy?

[bhalpin]

I only know about Baldwin County, Spanish Fort is good area but you will shop around for anything under 300K however it will sell pretty quick once on market. Also what about the Beach area? That may be too far to drive to work if you work in Mobile. I think West Mobile might be good but there are building up in Saraland, when I was there it was more rual but haven't been there in a while.

[ccm2000]

I am building another house in the Saraland/Satsuma area now and I see a lot of potential in the next few years. The new steel mill and race track is bringing a lot of other businesses with it (suppliers, hotels, restaraunts, etc..). The area has grown fast over the last few years. I think Highway 158 will soon look like Airport and Schillinger in the next few years. I lived in West Mobile most of my life and moved to Saraland about 5 years ago. I like the convenience of the location. Within 15 to 20 minutes I can be downtown, the mall, Spanish Fort, etc.. I heard that 158 is know tied into Schillinger but I have not been that way yet. The asking price for new homes in Saraland/Satsuma area range from $230,000 to $500,000. Some homes have been on the market for a while now just like everywhere else but I don't see it being that way in a couple years. I made a $40,000 on the last house I sold after living in it for 2 years. I probably would have got another $40,000 if I would have waited a couple months longer. If only I would have known.

[downtowndoll]

Originally Posted by jblanknc

I will be moving to Mobile in next few months (Jun-Aug), and plan to be in the area for about 2 years. Considering the local economy and expected growth I would rather buy than rent.

1. Where would you put your money over the next 2 years? Mid-town, West Mobile, North (Saraland, Satsuma), Baldwin County?

2. Which price point of homes do you think will increase in demand over the next 2 years?

3. Has the Mid-town rehab market played out? Any good deals to be had that would return a nice profit in an extremely safe street?

We like the conveniences of a newer home, but we also like the charm of mid-town historic homes, so we are trying to base it on a strictly investment decision.

So if you had $200k-$300k to invest for 2 years, where would you buy?

Well , my two cents based on building/buying/selling about every 3 years in Mobile over a period of 15 years.......
Spring Hill area is a great investment. 15 years ago i didn't get it. I was a dummy! I would right now be looking at that area on Spring Hill Avenue as you go up the hill, to the right is a neat little neighborhood called Spring Wood.

Baldwin County: the only area- Spanish Fort because of good commute time. There is a huge glut of homes on the market in general over there right now. They've actually lost percentage over there, whereas Mobile has increased by 10%.

Midtown is the top area I would invest in. The streets off Dauphin St. between Ann St. to the East and Florida to the West. Mine increases all the time in my area. Right now, if I sell , I make about $150K-$200K extra. Lived here 3 years, but I'm on a really great street.

Another area potentially interesting is the 'hoods across from Heron Lakes Country Club. Large beautiful lots; you can get deals over there. but it's ranch houses.

Midtown unrenovated- $100 a sq. ft.; renovated - up to $160 sq ft
Spring Hill renovated -more than $200 sq ft (I'm more familiar with Midtown)
They are doing $800K teardowns in Spring Hill, I do know that.

I think we will see $150K-$250K houses increase the most. Most people around here cannot afford more than that.

I wouldn't invest in West Mobile right now. Here's why: the value of homes out there don't rise much, if they rise. You have to sell within 3 years or you will "lose" potential money because by 5 years, your house gets dated. They potentially go downhill over 10 years because of depreciation. Saraland could be interesting but I'd still pick Spring Hill or especially Midtown over those areas. Saraland & Satsuma, those areas are too close to Prichard and potentially could go downhill in about 10 years.
Of course, if you are just staying 2 years, maybe that doesn't matter.
My two cents......

[oscottscotto]

While I wouldn't live in Saraland personally (hick-town), that would be a great place to invest with the mill and race track coming. Prices will definitely be going up and the area will grow undoubtably.

[ccm2000]

It is true that Saraland/Satsuma is considered hick town around Mobile. It has really been changing over the years. The cities housed most of the workers from the industrial plants up Highway 43. Most of the people moving that way now are like me. Trying to get away from the traffic and congestion in Mobile. I lived where most new construction is (Celeste area). Most of my neighbors are professionals (engineers, business owners, accountants, ... not exactly hicks. The southeast part of Saraland could transition over the years but the rest would be ok. Most of the new construction in the area is over 3000 sq. feet (It's hard to find new neighborhoods with less than a 2800 sq. foot restriction). The new steel mill will have around 27,000 construction workers over the next few years. I look for a lot of rentals in area. Some workers will try to buy because there is not many RV parks and hotels to house that many workers. The final plant will have about 2700 employees and I feel that most will live in the Satsuma area and areas along Hwy 43. I hear that there is a lot of growth in Semmes area as well. I agree with downtowndoll on West Mobile.

[downtowndoll]

You're right; there are many nice homes in Saraland, Wilmer, & Semmes, etc. with people choosing to move out of West Mobile to build their dream homes with acreage. They are not usually choosing to move out of Spring Hill area. (Most of my friends stay within Midtown & Spring Hill and move up to better houses. ) We once had the same in Semmes with sauna, steam room etc. None of my Mobile friends would come to my house, though! Forget having people come to a Pampered Chef party out there!! People thought I lived in hick town, which is not necessarily the case.

I'm sure Creola is going to have some growth from those workers for sure. Maybe Chickasaw will finally have a huge appreciation jump; it's such a neat town. Their historic district is really cute and such a deal!

[jblanknc]

Downgtowndoll and others,

Thanks for your responses on the messages boards. My fiancee and I are having a hard time finding a house that has a good layout in mid-town that is under 300K. It seems that we either find a street we like but no good houses, or a house we like on a bad street. Do you have a recommendation on streets? We are a young couple and would like to be around other young families, and be able to sell the house in 2010-2011 and pocket some appreciation.

Why is everyone saying Mid-town is going up? What is the reason it is going to go up?

[downtowndoll]

Originally Posted by jblanknc

Downgtowndoll and others,

Thanks for your responses on the messages boards. My fiancee and I are having a hard time finding a house that has a good layout in mid-town that is under 300K. It seems that we either find a street we like but no good houses, or a house we like on a bad street. Do you have a recommendation on streets? We are a young couple and would like to be around other young families, and be able to sell the house in 2010-2011 and pocket some appreciation.

Why is everyone saying Mid-town is going up? What is the reason it is going to go up?

Streets for you that would be perfect: Right price range and also homes with good floor plans, like the bungalow style (1910 or so to 1930's). These homes were the forerunner of today's floor plan.
North Reed Street, Silverwood neighborhood off Old Shell Road, Florence Place neighborhood off Old Shell Road- lots of young professionals. North Reed and Silverwood also have street parties which increases value of your house perhaps. Hunter Avenue is another good street. Bienville Blvd and DeMouy St. close to Murphy High. I like all those streets by Murphy High. Another super cute one: Williams Court in between Fulton St. and South St. Macy Place and South Monterey St. North Monterey is too expensive for you. Sometimes you can find a small house on a street like North Monterey or South Georgia; this is a great deal.

The Oakleigh Garden District has a ton of kids and a neighborhood organization that has parties for the adults and the kids. Former mayor Mike Dow lives there. It's more downtown than the others and not for everyone, I guess. Most of the children are to the east of the area, over by Ann Street, S. Georgia, Rapier, and Roper. Selma. I am in this area; best move I've ever made.

You may have to buy a house that you aren't that crazy about. A lot of the neighbors move up to another neat house on a good street and it never goes on the market. If you live in the area, you are all friends and find out about it first. Even after 2 years, you should make money if you had to sell.

Why Midtown?
Well, we all talk about this all the time (several friends are very successful realtors who specialize in Midtown/Spring Hill) and one big thing in play right now are the gas prices, which we believe will only make Midtown even more appealing. Gas is almost $4 a gallon right now. Will it go down? I don't think so- it's going to change how people think about commutes, etc. We moved because we wanted to cut down our commute time so we could use it more productively in our family; we saved about 1.5 hours a day.

People want to live in communities where they know each other and can walk to the store/Starbuck or bike downtown to the sushi place, rather than just driving into their garages and never coming out of their houses.

There are a huge number of young professionals who live down here: lawyers want to be close to the downtown courthouse and doctors to the hospitals in the Midtown areas. Many people moved to Midtown and Downtown when Mike Dow started the String of Pearls (fixing up certain key things downtown) and consequently there are a lot of movers and shakers who live here. That attracts other similar people.

Spring Hill is a similar area. Actually values are much higher there (Spring Hill is highest area) when you look at average square footage price. There are Midtown people who would never live in Spring Hill because we hate the ranch houses which need about the same amount of money in renovation. Might as well live in an attractive older classic type home. There's also a cool downtown vibe here they don't have. 'Course a lot of them don't want that vibe! They are put over the edge by the gun shots one occasionally hears down here. (Noone is shot, I don't know what they are shooting at. Rats? It's not a real problem.)

But Spring Hill is a great area. Some nice neighborhoods to look at are: Kingswood and Ravine Woods.
Keep looking in Midtown; a lot of people are selling and moving up. Everyday more people put their houses on the market. We are afraid we will be outpriced so many of us are doing it now. Knock on someone's house you like and see if they will sell it. A lot here are sold that way.
Good luck!