Resale Value - Fox Chapel v. Mount Lebanon (Pittsburgh, Franklin Park: sale, foreclosure)

[ksharona]

Hi - We recently moved to Pittsburgh. We are planning to buy a house or townhouse. I work in downtown and my husband works in Allegany General Hospital. Our goal is to sale after 4 years as we may not stay in Pittsburgh. Given how high the closing costs are in Pittsburgh, we would like to buy a place that we can sell at no loss in four years. We also want it to be close to work. We have seen places in Fox Chapel, Mount Lebanon, Squirrel Hill and Shadyside. We are between Fox Chapel and Mount Lebanon due to low tax rates and prices. Where do you think the resale will be easier? Thanks!

[Hopes]

It depends on where you can get the best price for a home. Mt. Lebo has good deals. Many of those houses aren't very expensive IMO. Fox Chapel homes tend to be top dollar. Keep in mind, it's likely you will be living in a significantly older home in Mt. Lebo. It really depends on what you want. Houses in both areas will hold their value, but that doesn't mean you won't lose money when taking taxes into consideration. Even though the tax rates are lower, you will be paying higher taxes because the house will cost more. Houses don't appreciate in value super fast in the region, instead have a slow appreciation. You might actually lose less money with a cheaper house in a less desirable township with a higher tax rate. Buying an undervalued house for a great price is your best bet in any area.

[ksharona]

Thanks for the quick response! One of our main concerns is the commute every morning to downtown and Allegany General Hospital.

[sskink]

I can't speak to FC, but in ML you can pretty much guarantee 2.5%-3.5% annual increase in value. I've never heard of anyone who's taken a loss on a home in ML in this century.

As far as commuting goes, ML gives you the option of taking the T to downtown/N.Side. FC gives you an awful car commute.

[Hopes]

Originally Posted by sskink

FC gives you an awful car commute.

That's not true at all since Route 28 has been redesigned. It's a breeze now. You can get to AGH much faster from FC than ML. If she chooses a home in a neighborhood near the Virginia Avenue Ext. ramp, the commute could be ten minutes.

[Copanut]

Originally Posted by sskink

I can't speak to FC, but in ML you can pretty much guarantee 2.5%-3.5% annual increase in value. I've never heard of anyone who's taken a loss on a home in ML in this century.

As far as commuting goes, ML gives you the option of taking the T to downtown/N.Side. FC gives you an awful car commute.

Unless they are appealing their assessment, then it's "Mt.Lebanon is a declining area."


To the OP, I would look along the 279 corridor for quick access to the hospital. Franklin Park, Ross, West View, Ohio Twp, Bradford Woods, and dare I say Cranberry? If you buy on the very high end you won't see much appreciation, 4 years is not a long time in the Pgh market.

[Hopes]

Originally Posted by Copanut

To the OP, I would look along the 279 corridor for quick access to the hospital. Franklin Park, Ross, West View, Ohio Twp, Bradford Woods, and dare I say Cranberry? If you buy on the very high end you won't see much appreciation, 4 years is not a long time in the Pgh market.

I agree with this. It's a nice commute from the north to AGH. Instead of the tax rate, her main concern should be buying at a lower price to keep taxes down wherever she buys. It would be great if she can find an undervalued house due to someone needing to sell quickly for a transfer or an estate in turmoil.

[stburr91]

I agree with the others, 4 years isn't long enough in this market. You may recover your closing costs, but not any of your tax costs.

Have you considered renting the house after you leave? Owning rental property isn't for everyone, but it can be a good way to make money in this kind of situation.

[ksharona]

Thanks for responses. Does anyone have any experience with buying a foreclosure house in Pittsburgh? How long does it usually take?

[gg]

You can make money in months depending on how you buy your home. It doesn't take 4 years, IF you are willing to do some work to the home over the years you live there. Can you paint? Do some work yourself? If you can't do the work yourself, then you have to have a really good eye and know what you are doing because you will have some added costs hiring others to do some work. Buy a tired looking home that needs freshened up. Plenty of them in Fox Chapel and Mt. Lebanon. Some only need some paint. The most expensive renovation is a kitchen. Don't worry about putting much money on bathrooms unless they are really bad. Bathrooms are more of a waste of money in the real world. The commute from Fox Chapel is much better than Mt Lebanon to AGH. Aspinwall and O'Hara are other options. If you don't have kids Highland Park is doing quite well and I think it is a good location for appreciation.