Housing Bubble in Rhode Island (Providence, Smithfield: schools, law, moving)
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Speaking only to a house as an Investment. It's LOCATION. Otherwise, there can probably be hundreds of criteria.
I guess my point is that a house isn’t an investment. Or at least not a very good one unless you managed to latch onto a local property bubble. Sure, a house in Palo Alto did great but the majority of houses track local income growth. It’s not like the middle class and bottom part of the upper middle class has seen big income growth relative to inflation. There’s a bit of the Rhode Island market where out of state money from 5%ers has driven up prices but that’s not most of the state.
I guess my point is that a house isn’t an investment. Or at least not a very good one unless you managed to latch onto a local property bubble. Sure, a house in Palo Alto did great but the majority of houses track local income growth. It’s not like the middle class and bottom part of the upper middle class has seen big income growth relative to inflation. There’s a bit of the Rhode Island market where out of state money from 5%ers has driven up prices but that’s not most of the state.
For some a house is an investment. Just one they can live in. In fact, for many it is the biggest investment they will ever make. Even if a particular home is not on par with with stocks or other investments, it can keep the homeowner from squandering their money on things which depreciate with no return. And, in times of low inflation/good economy like now, real estate can give a superior return - if it's in the right Location.
For some a house is an investment. Just one they can live in. In fact, for many it is the biggest investment they will ever make. Even if a particular home is not on par with with stocks or other investments, it can keep the homeowner from squandering their money on things which depreciate with no return. And, in times of low inflation/good economy like now, real estate can give a superior return - if it's in the right Location.
Like Geoff previously said, different LOCATIONS can have different values to different people. Some want the gold plated schools and affluent >50% college educated demographics and little socioeconomic diversity, while some want the strategic commuter locations close to all amenities. We have seen some of these preferences shift over time also, in ways that could not have been predicted a pretty short while ago. I believe parts of Cranston would have been had better return if bought 15 years ago than much of Barrington, if that says anything.
Like Geoff previously said, different LOCATIONS can have different values to different people. Some want the gold plated schools and affluent >50% college educated demographics and little socioeconomic diversity, while some want the strategic commuter locations close to all amenities. We have seen some of these preferences shift over time also, in ways that could not have been predicted a pretty short while ago. I believe parts of Cranston would have been had better return if bought 15 years ago than much of Barrington, if that says anything.
Of course, Location can mean different things to different people. I'm referring to Location as a standard of real estate value. This can be verified in various ways with hard stats having nothing to do any particular individual preference. Hot Locations can change from time to time. Neighborhoods come in & out of fashion. The Mini Mansion plats of Western Cranston for example. However, the Best Locations tend to hold their value over time.
Everything was hurt. Some locations were slaughtered, but slowly recovered. Others went down and bounced back better than ever.
Is the “better than ever” list the trendy parts of Providence, the two gold plated professional bedroom towns in Barrington & East Greenwich, and anything coastal that an affluent New Yorker or Bostonian might want to buy?
In my zip code, waterfront, the gated summer communities, and the walkable village are going gangbusters. The middle class housing stock that is most of the housing stock in town is pretty much tracking the inflation rate since the South Coast has seen no substantial economic growth and is not commutable to the Boston job market.
Is the “better than ever” list the trendy parts of Providence, the two gold plated professional bedroom towns in Barrington & East Greenwich, and anything coastal that an affluent New Yorker or Bostonian might want to buy?
In my zip code, waterfront, the gated summer communities, and the walkable village are going gangbusters. The middle class housing stock that is most of the housing stock in town is pretty much tracking the inflation rate since the South Coast has seen no substantial economic growth and is not commutable to the Boston job market.
Thank you, everyone! I actually was not aware of the existence of manufactured houses! After reading your comments, I am no longer interested in the unit.
I think it would benefit me from your guidances better if you know more about my financial situation. I have 80k cash and very good credit. My ideal monthly housing expense would be less than 1.2k. Although I can afford more on housing monthly, I do not want to. At this stage of my life, I want to spend on travel, good food, and other fun experiences. I work in Smithfield. I am expecting a baby in a few months so I also target area with a good school system. I also target houses with high resale value in 3-5 years. (I know it seems too much asking for a small budget!) Most of all, I am no rush to buy and willing to wait for the market to slow down.
Moving on from the manufactured house, I am now looking at some cheapest single houses and here are some that caught my eyes. I was wondering you could give me your takes and whether or not it's overpriced also what would you buy if you are forced to.
This is a little bit out of line but I also interested in buying it with cash. I am not sure if it's overpriced. Thinking about making an offer of 55k, cash.
Tathy: If you haven't already, you really need to sit down, first with a banker. Find out exactly what you can afford. Then get a good real estate agent to show you around and further qualify you. There could be some places for sale that you don't know about; plus there are places that Realtors know will be coming on the market.
I would definitely vote "no" on that condo you posted. 712 sf is very small, plus as I recall, that neighborhood is not very desirable. Do NOT put down $80K on anything unless you have a very good income. You may be hard pressed to get your money back -- and never rely on the market going UP. You're not in a position to speculate. A banker and a good Realtor will give you the proper information. Best wishes on your journey.
That said, neither seems to be a bad choice but I'd probably pass on both.
If I was forced to pick one over the other, I'd likely choose the North Providence one despite the higher HOA fees. Why? The Lincoln condo appears to be in a rundown area, you may have trashy neighbors, and it's pretty close to Central Falls. The North Providence condo is close to Mineral Spring Ave - which could be viewed as a positive or a negative. In this case, I'd view it as a positive because you'd have many conveniences nearby but you'd be far enough away for it to not be a distraction. The North Providence condo is on the corner of a high traffic street, but it seems to be located in a solid neighborhood. Not a high end neighborhood, but the side street looks decent. And the proximity to Providence is a major plus.
If I had to drive in Mineral Spring traffic every day, I'd pull out all my hair. The best decision I made in my life was not moving near there. Driving to visit my mother in law was annoying enough.
The drive from Lincoln to Providence will actually be the same amount of time, if not quicker most of the time. And Saylesville is nice enough, and the schools are better.
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