Rehab old bungalow or purchase new construction? (Atlanta, Cleveland: cul-de-sac, foreclosures)

[DFJ]

I've been pondering whether to build a new home intown or to purchase an older bungalow in need of rehab, gut it and make it my own.

Costs are definitely an issue. Would like to spend no more than $350K.

Another problem is stock. Unless one is willing to move into the sketchiness of Capitol View, Westview or West End, there are no affordable old bungalows in sight. What good is a home if you're constantly worrying if someone is breaking in while you're away and you sleep with one eye open?

As far as new homes are concerned, I've checked out areas such as the Preserve of East Atlanta - which has beautiful homes - but the distance just doesn't feel right.

Has anyone debated a similar path? Are there any decent areas with new and somewhat reasonable construction?

It's such a strange time with the market so haywire and gentrification woes seemingly swelling. Any input or wisdom much appreciated.

[sweettea1]

I don't think you'll be able to purchase a bungalow and renovate it for $350K. You'd be lucky to spend $350K on the home alone, especially if you want it in a nice area. From what I understand, you'll spend $150/sf for renovation costs. That includes everything, unless of course you're doing the work yourself.
New homes intown that are in desirable areas are well over $700K.
You mention distance. Distance to what? Where will you be spending most of your time?

[Merin]

We were in the same boat. We bought new construction.

[Merin]

We looked at the Preserve, we liked the houses but hated the location. we ended up buying in East Village Park.

[DFJ]

Originally Posted by Merin

We looked at the Preserve, we liked the houses but hated the location. we ended up buying in East Village Park.

Merin:

How do you like EVP? I really liked the homes there but it just feels a little far out.

[Merin]

We love EVP. The neighbors are great people. We are all friends and have a great sense of community. The houses come with all the upgrades. They are Earthcraft houses, so our energy bills are minimal. It may be far out depending on your commute. My husband commutes to 10th street, it takes him 15 minutes. I commute to Sandy Spring it takes me 25 minutes in the morning, and about 40 minutes in the evening. Except on Fridays.

[itpgardengal]

There are plenty of old bungalows in need of restoration in the EastLake, Kirkwood, Edgewood area. Do a MLS search by zip 30317. Depending on how hands on you are it may be much more cost effective to rehab than buy new construction.

[davesm]

I think that there are still some phenomenal values in West End. I moved here about 2 1/2 years ago. It is a much more stable neighborhood than Westview or Capital View. You've got restored Victorians (Owners aren't selling those) and a nice stock of authentic Craftsmans. It is also one of a handful of Historic Districts in Atlanta. It also has a Marta station, (3) I-20 exits (Lee, Lowery, & Langhorn), and the Beltline is the southern and western neighborhood border. It is about 1 mi SW of the State Capitol and less than that from Castleberry Hill. As you can see I could go on and on... I personally feel that the "almost intown" subdivisions are just that, almost intown subdivisions. Intown neighborhoods don't have big entrances, covenants, and cul-de-sacs. They are places that have variety and you can walk to breakfast, lunch, dinner, park, or shopping. West End is not for everyone, but it is one of the few Atlanta neighborhoods where you can do all of the above.

[DFJ]

Originally Posted by davesm

I think that there are still some phenomenal values in West End. I moved here about 2 1/2 years ago. It is a much more stable neighborhood than Westview or Capital View. You've got restored Victorians (Owners aren't selling those) and a nice stock of authentic Craftsmans. It is also one of a handful of Historic Districts in Atlanta. It also has a Marta station, (3) I-20 exits (Lee, Lowery, & Langhorn), and the Beltline is the southern and western neighborhood border. It is about 1 mi SW of the State Capitol and less than that from Castleberry Hill. As you can see I could go on and on... I personally feel that the "almost intown" subdivisions are just that, almost intown subdivisions. Intown neighborhoods don't have big entrances, covenants, and cul-de-sacs. They are places that have variety and you can walk to breakfast, lunch, dinner, park, or shopping. West End is not for everyone, but it is one of the few Atlanta neighborhoods where you can do all of the above.

Interesting perspective, Dave.

First question is the obvious one: how safe is the area?

Second: the demographic in West End is more than 90 percent black. Is the community receptive to newcomers who aren't? Kirkwood, for example, had a lot of strife when white residents with gentrification goals moved into the neighborhood. It still does to a degree. An area such as West End with such a rich history of black Atlanta...it just seems there could be issues.

The housing stock is no doubt fabulous and affordable. Also, I'm curious as to why you feel Capitol View and Westview aren't as stable?

[JPD]

Originally Posted by DFJ

The housing stock is no doubt fabulous and affordable. Also, I'm curious as to why you feel Capitol View and Westview aren't as stable?

West End, zip code 30310, has one of the highest foreclosure rates in the country. That's good if you want a cheap house, but it's bad if you want to move into a stable neighborhood.

Don't Mess With Taxes, too - Archive: 6/27/2007

"Elsewhere: Oh, yeah. You want more than Texas info, I suppose.

Across the rest of the country, the CNNMoney/RealtyTrac report found that ZIP code 44105 in Cleveland led foreclosures, with 783 filings for the three-month study period. Next came 30310 in Atlanta with 709 filings and 80219 in Denver with 705 filings."