Buying a house, looking to find a place for appreciation. (Austin: middle-class, apartment)

[Bideshi]

Forget appreciation. Buy a house to live in IF it's as cheap as renting. Housing appreciation is dead for a generation or two until people finally forget this disaster.

[hound 109]

Originally Posted by grakk

Yes - I guess to clarify I'm more worried about losing money.

The reason I'm interested in appreciation is not to get rich or to retire early on the money made back - I'm planning on doing that with my 401k and Roth IRA.

I'm hoping that I can find a place where I get most/all of the money back that I'm paying on interest, insurance and taxes on top of the mortgage as well as my down payment when I sell.

I understand this is hard to predict - I'm just looking to give myself the best possible shot. As far as timeframe I'm not sure.. I don't see us leaving the Austin area anytime soon. But who knows what will happens with jobs etc.

I'm repping this guy because he:

- has his act together.
- understands that buying a home is MORE than about closet space & new countertops.
- won't ever go into foreclosure if he's putting $$ down & buys in an area that doesn't depreciate. (so my kid & my kid's kid won't have to pay for future bank / pmi rescues)

I'll let the experts predict the neighborhoods. A couple of other thoughts:

- an area with better schools are preferable to an area nearby with worse schools.
- the cheaper home in a nice area is better than the more expensive home in a cheaper area.

Good luck on your search.

[jobert]

Originally Posted by hound 109

- the cheaper home in a nice area is better than the more expensive home in a cheaper area.

The problem with the assertion above, is that the cheaper homes in Austin already have that speculation rolled into the price, there are no "freebies" in this market anymore.

See the following example of two houses (same price) that fall into these two categories, and tell me which one will become a "300K house" first:

2201 Dry Tortugas Trl, Austin, TX 78747 MLS# 2139821 - Zillow

8700 Corran Ferry Dr, Austin, TX 78749 MLS# 8663570 - Zillow


Investment aside, which house would YOU want to live in for the next 5, 10, 15 years?

[jobert]

I'll go even further to say that the "cheaper homes in nice neighborhoods" niche market is overheated in Austin right now, because of the general over reliance on this tactic.

The 2nd example is in what considered an "established area". The 1st example is a 5 year old 2900 sf Standard Pacific with mature trees, the other is a 10 year old 1500 sf DR Horton snout house with twigs planted in front. These two neighborhoods are the same distance to downtown.

Here's the kicker: The first example has better schools, and a lower crime rate than the "established" neighborhood.

[Bideshi]

Originally Posted by jobert

2201 Dry Tortugas Trl, Austin, TX 78747 MLS# 2139821 - Zillow

8700 Corran Ferry Dr, Austin, TX 78749 MLS# 8663570 - Zillow


Investment aside, which house would YOU want to live in for the next 5, 10, 15 years?

I'll take #1 even with the lot too small for the McMansion.

[hound 109]

Originally Posted by jobert

I'll go even further to say that the "cheaper homes in nice neighborhoods" niche market is overheated in Austin right now, because of the general over reliance on this tactic.

Insert "less expensive" for the word "cheap" (whatever). It has as much to do with sq. ft. or "curb appeal" as anything else.

Who would have thought that one of the first items in real estate 101 ("don't buy the most expensive home in a neighborhood") would have to be debated?


hound <----an overheated niche market disbeliever.

[jobert]

Originally Posted by hound 109

Insert "less expensive" for the word "cheap" (whatever). It has as much to do with sq. ft. or "curb appeal" as anything else.

Who would have thought that one of the first items in real estate 101 ("don't buy the most expensive home in a neighborhood") would have to be debated?


hound <----an overheated niche market disbeliever.

You're also forgetting that these "investments" are something we have to live in. They aren't just purchased, then put on a shelf, or in a folder somewhere.

When I compare these two houses, what I see is a house that will be "enjoyed" (option 1), versus a house that has to be "tolerated" (option 2).


to paraphrase - If given the choice, which one would YOU live in for the next 30 years?

[jobert]

Originally Posted by hound 109

"don't buy the most expensive home in a neighborhood"

That is true, but both of these houses are considered "mid-level" for their respective neighborhoods.

I guess what I'm saying is that certain parts of town are overheated.

[sliverbox]

To me only one thing really matters: Price and what you like and want. My whole plan is to find a house in my desired price range and pick from an area that best fits my needs and comfort level. That means I'll be choosing homes in the $150,000-$200,000 range. If that means I am locked ou of some of the hoity-toity areas then oh well- so be it. My mortgage will be less a financial liability. Whether the house appreciates or depreciates is of little concern to me since most of my net worth will not be tied to the house.

[hound 109]

Originally Posted by jobert

That is true, but both of these houses are considered "mid-level" for their respective neighborhoods.

I guess what I'm saying is that certain parts of town are overheated.

- Haven't looked at your link since (imo) Zillow is a cr*p site after wasting 10 min. on it last week.

- I agree that certain parts of town are overheated.

- I stand by RE 101 primer of "don't buy the most expensive home in the neighborhood" for the OP....especially if he's trying to minimize his chance of seeing his home devalue.