Houses going up for sale in Oakley.... (Cincinnati, Covedale: how much, buyers)

[kjbrill]

Originally Posted by wilson1010

I was really after the OP's comment. Yours was a little different in that you questioned the appreciation of City property in general. For the future I doubt any residential real estate will appreciate. When interest rates go up, prices go down. And, I think we are in for a bad ride on interest rates. But, suburban sprawl that got people out to West Chester and Loveland and Mason was enabled by cheap transportation costs. If gas prices go to $5 a gallon and stay there as the enviroweenies want them to do, a 30 minute commute may become a luxury many cannot afford.

But you ignore the fact they will be saved by LRT and Streetcars (yes sarcastic).

$5 a gallon will certainly put a crimp in many wallets, and I am not about to say it won't happen. Several years ago, the company I worked for for 45 years moved from Norwood to Mason, practically in my back yard. I was one happy camper, an automatic raise due to reduction in city income tax, substantially reduced cost of commute, and reduced car insurance due to significantly less miles driven. I could have walked to plant, but only did that a couple of times since I was already nearing 50. But the biggest relief was from not having to get on I-71 each day and endure/fear it.

I also agree residential property value appreciation may be slow in coming for quite awhile. But I am not sure that is overall a bad thing. My feeling is during the boom before the bust, people were being encouraged to ignore sound financial planning and just buy, often more than they could afford. Don't worry, in a few years you can sell for more than what you paid, so that interest only or variable rate loan looked OK.

I had a different approach to owning a home, likely why I only bought two in my lifetime. I took the advice of my father, who always said there is a cost of owning a home, you are using it and the entire structure ages as you do, consider a portion like renting. You received the benefit of living there and don't expect it back. Unless you spend additional money to replace and upgrade, it should be worth less as it ages. The Realty Industry for years has portrayed the home as the largest single investment of a family (True), but has falsely portrayed it as always gaining value. My idea was keep the loan (mortgage) to a point if the ceiling fell in, I could still make the payments by working in a fast-food joint. Another good advice of my father (he was really quite smart), was Do not be house poor. You have to reserve something to help send the kids to college, take vacations, buy a new car with cash, etc.

I realize these are the ramblings of an Old Fart, which I certainly am. But I frankly do not see how the principles have changed, just the method of delivery.

[Wilson513]

Originally Posted by kjbrill

. . .
I also agree residential property value appreciation may be slow in coming for quite awhile. But I am not sure that is overall a bad thing. My feeling is during the boom before the bust, people were being encouraged to ignore sound financial planning and just buy, often more than they could afford. Don't worry, in a few years you can sell for more than what you paid, so that interest only or variable rate loan looked OK.

I had a different approach to owning a home, likely why I only bought two in my lifetime. I took the advice of my father, who always said there is a cost of owning a home, you are using it and the entire structure ages as you do, consider a portion like renting. You received the benefit of living there and don't expect it back. Unless you spend additional money to replace and upgrade, it should be worth less as it ages. The Realty Industry for years has portrayed the home as the largest single investment of a family (True), but has falsely portrayed it as always gaining value. My idea was keep the loan (mortgage) to a point if the ceiling fell in, I could still make the payments by working in a fast-food joint. Another good advice of my father (he was really quite smart), was Do not be house poor. You have to reserve something to help send the kids to college, take vacations, buy a new car with cash, etc.

I realize these are the ramblings of an Old Fart, which I certainly am. But I frankly do not see how the principles have changed, just the method of delivery.

Correct ramblings nonetheless. It will take a lot of pain to overcome the decades of propaganda spewed by Realtors and homebuilders that a house is an investment and not a cost.

[Cincy-Rise]

A house is an investment, as long as you do not become house-poor. An individual, couple, or family should always have emergency money set aside no matter what happens. If you can't set aside emergency money, then you are house-poor.

More along of what we're discussing ...

The real investment comes in when a homebuyer foresees an upward trend. Put two-and-two together. What makes sense? What are the sociological cycles that happen with neighborhoods? When I'm 35-40 and decide to sell, who falls into the age-group that will be buying my house?

- Is this neighborhood "already there?" - your investment value won't go up too much, but it's the safe route.

- Is the neighborhood on it's way up and catching the eyes of developers? - your investment will rise more than the previous situation, but you're one in million at this point.

- Is the area seen as a place to avoid, but is seeing light at the tunnel and makes sense from an economical, sociological, and geographical point to see great momentum in 3-7 years? - these folks are the ones that will be reaping the largest benefit of their hard work, money, and faith.

[Cincy-Rise]

There's so much on this topic to talk about ... this is my niche. I wish I had off for the day, because I'd love to share graphs and neighborhood life cycles on here! lol

Maybe tonight ...

[kjbrill]

Originally Posted by wilson1010

Correct ramblings nonetheless. It will take a lot of pain to overcome the decades of propaganda spewed by Realtors and homebuilders that a house is an investment and not a cost.

Yes. The number one cost of most families is probably the car. Those who have two probably double it. From the day your drive it off the lot it is losing value, rapidly.

Number two is the house. It depreciates less aggressively, but should depreciate none the less. As you live in it, everything ages. Unless you spend additional money to replace, upgrade, etc. it should be worth less than what you bought it for. As you said, the Realtor market has portrayed it as an investment. This is true, but not necessarily an investment which gains value. You live in it, raise your family, and are hopefully content with your purchase. But to automatically assume it will sell for more than you paid - rediculous. It takes times of extreme inflation to make this happen. I hope we are not facing this in the short term.

[goyguy]

Originally Posted by Ohiogirl81

Wow. When I was first house-hunting in 1992, the houses on Isabella were going for around $59,900. What a great investment those homeowners have made.

It didn't escape me that seven houses on the same block changed hands within a year, which is what led to this thread's getting started.

[progmac]

I think if anyone should be worrying about property values it is those in the far flung suburbs outside of 275. They keep building more and more, further and further out, but our population isn't much bigger and the market these new developments attract will cannibalize "established" suburbs like west chester.

The "inner city" is the ghetto of the past. Third ring suburbs are the ghetto of the future.

[otters21]

I do not think it is about white flight. I really do not see that happening. It is possibly because of the recession we have been in. People have bought homes in a desirable area thinking that their jobs are safe, but unfortunately at the their places of employment they have been laid off because of downsizing or jobs being outsourced. It may be a long time for them to find another job to get back on their feet or or they are forced to take a job paying much less . As a result they can no longer afford the homes. In recent years Oakley had started getting somewhat pricey as people were getting priced out of Hyde Park. I hate to say this , but it has been happening all over in desirable neighborhoods all over the country-whether in cities, suburbs, exurbs, small towns and even in rural areas. Perfect example ,is my childhood neighborhood , a stable 50s subdivision in a middle ring suburb of Philadedelphia. Many of those homes still had their original owners living in them and a seeing a house going up for sale is unusual. However nowadays these homes change hands often because people cannot afford them . At any given time there are at least 6 or 7 up for sale in this particular neighborhood.

[kjbrill]

Originally Posted by otters21

I do not think it is about white flight. I really do not see that happening. It is possibly because of the recession we have been in. People have bought homes in a desirable area thinking that their jobs are safe, but unfortunately at the their places of employment they have been laid off because of downsizing or jobs being outsourced. It may be a long time for them to find another job to get back on their feet or or they are forced to take a job paying much less . As a result they can no longer afford the homes. In recent years Oakley had started getting somewhat pricey as people were getting priced out of Hyde Park. I hate to say this , but it has been happening all over in desirable neighborhoods all over the country-whether in cities, suburbs, exurbs, small towns and even in rural areas. Perfect example ,is my childhood neighborhood , a stable 50s subdivision in a middle ring suburb of Philadedelphia. Many of those homes still had their original owners living in them and a seeing a house going up for sale is unusual. However nowadays these homes change hands often because people cannot afford them . At any given time there are at least 6 or 7 up for sale in this particular neighborhood.

I tend to agree with your evaluation. Prior to the housing market bust, it seemed to me prices in most locales were advancing at an unwarranted rate. Then the general economy collapsed. I feel many people have been caught in the situation of either no jobs, a downturn in hours, etc where they can no longer afford what they purchased. It is a sad state of affairs, but one I feel is true.

[The Don]

Originally Posted by Tubby513

... Plus, Walnut Hills HS is baller as hell and I doubt any private HS in these parts can really make a claim to being better. Oh but wait, it's part of CPS, it must suck right?

What does "baller" mean??

But more to the point, what makes Walnut Hills "baller" and remember it is just one of half a dozen high schools in the CPS system -- what about the others? They are basket cases! Why put up with them when you can get a much better choice a few miles north?