Upcoming New Communities (Dallas, Fort Worth, Plano: apartments, how much, houses)

[Sushi cake]

Its a great location for commuting via 75/190 and schools are PISD, even if not Plano West. Builders are today's 'IT" builders as well. It should do well.

[loveplano]

Originally Posted by Sushi cake

Its a great location for commuting via 75/190 and schools are PISD, even if not Plano West. Builders are today's 'IT" builders as well. It should do well.

Thanks! Any insight on the prices?

[Big G]

Uh, they're high?

I would be concerned about those houses holding value. Right now, they can sell at a huge premium to the surrounding neighborhoods, just because they are brand new.

But now fast-forward 5-10 years, when you try to sell that house. You have an island of $500k-$700k houses in a sea of $200-$250k houses, with the cheap ones having larger lots to boot. The "new" has evaporated, and you have to make the case that your house is worth twice the price based on an age differential of 10 yrs vs. 30 years, and the Toll Bros. finish-out and rep.

[Sushi cake]

Originally Posted by Big G

Uh, they're high?

I would be concerned about those houses holding value. Right now, they can sell at a huge premium to the surrounding neighborhoods, just because they are brand new.

But now fast-forward 5-10 years, when you try to sell that house. You have an island of $500k-$700k houses in a sea of $200-$250k houses, with the cheap ones having larger lots to boot. The "new" has evaporated, and you have to make the case that your house is worth twice the price based on an age differential of 10 yrs vs. 30 years, and the Toll Bros. finish-out and rep.

I would rather buy an older house on west side but hey some people have to have new sheet rock and with schools and location, it's a nice option and I wouldn't expect dramatic depreciation.

[loveplano]

Originally Posted by Big G

Uh, they're high?

I would be concerned about those houses holding value. Right now, they can sell at a huge premium to the surrounding neighborhoods, just because they are brand new.

But now fast-forward 5-10 years, when you try to sell that house. You have an island of $500k-$700k houses in a sea of $200-$250k houses, with the cheap ones having larger lots to boot. The "new" has evaporated, and you have to make the case that your house is worth twice the price based on an age differential of 10 yrs vs. 30 years, and the Toll Bros. finish-out and rep.

I am a little skeptical on the prices too. With the mortgage rates going up... they might come down on the prices?

[Big G]

Don't hold your breath. Supply and demand, except that Toll Bros. controls the supply. If the market softens, they would throttle back the build rate, rather than cut the price.

The land is finite. If they can sell either 100/ year at $600k, or 200/year at $500k, they will choose the first option and extend the community build-out. Why? Because that maximizes the profit from the land. This is different than an ordinary retail business, where profit is looked at from a time perspective.

Another comparison is a Ford dealer vs. a Maserati dealer. The Ford guy can blow out cars for an "OK" profit, because he can always get more cars from corporate. The Maserati guy might have 10-12 cars of a style allotted for the whole year, so he has to extract maximum profit from each one, rather than selling them to the first 10 people through the door.

[TX75007]

I don't see these. If you read through the city council notes, you can find a lot of goodies.

Lewisville - Castle Hills Golf Villas
Lewisville - Castle Hills East
Lewisville - Indian Estates Phases 7X

[rolltide87]

Originally Posted by Big G

Uh, they're high?

I would be concerned about those houses holding value. Right now, they can sell at a huge premium to the surrounding neighborhoods, just because they are brand new.

But now fast-forward 5-10 years, when you try to sell that house. You have an island of $500k-$700k houses in a sea of $200-$250k houses, with the cheap ones having larger lots to boot. The "new" has evaporated, and you have to make the case that your house is worth twice the price based on an age differential of 10 yrs vs. 30 years, and the Toll Bros. finish-out and rep.

I find this completely inaccurate. PSHS has almost the same demographics as PWSH in terms of ethnicity and economically disadvantaged students. That is where HE will feed to. You'll also have the added benefit of proximity to the 190/75 corridor, which is important to many commuters. Pittman Creek Estates is also in that zip code and houses there are more expensive than surrounding neighborhoods (300-500K), but they still sell. West Plano isn't 'new' either, and if surrounding neighborhoods impact the values that much, west Plano would have horrible home values with all the subdivisions built next to ghetto, dilapidated section 8 and low income apartments on Parkwood and Preston Road next to all the Willow Bend subdivisions. The other homes on the HE subdivision are the ones that will dictate the comps.

[Sushi cake]

Originally Posted by rolltide87

... subdivisions built next to ghetto, dilapidated section 8 and low income apartments on Parkwood and Preston Road next to all the Willow Bend subdivisions. The other homes on the HE subdivision are the ones that will dictate the comps.

There are no section 8 ghettos in West Plano.

[PISDstudent]

Originally Posted by rolltide87

I find this completely inaccurate. PSHS has almost the same demographics as PWSH in terms of ethnicity and economically disadvantaged students.

Not anymore! You are aware of the redistricting plan that caused so much anger in the community three years ago, right? Well that kicks in for the students entering 11th grade and the senior high level this year. That plan shafted Plano Senior of the highest performing school in the district, and reassigned those students to Plano West. In turn, Plano Senior picked up two middle schools from Plano East. Is senior going to suffer big time? No, but you better believe there will be a noticeable change in numbers, both in terms of demographics and test scores, for the class of 2015 and beyond. (Ie. the number of Asian students at Plano West will double over the next two years).

On another note, yes, there is section 8 housing feeding to Plano West (and they are in West Plano, if I'm correct). I don't think that counts as a "ghetto" though...