Neighborhoods where homes are guaranteed to go up in value? (Dallas: sale, 2014)

[Mr. Chad]

Hello all,

For anyone who is looking to purchase a home for long term investment, where in the North Texas area should one buy where the home is guaranteed to go up in value?

Even though I currently live in NYC and its a totally different market and animal all together, my parents were wise enough to purchase 2 detached, single family homes in a nice, affluent suburb of NYC. They purchased the first home in 1980 for $98,000, and the second home in 1987 for $195,000, and today in 2014 both are appraised at ~$950,000 each which I think is a nice increase in value. Both homes have been fully paid off for the past 8-10 years, and according to family discussions, I am entitled to inherit 1/3 the value of these 2 homes when the parents eventually decide to sell.

So fast forward to DFW, with this in mind, what neighborhoods should I be looking at?

Thanks for reading

[jacobr]

In the DFW area W. Plano, Coppell and neighboring areas are some of the most desirable places to live and you will not be wrong to invest anywhere here.

[BStinson]

Park Cities, South lake, West Plano, Coppell, Preston Hollow.

[TurtleCreek80]

Many neighborhoods within the 635 loop are the best prospects -> the Park Cities, Devonshire, Bluffview, Preston Hollow, north Dallas south of 635, most of the neighborhoods that loop around White Rock Lake, North Oak Cliff, uptown, Turtle Creek / Oak Lawn. For suburbs, West Plano and Coppell have been the strongest.

HOWEVER - pretty much all of these areas did lose value during the 2008-2010 downturn so don't go blindly in assuming everything will only always go up. If you bought in 2007 at the peak, your home's value would only have come above water in the last 6-18 months. That was a pretty long stretch to be underwater. Now these places didn't lose 50% of value like in other parts of the country, but there are a lot of people who bought a $500k home in 2007 that was valued at $400k or less for most of 2008-2010 and is only now at or above the $500k again....7 years later!

[frenzyrider]

I second TC80's opinion. I will certainly stay below 635 loop and closer to Park cities and may be Preston hollow area
Also, in life, there are no guarantees except death and taxes

[BigDGeek]

I think in some areas inside the loop you may see diminishing returns as time goes on, especially in some areas of Preston Hollow that are prime teardown territory. You could buy a scraper, rent it out, and sell it later...but there's no guarantee you'd make a lot of money anywhere. That being said....

Prices are going up very fast in my part of Richardson. I'm not a realtor so I don't have access to sale prices but I've seen prices per square foot go up by as much as 50% in five years. Might be worth a look in 75080.

The Prestonwood area of Dallas is also worth checking out. Look in zips 75248 and 75240.

[CMC_TX]

I think buying anything at the lower end of the Park Cities market is as close to a "sure thing" as you can get around here.

You have the combination of a premium in-town location, the most affluent neighborhoods in Dallas & a premier public school system. People will always want PC schools and pay a premium for them (just look at the price per square ft in PC vs. other areas and you'll see what I mean).

For suburban areas, I agree with other posters who have mentioned Coppell and West Plano. I also think Richardson is a good option as more people trend toward wanting to move closer to the city.

[loves2read]

you won't see the same kind of appreciation that your parents supposedly got--
things don't work that way in Texas

[TurtleCreek80]

Originally Posted by loves2read

you won't see the same kind of appreciation that your parents supposedly got--
things don't work that way in Texas

They have, you just have to time the market perfectly. My parents bought their first house in UP in he late 70's for $80k-ish. They aren't there anymore, but the original house is and other than the usual updating one would do to keep kitchens & baths current, no major Reno/addition has been done. That house is probably worth in the $1.1-1.2M range today.

[TurtleCreek80]

Originally Posted by BigDGeek

I think in some areas inside the loop you may see diminishing returns as time goes on, especially in some areas of Preston Hollow that are prime teardown territory. You could buy a scraper, rent it out, and sell it later...but there's no guarantee you'd make a lot of money anywhere. That being said....

Prices are going up very fast in my part of Richardson. I'm not a realtor so I don't have access to sale prices but I've seen prices per square foot go up by as much as 50% in five years. Might be worth a look in 75080.

The Prestonwood area of Dallas is also worth checking out. Look in zips 75248 and 75240.

I disagree on your Preston Hollow theory. As more of the neighborhood is rebuilt from 50's ranches (which I adore!) to mansions and McMansions, the land becomes more valuable (of course prime location & increase in traffic around the metroplex also help drive values up there).

What happens is that a house today that is worth $500k - $300kish in land value and $200k in structure- will be worth $700k eventually, but the $700k will be broken down into $600k land and $100k structure. Just as in the Park Cities, while many residents will want newer construction, there are still lots of people left who love the original homes for whatever reason (charm, one-story floorplans, enjoy the larger yard vs a house 2-3X the size, quality of original construction materials vs what is available today, budget for the neighborhood, etc).