Buying vs. Renting in VB (Norfolk, Hampton: sales, real estate market, oceanfront)

[SoCal714]

Hi, My family and I will be moving to VB from Los Angeles next year for me to attend graduate school. Looking online, it seems that we could purchase a townhouse for roughly the same amount as renting a 3 bedroom apartment near-ish to town center. Specifically I've seen a few properties in the 23462 zip code that are in the $150k range. It's listed as Kempsville area. Is this a nice/safe area for a young family? We have a two year old who will attend kindergarten before my graduate program is complete. Our thoughts were to invest in a starter home that we can stay in for 2-3 years for my program (longer if we like VB and decide to stay) and use as a rental property when we decide to move.... Is this feasible for the $100-150k range? What areas are most recommended in VB for a townhouse in this price range? We wouldn't mind doing a little work to a property, but nothing major as I will be completely occupied with school and don't really want my toddler living in a construction zone... Also, we are originally from Atlanta, so we have lived in the South most of our lives.

Thanks for any input! I know it's probably more advisable to rent first, but coming from Southern California where a 1 bedroom shack easily costs 500k+, we are really excited about the possibility of owning a home...

[Coconut1]

If you're not familiar with the area, I would rent first.

The real estate market in Hampton Roads is currently in the crapper, with no light on the horizon. That's good and bad for you.

It's good because it shows no signs of growth any time in the near future, so if you rent and end up liking it, you'll still be able to find something you can afford.

It's bad if you decide to buy now, hate the area, and then find you're either underwater, or it takes months to resell when all you want to do is get out.

[Mr Williamsburg]

I agree with Coconut re: renting first but disagree about the state of our real estate market. As you can see from the stats below sales prices are up and inventory is down in almost all Hampton Roads Market areas.

[Pyroninja42]

Originally Posted by Mr Williamsburg

I agree with Coconut re: renting first but disagree about the state of our real estate market. As you can see from the stats below sales prices are up and inventory is down in almost all Hampton Roads Market areas.

You don't know anything! You're just a Realtor!

[fmac]

I agree with Mr. Williamsburg and yes, I too am a Realtor. There are obviously several questions you raise. Can you find starter homes in the $150k range that could later be used as rental property and the answer is yes. Should you buy given the scenario you describe and the answer is probably, but depends on tax bracket, salaries etc and only you can answer that. Where...is another issue. And this is why I advise clients to consider renting first or al least make a trip or two to the area to get a better understanding of what various areas comprise. There are some good and bad areas in all cities. Kempsville is an older more established area. I bought a house there when I first came to the area. You do not say where you will be going to school and how many cars you have but traffic is also a big consideration for folks in selecting an area to live. Hope this helps.

[Poquoson7]

Realtor.com has listed the VA Beach metro real estate market as one of the top ten "to watch" for 2016 at # 9. Atlanta, San Diego and Charlotte markets are also in the top ten.

[Coconut1]

OP- Good news: You won't have any problem finding a Realtor to sell you a home. Who would have thunk it!

[SoCal714]

Thanks so much for the info. Pretty much confirms what we were planning: rent for at least one year. We will be coming to the area again sometime in April or May to scout rentals. Any suggestions on location? We would really love to rent a house. But with a max budget of 1500 (Would love to spend less, and still be safe, lol) I know that we may have to settle for an apartment. Would love 3 bedrooms, but 2 and an office/den could work. My classes are at the VB Higher learning center for the first year and then I'll be in hospitals all over the area for the rest of the program. We have 2 cars, but I've heard that we should stay away from a commute that involves the tunnel. Ghent in Norfolk and Town Center in VB are the areas we heard were good and most walkable.... Open to all suggestions. Thanks!!

[Poquoson7]

Town Center in VA Beach is pretty much halfway between downtown Norfolk/Ghent and the Oceanfront and is very walkable. We moved here from SoCal in 06 and live on the northern side of the harbor tunnel. The area is called the Peninsula. Getting to and from the Southside (Norfolk/VA Beach etc.) through the tunnel can be painful. Its not the 405 but backups can be up to 7 miles because of accidents, vehicle malfunctions and dolts who have less than adequate driving skills.
There are 1.7 million people in the metro and one of the reasons traffic is a challenge is the WATER, it surrounds us and defines us, its stunning.
BUT the traffic must squeeze over numerous bridges and tunnels to get over and around the water, hence the congestion. By LA basin standards its not that bad but the pain in the ass factor is definitely there. I would suggest living in VA Beach if thats where school will commence. After renting for awhile and getting to know the area you'll be able to spread your geographic wings a little more.
We love it here, some do and some don't. We're water people and are on it or in it every chance we get.

[goofy328]

Originally Posted by SoCal714

Hi, My family and I will be moving to VB from Los Angeles next year for me to attend graduate school. Looking online, it seems that we could purchase a townhouse for roughly the same amount as renting a 3 bedroom apartment near-ish to town center. Specifically I've seen a few properties in the 23462 zip code that are in the $150k range. It's listed as Kempsville area. Is this a nice/safe area for a young family? We have a two year old who will attend kindergarten before my graduate program is complete. Our thoughts were to invest in a starter home that we can stay in for 2-3 years for my program (longer if we like VB and decide to stay) and use as a rental property when we decide to move.... Is this feasible for the $100-150k range? What areas are most recommended in VB for a townhouse in this price range? We wouldn't mind doing a little work to a property, but nothing major as I will be completely occupied with school and don't really want my toddler living in a construction zone... Also, we are originally from Atlanta, so we have lived in the South most of our lives.

Thanks for any input! I know it's probably more advisable to rent first, but coming from Southern California where a 1 bedroom shack easily costs 500k+, we are really excited about the possibility of owning a home...

The only problem is if you're transient and leave in 5 to 10 years, like a lot of people end up doing, you're stuck with a place you can't sell for as much as you purchased it. There is a reason properties are as cheap as they are around here. You might be able to use it as rental property, but is the rent going to cover all of your costs. There are a lot of townhouses, condos and apartments under construction, or in the planning phases, with no wage increases in sight; I would do my homework if I were in that position because you never know what may happen with the housing market around here.

Rent for a few years, see what this area is really like. The economy here is heavily dependent on the ports and the military so I wouldn't jump into a purchase. You might not even want something as cheap as $150k once you see what the neighborhood is like, or how small that property actually is. A lot of people think they're one over on the system by purchasing here but that isn't the case at all $150k here, if you're deep within the city in an urban area buys no more than $150k in Atlanta. If anything it might actually be more expensive. If you don't mind being farther out in the suburban neighborhoods that is entirely different.