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Old 12-04-2012, 03:36 PM
 
11 posts, read 30,579 times
Reputation: 17

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[SIZE=3]I have heard SFH has better resale value than condo and doesn’t suffer as much during downturns, but what about the condos in medical center. What about if I plan to hold it for 15, 20 years until mortgage is paid off?[/SIZE]
[SIZE=3] [/SIZE]
[SIZE=3]The realtor told me the demand is really high in medical center, 1br cost $70-$80K can rent for $750+. Is that true?[/SIZE]
[SIZE=3] [/SIZE]
[SIZE=3]Actually, with high HOA fees, property tax, mortgages, I am in the red after the expenses, is it a good investment?[/SIZE]
[SIZE=3] [/SIZE]
[SIZE=3]Anyone can shed some lights?[/SIZE]

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Old 12-04-2012, 04:06 PM
 
1,833 posts, read 2,742,306 times
Reputation: 3754
Quote:
Originally Posted by domoreforless View Post
[SIZE=3]I have heard SFH has better resale value than condo and doesn’t suffer as much during downturns, but what about the condos in medical center. What about if I plan to hold it for 15, 20 years until mortgage is paid off?[/SIZE]
[SIZE=3] [/SIZE]
[SIZE=3]The realtor told me the demand is really high in medical center, 1br cost $70-$80K can rent for $750+. Is that true?[/SIZE]
[SIZE=3] [/SIZE]
[SIZE=3]Actually, with high HOA fees, property tax, mortgages, I am in the red after the expenses, is it a good investment?[/SIZE]
[SIZE=3] [/SIZE]
[SIZE=3]Anyone can shed some lights?[/SIZE]

Houston has too much sprawl for Condo's to ever really take off....Condo's are very hard to sell in Houston and have very slow rate of appreciation (if any) in regards to a SFH.

As the condo ages and it should be worth more and more, the HOA to upkeep it usually counter the appreciation. Older condos often end up with HOA fees as high as a motrgage.

I would never buy one....rent one or buy a cheaper SFH.

Even in the med center or downtown they are bad buys.
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Old 12-04-2012, 05:01 PM
 
Location: Houston area
1,408 posts, read 3,720,578 times
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I responded to your private message, but I'll add more here since you have a few different questions.

If you are in the red after expenses, then it's NOT a good investments. Yes there are many condo's you can rent for $750 a month in the medical center, but I would not pay more than $40k for those.

I definitely think a single family home would be a better option. You'll have more flexibility with it since you own the land as opposed to just the condo. With condo's, you have the association fees that tend to take a big chunk of your profits. I think condo's are great for owners who don't have much time for exterior maintenance on a home, but they aren't so good for investors unless it's a hot area or if you purchase very cheap.. Condo's also don't appreciate as much. Many of the condo's being rented are usually owned by past owners who decided to keep them as rentals.

If you have a budget of a $100k, I think you are better off buying a single family home in the suburbs in Katy, Cypress, Spring, or Humble for that amount. You can then very likely rent it out for at least $1300 a month. Your mortgage should be less than $800 a month if you put 20% down. You might need to put $5k into the home if it needs paint and flooring, but it should still put you in a favorable position.

Most of the tenants who rent for at least $1k a month either don't have the money for a downpayment, or only want to live in a home for a year or 2. It's much cheaper to buy a home, but buying a home doesn't make sense to everyone. For that reason, Houston has a very healthy rental market.
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Old 12-04-2012, 10:36 PM
 
Location: Houston
1,189 posts, read 1,101,506 times
Reputation: 1362
I own a condo in the Galleria area, which is close to my work. And I know a little bit about condos near the TMC.

I would agree that, at least in Houston, condos in general are not the best investment, as far as rate of appreciation goes. (Well, to be honest, if one wanted to maximize profit, perhaps no kind of residence in Houston would be the best kind of investment? But, that's another topic.) In any case, for my own particular situation, I have no regrets at all about having bought a condo here. I enjoy living in it, the location facilitates enjoying my life, and I expect I will at least break even financially with it.

As regards TMC, I think of it as being a different sort of market than Houston as a whole. I am aware of some high-end new construction condos going up there that I think is of high quality and would provide a nice place to live for people who don't expect to live in Houston for the long-term. But, as with my own situation, I envision that situation as providing a higher quality of life, but w/o the expectation of making a big profit from flipping it after a few years.
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Old 12-05-2012, 09:34 AM
 
Location: Austin & Houston, TX
1,461 posts, read 5,206,310 times
Reputation: 424
Quote:
Originally Posted by madrone2k View Post
I own a condo in the Galleria area, which is close to my work. And I know a little bit about condos near the TMC.

I would agree that, at least in Houston, condos in general are not the best investment, as far as rate of appreciation goes. (Well, to be honest, if one wanted to maximize profit, perhaps no kind of residence in Houston would be the best kind of investment? But, that's another topic.) In any case, for my own particular situation, I have no regrets at all about having bought a condo here. I enjoy living in it, the location facilitates enjoying my life, and I expect I will at least break even financially with it.

As regards TMC, I think of it as being a different sort of market than Houston as a whole. I am aware of some high-end new construction condos going up there that I think is of high quality and would provide a nice place to live for people who don't expect to live in Houston for the long-term. But, as with my own situation, I envision that situation as providing a higher quality of life, but w/o the expectation of making a big profit from flipping it after a few years.
The Galleria area as seen in influx of higher in condos and older condo developments have been lowering rates to attract renters and buyers, but i have to agree condos are not the best investment.
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