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Old 12-20-2007, 07:40 AM
 
34 posts, read 203,368 times
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Hi,

i see constant discussions/debates on this forum on where around Houston homes appreciate or depriciate in value. What about Cinco Ranch homes, are they going up or down in value, do you think buying a home in Cinco is a good investment or a bad one? What about the new Cinco subdivisions going up near 7 Meadows? Let's hear your opinion
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Old 12-20-2007, 08:00 AM
 
Location: Clear Lake TX
8,280 posts, read 27,509,247 times
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I don't know the specfics of the area you mention, but I don't think very many Houston area homes are an "investment," esp in the suburbs. They are a great place to settle down and live in for 10+ years, though.
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Old 12-20-2007, 09:14 AM
 
Location: Houston
241 posts, read 1,103,925 times
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Quote:
Originally Posted by tstone View Post
I don't know the specfics of the area you mention, but I don't think very many Houston area homes are an "investment," esp in the suburbs. They are a great place to settle down and live in for 10+ years, though.
I would have to dissagree. If you are talking about flipping a house in a year, then I do agree, I wouldn't do it. However, if you were to find a section of Cinco Ranch where builders are about to break ground I would want to be one of the first ones to build a home in there. Builders always raise prices just about every month in that community. If you buy it right when they break ground I wouldn't be suprised if you could make back 10% in 2 years.
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Old 12-20-2007, 10:13 AM
 
377 posts, read 1,230,864 times
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Quote:
Originally Posted by Rick4Life View Post
you could make back 10% in 2 years.
For an ANNUAL appreciation of 5% what is the MONTHLY cost for HITIM ['hit him' ] HOA,Intrest,Tax,Insurance,Maintenance..
not to metion the 6% for realtors

I agree with the previous poster. Its not an investment at all. Just a place to live.
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Old 12-20-2007, 10:19 AM
 
Location: Charleston Sc and Western NC
9,274 posts, read 23,739,196 times
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Place to live. Not an investment. Properties closer to the Beltway/Energy Corridor would be considered and investment or at least you would get out with your money if you had to.
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Old 12-20-2007, 10:32 AM
 
Location: Clear Lake TX
8,280 posts, read 27,509,247 times
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Making a perceived 5% APR in housing for Houston 'burbs is considered a pretty good year! But 5% per year is basically 1% over keeping up with inflation. I can get the same return from an ING high yield savings account or a 9-12 mo CD. No HITIM to deal with there, either. And if I want to take some risk I can potentially get 15% in an aggressive mutual fund. I can almost guarantee a 10% return in the S&P500.

It's no secret, either, that many people pay more for a newly built house than they could immediately sell it for in the event of a dire emergency. They have to wait years before they can sell it for the amount it was sold to them, and sometimes these homes stay on the markets for several months. I can only presume a lot of folks in the burbs are nothing but slaves to their homes due to this phenomenon.

It is my opinion once you get past a certain point, buying a huge house here "just because I can" becomes a Keep-Up-With-The-Joneses thing more than anything. Why? HITIM gets very steep after a certain point, and cuts into your profit potential. Premiums skyrocket, and those homestead exemptions get diluted, even for over 65s on fixed incomes. "Tax deductions" are just an excuse people throw out to justify the obscene amounts of interest they burn for their materialism. You can't convince me otherwise.

Please don't get me wrong. You can still be considered wise and have a nice (yet somewhat modest) and comfortable home for a good sized family! But if you're really interested in being a millionaire, or close to it, invest your money where it will truly make favorable long term gains, which doesn't usually include the Houston housing markets.
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Old 12-20-2007, 10:44 AM
 
49 posts, read 209,787 times
Reputation: 17
Quote:
Originally Posted by EasilyAmused View Post
Place to live. Not an investment. Properties closer to the Beltway/Energy Corridor would be considered and investment or at least you would get out with your money if you had to.
Where, specifically?
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Old 12-20-2007, 10:52 AM
 
377 posts, read 1,230,864 times
Reputation: 218
Quote:
Originally Posted by tstone View Post
Making a perceived 5% APR in housing for Houston 'burbs is considered a pretty good year! But 5% per year is basically 1% over keeping up with inflation. I can get the same return from an ING high yield savings account or a 9-12 mo CD. No HITIM to deal with there, either. And if I want to take some risk I can potentially get 15% in an aggressive mutual fund. I can almost guarantee a 10% return in the S&P500.

It's no secret, either, that many people pay more for a newly built house than they could immediately sell it for in the event of a dire emergency. They have to wait years before they can sell it for the amount it was sold to them, and sometimes these homes stay on the markets for several months. I can only presume a lot of folks in the burbs are nothing but slaves to their homes due to this phenomenon.

It is my opinion once you get past a certain point, buying a huge house here "just because I can" becomes a Keep-Up-With-The-Joneses thing more than anything. Why? HITIM gets very steep after a certain point, and cuts into your profit potential. Premiums skyrocket, and those homestead exemptions get diluted, even for over 65s on fixed incomes. "Tax deductions" are just an excuse people throw out to justify the obscene amounts of interest they burn for their materialism. You can't convince me otherwise.

Please don't get me wrong. You can still be considered wise and have a nice (yet somewhat modest) and comfortable home for a good sized family! But if you're really interested in being a millionaire, or close to it, invest your money where it will truly make favorable long term gains, which doesn't usually include the Houston housing markets.

I LMAO when a realtor/sales agent start talking about 'you-are-losing-on-equity','you-are-throwing-away-money-for-rent', 'you-are-losing-tax-benefits' and all crap.
About Tax 'BENEFIT', what most buyers dont realize is that ONLY the portion above their standard deduction is good as a benefit. If 'Married-filing-jointly', anyone could get 10.5K as standard deduction. If a home-owner has nothing MUCH to itemize than his TaxandIntrest, then all he could EARN is around $1000 per year. ie, assuming that his TAXIntrest expense is 15K/year and when you substract that 10.5K from it you get 4.5K and if you are in 28% tax bracket you could get around 1000 per year. That means you spent 15K and got back 1K. WOW!!!!!

Having said that, I do understand that there is a PRICE associated with everything and there is no free lunch. What I hate is the MISLEADING hype they create by HIDING some facts.

Last edited by wheretogo; 12-20-2007 at 11:13 AM..
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Old 12-20-2007, 10:56 AM
 
Location: Clear Lake TX
8,280 posts, read 27,509,247 times
Reputation: 4565
Well, realtors say a lot of things to line their own pockets. The complicated tax codes keep the public in the dark and the economy going even if it means convincing people to buy more than they can afford. As they say knowledge (and math) is power.
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Old 12-20-2007, 11:00 AM
 
Location: Charleston Sc and Western NC
9,274 posts, read 23,739,196 times
Reputation: 4695
Gem, Pick a price range
Granted the properties zoned to SBISD, south of I-10, are going to be more, but they maintain value. Value is in the location and the land in this area, not the improvement. The razzing and rebuilding is starting. The best time to have jumped in on the big profits would have been before 2004. But buying, building or remodeling is still safe in these areas. Keep in mind, these will not be bright and shiney new homes in a master planned community. This area is mostly populated by Houston natives that went to the local schools and UT and work in town. Once the older homes are purchased and razzed, they sell for a million and up. Extensively remodelled homes from 450-700k, untouched around 300. A little farther west and zoned to KISD (excellent district) there are even better bargins, but not as popular with the natives.
North of I-10, where gentrification is starting is a little more risky for the short haul, however its much less expensive.

Last edited by EasilyAmused; 12-20-2007 at 11:12 AM..
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