Pinecrest vs Coral Gables - Housing price appreciation? (Palmetto: real estate, insurance)

[hmmppm]

I would love to hear everyone's opinion regarding Pinecrest vs Coral Gables in terms of house price appreciation in the next 5 to 10 years?

We are a couple in our 30's with two very young children looking to buy a house. This past week we saw two houses we like, one in northwest Coral Gables and the other in southwest Pinecrest. Both are around $650k, move-in condition, on quiet streets, similar in square footage. The Pinecrest yard is almost 3 times the size of the Coral Gables yard.

We like both houses very much and can easily see ourselves live in either. So it comes down to if one area is likely to see better appreciation in the next 5 to 10 years? Since we will dump so much money into an already red hot market we really need to consider this aspect. Not in it to make money, but hoping at least not to lose much in the process.

So what does everyone think? Any feedback is greatly appreciated.

[straight shooter]

650k is a lot for a house but in all honesty it doesn't buy you much in Coral Gables or Pinecrest. I doubt that the house will appreciate much in the coming years. Lets think realistic, do you think the house can end up costing 800k-1million in the coming years. You also have to factor in all of the additional expenses that you will incur during the ownership of the home, ie., closing costs, insurances, taxes, mortgage interest, and repairs and improvements, you might break even in the end. It is probably a smaller older home to begin with. All of the larger newer homes in Coral Gable and Pincrest sell for a million +. One thing to think about is that you or the next potential buyer might not be able to add on to the house in Coral Gables because of the smaller lot size. It is impossible for me or anyone to tell you which one will appreciate more without seeing pictures of the houses. There are a lot more variables than just Pinecrest versus Coral Gables, ie., construction, layout, quality of materials, architectural style and lot shape just to name a few.

[bale002]

Originally Posted by hmmppm

one in northwest Coral Gables and the other in southwest Pinecrest. Both are around $650k, move-in condition, on quiet streets, similar in square footage. The Pinecrest yard is almost 3 times the size of the Coral Gables yard.

So what does everyone think? Any feedback is greatly appreciated.

You have the answer right in front of your nose in the math.

On a square foot basis Coral Gables is worth more, the main reason being that it has a downtown in its own right, host to multinationals, consulates and many other businesses, and close to Brickell, host to multinationals, consultates and many other businesses, not to mention close to the airport and seaport, as well as downtown/government center.

Pinecrest is a bit further away and its downtown is retail malls and strip malls along US 1. You go there if you want a bigger lot and a slightly better school district.

In either case, you are at the margins and at the bottom of the barrel of both communities, so expect any appreciation to be slower than in, say, central/southern Coral Gables or northern Pinecrest. On the other hand, they say it is better to have the least expensive house in the most expensive neighborhood than to have the most expensive house in the least expensive neighborhood.

If slightly better school district and large lot are not key factors, then an edge to Coral Gables. But in either case, allow for around 20-years before expecting any significant capital gains, perhaps a bit sooner.

Good Luck!

[hurricaneMan1992]

I agree with Bale mostly, except that prices are again going up at unsustainable rates. I wouldn't necessarily look at which places would go up fastest, but rather which ones held up better last time the bubble burst. But seriously, don't think of your house as an investment and stress too much over price appreciation! Remember, we're coming out of a historical real estate bust because people were buying houses "speculating" about how much they would go up. Still, as Bale pointed out, it is the characteristics of living in each city that really matter.

There are many differences between living in Coral Gables vs. Pinecrest you need to worry about. For example, Coral Gables is much more strict about what you can do with your house, down to the paint color. Pinecrest has the reputation of the better schools, including proximity to great private schools. Pinecrest is closer to the coast, and more vulnerable to hurricanes, insurance is probably muce more expensive. There could be property tax differences too. Pinecrest has more proximity to "big box" stores and The Falls Mall, as well as an existing Metrorail staiton. NW Gables is not as convenient as far as shopping. SW Pinecrest borders Palmetto Bay, another nice suburban city. NE Gables borders the "westchester" neighborhood which is unincorporated and is not nearly as nice. How about nearby parks and bike paths? Since you're satisfied with both houses, IMHO, these kinds of things should be deciding factors.

[ConeyIsBabe]

The City of Coral Gables has superior Police/Fire services

[Lo Maximo]

Interesting question, I've been looking so have some insight. People that have lived down here for years have told me that Coral Gables is about as safe of a bet as you can get if you are thinking about it from the investment perspective. That being said, the houses in the Gables tend to be older and you have to be real careful you don't invest in a money pit. I've heard from contractors you have to be particularly careful with the old spanish places built in the 20s because the foundations can be shaky because of some sort of sand that was used back in the day. It sounds like that won't be an issue given your description. The area you mention in the gables is also near 8th St., so I think Pinecrest would win in the safety department if that matters to you. Check out an area called the "Coral Gables trailer park" near 44th Ave. and 9th to see what I mean.

Pinecrest would be better if your more into a suburban lifestyle with good schools, etc... Coral Gables (n. of US 1) is more urban in nature but closer to restaurants, bars, art galleries, office buildings, etc... As others have said, it sort of depends what you're into.

[Dakster]

I like big yards - so I would go that route. But I would also look at tax and insurance costs too. Those can really eat up money quick. In addition are both houses the same age? Anything built after 2005 has the new strict building codes and are typically cheaper to insure and should hold up better in a storm. What roof types do both houses have?

If you want to live in the gables I hope you don't want to park a pickup truck or a boat in your yard. Although I think they just relaxed some of the pickup truck rules. (gotta check that one out to be 100% sure though - it went back and forth so much I can't remember who won)

Do your drive to and from work and during the applicable travel hours from both places. Granted right now, traffic is alittle lighter due to no school.

To be honest - I can't see either being a bad choice if EVERYTHING is 100% equal.

[NATEBEAR]

I think the appreciation is likely to be equal. It comes down to the type of neighborhood you are looking for.

Pinecrest, IMO, is the more family friendly neighborhood. If commute to downtown is a factor, you would save yourself 20-30 minutes by living in Coral Gables. If your children are going to go to public school, beware that students are chosen for Coral Gables schools through a lottery system. Coral Gables is VERY strict with their rules with violations resulting in hefty fines.

[himain]

Yes Coral Gables is very strict on their city rules so do a lot of research before you buy in there. Pinecrest is much more relaxed and you'll get more yard for your money. Honestly $650K is cheap in Pinecrest. Which area is the house in?

[Travelassie]

Originally Posted by himain

Yes Coral Gables is very strict on their city rules so do a lot of research before you buy in there. Pinecrest is much more relaxed and you'll get more yard for your money. Honestly $650K is cheap in Pinecrest. Which area is the house in?

Just a thought, that $615 thousand would likely buy more house in Palmetto Bay, which borders Pinecrest to the south. There isn't much difference in those areas- especially if you stay north of SW 168th Street. We lived there for years, and felt that incorporation had a positive effect on the area. We were happy with the police protection, fire response, and other services provided there.