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The lower the home cost, typically the more % in appreciation you'll see.
Bingo!
You will not find real estate investors in this area buying $300k to $500k houses at their ARV. These are not good investments. They might be perfect homes for people to buy and live in - as homes, but not as investments.
10 - 15 years ago, if your goal was appreciation, you should have been looking for houses in the low $100ks just outside of downtown Raleigh. There were plenty available, and they were fine houses in fine neighborhoods. You could have purchased those houses in good condition at market value, and just waited for appreciation to happen. Even better, buy a dump and force appreciation.
This is not what most people do, and there is nothing wrong with what most people do, but don't buy a house that is worth $400k for $400k in a neighborhood full of other $400k houses and expect strong appreciation. That's not typically what happens.
Location: Chapel Hill, NC, formerly NoVA and Phila
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Quote:
Originally Posted by carlito2002wgn
Sorry to hear this. My wife and I bought in Raleigh (Brentwood neighborhood, near IHOP on Capital BLVD) in 2005, so also 14 years ago. From our purchase price to today, the value of our home has gone up 61%.
Which is a nice but not a crazy yearly increase. It works to about 3.5% a year increase which is slightly better than inflation.
Look at your price point - your home is priced well outside the norm for salaries. Combined with location(?) and there you have it. From what you posted you also put another $100k into it, probably over-improving it for the area.
In general higher priced homes especially in outlaying areas will appreciate much less. Some maybe not at all or even may go down in value depending on local economics.
Again Wheels, we decided we weren't gonna move so we did home improvements. We don't really care what the house eventually sells for - we'll be dead!
As for "over-improving" now that I think about it, there's almost nothing original inside the house except the walls and doors which have been painted several times. It's probably closer to $150K including new deck.
The total $$$ spent was again $150K but there are tax advantages which I won't discuss here!
Sorry to hear this. My wife and I bought in Raleigh (Brentwood neighborhood, near IHOP on Capital BLVD) in 2005, so also 14 years ago. From our purchase price to today, the value of our home has gone up 61%.
Houses listed in our neighborhood typically stay on the market for about a week or less. There is one house in our neighborhood that has had a sign out for at least two months, but that is an oddity. I wonder what is wrong with it
I had a heck of a time trying to buy a house for my mother in 2016, because every house that I found had been sold before I got to see it, or I was outbid. I finally bought one sight unseen (trusted my realtor). That house has increased in value by 10% since I purchased it.
My mother never made it to her new house, but I am keeping it as a rental. I'll also keep the one that I am currently in as a rental. I have other properties in other markets which I am currently in the process of selling. I will NOT be rolling that money into other real estate as I think (have for a while) we are headed for a downturn.
Our daughter-in-law is a "flipper." She's done very well. She's purchased 2 houses at auction - homes were foreclosed. Both had significant damages so she has a good general contractor who fixed 'em and then she sold 'em.
Her father was a construction guy so she knows a lot about fixing/repairing houses. Her husband, our son, is useless in these endeavors - he's like me - owns one hammer and two screwdrivers and barely knows how to use 'em!
You will not find real estate investors in this area buying $300k to $500k houses at their ARV. These are not good investments. They might be perfect homes for people to buy and live in - as homes, but not as investments.
10 - 15 years ago, if your goal was appreciation, you should have been looking for houses in the low $100ks just outside of downtown Raleigh. There were plenty available, and they were fine houses in fine neighborhoods. You could have purchased those houses in good condition at market value, and just waited for appreciation to happen. Even better, buy a dump and force appreciation.
This is not what most people do, and there is nothing wrong with what most people do, but don't buy a house that is worth $400k for $400k in a neighborhood full of other $400k houses and expect strong appreciation. That's not typically what happens.
We sold our house in Cary for $170K - paid $120K in 1986
Our goal was never appreciation - it was always a home that we liked in a good location. We bought in Brier Creek because it’s easy to get to RTP (TW Alexander) for my wife and close to RDU as I travel a lot on biz.
Again Wheels, we decided we weren't gonna move so we did home improvements. We don't really care what the house eventually sells for - we'll be dead!
As for "over-improving" now that I think about it, there's almost nothing original inside the house except the walls and doors which have been painted several times. It's probably closer to $150K including new deck.
The total $$$ spent was again $150K but there are tax advantages which I won't discuss here!
Which is a nice but not a crazy yearly increase. It works to about 3.5% a year increase which is slightly better than inflation.
Yes, that is true, and it is what I would expect. Actually, it is not even 3.5% when you consider all expenses associated with owning the house. Now, when this house becomes a rental property, things really start to look up. You should almost never buy a house as an investment banking on appreciation. It's just not smart.
it was always a home that we liked in a good location. We bought in Brier Creek because it’s easy to get to RTP (TW Alexander) for my wife and close to RDU as I travel a lot on biz.
Yep, these are good reasons to choose a particular house for your primary residence.
Our daughter-in-law is a "flipper." She's done very well. She's purchased 2 houses at auction - homes were foreclosed. Both had significant damages so she has a good general contractor who fixed 'em and then she sold 'em.
Her father was a construction guy so she knows a lot about fixing/repairing houses. Her husband, our son, is useless in these endeavors - he's like me - owns one hammer and two screwdrivers and barely knows how to use 'em!
That's fantastic! Good for her. I'm more of a long-term buy and hold investor. Much more favorable for taxes!! Now, I love the idea of rolling the profits from a flip into a rental. Then 1031 a few of those rentals into something more substantial.
I’m complaining because Appreciation was secondary but still kinda important. The more the house sells for, the more our 3 kids will $inherit when my wife and I die!
When we bought this house we looked at houses that would allow for quick easy access to RTP where my wife worked (retired now) and also semi-close to the airport for my weekly traveling. Our last 3 houses were all new-builds and we wanted another new-build. From what I remember Brier Creek was the best location and the “clincher” was our Realtor telling us that “Brier Creek is a real hotspot.”
There were only a few houses left to buy in Brier Creek and only 2 lots in our price range. I would’ve guessed that since Brier Creek was fully sold that people wanting this neighborhood would drive the prices up.
Turns out I was 100% WRONG!
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