Dear Young-Savvy-Information-Hungry Buyer,
There is a rule we Realtors® generally follow in real estate. Sell clients what they want not what they need. You are one of the few recent potential buyers that have asked the question, “What real estate would be a better value?” Do you believe that?!!!! It’s true. Rarely do we get this question. Breath of fresh air you are!
Most people want what they want and don’t ask.
EAST END
You get more value for your dollar in terms of space for the price per SF. HOWEVER, this type of purchase would only be a BETTER value IF YOU ARE going to buy and hold for over 10 years versus less than 10 years! Your generation will eat this area up alive in the next 10 -15 yrs. BUT it will never have the appreciation that say a TH in Rice Military or Upper Kirby will have because of the proximity to central Houston and Galleria, Highland Village and Memorial Park. Remember homes are built on top of land values. The reason those homes in the East End are cheaper is because their land value for the developer was cheaper. That is why homes inside the Inner Loop (WEST of 145 of course) are so much more expensive. Land value is high. $40-70 PSF versus $10-30 PSF. The new residential product inside the East End pocket also seems to be similar, too similar, TH’s 3/2’s, 2/2’s with two car garages no yard or very little yard. There is not much differentiation yet and the inventory for homes
built now will be too many, to sell themselves with a very large upside in the future. If you can spend 250K, I would not advise it to be spent on the East End. Not for the savvy buyer with appreciation and holding for short term as primary goals. Here's the East End Chamber of Commerce website for more local information:
http://www.eecoc.org/index.php?pid=1
Other than the future TH developments, the East End is not getting anything new. It will continue to benefit from proximity to Downtown convention center, stadium, and Discovery Green. But there are no plans for any HEB’s or other grocery stores. Folks are still petitioning for a grocery store.
http://www.ipetitions.com/petition/BringqualityandhealthyfoodtotheE/ If say a Star Bucks (big determinant in telling residents that their property tax base has increased) comes in, that is a VERY GOOD SIGN, their demographic projections and studies are rigorous. But they don’t come in until AFTER new retail and commercial are already in or are in the works. So we are a few years out still for the East End……………..More roof tops are STILL needed to bring in the new retail and commercial. Mayoral candidates talked about what they wanted to develop in the East End….
http://www.youtube.com/watch?v=iW7bq6XrB4o and
http://www.youtube.com/watch?v=SapqxYO43UQ and
http://www.youtube.com/watch?v=OFLXAzMccY0
Townhomes are a dime a dozen. Saturated market, in my opinion, especially three story TH's. This is one of the reasons I bought a two story TH in Rice Military WITH a back yard. Much fewer of these units than the 3-story and you know the Law of Economics - Supply and Demand.
OAK FOREST and TIMBERGROVE
The way to go in the future for appreciation and a shorter term hold - min 3-10 years - older single family with renovation on lots ranging from 5000-10,000 SF within 10-15 minutes of the Galleria and Downtown. Some don’t even have garages. But land is precious, so THAT is the BEST value in Houston right now if you want to see a steady climb in appreciation across time. Price range is 210-350K. Those without renovations are being picked up for lot value around 140-220K and McMansions worth 650K plus are being built in their stead because folks are tired of commuting. Two neighborhoods – Oak Forest and Timbergrove.
1301 Martin St (short sale) and
1803 Woodcrest are two great deals in Oak Forest. I know the builder who renovated Woodcrest.
1124 Wynnwood (motivated seller) and
6738 Kury Ln (they are ready to negotiate down down!) in Timbergrove – good deals.