Buy a home near land that will become apartments?

General Real Estate Investing
1

We found a nice 4 bedroom home that we have thought of buying and reselling in four years after our military tour here in TX is done. The home is brand new, the street is in final stages of completing the other homes. We found out today from the zoning office that the homes across the street from the perspective home will soon see an apartment complex or townhouses be developed in their backyards. (currently an open field).

Would the developed apartment or townhouses affect the potential resale value of the home we are looking at in a negative way?

The home is 195K and we’d like to sell it for over 225K after four years if the market holds out. presuming just under 10K growth in the area each year… not sure if this is reasonable.

Are there any ways to “forecast” the future or potential future value of realestate? I realize there’s no crystal ball or anything, but what are some things that we should look for location wise that will help us to not loose our shirts while investing short term in a home?

We’ve found the best school districts in the area, narrowed our search to those two areas. We found the newer neighborhoods, the better builders with good reputations, areas that seem to still be developing with new homes and businesses. We checked zoning, flood plains, etc. Anything else we should be considering?

2

I would hate to be by an apartment complex. They are unavoidable to some extent, but being within blocks of one is bad. It can bring the value down indeed. It all depends on the type.

For example, you could have luxury condos go up and you should be fine. However, plain ol apartments is not the best thing. What if it all goes section 8? It happens. If you are in a so-so area, this does not matter, but if you are in a pristine area and paying good money for a home, this is something to think about.

The closest apartment complex to me is up the road about 1 mile. The immediate area has a different feel. They are decent apartments but a notch down in feel if you know what I mean.

The other thing I won’t by a house by is a school, especially a high school. You want to be close to schools, IE long long walk or quick drive, but not right up on them.

I know someone that bought a home (this was years ago) here in Vegas. Months after that the apartment complex a block over went all section 8. She could not sell quick enough :smiley:

Nothing worries me more than undeveloped land around an area.

Honestly though, no one knows. 4 years is a very long time in community terms. It could be the darling of the city today and someone’s prostitute in 4 years. It could also grow very strong and be surprising.

Since you have a family build of home, the school districts can come into play. If they are very good when you sell, that’s a great selling point to buyers who send their kids to public schools shudders

What part of Texas? I am looking into Houston right now.

Texas does not seem to appreciate much. So much land and supply it is unreal. However, a home in a master-planned community (IE the woodlands) has a greater shot at appreciation since the land in that development is limited.

3

Makes a lot of sense. We’re looking in Corpus, and a nearby base in Portland could be closed if it makes the short BRAC list in July, this could also affect the area…?

4

If the base supplies a good portion of residents and employment, yes. If not, then maybe not.

Sure am glad we are downsizing our military. Not like there is a big country like China looking at us or terrorists around every bend. Oh I know. Let’s put 1 soldier in between North and South Korea, that should do the trick.

Bah, I am ranting. I am in favor of military spending :smiley: