Wide Eye

Anything bad happened in Frostwood (the subdivision)? I thought it's a nice and safe neighbourhood. Would appreciate if you may share more details.

I know a lot of Frostwood residents are jumping ship because of crime. Spring Branch neighborhoods south of 10 are still very strong. We sold our home in 4 days at full asking price with 3 backup offers.

I am a little perplexed as to how this developer can make much money on these townhouses.

Assuming 9 units sell at $350k each. The total revenue from the deal would be $3,150,000

Lets say they got the land for $600k and assuming the townhouses cost $100 per square foot all in with selling and holding cost included in that figure. The total cost of these units would be $3,120,000. (2800 SF * 9 Units * $100/sf = $2,520,000 + $600,000 for land)

I used $100 per SF because the article mentions the addtion of high end finishes. I am not sure if that number is right on, too high or too low.

I must be missing something. Either the units will have to be built for substantially less than $100 psf or the units will have to sell for over $350K (Even at $400 k per unit the numbers are still not that great.

Any homebuilders out there want to set me straight.

I'm not a home builder and I'm not working in the industry. However, my husband and I happened to talk to the sales staff of this mid-rise. We were told that a two bedroom unit is sold at around $500K. There might be some one bedroom units with study being sold at high $300K, but nothing is under $300K. As of mid March of this year, a lot of the units have been sold out. We've also heard that the owner of the building (or the builder, whoever that may be),is going to live in this mid-rise once it's done! By the way, the monthly maintenance fee is $600, which is lower than the $800 maintenance fee of Greenway Plz. We've also talked to the sales people of the brand new town house complex next to this mid-rise. The town houses are very small (2-2) but being sold at close to $300K. Because of the price and the lack of parking on the street, we decided to move out of the loop.