Pearland Home Values

[fjoseph]

Want to get some advice here...

We currently live in Pearland (Southgate Subdivision on CR59 - behind Macys). We are planning to move inside the loop, to be closer to work.

Should we sell our house or lease/rent it out? Our house is 2 years old. Basically, with all the growth in the area, if property value will increase in the next 3-5 years, we will lease it out and sell then. If the increase is marginal...we will sell.

What do you all think the potential property value in pearland will be in 3-5 years?

Thanks

Franklin

[CoolBuddy06]

Although Pearland is overpriced, I think, but prices will only go one way in the next few years - up. Even with the slowing real estate market, notice that new home prices in SCR and Rodeo Palms a couple of miles down are still going up.

With your location behind the upcoming Pearland town center, your home should appreciate, and with those foreclosing looking for homes to rent, you should find a renter easily.

[spiderman]

Want to get some advice here...

We currently live in Pearland (Southgate Subdivision on CR59 - behind Macys). We are planning to move inside the loop, to be closer to work.

Should we sell our house or lease/rent it out? Our house is 2 years old. Basically, with all the growth in the area, if property value will increase in the next 3-5 years, we will lease it out and sell then. If the increase is marginal...we will sell.

What do you all think the potential property value in pearland will be in 3-5 years?

Thanks

Franklin

Will you have negative cash flow if you hold the house and rent it out? I am not familiar with Pearland, but in many areas newer, mid and higher end homes the rental income is not enough to cover the mortgage, taxes, insurance, leasing fees, vacancy, etc. Plus tenants tend not to take as good care of the property as you would, so you may run into make ready costs when you decide to sell down the road. These negative cash flows may outweigh speculative future higher property value.

[fjoseph]

we checked out lease rates on similar houses, and our cash flow will break even (mortgage, tax and insurance).

Maybe i need to add a small amount for wear/tear to the total (that'll put us in the negative)

thanks....something for us to consider!!!

[spiderman]

we checked out lease rates on similar houses, and our cash flow will break even (mortgage, tax and insurance).

Maybe i need to add a small amount for wear/tear to the total (that'll put us in the negative)

thanks....something for us to consider!!!

One more impact on your cash flow to consider, in case you have not already, is that the property taxes on your Pearland house will increase as you will lose the homestead exemption in the year after you move out and convert it to a rental.

Best of luck on the deal

[TJones]

I would rent it out for awhile, especially with the way the housing market is right now. I would also only ask for just enough to cover your mortgage and taxes on the place so yours will be more desirable because of a low rent for the area. I would also be VERY picky about who you let rent it. Make absolutely sure that if you go this route that you get credit checks done on your potential renters.

[jm1fd]

I would rent it out for awhile, especially with the way the housing market is right now. I would also only ask for just enough to cover your mortgage and taxes on the place so yours will be more desirable because of a low rent for the area. I would also be VERY picky about who you let rent it. Make absolutely sure that if you go this route that you get credit checks done on your potential renters.

Yep....be VERY picky when choosing a tenant. I would add to the above that you should do background and reference checks as well.

[20thStDad]

My sister and her husband just moved out of SCR, they had built there 2+ years ago. When looking at selling, they would have had to take a $20-$30k loss based on comps in the area. So they decided to rent, and it worked out well. They ended up getting $200/month more than they were asking because 2 tenants outbid each other, and on a 2 year lease. I can't really make sense of that in my head - having to take a loss on the sale but being able to rent for basically more per month than the people could have bought it for. Oh well, it worked out. One more thing - they are doing the rental with one of those property management companies that does everything for you, mostly because they live out of state now and can't deal with it.

Just be sure to look at the comps in your area to get a good picture of what market value would be.

[spiderman]

My sister and her husband just moved out of SCR, they had built there 2+ years ago. When looking at selling, they would have had to take a $20-$30k loss based on comps in the area. So they decided to rent, and it worked out well. They ended up getting $200/month more than they were asking because 2 tenants outbid each other, and on a 2 year lease. I can't really make sense of that in my head - having to take a loss on the sale but being able to rent for basically more per month than the people could have bought it for. Oh well, it worked out. One more thing - they are doing the rental with one of those property management companies that does everything for you, mostly because they live out of state now and can't deal with it.

Just be sure to look at the comps in your area to get a good picture of what market value would be.

Credit is tight right now, fewer people can qualify for a mortgage than in the recent past, so the pool of qualified buyers is shrinking and the pool of renters is growing. So rents are higher relative to buying than in the past, as long as our job market holds up this should continue for a while. Also, Pearland is one of the strongest rental markets in the Houston area.