Which would be the better investment?

[ToolMan]

I am curretnly leasing downtown and looking to buy somewhere. I am think of buying in The Rise in Midtown (formerly Post Lofts), or someplace like Bayou Place downtown.

Which do you think will have better re-sale value later down the road - maybe 10 years from now. I'm thinking downtown may be better because of the new park and Houston Pavilions. Then again, I start to think that this part of Midtown is pretty well developed and is close enough to downtown.

I just don't want to be stuck in a place I can't sell.

[Trophy Property]

I am curretnly leasing downtown and looking to buy somewhere. I am think of buying in The Rise in Midtown (formerly Post Lofts), or someplace like Bayou Place downtown.

Which do you think will have better re-sale value later down the road - maybe 10 years from now. I'm thinking downtown may be better because of the new park and Houston Pavilions. Then again, I start to think that this part of Midtown is pretty well developed and is close enough to downtown.

I just don't want to be stuck in a place I can't sell.

My opinion is that townhouse with low HOA fees will sell easier than a condo / loft where you pay $250+ a month in maintenance fees.

[jlt1988]

As a real estate agent, I don't consider these options to be a good investment. Value is determined by supply and demand. Supply is abundant (and will continue to grow), demand is low for these type of properties.

[Scharpe St Guy]

Your time frame is long which is good so in theory either investment should allow you to recoup closing costs and down payment amount. JLT is correct that supply is high and demand is lackluster for lofts and units within towers. So will you be able to come out ahead and by how much??? No one here knows, depends on how Houston does, how the USA does, any further terrorist attacks, gas prices, interest rates, etc.... Lots of variables.

If you are looking for an investment then I would consider a loft or quality built town home on the East side by Minute Maid Field and Toyota Center. This whole side of town is cheap and is being built out quickly.

Good luck,

Scharpe St Guy

As a real estate agent, I don't consider these options to be a good investment. Value is determined by supply and demand. Supply is abundant (and will continue to grow), demand is low for these type of properties.

[ToolMan]

I appreciarte all of your opinions. I was thinking of the east side as well...I missed the boat on Midtown 6 years ago.

I think the East side will be the new Midtown.

[travelguy_73]

I have a loft downtown and have to agree that the inventory definitely outstrips demand--Houston hasn't truly discovered loft living (can be a challenge to get used to when you grew up with a large lawn or townhouse close to downtown!). However, if the price ir right, you should buy what you really want to live in. And I *really* don't see much upside in The Rise--premium prices for what you get.

[TheNiche]

I am curretnly leasing downtown and looking to buy somewhere. I am think of buying in The Rise in Midtown (formerly Post Lofts), or someplace like Bayou Place downtown.

Which do you think will have better re-sale value later down the road - maybe 10 years from now. I'm thinking downtown may be better because of the new park and Houston Pavilions. Then again, I start to think that this part of Midtown is pretty well developed and is close enough to downtown.

I just don't want to be stuck in a place I can't sell.

If you are really looking to make an investment, I'd strongly recommend not buying the new construction...especially any kind of typical townhome or McMansion. When it comes time to sell, you're always going to have to price it much lower than comparable new construction or endure a very long wait before it sells.

If you get into something solid, unique, and semi-irreplacable, like an older brick single family home with at least three bedrooms and two bathrooms in Montrose, Heights, Eastwood, Idylwood, MacGregor Terrace, etc., I think you'll do very well for yourself. They don't make them like that anymore.

If you're really set on either Downtown or Midtown, I'd definitely go Downtown. In Midtown, you're always going to have new construction coming on line. Downtown's land prices, in contrast, prevent a lot of residential competition.

[KinkaidAlum]

Stop the presses.

I agree with The Niche!

[The Great Hizzy!]

Yeah, know your potential buyers. If they're like you, they're likely to be drawn to something that's unique with more history and "charm". The newer units being built won't compare in their minds.

[rps324]

I definitely can see Eastwood realizing a lot of its potential over the next few years. Great old architecture + super close in location = tons of gentrification & appreciation potential.

Of course there are no guarantees. But I don't see why it wouldn't continue to go uphill. I just got a contract on a vacant lot for about $100k in there for some people who are going to build a neighborhood-sympathetic single family house on it. Every year a few more houses get restored.

It wasn't that long ago that parts of Montrose were places that only the very brave would venture into, let alone buy. The Heights was for urban pioneers who didn't mind having to replace the window units with centrals, along with replacing all the plumbing & wiring & maybe even having the house sheetrocked. Rice Military was a shanty town with only a few pre-oil bust townhomes scattered through. And excuse my while I bang my head again for not buying several years ago the numerous houses availble in Garden Oaks from the $70's. I don't see any reason for the cycle of gentrification not to repeat itself in Eastwood, especially if the Pavillions and such bring more retail to downtown.

[Scharpe St Guy]

RPS,

I agree 100%. Wife and I live in Broadmoor which is adjacent to Eastwood. So far we have loved living on the East Side after my move from the Heights. It seems to me that the East Side is actually a bit safer then the Heights was for some odd reason. This may be due to the low prices of homes and the presence of many police officers residing in the community. It also never hurts to have the Head Constable Victor Trevino living in the neighborhood. He holds a yearly party at his house for Broadmoor residents with food and activities for the kids and speaches by elected officals and awards.

If your going to look at homes on the East Side you will need to have an eye for what could be in the future. The location is amazing however the numerous train tracks are the downside however I know they are trying to pull some tracks and reroute however the main track going to Galveston won't change I would think. I owned a few homes over here and fixed/flipped each one and did pretty well on them all. Finding new homes to repeat the process has become very tough.

Eastwood, Broadmoor, Houston Country Club, Idylwood, Pecan Park are all great places to reside.

Scharpe St Guy

I definitely can see Eastwood realizing a lot of its potential over the next few years. Great old architecture + super close in location = tons of gentrification & appreciation potential.

Of course there are no guarantees. But I don't see why it wouldn't continue to go uphill. I just got a contract on a vacant lot for about $100k in there for some people who are going to build a neighborhood-sympathetic single family house on it. Every year a few more houses get restored.

It wasn't that long ago that parts of Montrose were places that only the very brave would venture into, let alone buy. The Heights was for urban pioneers who didn't mind having to replace the window units with centrals, along with replacing all the plumbing & wiring & maybe even having the house sheetrocked. Rice Military was a shanty town with only a few pre-oil bust townhomes scattered through. And excuse my while I bang my head again for not buying several years ago the numerous houses availble in Garden Oaks from the $70's. I don't see any reason for the cycle of gentrification not to repeat itself in Eastwood, especially if the Pavillions and such bring more retail to downtown.