Inner Loop Neighborhoods: Where to Buy?

[mpbro]

I agree with your basic analysis, but I think the lack of data points hurts your argument. According to your charts, from July 2004 to July 2005, the level of increase in the "average sales price per foot" for both townhomes and single-family homes appears to be very close.

Furthermore, assuming the price per square foot represents the price for the entire square footage of the lot, and not the square footage of the house, one could make the argument that townhomes are actually more desireable; hence the higher price-per-square foot number.

Yeah, it's impossible to know exactly what happened. FWIW, here is a similar graph from a nearby subdivision of new (2002ish) townhomes, which shows a clear decline (notwithstanding the blue trend curve). I have no doubt that townhomes are not all created equal. I'd be interested to know what separates the men from the boys, so to speak.

[karlpopper]

Ok guys, I have been a resident of Houston for about a year now and have been renting a place in Midtown ever since. I have finally decided that its time to stop throwing away my money and buy a place. Myself and my-soon-to-be fiancee both work Downtown and feel pretty strongly about not having to drive more than 15-20 minutes to work each morning. Because I am fairly new to the city, and also bc most of the people I work with live in Sugarland, my knowledge of Inner Loop neighborhoods is fairly limited. A friend told me I should visit this site and ask for opinions.

Because I travel alot on the weekends and work late during the week, I dont really have much time or energy to pour into renovating or repairing issues in my home. Consequently, in the initial stages of my search for a new home, I was gung-ho about townhouses because they are new, cheaper and in my mind would need less maintenance. So I started looking around Midtown, Montrose, and Rice Military areas for townhomes that were in my price range. Which by the way is from 170 to 250k. I really liked these areas and found some decent places but then became hesistant to purchase a townhome the more I learned about their resale potential. With my work, I may have to move in 7-10 years so I dont want to be in a postion where I lose money because my place isnt "the new thing on the block".

So then recently I shifted my attention to some smaller single family homes in areas like Montrose, Woodland Heights, Norhill and Houston Heights. Despite the lower sq. ft of these homes, I like the idea of having a yard, a porch, a garage, and storage area. But like I said, I lack the time and expertise to make substantial repairs to an older home. And this area may be a big change for me with regards to the convenience of a place like Midtown where restaurants, bars, and grocery stores are just a few blocks away.

So my question to the forum is this:

Knowing my price range and other concerns, should I give townhomes a second chance or should I continue trying to find the perfect single family home/bungalow?

Hi Nevermore,

In my opinion these are the factors that influence and drive townhome values.....

1. whether the townhome is located in a district where the scools are good. i.e., ideally the elemenatry school should be exemplary, the middle school recongnized and the high school preferably recognized (but doesn't matter that much as long as they have IB or AP or honors program)

2. How many units are in the community (the fewer the better).

3. How many units are owner-occupied or rented (the more rental units there are the more the value declines). The high price over 300k usually don't have this problem. In your price range you will lose money because they will be rented. All banks, appraisers and realtors have access to this data.

4. How upscale are the interirors ie., look for granite counters in kitchen and baths, real stone floors i.e., slate, travertine or marble, double and triple crown in every room, upgraded carpet (berber), stainless steel appliances, wainscott or decorative raised molding on walls, decorative paint colors.

5. aesthetic design and appearance. How the garages appear from the exterior is very important. If you can't see the garages as you drive up to the units the higher the value will be intrinsically. If garage doors are stain grade wood versus paint grade the higher the value. if exterior cladding is stucco or brick the higher the value (i.e., little to no hardi-plank board).

6. if it has a small or tiny yard the better value. land ownership adds a lot of value.

In general a townhome will never appreciate like a home unless it is located in a prime in-town location where housing values are very high like river oaks, piney point village, bunker hill village etc which are all zoned for exemplary rated schools.

This is a good site for townhome information especially new developments

http://www.urbanliving.com/

[Native Montrosian]

Just a quick word to the wise for anyone considering an older home: check with your insurance agent regarding any restrictions. Travelers no longer writes pier & beam houses (even new ones) unless the foundation is enclosed, homes with knob & tube wiring, or homes with asbestos shingle siding. Some carriers won't write a home if the plumbing/wiring hasn't been updated in the past 20 years or if the current roof is layered over wood shingles.

Due to the present personal insurance market, switching carriers is also not as easy as it used to be. A phone call to one's agent could save a lot of headaches.