Need real estate gurus

[Alphathree33]

A few months ago I bought my first property, a condo in a downtown of a city of about 400,000.

I got it for $179K, off from the peak of $210K before the markets crashed. So I already got a little bit of a deal on it.

Good news is that in addition to the real estate markets recovering, the city is spending $10 million to completely overhaul the downtown - literally just down the street from my condo.

That, plus a pharmacy and medical school are opening up across the street. All of this will be done by next year.

Do you guys think these things will have an impact on my property value?

 

[guyver01]

Originally posted by: Alphathree33
A few months ago I bought my first property, a condo in a downtown of a city of about 400,000.

I got it for $179K, off from the peak of $210K before the markets crashed. So I already got a little bit of a deal on it.

Good news is that in addition to the real estate markets recovering, the city is spending $10 million to completely overhaul the downtown - literally just down the street from my condo.

That, plus a pharmacy and medical school are opening up across the street. All of this will be done by next year.

Do you guys think these things will have an impact on my property value?

yep. will lower it drastically. good luck recouping the $179k ... hope you didnt buy it to turn it around quickly..

 

[Alphathree33]

Originally posted by: guyver01

Originally posted by: Alphathree33
A few months ago I bought my first property, a condo in a downtown of a city of about 400,000.

I got it for $179K, off from the peak of $210K before the markets crashed. So I already got a little bit of a deal on it.

Good news is that in addition to the real estate markets recovering, the city is spending $10 million to completely overhaul the downtown - literally just down the street from my condo.

That, plus a pharmacy and medical school are opening up across the street. All of this will be done by next year.

Do you guys think these things will have an impact on my property value?

yep. will lower it drastically. good luck recouping the $179k ... hope you didnt buy it to turn it around quickly..

Justification?

 

[guyver01]

Originally posted by: Alphathree33

Justification?

medical school opening across the street? your entire neighborhood is gonna be overrun with kids (who cant afford anything due to medical tuition) and its gonna smell like a morgue.

 

[Alphathree33]

The medical school will have 20 students. I don't think 20 kids are capable of "over-runing" my neighborhood.

 

[paulney]

Originally posted by: Alphathree33
The medical school will have 20 students. I don't think 20 kids are capable of "over-runing" my neighborhood.

Those med students are very pesky. I suggest you try DDT.

 

[mugs]

I'm not a real estate guru, but I don't think the medical school will have much impact unless whatever was there before was really undesirable. That's from my perspective as a homeowner who wouldn't care if a medical school was across the street from my condo, but would care if there was a crack house there. It's really impossible to say what impact the city's money would have.

 

[Argo]

It all depends on what the $10 million is being spent on. All in all, I don't think that's large enough sum of money to make a big change - so I wouldn't count on anything besides natural appreciation.

 

[nerp]

If you bought in towards the beginning of a gentrification cycle, kudos. You're going to go up. If you bought in at the start of a decaying process, your value will go down. You didn't give much detail at all so really we're all just coming up with complete guesses here.

 

[Slew Foot]

WTF kind of med school has 20 students?

 

[nerp]

Originally posted by: Slew Foot
WTF kind of med school has 20 students?

Huang Dongs plastic surgery school?

 

[Aimster]

condos dont appreciate much

 

[IGBT]

surrounding prop sales will tell you what's going on. living in a busy metro isn't for everybody.

 

[Darthvoy]

It will definately help. I think the 10 million dollar development should raise the value of your condo if it is going to make it an attraction that makes people want to go there. Here in downtown LA there has been a multi billion dollar development the last few years and it has definately raised the value of properties near here. A lot of the old sky scrapers have been converted to lofts and condos and they can be pretty expensive.

 

[Argo]

Originally posted by: Aimster
condos dont appreciate much

This is simply not true. It all depends on where the condo is.

 

[OCGuy]

Sorry, I wouldnt count on anything major.

 

[JS80]

$10 million is a drop in the bucket. Your condo will probably be worth $100k in the next 12 months.

 

[EagleKeeper]

A city can easily spend $1-2M to spruce up a block or two by adding landscaping and/or rebuilding the sidewalks.

You need to look at what they have planned for use of the $$ to determine if it will have an impact.

 

[zinfamous]

Originally posted by: nerp
If you bought in towards the beginning of a gentrification cycle, kudos. You're going to go up. If you bought in at the start of a decaying process, your value will go down. You didn't give much detail at all so really we're all just coming up with complete guesses here.

This is what it sounds like to me.

Though the medical school could be tricky. Everyone knows that the best Medical schools and hospitals are always located within the middle of an extremely dangerous ghetto. So you could be hitting another decaying cycle in the next decade.

 

[BlahBlahYouToo]

why so secretive about the location, the single most important piece of information?

 

[ViviTheMage]

SELL SELL SELL

 

[Strk]

Originally posted by: BlahBlahYouToo
why so secretive about the location, the single most important piece of information?

Yeah, that part doesn't make much sense. The location is kind of the most important part.

 

[richardycc]

haven't you learn anything yet? don't ask such serious question on ATOT, as most ATOTers are still living in their parent's basement and drive a beater to their Mickey D part time job every other day.

 

[BlahBlahYouToo]

Originally posted by: Strk

Originally posted by: BlahBlahYouToo
why so secretive about the location, the single most important piece of information?

Yeah, that part doesn't make much sense. The location is kind of the most important part.

and of course, OP disappears from the thread when called out on.

 

[dullard]

You have two rules of thumb to consider.

1) Housing typically goes up at about 2%-3% per year. If that is the case, then when you sell in five years (typically people have their first house for 5 years), it'll be worth between $197k and $207k.

2) Housing typically recovers from a price fall in 10-15 years. If that is the case, then in five years it'll be worth between $189k and $194k.

Add in the very difficult to judge changes in price from the changes you mention in the city. I doubt that they'll amount to much. Lets just take a median price from #1 and #2 and assume it is $195k when you sell. After realtor's fees you'll make $183k. Of course, you'll need to put in a few thousand in improvements to sell it (repaint, fix everything that you've neglected, etc). In the end, you'll probably net $179k for it.

Of course, big things could happen between now and then. My crystal ball doesn't go out that far into the future.