Nice house rough area vs rough house nice are

[Kampo]

So in a dilemma. Been house shopping for about a month or two in the Kalamazoo area. Mainly was lookin for a countryish house. This weekend I happened across a program kzoo is doing they torr done 50+ homes in a niehborhood that was heading south. And built some parks new public buildings along with dozens on these beautiful new houses. Houses that are easily 300k in a nice neighborhood (high end home granite countertops stainless steel appliances, recall hardwood floors, pella windows... etc) there selling them for 100k with 20k given to you from the city that is forgivable after 5 or 10 years ( not sure which yet) so I'm into the house for 80.

My wife is the country girl but on board which fully surprised me.

Just not sure. Would you guys live in a rough neighborhood (this is by no means the ghetto but its not nice ether just run down a bit) and take the carrot the city is giving to try to build it back up again?

 

[Bartman]

Several questions come to mind - how long do intend to live there? 4-5 years or 20-25? Do you expect to have babies and raise kids there, are the kids almost grown now, or are you an empty-nester? If you are an empty-nester, that makes it a lot simpler; with kids there are a bunch more things to consider - schools, surrounding existing neighbors, likely changes to the community over the next 10-15 years, etc. Was the neighborhood scraped clean or just thinned down of dilapidated housing, with new stuff built in between? Has it been replatted to be lower density - density, in my opinion, is the single biggest determinant of future neighborhood quality: high density neighborhoods will tend to become run-down over 10-20 years with a higher percentage of renters rather than owner-occupants, which furthers the decline (renters of houses just don't take as good of care of them as the owner would, on the whole).So if they have lowered the density so there are fewer houses per acre or the lots are bigger than before, that would be a good thing for future home values.

Was the home you are considering buying built new by the city (or at the city's expense)? Or is it an existing new home that just never sold? If it's been sitting for 1-2 years or more or is a used home, you should plan on spending $10,000 to 20,000 over the next 2-3 years on corrective/maintenance type work. The homes that I'm imagining you are talking about need some work, mostly routine neglected maintenance (maybe a defective water heater or significant service on a furnace, yard work/landscaping), but not a huge amount, which is why the city is trying to unload them. If it's a newly-built new home with a warranty, I would be very interested myself. Sounds like it could be a good deal, depending on where you and your wife are in the 'circle of life', and what your expectations are for your investment and your housing needs 5-10 years from now.

 

[JohnT]

Locatio, Location, Location.

It is one thing to invest in an area, but it is quite another to involve your family. A rough house is much more easily renovated then moved! I would try to get the best location possible.

 

[Boatboy24]

You can always fix the house - the neighborhood/area, not so easily.

However, if this is an area that is "not so great" now, but on the rebound, it could turn out to be a very good investment in the long term.

 

[Kampo]

Here is one of the houses

http://kalamazoo.michiganhomeownership.org/property/1021-n-rose

This area is more of a thin out. 50 percent of the homes are new on the road. Some of the area was converted to a very nice looking park and a new expansion of the "family health center". Its about 3 blocks from downtown kzoo where all the fun bars and restaurants are.

They did another that was a complete tear down and build 24 houses in another area but those are already all spoken for

Schools right now are iffy. But the kzoo promise is giving couples like me a carrot to try it out and help improve it from what I'm reading its working. Kzoo pro mice basically means that if the kid attends and graduates for all 12 years they get a scholarship to any school in the state (including uofm)

 

[Turock]

This is a tough call.

I was a landlord for many years, buying houses during the 1980's recession. I always focused on neighborhoods that were stable. I had many chances to get better deals in not-so-stable neighborhoods and in the neighboring town where there were some problems. Some of those areas declined,later on.

You're focusing on what "might be." Maybe the area will continue its upward trend--and then maybe not. Especially in Mich where unemployment is high. I see the homeowner is giving incentives--he wants out of that area, it seems.

I'm a very suspicious person--I never entertain promises, especially from governments wanting me to do certain things. They almost never turn out that way. Some become nothing but a "nice idea" but don't work in reality. Don't buy a house you can't get rid of--or lose money to get rid of.

Be sure not to get too wrapped up in the emotion of it. Depend on your head--and your gut feelings.

 

[Rocky]

I have designed homes and sold homes. I have seen this neighbohood experiment tried in several places, usually with poor results. I think it is because people have little invested and little to lose. Personally, I have always bought the least expensive home that I could not afford, in the best neighborhood and I have always been pleased with my choice. I would look for a solid house, maybe needing some updating, in the better neighborhood. Just my opinion and we have only owned 4 homes (and built 3 of them) in 43 years.

 

[dralarms]

How well armed are you?