Comments on: The Problem with East Austin Real Estate http://crosslandteam.com/blog/2006/11/28/the-problem-with-east-austin-real-estate/ Austin Real Estate Blog Wed, 10 Mar 2010 05:20:43 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: Steve Crossland http://crosslandteam.com/blog/2006/11/28/the-problem-with-east-austin-real-estate/comment-page-1/#comment-3854 Steve Crossland Wed, 30 Apr 2008 13:50:05 +0000 http://ben.crosslandteam.com/blog/2006/11/28/the-problem-with-east-austin-real-estate/#comment-3854 Hi Matra and Melissa, Thanks for your comments. You've misinterpreted the point being made about East Austin. I am discussing it strictly from a real estate investment perspective, evaluating it from an economic standpoint, not judging its people. The Land Trust issue is an economic issue that can affect the overall market value of homes in the area as it sets some homes on a different economic equation than others. Other factors that influence home values are proximity to downtown (obviously a positive for EA), school quality, crime and drugs, government housing, etc. That those negative elements exist in East Austin is not a commentary of the people, it's just a measurable set of factors to consider, and those are the things that an investor or home owner should consider if deciding to purchase real estate in East Austin. I do understand your point of view and see how one cuold take some of the elements of this personally. That is not the intent of the discussion. Steve Hi Matra and Melissa,

Thanks for your comments. You’ve misinterpreted the point being made about East Austin. I am discussing it strictly from a real estate investment perspective, evaluating it from an economic standpoint, not judging its people.

The Land Trust issue is an economic issue that can affect the overall market value of homes in the area as it sets some homes on a different economic equation than others. Other factors that influence home values are proximity to downtown (obviously a positive for EA), school quality, crime and drugs, government housing, etc.

That those negative elements exist in East Austin is not a commentary of the people, it’s just a measurable set of factors to consider, and those are the things that an investor or home owner should consider if deciding to purchase real estate in East Austin.

I do understand your point of view and see how one cuold take some of the elements of this personally. That is not the intent of the discussion.
Steve

]]> By: Melissa http://crosslandteam.com/blog/2006/11/28/the-problem-with-east-austin-real-estate/comment-page-1/#comment-3654 Melissa Wed, 30 Apr 2008 01:18:40 +0000 http://ben.crosslandteam.com/blog/2006/11/28/the-problem-with-east-austin-real-estate/#comment-3654 I have to agree with Matra. From what I've read, this real estate team is condescending, racist, and discriminatory. You list a number of "problems with East Austin," such as government housing projects and bad schools. This is as if to say that there are bad people living in these government housing projects. What I don't understand is how you can talk about these individuals in such a manner, when in reality, if you knew the history of East Austin, you would know that Blacks were originally placed there due to segregation in 1928. And now segregation has ended, but you want to get rid of the original inhabitants of East Austin because that's what's convenient for you? Because all of a sudden, East Austin is a prime location for investing? Honestly, go get educated. I have to agree with Matra. From what I’ve read, this real estate team is condescending, racist, and discriminatory. You list a number of “problems with East Austin,” such as government housing projects and bad schools. This is as if to say that there are bad people living in these government housing projects. What I don’t understand is how you can talk about these individuals in such a manner, when in reality, if you knew the history of East Austin, you would know that Blacks were originally placed there due to segregation in 1928. And now segregation has ended, but you want to get rid of the original inhabitants of East Austin because that’s what’s convenient for you? Because all of a sudden, East Austin is a prime location for investing? Honestly, go get educated.

]]> By: Matra http://crosslandteam.com/blog/2006/11/28/the-problem-with-east-austin-real-estate/comment-page-1/#comment-416 Matra Wed, 02 Apr 2008 21:13:06 +0000 http://ben.crosslandteam.com/blog/2006/11/28/the-problem-with-east-austin-real-estate/#comment-416 you dont have no right talking about the east austin area like that you think you better then us? you aint no better then anybody else. Honestly i wish that people would leave east austin alone cause everytime more white people move in east austin loses it heritage. What makes you think that we are not uncomfortable with the fact that their is white people on every block riding bikes and water they lawns. You need to look into what you talking bout a little bit more. We might not have the best schools but, great people have came from what you call the projects. you dont have no right talking about the east austin area like that you think you better then us? you aint no better then anybody else. Honestly i wish that people would leave east austin alone cause everytime more white people move in east austin loses it heritage. What makes you think that we are not uncomfortable with the fact that their is white people on every block riding bikes and water they lawns. You need to look into what you talking bout a little bit more. We might not have the best schools but, great people have came from what you call the projects.

]]> By: Scott http://crosslandteam.com/blog/2006/11/28/the-problem-with-east-austin-real-estate/comment-page-1/#comment-415 Scott Sun, 08 Apr 2007 00:55:31 +0000 http://ben.crosslandteam.com/blog/2006/11/28/the-problem-with-east-austin-real-estate/#comment-415 Steve, I'm sure you won't be posting my reply, and I understand. I do strongly feel, however, that Austin is the most overhyped ANYTHING since PT Barnum was pushing his collection of fakes and oddities in the 19th century(but at least a circus came out of it)! Make sure to send me an e-mail and let me know when the bottom falls out of the Austin market. My Vegas odds are 2-1 that it happens in less than 12 months....prob more like 7-8. Sorry, but when I see RE classifieds full of 400 thumbnails begging for bad credit buyers, the party is over. Make as much hay as you can while you have the blog, bro! -Scott Steve, I’m sure you won’t be posting my reply, and I understand. I do strongly feel, however, that
Austin is the most overhyped ANYTHING since PT Barnum was pushing his collection of fakes and oddities
in the 19th century(but at least a circus came out of it)! Make sure to send me an e-mail and let me know when the bottom falls out of the Austin market. My Vegas odds are 2-1 that it happens in less than 12 months….prob more like 7-8. Sorry, but when I see RE classifieds full of 400 thumbnails begging for
bad credit buyers, the party is over. Make as much hay as you can while you have the blog, bro!
-Scott

]]> By: Steve Crossland http://crosslandteam.com/blog/2006/11/28/the-problem-with-east-austin-real-estate/comment-page-1/#comment-414 Steve Crossland Fri, 16 Feb 2007 18:27:14 +0000 http://ben.crosslandteam.com/blog/2006/11/28/the-problem-with-east-austin-real-estate/#comment-414 Hi Chris, We can of course help you when you come visit in May. The best thing to do would be to send us an email or call and we'll start from there. Steve Hi Chris,

We can of course help you when you come visit in May. The best thing to do would be to send us an email or call and we’ll start from there.

Steve

]]> By: Chris L http://crosslandteam.com/blog/2006/11/28/the-problem-with-east-austin-real-estate/comment-page-1/#comment-413 Chris L Thu, 15 Feb 2007 23:21:37 +0000 http://ben.crosslandteam.com/blog/2006/11/28/the-problem-with-east-austin-real-estate/#comment-413 This is a very interesting discussion here, because I recently read an article in Dwell magazine that perked my interest in East Austin. I currently live in the Washington, DC area, and I, too have felt the strain of the real estate market here. I've been considering relocating to Austin for the past few years, and this year may be the one. I am actually visiting the city in May to do more "hands-on" research/vacationing. As a single person on a moderate income, I am not able to buy here in the DC area, and I'm still limited by what I'm seeing in Austin. So, we'll wait and see, I guess, but I'm interested in feedback on this as well. I'm not exactly looking to be an investor; however, I understand the value of owning vs. renting. Any advice on areas, programs, etc.? This is a very interesting discussion here, because I recently read an article in Dwell magazine that perked my interest in East Austin. I currently live in the Washington, DC area, and I, too have felt the strain of the real estate market here. I’ve been considering relocating to Austin for the past few years, and this year may be the one. I am actually visiting the city in May to do more “hands-on” research/vacationing. As a single person on a moderate income, I am not able to buy here in the DC area, and I’m still limited by what I’m seeing in Austin. So, we’ll wait and see, I guess, but I’m interested in feedback on this as well. I’m not exactly looking to be an investor; however, I understand the value of owning vs. renting. Any advice on areas, programs, etc.?

]]> By: Steve Crossland http://crosslandteam.com/blog/2006/11/28/the-problem-with-east-austin-real-estate/comment-page-1/#comment-412 Steve Crossland Fri, 19 Jan 2007 21:54:54 +0000 http://ben.crosslandteam.com/blog/2006/11/28/the-problem-with-east-austin-real-estate/#comment-412 Hi M, Good luck with your house. I remember well how frustrating a remodel project can be. You're correct to be aware of and try to avoid "over improving" your home. The best way to avoid that is to find out what the "after repair" value of your home will be. Subtract from that what you currently have invested in the home, then add back what it will cost to complete your repairs. If the total cost exceeds the finished value you may want to re-evaluate your contemplated upgrades. Sticking to kitchen and bath improvements usually brings the best improvement in value, provided the work is done well. Contact us direct if you'd like a CMA done for you. Thanks Steve Hi M,

Good luck with your house. I remember well how frustrating a remodel project can be.
You’re correct to be aware of and try to avoid “over improving” your home. The best way to avoid that is to find out what the “after repair” value of your home will be. Subtract from that what you currently have invested in the home, then add back what it will cost to complete your repairs. If the total cost exceeds the finished value you may want to re-evaluate your contemplated upgrades.

Sticking to kitchen and bath improvements usually brings the best improvement in value, provided the work is done well.

Contact us direct if you’d like a CMA done for you.

Thanks

Steve

]]> By: M http://crosslandteam.com/blog/2006/11/28/the-problem-with-east-austin-real-estate/comment-page-1/#comment-411 M Fri, 19 Jan 2007 21:19:33 +0000 http://ben.crosslandteam.com/blog/2006/11/28/the-problem-with-east-austin-real-estate/#comment-411 My husband and I recently purchased a home in East Austin. We bought a 1930's home in the Chestnut neighborhood for around 130,000. We purchased the home with the intention of fixing it up. Before we bought our house it had been partially renovated, but the work completed was very poorly done, so we are having to redo almost everything. Our original intention was to complete most of the major work on our own to cut down on the expense, but it has been almost a year since we moved in and we are starting to get frustrated by the lack of progress. We are currently considering having the major interior work done by a contractor; However, we want to make sure that we do not put more money into the house than it is worth. I realize that the bulk of this article focuses on the negative aspects of purchasing a home in East Austin, but I am hoping that we will get both positive and negative feedback. Thanks My husband and I recently purchased a home in East Austin. We bought a 1930’s home in the Chestnut neighborhood for around 130,000. We purchased the home with the intention of fixing it up. Before we bought our house it had been partially renovated, but the work completed was very poorly done, so we are having to redo almost everything. Our original intention was to complete most of the major work on our own to cut down on the expense, but it has been almost a year since we moved in and we are starting to get frustrated by the lack of progress. We are currently considering having the major interior work done by a contractor; However, we want to make sure that we do not put more money into the house than it is worth. I realize that the bulk of this article focuses on the negative aspects of purchasing a home in East Austin, but I am hoping that we will get both positive and negative feedback.

Thanks

]]> By: Repatriated Txn http://crosslandteam.com/blog/2006/11/28/the-problem-with-east-austin-real-estate/comment-page-1/#comment-410 Repatriated Txn Tue, 05 Dec 2006 22:00:22 +0000 http://ben.crosslandteam.com/blog/2006/11/28/the-problem-with-east-austin-real-estate/#comment-410 I don't know if I'd quite compare the slow evolution of East Austin to DC's rapid gentrification. I also recently returned from the District after ten years there - and I assume the neighborhood you're talking about is Columbia Heights? Trust me, the drug dealers are still there, they've just moved east and north a little bit. The 'rapid' change you witnessed along the 14th Street Corridor reflects a broader change to the entire metro DC area. Back when I first moved in, Adams Morgan was much like you described. And believe it or not, the far west end of M St in Georgetown, down near the Key Bridge, was even dicey. They changed slowly, and once the rents ran up in those areas, Columbia Heights became the new frontier, primarily because of its proximity to downtown and completely despite the lack of public transportation in the area. It created a new class of (largely car-dependent) wealthy young city dwellers, who ten years before would have opted for the metro accessibility offered by the Arlington neighborhoods. What's next? Probably the Trinidad and Waterfront areas of Southwest, as the city government begins to re-focus its attentions on building of the new baseball complex. Austin does not = DC in this situation. The big difference is money. The District experienced a HUGE surge in income because defense contracting firms have been raking it in hand over fist, so suddenly many people at once were able to afford rehabbing close-in neighborhoods. (And hey, that may dry up and disappear soon due to the shifting political climate there, halting the incredible 'progress' that has been made over the past decade.) Other than people like us who move from overpriced areas and buy because we're floored by the relative bargains available, Austin just doesn't have an opportunity for that kind of monumentally sudden cash infusion. And if it does come, odds are good it will go. Look at what happened here in the early 1980s during the oil bust, and again in the early 00s with the tech bust. That said, I think the infusion of folks from the East Coast who are stunned at the proximity offered by the Eastside could impact the way people here view the appeal and necessity of that drive from Pflugerville, Buda, Elgin or wherever people are living these days. I don’t know if I’d quite compare the slow evolution of East Austin to DC’s rapid gentrification. I also recently returned from the District after ten years there – and I assume the neighborhood you’re talking about is Columbia Heights? Trust me, the drug dealers are still there, they’ve just moved east and north a little bit. The ‘rapid’ change you witnessed along the 14th Street Corridor reflects a broader change to the entire metro DC area. Back when I first moved in, Adams Morgan was much like you described. And believe it or not, the far west end of M St in Georgetown, down near the Key Bridge, was even dicey. They changed slowly, and once the rents ran up in those areas, Columbia Heights became the new frontier, primarily because of its proximity to downtown and completely despite the lack of public transportation in the area. It created a new class of (largely car-dependent) wealthy young city dwellers, who ten years before would have opted for the metro accessibility offered by the Arlington neighborhoods. What’s next? Probably the Trinidad and Waterfront areas of Southwest, as the city government begins to re-focus its attentions on building of the new baseball complex.

Austin does not = DC in this situation. The big difference is money. The District experienced a HUGE surge in income because defense contracting firms have been raking it in hand over fist, so suddenly many people at once were able to afford rehabbing close-in neighborhoods. (And hey, that may dry up and disappear soon due to the shifting political climate there, halting the incredible ‘progress’ that has been made over the past decade.) Other than people like us who move from overpriced areas and buy because we’re floored by the relative bargains available, Austin just doesn’t have an opportunity for that kind of monumentally sudden cash infusion. And if it does come, odds are good it will go. Look at what happened here in the early 1980s during the oil bust, and again in the early 00s with the tech bust.

That said, I think the infusion of folks from the East Coast who are stunned at the proximity offered by the Eastside could impact the way people here view the appeal and necessity of that drive from Pflugerville, Buda, Elgin or wherever people are living these days.

]]> By: fay http://crosslandteam.com/blog/2006/11/28/the-problem-with-east-austin-real-estate/comment-page-1/#comment-409 fay Sat, 02 Dec 2006 15:12:57 +0000 http://ben.crosslandteam.com/blog/2006/11/28/the-problem-with-east-austin-real-estate/#comment-409 I moved back to Austin last year after spending five years in an urban neighborhood in Washington, DC. We moved here partly because in those five years we were completely priced out of real estate in DC. When I moved in there were drug deals going down in the alley under my apartment window, when I moved out the streets I had once been scared to walk down at night for fear of getting mugged had been totally transformed. We bought in East Austin in the hopes that the same thing would happen here, and I feel confident that it will. There is no reason to approach the East Austin real estate situation primarily from the perspective of investors. It is young families, young single people and empty-nesters who put a premium on downtown living that will keep the momentum going (and in my experience new retail will light a fire under everything. many people just don't have the vision or patience to buy or move in until the promises have been fulfulled). Let the investors buy in Pflugerville. I moved back to Austin last year after spending five years in an urban neighborhood in Washington, DC. We moved here partly because in those five years we were completely priced out of real estate in DC. When I moved in there were drug deals going down in the alley under my apartment window, when I moved out the streets I had once been scared to walk down at night for fear of getting mugged had been totally transformed. We bought in East Austin in the hopes that the same thing would happen here, and I feel confident that it will.

There is no reason to approach the East Austin real estate situation primarily from the perspective of investors. It is young families, young single people and empty-nesters who put a premium on downtown living that will keep the momentum going (and in my experience new retail will light a fire under everything. many people just don’t have the vision or patience to buy or move in until the promises have been fulfulled). Let the investors buy in Pflugerville.

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