I am in the process of selling 2 homes in Norfolk VA but found out the HUD just approved $30 million for Norfolk and Newport news redevelopment zones.
Should I keep the homes and stay in the southern VA market ?
This is also considering Amazon HQ2 will be in northern VA and it could impact the local economy. But I am renting in Orange County CA because I find it to expensive to make sense to buy because I will be moving in 2yrs.
3 things I would look at:
1) Do the properties cash flow now? Will they cash flow for the next 3-5-10 years?
2) What will you do with the proceeds if you sell?
3) Are you currently under contract to sell?
I would also not bank much on HQ2 having any impact all the way down in Hampton Roads.
I would not hold out selling them for the hopes of getting free money if that’s what you are thinking. Chances are that most of that money will go to large redevelopment projects. If you want to sell, now is a great time. Investment property is selling at a premium.
They had been cash flowing and there is a good possibility they will for the be next few years.
The proceeds will be used to purchase more
Property. I have been trying to get a duplex or something with more units.
And yes they are under contract.
I think that Amazon will have more of an impact than we realize. Mainly because VA beach is just a few hours away from the hustle of DC and Northern VA. ADP already has its HQ in Norfolk and a few other IT companies are looking at southern VA.
Good point. Thanks
Guess I will try and buy more rentals to hold for the long term.
Haha I can see "only 3.5 hours away from the new HQ2" in Norfolk MLS property listings.
Norfolk is a stone's throw to North Carolina. You all really feel Amazon will have an impact hundreds of miles away?
@Abiola White I'm very, very skeptical that there will be any significant impact in Hampton Roads from HQ2. Richmond almost certainly will have impact, as we already have a not-insignificant population that commutes to DC and NOVA every day. That's an insane daily commute, but people do it. Salaries are much higher up in NOVA-DC. But once someone's gotten to Richmond they won't get much advantage continuing down 64 to HR. Cost of living is lower there, but not as significant as the difference between RVA and NOVA.
My opinion is that the impact will be indirect. Meaning that there is that more many people that might vacation in Virginia Beach for example or there might be some small businesses that support Amazon. The big direct impact will stay in DC where the employees need to live and shop.
@Abiola White is there any specific reason you need to sell? I would always suggest keeping the homes as rentals unless you absolutely need cash to buy some kidneys or some other vital organ in your body.
Also there have been studies done on the impact of Amazon in Northen Virginia presented by the Northern Virginia Association of Realtors and they did not list Southern Virginia as an area to be impacted with anything significant.
There is a huge project going on google “St Paul’s Redevelopment” in Norfolk which is making rentals in even higher demand. Family dollars headquarters is currently being relocated here.