New home buying RE strategy (Oklahoma Area)
Jumping onto the forums after a long break. Looking to possibly move to a suburb of Oklahoma City such as Choctaw, Harrah area and want to purchase a home in the 200-275k range in a growing neighborhood focused on value appreciation. My thoughts (Actually David Greene's :) are to live in the home for 1-2 years before purchasing another home in a growing neighborhood and renting out the former. Wondering who has done this strategy and willing to share some of the details. How do you assess the best neighborhoods that will have above average growth over the next 5, 10, 15 years? These areas have several new subdivisions being constructed, are new homes a good value option? Obviously no rehab costs req'd and things are up to date. Any thoughts welcome.
If you buy in a neighborhood with several empty lots where builders continue to build, you might not see the appreciation for awhile. It will take several years to get your cash investment back on a new build. But if you plan to hold on to it for awhile, that could work too. Many builders in the Oklahoma City area have too much inventory after a rush to build the last two years so some are offering incentives.
@ben
@Ben Scott Yes, the plan is to hold at least 10-15 years initially, maybe longer. Plans can change quickly but I'm looking to play the long game and just want to find a good spot for my family one and that will have a good return on investment for the long term secondly. Mostly looking in Harrah atm but there are a couple properties in Choctaw somewhat close to I-40 that look appealing as well. Shawnee is another alternative but not sure if the growth will match the other areas.
I really like that plan. I bought a new construction home in 2022 (locked in pricing in 2021) and have seen significant appreciation since then. HOWEVER, that's certainly not the norm. We had a lot of unique scenarios leading up to those conditions. I've been really happy with our home and neighborhood. If and when the time comes to rent it out, it could make an awesome rental property too.
I agree with your analysis that Choctaw and Harrah will probably have more growth than Shawnee. Shawnee is growing, but it's definitely a different market. With Choctaw and Harrah being closer to the city, they are typically going to have a larger renter pool than the Shawnee market.
I think new construction can be a great option depending on your goals. With a plan to live in it for a while and then do a long term hold, you're definitely in a good position to buy new construction. Several of the builders are partnering with local lenders to do some decent incentives like rate buy downs or paying all closing costs.
I know that Home Creations is building in Choctaw and I believe Rausch Coleman has a development in Harrah. Ideal Homes has developments in both areas. Home Creations and Ideal will both start closer to the top of your price point, but Rausch Coleman should have decent options sub 275k.
It would definitely be worth meeting with a few builder reps and have them run some numbers for you. The incentives for new builds are better now than I've seen in years, it just will depend on whether it makes sense for you and your financial situation.
Feel free to send me a message if you need builder rep contacts or would like more info on any of these builders.
