Buying first house on the block... Good investment?

[Sonic]

Curious to know people's thoughts... First house on the block in a new development, the salesman claimed it's really smart since they price the first few houses way lower and that once the neighborhood is done, we should do well in terms of profit.... And as the lots sell, they raise the prices... Our lot is desirable, south facing, 30 second walk from the park, third house in from the corner...

Is he theoretically correct?

[spikerS]

I have been told that line before, but in my experience, it is a pressure tactic. Lot prices went up because of the boom or if there was crazy demand. The chances of the prices going up right now are pretty small as new home sales are WAY down, so there isn't a whole lot of demand.

But, sometimes they will price the first a few % of homes lower, to help build the neighborhood so people that are interested next year will see the development instead of imagining it and entice the first people to come in before there are any parks and what not built.

Honestly, I would not let it influence my decision either way.

[jacky4566]

Personally I would look at this the other way around.

As the first on the block you have to deal with looking at empty lots, dirt hills, and the inevitable ponds full of mosquitoes. Also you will be the first to deal with headaches from Shaw, Telus, and other addressing related issues as these systems are updated.

What is the value of this home and lot once the entire neighbourhood is complete. Now. How much is the builder compensating me for this temporary inconvenience.

IMO anyway... Maybe Jordan can chime in?

[OTown]

I wouldn't say South facing is per say a 'good thing'. Its a personal preference and it depends what you want out of your outdoor space and lighting.

[88CRX]

The price of the lots and homes are directly related to supply and demand.

By the sales person logic demand is low now, cause its a dirt field, and they are expecting the demand to rise and therefore they can justify selling the lots/homes for more in the future.

[88CRX]

Originally posted by OTown
I wouldn't say South facing is per say a 'good thing'. Its a personal preference and it depends what you want out of your outdoor space and lighting.

Word. Have south facing backyard now (which cost us a premium when we built) and its so hot in the backyard in the summer that we planted tress to create shade. Conversely our front yard gets no sun and it has snow/ice to contend with well into the spring.

My next house will be south facing front yard if I have the choice. Less issues with snow/ice removal in the winter.

[Tik-Tok]

Originally posted by jacky4566

As the first on the block you have to deal with looking at empty lots, dirt hills, and the inevitable ponds full of mosquitoes. Also you will be the first to deal with headaches from Shaw, Telus, and other addressing related issues as these systems are updated.


Not to mention YEARS of construction noise starting at 7am (or earlier), and construction debris all over the place, driving over nails on a monthly basis, workers stealing your power and water.

A co-worker had the 3rd house on his street, he said never again.

[bjstare]

Protip: Salespeople always tell the customer "now is the best time to buy".

[Sonic]

Lol, well local economy aside, it does make sense to me... But like a couple have mentioned, we'd have to put up with construction, our first home was the third house on the block so we've been through it before and didn't mind, we love not having neighbors for now.. We did good on our first house $$ wise but it was mainly because we bought late 2012 when the market has momentarily dipped quite a bit..

I've been keeping an eye on our builder's quick possessions on their website and they are selling one now for a couple thousand more, same specs but on the end right beside the main road...so for now, at least they aren't asking less..

Thanks for the inputs!

[TL911]

corner lot = lots of cars being parked along the side of your house (Tenants & Extra Cars) and also keep in mind the developers "architectural control" = paying more to make your house more appealing from the side. I went with the 3rd house in oppose to the corner lot in my neighborhood.

[Sonic]

Yup, ours is third one in.

I don't understand the appeal of corner lots, more land I guess, but more bullshit to deal with.

It's a double front garage home with a fire hydrant on the corner of our lot in front so no one can ever park in front of our house:D

[Swank]

Originally posted by jacky4566
Personally I would look at this the other way around.

As the first on the block you have to deal with looking at empty lots, dirt hills, and the inevitable ponds full of mosquitoes. Also you will be the first to deal with headaches from Shaw, Telus, and other addressing related issues as these systems are updated.
Originally posted by Tik-Tok
Not to mention YEARS of construction noise starting at 7am (or earlier), and construction debris all over the place, driving over nails on a monthly basis, workers stealing your power and water.

A co-worker had the 3rd house on his street, he said never again. These are the first things that came to mind to me. You will have the oldest house on the block too.

[Tenkara Way]

Sub $55 oil, empty office towers, for sale signs on every street and we are still expanding as a city? We are a virus.

Corner lots... more snow to clear from your two sidewalks. People walking by can now see in on two sides of the house. Extra road noise as you face out on two sides of the street. Taxes higher as well?

First house built on a street... lots of flat tires for months until the area is finished. Noise from 7am to 9pm, seven days a week. Roofer noise has to be the worst... so many nails, music and yelling to workers on the ground. Have to wait to build a fence to share the cost if first in.

[KPHMPH]

Let's just say this. 2nd last house I sold in Mahogany was 8 houses in. We sold for $810,000. The house at the front of the block sold for $598,000. Same style of house.

I say no.

[That.Guy.S30]

I would say no. My customer service rep told me a story about the first house built on our block in a new development. Besides all the dirt, noise, etc. He had mice. And tons of them. When they started digging up the ground it disturbed the field mice. They had no where to go but his house. The builder took care of everything though which was a positive.

[ExtraSlow]

It's also really tough to sell a "used" house in a neighborhood when the developer is still building brand new. People like to make their little customizations and feel like they have bought "brand new".

Many bigger developments take five years or more to fully build out.

[revelations]

Originally posted by Sonic
the salesman claimed it's really smart

If you do the opposite of what most sales people tell you, you usually end up doing well.

Exceptions of course apply - for eg. if you know the sales rep.

[HiTempguy1]

Originally posted by Tik-Tok


Not to mention YEARS of construction noise starting at 7am (or earlier), and construction debris all over the place, driving over nails on a monthly basis, workers stealing your power and water.

A co-worker had the 3rd house on his street, he said never again.

SOOOO MANY FLAT TIRES :banghead:

Definitely not worth it unless you are purchasing for the location, as mentioned, it will take YEARS for construction to stop. I don't know what bylaw is in Calgary, but in Edmonton, they can hammer away until god knows when (7pm or even later).

[ryder_23]

Between the loud noise at 7am (worked night shift a lot) and as said the flat tires.

Tradys driving over our lawn, or parking in our yard. Smashing scaffolding against our house.

Never again.

I'd rather pay more and wait truthfully. It was a debacle to say the least for a year.

[Jeeper1986]

when I built my house it was the first on the block, I loved it I got to see all my neighbors come in and out and plus I was able to play with all my monster RC cars any where I wanted haha

Another thing I liked was when it came time to build the fences my neighbor is in landscaping so he got all the wood at cost and we did 5 fences in 1 week both my sides and my side neighbors side plus 3 houses down from me it was an awesome time bonding with everyone

The only problem I had was changing my air filter in the house like 5 times a month

[88CRX]

Another thing to consider is how unlikely a boom/surge in new home purchases is to happen in the near future.

Last home we were maybe the 5th or 6th on the street but by the time our house was under construction they must have already started another 10-15 homes. By the time we moved in nearly all the lots were sold and it was going pretty crazy. A year after moving in our block and a couple past us were all built out.

Something to consider.... if the market was slow that process could take years :banghead:

[03ozwhip]

I was the 5th house built back in 2o10 and the house I just built is the 3rd last. not once have I had a flat tire, that's the upside. they've been building right next to me for the last 8 months, it's finally done, no more construction.

it really sucks being there that long with the shitty temp road and the fuckface workers that steal your power/water and park in front of your driveway everyday.

I've had run ins with them about 5 times about various shit they do, so expect that if you're going to be the first.

[JPB]

Ah the memories of unending dust, mice, flats.

The only good thing was having first choice of colours due to the various architectural controls. I had a few of my later neighbors complain that I "took" the colours they wanted.

[Xtrema]

You won't have a fence or a usable yard for at least a few summers if you don't have neighbors to talking about sharing fencing cost.

Plus neighboring unbuild lots will be full of weed so if you like lawn, if probably don't want to lay sod down until you immediate constructions are done and neighbors stay laying sod as well.

[pheoxs]

In addition to what others have said, you say you're 3rd house in, but on the main entrance?

A quieter side street or cul de sac is much more desirable than being on the main entrance with tons of traffic going by to the rest of the development.

Also look at their zoning for where higher density (if any) places are going. We looked out into a beautiful field until the final phase then they built a whole bunch of medium density town/row houses across the street which basically stole all the street parking for everyone.

[403ep3]

I've been waiting on the empty lot beside me to sell and it's not selling. Someone build with Jager!! :guns:

Can't do much as far as landscaping and not looking to pitch in the whole in for the whole fence as it would be closer to 3.5-4k in materials alone.

I built my house my house when the street was fairly empty, but since then the houses started popping up like crazy.

[jwslam]

Originally posted by pheoxs
In addition to what others have said, you say you're 3rd house in, but on the main entrance?

A quieter side street or cul de sac is much more desirable than being on the main entrance with tons of traffic going by to the rest of the development.
This; I would never wanna be that house especially if it's a front attached garage.

[88CRX]

Originally posted by pheoxs
In addition to what others have said, you say you're 3rd house in, but on the main entrance?

A quieter side street or cul de sac is much more desirable than being on the main entrance with tons of traffic going by to the rest of the development.

Also look at their zoning for where higher density (if any) places are going. We looked out into a beautiful field until the final phase then they built a whole bunch of medium density town/row houses across the street which basically stole all the street parking for everyone.

Use this land use map to see what is coming in all other areas around you.

http://www.calgary.ca/PDA/pd/Pages/Planning-and-development-resource-library/Land-Use-bylaw-1P2007-maps.aspx

The sales people might not disclose everything that will be developed in the future. And dont buy anything that backs onto a golf course :rofl:

[Maxx Mazda]

Couldnt do it. My folks were one of the first to build a new house across from the pond in Evanston. Couple years of dusty windows, mosquitos, construction, and dump trucks whizzing by the front door at 70k every 30 seconds.

Your car will never be clean again.

[gwill]

Originally posted by 403ep3
I've been waiting on the empty lot beside me to sell and it's not selling. Someone build with Jager!! :guns:

Can't do much as far as landscaping and not looking to pitch in the whole in for the whole fence as it would be closer to 3.5-4k in materials alone.

I built my house my house when the street was fairly empty, but since then the houses started popping up like crazy.

This is an important factor most dont consider when picking a lot. Who owns the ones beside you? Some builders end up sitting on their land forever with no care as to when they sell. Does that builder only do 20 houses a year and are sitting on 50 lots or are they over priced that no one will buy? Lots to consider so your not beside a dirt lot forever.

As to the person saying selling into a new neighborhood is bad. For the most part its better for a buyer to buy the house thats a year old as that owner paid for the fence and landscaping as well as other upgrades that they may not get their money back on.

They have to price to the comps of other used houses not the builders prices... plus as the area goes from phase 1 to phase 6 the land costs always increase.

[Kavy]

I bought the 4th house in panatella and it was a terrible mistake. Two years of fighting weeds and debris all over, people cutting through my yard because I didn't have a fence etc.

..then the kicker. Behind me went a bunch of 8 plex town houses. Original build layout had single family homes not a bunch of 8 plexes. Out my bedroom window I could see into 8 living rooms. i got tired of college kids parking out front of my house and walking through my yard to their town houses so I built a fence (neighbor wouldn't split on either side because they were rentals). I echo the flat tires and services issues, no internet for 2 months was way worse than I expected.

As soon as I got grass set and all the landscaping done I listed and sold the house running as far away as possible. Never again will I buy in a new area unless there is landscaping and a solid house base first.

[JordanLotoski]

Originally posted by OTown
I wouldn't say South facing is per say a 'good thing'. Its a personal preference and it depends what you want out of your outdoor space and lighting.

Think he is referring to a south facing back yard which is the most desirable.

I wouldn't say the first home on the street is a guaranteed money maker, first few phases in a new community usually are.

Who's the builder?

[phubu]

Do you guys think building a home on a corner lot has more valuable than the inner lots? Lets say all the lots are around the same sizes.

[Xtrema]

Originally posted by phubu
Do you guys think building a home on a corner lot has more valuable than the inner lots? Lets say all the lots are around the same sizes.

Only if it doesn't have a sidewalk, I hate shoveling snow.

Otherwise, corner lots usually mean 1 less neighbor, so 1 less potential conflict.

[gwill]

theres no value in a corner lot... more snow removal, more work and more costs with architectural controls. When it comes to resale its a deal breaker for many.

In many new areas youll see the corner lot beside show homes sitting empty for many many years down the road. Heck my house is 2 doors down from a quiet street and when i bought it my realtor pointed it out that it may affect some buyers decisions even though its a very quiet area backing onto a green space.

Others have mentioned south back yards as undesirable but that is the most common request in new home sales. My personal preference would be south back yard only because mine faces north right now and i hate having awesome summer days where i cant enjoy the sun as much as some of my neighbors.

[jwslam]

Originally posted by gwill
Others have mentioned south back yards as undesirable but that is the most common request in new home sales. My personal preference would be south back yard only because mine faces north right now and i hate having awesome summer days where i cant enjoy the sun as much as some of my neighbors.
I much prefer the south driveway I have that doesn't build up ice.

[gwill]

Its a good convenience but no one has ever come into my show home and asked for a south facing driveway. When someones picking a lot it regularly becomes a deal breaker if its not backing south.

Other deal breakers ive had to deal with lots relate to lucky numbers on the address, chineese superstitions or vastu shastra (probably spelling that wrong) for east indians.

You can have the best deal on the block but it wont matter to those types of buyers.

[blownz]

Originally posted by jwslam

I much prefer the south driveway I have that doesn't build up ice.

Just shovel your driveway... works for me. :poosie:

Plus a shade on your driveway in the summer is much better for washing your car. :thumbsup:

[KPHMPH]

I prefer a SE back yard with a driveway facing NW so I get afternoon and evening sun on the driveway to melt snow.

[ExtraSlow]

My south facing backyard is awesome for those chilly end of summer evenings, but far to hot on any "nice" day. Probably its the fact that it's got thirty feet of dark stucco creating a solar oven back there.

[cream]

Welp

I wish I caught this memo beforehand...

Got a corner lot and one of the first builds in the new phase.

The value I found was in a zero-lot line community, was that it allowed me to place windows on both sides of the house freely. Most houses in the community are limited to 1 side only. I felt like it gave me the space of a full size lot at a ~5k premium. Also, I needed a wide enough lot to build the specific house I wanted. Many of the lots were too narrow.

:(

I don't mind shoveling.... sorta?

I'm kind of happy that I don't have to fence/landscape for a year or two.. The weeds however... hmm
Mice?! Actually?

Could I shut off my exterior outlet power? And exterior water? Geeeeeez

The roads in my area are fully paved and sidewalks done, but I guess there'll still be nails around.

I did notice the land prices have increased ~6-8 grand as per the showhome's lot map.

IS THERE A SILVER LINING?! :'(

Y'all make me less excited to move in :(

What else should I expect?!

[FraserB]

Shutting off your exterior power and water should be a matter or flipping a breaker and shutting the water off inside

[Sonic]

Just wanted to give an update...

So we've been in our "first house on the block" now for 8 months...been about 11 months since actual purchase date.

We bought for $471,000 total ($468,300 + upgrades), they are building a new spec home 3 lots over from us and selling for $535,000!!! And it's actually a little bit smaller than ours....Our block has 27 lots, so far just me and one other has moved in, and there are 3 more that are sold and building and 3 more spec homes being built including the one right next door that is about 500 sq ft bigger and selling for $571,000! I'm thinking if we had to, we could easily sell our house right now for $520-525...

Overall, very happy with my decision so far and the salesman was clearly not bullshitting me.

In terms of construction noise that some people have mentioned...I work 9-5pm, I'm literally never home when construction is going on. Someone also mentioned contractors stealing my electricity and water, I had a good laugh at that one. I can easily just turn off them off at the outside if that ever became a problem, otherwise, the showhomes are right across the street from me so all it takes is for me to walk in with any complaints.

We spent the entire winter with views of rolling hills and the entire block of beautiful fresh snow. :thumbsup:

I should also clarify about us being the third house in....it is not from a main road per se...it's a small community to begin with, the main road is just a main road for the small community, and I am third house in from a alley...the street itself is only about 13 lots long and leads to a dead end.

And like I said, the showhomes are right across from us so we won't have to worry about trades being dicks where they park because they would get booted so fast by the sales people...and they'd also have to keep the street presentable...

Anyways, I would highly recommend this to anyone...if we waited until now, we wouldn't even be able to afford this house.

[Tik-Tok]

I had a good laugh at that one. I can easily just turn off them off at the outside if that ever became a problem, otherwise, the showhomes are right across the street from me so all it takes is for me to walk in with any complaints.


Yeah, that's what my co-worker did, and they smashed his tap off in retaliation. Builder wouldn't do shit for him because "there was no proof his guys did it" :rolleyes: Glad you're happy though, I was just warning you of possible outcomes which is what you asked for.

[HiSpec]

Is it a common practice for the contractors to use electricity and water from neighbouring homes?

[Sonic]

I was wondering this too... Wouldn't it be provided by the builder??? I mean if the cost of electricity is cutting that much into your bottom line you should find a different job.

- - - Updated - - -


Yeah, that's what my co-worker did, and they smashed his tap off in retaliation. Builder wouldn't do shit for him because "there was no proof his guys did it" :rolleyes: Glad you're happy though, I was just warning you of possible outcomes which is what you asked for.

Wow which builder??

I'm with Shane and they have been nothing but phenomenal.