Pros/Cons to buying a home in low-income, split neighborhood where some have gov't assistance with down pymt

Question

New development phase is low-income. Some people may qualify for assistance thru the local government for help with the down payment or closing costs... however, only half of the neighborhood is considered receiving the subsidy..everyone else is a straight-up purchase with no help.

I'm curious if anyone has experience purchasing this way - and if so - how did that help or hurt the resell value?

I do not qualify for assistance. I am just curious how the resell value might be affected by the fact that half the residents do qualify and use assistance.

The other 3 phases of the development have been completed for over a year. The yards are very well maintained and there are "nice" cars parked in most drives. The latest phase includes larger lots and some of the houses have garages (so far only about 5 houses are built in the new phase). The fort mill school district is one of the best in the state, so the schools are very nice and the town is "booming" right now because of the influx of people for the Charlotte Metro area. All in all, it appears the 'hood is quite nice and quiet... :)

Breadbreaker - i understand your point of view. I think the descriptors used in a couple of these responses could be rephrased.. they certainly are a bit gauche... however... I also see their point... If a neighborhood becomes run down and not maintained, the property values don't increase as much and makes it an unwise investment. While I want everyone to get the opportunity to own a home, I don't personally want to live in a neighborhood where people don't take care of their yards, etc... Typically higher-priced neighborhoods have immaculate yards, etc... not so much with low-income. Just comes with the territory.

Answer 1

It depends on the area, I live in CA since the price are so high some families are qualified for grant money, but they still have to pay their mortgage, they will not sit at home and eat bananas and smoke cigars not here in CA, they are “working poor” as they are called.

One thing you should take to your consideration if you have kids the public school might not be so great. If the area will turn to be noisy, they will play high music and will not take care of their yards(some of them never lived in a house prior), will repair junky car, the value of your house will not increased as you will hope to.

Answer 2

Real Estate is generally a good investment. It normally increases in value as time passes. A "mixed" neighborhood may affect the resale somewhat, but the assistance that some receive is probably helping them to afford something they could not afford otherwise. It is more important to be sure that there are no shortcuts being taken in construction and to get a good assessment of the land the developemnet is being built on.

Answer 3

I can't believe that people have a problem with the "working poor" receiving government assistance...what would you like to see more money poured overseas, or watch the rich get richer? Everybody isn't dealt the same hand, so if the parents came from poor, cotton picking families who didn't have money for college..but still work everyday to barely make it, then who are you to judge how the yard will look or whether they have homies vs. family members visiting. That's what's wrong with the world, we are selfish and don't want to help brothers in need. My experience with Southern living is that there are many kind-hearted people who value what little they have, and will do anything they can to help a neighbor.

Answer 4

The freeloaders will turn any new housing into a ghetto, as usual. How will you feel paying your way while your complaining, lazy, fat neighbor sets in their home for free? Then watch as all their gangstra homies move in with them for free too. Resale value, ha, there will be no resale value. Run, don't walk, away from such an unfair bunch of trash.

Answer 5

the only thing i can think of on top of my head is resale...when you want to sell your home in a few years, you may not get a great offer for it as if you were in a better area. Everything in real estate is LOCATION.
by the beach.. top $$$ by the highway and train station.. lower$$$ low in come area..low $$$ for your home.
But if you plan on remaining for ever.. then who cares about the resale value of your home, ENJOY IT!

Answer 6

http://www.cfda.gov
http://www.grants.gov
http://gtionline.fdncenter.org
http://www.powerhomebiz.com/vol66/grants...
http://www.sba.gov/expanding/grants.html...

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