List Only

I found a nice house in a new subdivision and the price is low but its owned by the housing authority....?

If a new subdivision is owned by the housing authority what does this generally mean? My assumption is that if its owned by the housing authority the property value is not going to go up much in the future. Is this a fair assessment? why are housing authority houses so cheap? I didnt mean knew as in brand new. It is a newer subdivision meaning all the houses are in good shape and the subdivision is less than 10 years old.

Public Comments

1. It sounds odd that a brand new subdivision would be owned by a housing authority, but a housing authority is usually established by the city in which you live for Section 8 residents. Section 8 is low income or housing for the elderly. If it is owned by the housing authority, then you are probably correct in the assessment that your property value won't go up too much.
2. The property value is based on more than just the house. The areas demand, schools, access, stores, etc... are also included when determining the value which sets the property taxs for the property. Housing authority managed to get a low cost of the resident and offered it to low income people for renting which include the elderly on fixed social security, nothing to do with a section 8. Not all housing authority properties are available for a section 8; they are separate goverment programs. A good point in this home is that housing is required to keep everything in excellant working condition. They have yearly inspections of all the major eletrical, water, air/heat, just about everything. And, after buying the home, you can increase the value by certain improvements to the home and property. Talk to the realtors and the other people living in that area. This could be a great deal.
3. Fed funds are being cut to these groups and they are looking for new ways to increase rev and still carry out the mission of the agency. So many are forming LLC groups and investing in prop that can be sold or rented in neighborhoods that need a boost in the type of residents they have. That can mean a higher crime area or just homes that were allowed to get run down or a typically less desired area of town to live in. The agency will by a group of them and renovate in an effort to attract new people to the area. So they may also be trying to attract first time buyers or those who are not typically able to get a house. Can't say on future home values-it will depend on how well the effort to revitalize the neighborhood goes. I would want to know how many units they own and how much of an impact they hope to have on the community (as in 5-6 block radius around the house) vs just that one little section. They can pump a lot into a two block area and if that is still setting in a bad location for some reason the houses will still not be worth as much. I would ask to talk to the housing authority director or asst director to see what the long term plan is for the area. Most of the time they will do this since they want to see the homes sell and get a good mix of incomes and backgrounds into the homes.