Investing in Raleigh

[Michael Sawers]

I am about to start a new project in Clayton, NC (30 min south of Raleigh).  I move to the area on October 1st.  My wife and I plan to purchase a house/townhome as our permanent residence which we will live in for the next 2 years.  After that, I would like to put it up for rent.  I am ok with commuting up to 30 minutes, so the areas I've been looking has been from the mid Raleigh area (draw a line from NCSU through downtown) all the way down to Clayton, NC.

My fear is purchasing a house which doesn't appreciate at all, having trouble selling quickly, or having trouble finding a renter to cover all costs of the house (including a property manager).  I've done plenty of research on the rental aspect of this, but I've never actually purchased a house.  I also hate the idea of buying a house at market value, but in Raleigh, it seems you have to buy them for above market value.

Any suggestions?

Thanks,

Mike

[Eric Weireter]

Hi @Michael Sawers . I have a few coworkers that make the commute from Clayton to Durham every day. From what they tell me, it's necessary unless you want blue collar work.  These coworkers prefer the non-urban feel of the area, larger property lots, less dense etc.  

In regards to your fear of nonappreciation, trouble selling quickly, or having trouble finding a renter...

***Appreciation is nice, but I don't base my purchases on appreciation alone. But, once the  Complete 540 project is done one would assume that it would only help with appreciation in the area that you are looking/going to be working.

***A coworker that lives in Clayton has had 3 houses in his neighborhood sell this year... all go under contract within 1-5 days. The housing supply in the Triangle market does not meet the demand. Which is why you see many houses selling immediately above list price. I foresee housing supply not meeting the demand for the next few years.

***Renting in the area is thriving because people are unwilling to pay market value for a house, unable to save for a down payment or uneducated on the minimal cost barrier of entry to home ownership. I don't see that changing soon.