An Official Publication of the 2009-2010
Greater Houston Builders Association
Remodelors Council
Houston Remodeling Guide 2009
An Official Publication of the Greater Houston Builders Assciation RemodelorsTM Council
making money
Turning a profit on your home
These urban neighborhoods are sought after by a broad range of demographic
groups.
o you own a home in one of Houston’s many inner city urban areas? Have you owned this home for more than five
years? Well then, this may represent one of the best real estate investments
you could make. These urban neighborhoods are sought after by a broad range of
demographic groups. From empty nesters
“cashing out of their suburban homes” to young families, they are all looking for the inner city amenities, shorter
commuting and the charm of an older neighborhood with mature trees.
They are not looking for or need the high priced homes that builders are forced
to build because of the economics of urban land values. They are content with a
moderately sized home with amenities that offer luxury. Unfortunately they have
nothing to choose from, other than outdated homes or new oversized homes. They
are seeking the comforts of home in large open spaces and values of energy
efficiency.
Investing in and revitalizing your older home in the urban neighborhoods that
are experiencing teardowns makes perfect sense. For example, I will use a
recently designed project in Afton Oaks: The clients started with a
2,500-square-foot typical home that they bought in 2005 for $400K/$190sf. Our
new plans for the home renovate 50 percent of the existing home, increase the
ceiling to 9 feet on the first floor, and add 1,100 square feet to the home
with a second floor addition. The core of the home will be updated with new
electrical, plumbing, insulation and a highly efficient HVAC system. Once
finished, this home will effectively compete with the new homes of the
neighborhood at a substantially lower price.
Allen W. Griffin, CGR, GMB, CAPS, CGP
Gryphon Builders
Investment facts:
• 2,500-square-foot home purchased for $400k;
• Renovate and add 1,100 square feet, $280k;
• Value of renovated home, 3,560 square feet @$250/sf = $890,000.
• New Homes – 4,500-6,000 square feet, $1.5 million-$2 million.
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