Increasing Land and Property Values in College Station
In 1998 I had a client who decided he wanted to actively try to build his own rental property portfolio in College Station. The plan was to buy vacant lots and build new rental homes on them. At the time, there was virtually no new construction going on in the neighborhoods surrounding campus. So this became the target area. That same year we purchased his first lot. It was an empty lot in Southside and the price was $25,000. That was more or less the going rate at the time, although empty lots were scarce and hard to find. The next year he bought a lot in East Gate on Milner Street for $17,500. That was a great deal even back then.
By 2001, things had been working out nicely with the rental homes he had built, so we continued to seek and purchase all of the lots we could find near Texas A&M. By 2003 he had acquired more, although $35,000 had then become the new market rate. In 2007 we found a lot in Southside, just two blocks from Kyle Field. The seller wanted $45,000 which we thought was too much! Reluctantly, he purchased the lot. Some eight years later, that last particular lot has appreciated about 500% and is now worth $250,000. That’s the good news. The not so good news is that he, and I, were stubborn and did not purchase more property when the going rate was in the $50k-75K range. We could have and didn’t… so shame on us. The truth is it just seemed way too high at the time.
The point I am trying to make is that College Station property prices always seem to be rising. However, as my previous illustrations clearly show, that’s not necessarily a bad thing! Since that time, my client has begun to build new rental properties again.
It’s no secret that overall real estate values have increased in our community over recent years. If you are currently struggling with a home purchase due to rising property values in College Station, I urge you to think long term. I am still very bullish on our real estate market. I predict growth for the foreseeable future. That’s why I am personally continuing to invest in College Station real estate in 2015.
