Having recently started a new Alair Homes franchise, I have been studying the local market and demographics. I have noticed what I believe is an unhealthy trend.

South Tampa Trends

South Tampa is primarily an older residential area, with numerous small ranch style homes on 8,000 to 10,000 sf lots, within easy reach of downtown. The area also benefits from all the amenities a neighborhood could need and highly ranked schools, Kindergarden to College.

Many of these older houses are being redeveloped into large, upscale homes – typical of multi-generational families – valued very high. The effect of this pattern is that the younger families – those with children pre-high school – are finding it harder to afford to live in the catchment areas of the schools. Imagine the long term effects when the school catchment does not provide enough children. The catchment will probably enlarge and children from further afield will be transported leading to an increase in traffic and the problems that brings. Perhaps rezoning to allow for apartments to increase the population and provide the much needed generational gap.

If you are looking for a lot to redevelop then you are probably going to spend $300,000 or more purchasing it, to then build a home of 3,500 sf for $700,000 or more, with the result you have a multi-million dollar home for life. But younger families are not able to do this, or do not want the level of long-term finance required to do this.

The redevelopment option is not the only way to gain a foothold in this scenario.

Finding a Home With Good “Bones”

What if you could buy that same lot for $350,000 and extend and renovate for $150,000, for a three bedroom, two bath home worth about $550,000. Comparable sales can be seen on the market today.

This is feasible providing the existing house has good ‘bones’. To ensure that it does, a purchaser needs more than a home inspection before buying a property. A potential purchaser needs a reliable, trustworthy and transparent contractor to provide an initial feasibility study to assess if, on completion of the project, the purchaser will have equity or, at least, a home valued at cost.

Alair Homes South Tampa would welcome the opportunity to assist young families in this situation. This is not just Design Build, this is Assess/Design/Build.