My wife and I just had a baby and are looking to move from our current 1650sqft 4bd 3ba home in Gardena, CA to a brand new community development in San Pedro, CA. The new house would be built from scratch and bigger than our current home and more expensive, but we have been wanting to move to an area that is safer and nicer than our current neighborhood.
We bought our home for $465k in 2015 and we estimate we can sell it for between $800k-$900k. We have about $300k in cash to put towards a new home in that community, which would be around $1.3M. We would have to sell our current home and use that money towards the new house. The new homes are built by KB Homes.
A few questions:
is this even a good idea? The thought of living in a bigger brand new home is attractive and in a gated community, but honestly have no idea if this is a stupid financial and personal move.
how do home values built in these communities appreciate / depreciate? Would they appreciate less than an older home purchased in a normal neighborhood?
is buying homes in these communities generally looked down upon as not financially wise? Everyone I seem to talk to always says they aren’t good deals because they don’t have the same ability to appreciate like fixer upper type homes.
Any insight and thoughts would be very helpful here!