It is easy to dismiss the idea that your home purchase is an investment. After all, there is an emotional attachment you make when you live someplace. While we recognize that this is an essential part of the process, and the memories you create are priceless, the fact is that a home purchase is likely the biggest purchase that you are going to make in your lifetime.
Although the signs are clear the market is slowing, there are still items you can look for that your property is poised to increase, particularly if you take the long-term view.
Location is the single biggest determinate in housing prices. It is a cliché, but that does not make it less true. However, this oversimplifies the matter. What makes one location better than another one?
Some important factors determine a good location. Many look for a top school district. A municipality that is focusing more on education is a positive sign.
You can turn to various rankings, but keep in mind that school administrators are getting savvy about the ratings. It is an excellent place to start, but then you should do your research by reading posts and talking to parents in the district. If you can, check the school district’s meeting minutes to understand the issues and priorities.
A smaller property
Taking a purely economic perspective, it is better to own a smaller home in a more upscale neighborhood than a larger one in one that located in a more modest one. If you buy the smaller home, others raise your property value. Homeowners making additions should prove beneficial to you. Purchasing a larger home in a more modest area means you are lifting the surrounding homes’ value.
A quiet street
Homes on a quiet street are more desirable than those on a busy one. People pay more for a quiet, serene life than one in the middle of a lot of noise and congestion.
Near the good things
People want to live close to things they desire. This includes nice shops, entertainment, and recreation. Those close to transportation, either public or roads, depending on where you live, have shown a tendency to do well.
Access to quality healthcare is also desirable. After all, who wants to drive far for routine medical matters, much less an emergency situation?
You should watch for changes to your city or town. Monitor social media and other sites to see what is going on. Perhaps things are changing for the better, boosting your quality of life and home value.
Certain factors will suppress the value of your home. You may pay less for a comparable home if these are present. However, it makes it more difficult to sell your home, and you may very well find the appreciation is not as sharp as other areas.
Realtor.com has put together a host of such items. We can add several things to the list. These include high crime neighborhoods, those that are crowded and noisy, and commercial/industrial towns and cities.
A downtrodden neighborhood may prove a mixed bag. If there are signs it is on the upswing; you may see a sharp increase in home values. This would include signs of investment, such as more upscale new condo developments and shops. You have to balance this against the risks and weigh whether you want to live through the sometimes long process of the neighborhood changing.