Want to Buy a Home That Will Appreciate Well Over Time? Here Are 6 Things to Look For
Like any other financial investment, people who buy a home are hoping that the home’s value will appreciate over time. You have to live somewhere anyway, so why not contribute the money to something that can grow over time?
Whether or not your home will appreciate or appreciate well will depend on several things, from the state of our entire country’s economy to your city’s specific economy and housing market. But there’s much more to consider than just local economies.
Here are a few things to look for if you want to buy a home that will appreciate well over time:
Is your home in a thriving neighborhood, or in an “up and coming” neighborhood? Are there things that people need, like schools, medical services, grocery stores, restaurants, parks, etc. close by? Are there major employers nearby? People typically want to live by all of these things, and investing in a neighborhood that has lots of amenities is a good bet.
Especially if you live in a city, living close to bus lines, the subway, trains, airports, and park and rides can be a big deal. People want to make sure they can easily access the things the need, and ensuring they have a reasonable commute is often top of mind. That being said, do some research to find out if there are future transit plans for your neighborhood. For example, if the city has plans to put a subway stop 1 block from your home, now might be a great time to buy before prices start to appreciate more rapidly due to the new convenience.
A good school district can immediately make a neighborhood more desirable, especially if you live in a home or neighborhood that families will find hospitable. Families with children often prioritize a good school district when they’re looking for a home. (This is another great reason to support your local schools, even if you don’t have children in school. It not only helps kids, but it can also help your home value!)
If your home is in a neighborhood that has high rates of crime or a “bad reputation,” this could hurt the appreciation potential. However, a “high crime rate” might not all be bad news. Oftentimes, cities have crime rates that look bad on a rating system compared to more suburban locations, but people need to actually talk to the local residents to see what it’s like to live there to get an accurate perspective.
Does your home “fit in” with the rest of the neighborhood? If you’re looking at buying the biggest, fanciest house on the street and it sticks out like a sore thumb, you might want to think again. It will be hard for this home to appreciate the same way it might in a neighborhood filled with similar homes
Does the house have a bad layout, or need major upgrades? Are you able to remodel or fix any of these issues? Consider the condition of the home and what you would be willing to do to improve it. A home with modern amenities and contemporary design that’s been well-maintained will certainly help its value when it’s time to put it on the market!
When you’re searching for a good investment, there are so many various factors to consider. This is where a real estate agent who is an expert on the local area can come in and help you make the best investment possible.