When you want to buy a house, it is important to keep in mind that someday you will be selling it. You should not be caught up by the home search and desire to own. When you want to buy a house, you should step back from the emotional, lifestyle qualifications of properties and focus on the investment potential.
A home is an investment and that is why you should imagine yourself as the seller of that home in the near future. When you buy the most expensive house in the neighborhood, it will be more challenging to unload it being the priciest home on the block. You would rather buy your home in a more desirable neighborhood for it to be a better investment. Here are reasons to avoid buying the best house in the neighborhood.
- You need to leave room for improvement
An investment that has room for improvement is the best investment. Ideally, you will be improving the value of your home during your ownership hoping it eventually pay off when you sell it. That is why you should buy a house in the worst neighborhood. Small improvements like refreshing the paint, regular maintenance, and fixing the odds which may be ignored by an irresponsible occupant. Such practices can improve the value of your home. However, if the price of your home is already above the rest of the neighborhood, such changes won’t make any difference.
- Neighborhood influence home values
Buying a home next to the nicest house on the block is a smart investment but owning the best property is disadvantageous. Your neighbors’ homes have to improve and be pretty as yours before the value of your home increases. This is a rare occasion and that is why you should not risk. It is better to “buy a bad house” and later improve it to make more valuable.