What Makes Some Homes Better Investments Than Others?

In Buyers, First-Time Buyers, Real Estate Advice by Doug PhelpsLeave a Comment

Most everyone wants to make a good investment in their home. The longer one stays put, the greater the chances are to accumulate equity. Some homes and some neighborhoods do considerably better when it comes to appreciating in value.

What factors might make one home a better long term investment over another?

Consider:

Quality of schools
Even if you don’t have school-aged kids, being in an area known for quality schools is a helpful factor in stability and growth of property values.

Public transit
Of growing importance to homeowners is easy access to public transit. Fortunately, the Denver metro light rail system is a growing success and continuing to expand across the Front Range, revitalizing several established neighborhoods and generating new ones also.

Well maintained
It is generally easier for well-maintained homes in a lower price range to appreciate faster than it is for the most expensive home in the neighborhood which was not looked after appropriately.

Floor plan
A house with a well thought out floor plan – not too enormous or expensive to maintain – will hold its resale value best.

Diamond in the rough
Consider a home that may be a “little tired” but could benefit from modest remodeling or renovation. A bit of personal sweat equity that brings the home up to neighborhood standards could turn the property into a gem. Think of this as “fix and flip” or “fix and hold”.

 

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