What Option Makes the Most Sense to Choose?

trade-in-your-house-1

Usually there is something about your home purchase you will have to compromise for when you choose between locations and price. But which option makes the most sense to select over the other? Can you have the best of both worlds?

Ideal Home, Not-so-Ideal Location

If you look carefully enough, it is possible to find a good buy… meaning a reasonably priced home in a decent location. However, if you’re willing to compromise location for a significantly reduced value on a house, there are certain features that come into play when you can afford a good home in a less-than-better area. Usually these locations may involve being in close proximity to busy streets and highways or near commercial centers. Homes that are in these locations can be seen significantly less in value due to some viewing where they are placed as undesirable.

Not-the-Most Ideal home, but Better Block

However, if you are not willing to compensate a good home for a not-so-ideal location, you can do the opposite with your purchase by finding the not-so-best house on the most ideal block. It can be said that purchasing the worst home on the best block can actually be a great investment. The only catch will be to put work towards up scaling the house, so if you have savings that is set aside for this purpose, this is an ideal situation for you. Once you have put work on the home’s value, your equity will rise.

Worst comes to Worst May Turnout for the Best

Then there is the option of purchasing the worst house on the worst block… Is it worth it? The thing about this predicament for some folks is it could be worth the risk. The way neighborhoods transition nowadays can change rapidly. In this case you could be building value on your house as beneficial changes occur surrounding it. In time, this will create equity and if the neighborhood becomes more desirable, could lead to a good long-term investment.

The Best Deal… Temporarily…

It’s a prime choice for those who will maintain residential longevity. Otherwise, if you plan to live in this house short term, it’s probably not the best option. If you have paid top price for your house and move out within only a few years, you may not be giving your investment time to settle when it comes to covering your closing costs.

 

Be Sociable, Share!