Maximize Your Real Estate Investment PotentialPosted Monday, April 28, 2014
Your home is usually the most important and sizable investment you will ever make. Whether you’re buying a starter home or the home of your dreams, you can’t afford to invest in real estate that won’t steadily increase in value over time.
In order to assess a home’s potential and maximize your profit when it comes time to sell, we’ve compiled a list of five helpful questions to ask when choosing a property.
Are businesses investing locally? Ask your potential neighbors about new businesses in the area and check the local papers. If businesses are investing, it’s a good sign that the neighborhood will continue to enjoy financial stability.
What amenities are in the area? Buyers will pay a premium to be near amenities such as parks, civic centers and swimming pools. If current amenities are lacking, ask if there are any plans for future development. If not, it might be better to consider a neighborhood with more to offer.
Does the neighborhood look like it’s being maintained? It’ll be tough to ask top dollar for your home, no matter how well you maintain it, if the neighborhood looks like it’s in decline.
Are there a lot of foreclosures and rental properties? Be wary of neighborhoods seemingly devoid of homeowners. If other buyers aren’t actively investing in the community, home values are likely to decrease.
Is there an active homeowner association or neighborhood organization? Communities with active residents tend to have the most growth potential and therefore the most stable home values.
Whether you plan to stay in the home for just a few years or for the rest of your life, don’t jeopardize your financial future by investing in real estate that has little prospect of improving in value.
For more real estate and home maintenance tips, subscribe to my blog. It’s free!