A common mistake when people buy homes is only considering their current needs. They often don’t consider the potential resale value of the property and this can have big implications further down the road.
When you’re making the buying decision, ask yourself why you’re interested in the property. Are you just buying it because it’s available and in your general price range? Or are there reasons that other buyers may share? If there are sound reasons for you to make the purchase, chances are good that others will feel the same way in the future.
Room for improvement
Are there a few simple changes around the house that you could do to push up its value? A little investment can yield great returns down the line. However, don’t fall into the trap of putting too much money into a renovation when you might not be able to make it back later. Here are some factors to take into account if you want to sell your house and make money from your investment.
Is it going to be in demand?
On the one hand, you might think it’s a good idea to buy property in a location that not too many others are interested in, because you can negotiate a better deal. But you may then have trouble selling it later.
Location is always important. But whether or not the location will be in demand some years from now is the question. It’s not always easy, but try to get a sense for whether or not an area is up-and-coming, is going to continue to be as in demand as it currently is, or is going decline in popularity. If it’s in a city you’re familiar with, you’ll have a better sense of the future marketability of an area. Otherwise, you’ll have to do some asking around.
You can get an idea of the prices of surrounding homes by going here.
A good tip is to check with the local municipality for any future development plans in the area. You’re going to lose resale value if, five years down the line, a noisy highway is going to be built close by or a high-rise building obscures your once-beautiful view.
In many older suburbs, the need for undercover secure parking or gated parking wasn’t really taken into account – people were happy to park in the street. Things have changed however, and nowadays people prefer to have off-street parking. Even if you’re comfortable without, remember that down the line you’re going to find it that much harder to resell.
It’s strange to think about selling a property before you’ve even made it your home. But even if you don’t foresee yourself relocating down the line, you never know what the future has in store for you. By taking these few things into account now, you could ensure that the property financing you do now is an investment you’ll reap in future.