Thursday, 13 February 2014 20:47

Will Your Home Make a Good Real Estate Investment?

Real Estate Investment - Investigate before you invest

Whether you’re buying your first home or trading up your starter home, you still want to make sure that your new home will be a good real estate investment. After all, it’s possible that you might end up selling it one day and you want to make a profit in that transaction. Plus, if your home is a good investment, this also generally means that it’s situated in a good neighborhood which is unlikely to deteriorate. So when you’re buying a home, keep the following things in mind to confirm that your ideal home is also a good real estate investment:


  • What have the prices been like in the last five or ten years? If the market has been in a bit of a slump, then prices have gone down everywhere. However, in good neighborhoods, they go down a lot less than they do in neighborhoods that have a high crime rate or very few conveniences like shops, restaurants etc. So checking out the prices in your neighborhood over the last five to ten years is a good idea.
  • Has the neighborhood been “gentrifying”?Sometimes, neighborhoods that haven’t usually been considered very good start gentrifying. Maybe these were places that had a high crime rate which has reduced a lot in recent years. Or they may just have been industrial neighborhoods filled with warehouses that are now being converted into fashionable lofts. If the neighborhood you’re thinking about buying in has been gentrifying for at least the past five years, chances are it’s going to continue to become better and better. This makes it a good investment.
  • Are shops and restaurants popping up in the neighborhood? This is another good sign that the neighborhood is on its way up. Especially if the shops and restaurants are high-end, this goes to show that people who can afford to buy these products or dine in these places are moving in. It’s yet another indication that the neighborhood is gentrifying.
  • Is the neighborhood conveniently located? Usually, gentrification takes place when a place is close to the downtown area. Many people commute to work, so they want to live in a place where the commute won’t take too long. So if you find a neighborhood which seems to be on its way up and is also conveniently located, this is a good indication that buying in that neighborhood will be a good investment.
  • So if you’re wondering if buying a home in a certain area will be a good investment, keep the above points in mind. Contact us for more information on buying or selling a home.

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