Assessing a Property's LONG TERM Potential
You see a home on the market that you like. Should you buy it?
Before you make an offer, it’s a good idea to get a sense of the
property’s long-term potential. After all, a property is not just a
potential home, it’s also an important investment.
Here are some things to look for when viewing homes on the
market:
• Is the area’s average income increasing? The more affluent a
neighborhood becomes, the higher the property values.
• Are employment opportunities growing nearby? If jobs are
leaving the area, housing prices will likely decline.
• Are there any nearby housing or community developments
that will enhance the quality of life in the area? If a park with
a quiet walking trail, or a prestigious golf course, is being
built nearby, the value of the neighbourhood will increase.
• Is the crime rate on the rise or decline? This can have a
significant impact on future property values.
• Are there public transit lines located nearby? Studies show
that housing prices increase in areas where public transit is
close and convenient.
• Is the property located in a neighborhood dominated by
higher priced homes?
• Does the property have features that will always be valued
by home buyers, such as a large kitchen, spacious backyard,
and professionally finished basement?
• Are there short-term negatives about the area that will
eventually disappear, such as loud construction projects?
Once those negatives are gone, house prices will often jump.
Need help finding the right home for you? Call today.