Is My Huntsville Alabama Home A Good Financial Investment?

Is My Huntsville Alabama Home A Good Financial Investment?

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Is My Huntsville Alabama Home A Good Financial Investment?  I get this question a lot and the the answer in my opinion depends on who is asking the question and what the goals or motive behind the purchase are.  There are many types of real estate investing; residential, mixed-use, retail, Real Estate Investment Trusts or REIT'S to name a few, but I'm confining this post to the residential home owner.  If an investor is asking the question - Is My Huntsville Alabama Home A Good Financial Investment? then the answer would most likely be quite different from a buyer looking to make the home their own, live in and be a part of the community.  A residential investor considers rental value or  flipping the property usually working within a formula of costs vs. potential return.  An investor generally is not interested with living in the home...it's an income generating business and while I do work with investors this post is directed at home owners.

There was a time not so many years ago that buying a home was a guaranteed investment, a kind of savings account where the home owner could build equity for the future.  That's still possible today, but with the downturn in the real estate market over the last 4 years or so much of that equity has been wiped out, but slowly coming back, with that said, most statistics I read still show real estate out performing the stock market...the home buyer needs to buy smart.

The single most important factor of buying a home as a "safest" investment for the future is location.  You can paint, repair siding, install new carpet, but the one thing that you really can't change (practically) is the neighborhood or location of a house.  So it's always better to buy in the best neighborhood even if the house is the, smallest, least expensive or in need of repairs home.  Many times much of the value of a home is in the location.  Of course, you don't necessarily want to buy a home in need of many expensive repairs, but generally speaking buying in the best neighborhood is your best bet.

Pay attention to schools as home values are tied to schools in the community.  Views are also important...a view of a parking lot is less desirable than a park or water view.  A home with a two car garage is much preferable to a one car garage or carport.  An item that you might not have considered seriously is utility bills...the less money you spend on energy costs means the more you keep in your savings account.  Taxes are another great point...usually homes that are in popular neighborhood and schools tend to have higher taxes.

Although not tied so much to a financial outcome...YOU have to live in and feel comfortable your house.  I feel this is very important...your home is your castle the place you come home to at the end of the day.  It's where you make memories, raise a family, invite friends to share good times and you will most likely be there for a few years.  So it's not all about investing with a monetary return...it's also a kind of investing in you. 

There are many more things to consider when purchasing a home to protect or help insure a healthier financial future, so if you're asking the question;    Is My Huntsville Alabama Home A Good Financial Investment?  Just give me a call or send me an email and I'll help you get started in the right direction with your new home purchase.

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