Whether you’re looking to buy a home to move into or buying a home as an investment property, sometimes it’s hard to determine how much a piece of real estate goes for. realtytimes.com says many real estate investors and first-time homeowners like to focus on the “style and functionality” of a home, thinking it goes hand-in-hand with the property’s value. More importantly, though, is “location, location, location.”
The land is what increases in value, the physical structure of a home depreciates. Looking at what drives the value of your home needs to be looked at from all angles. Land appreciates because “the demand for it grows as the population grows.” The website says you’ll get the best return for your money if you focus on land over the structure.
realtytimes.com says before you buy your next home, consider these 4 things:
1) You can get more for your money if you buy a smaller home in a neighborhood. That’s because all homes in a community — it doesn’t matter the size — go up in price by the same amount each year.
2) Choosing the right location in your neighborhood is important. The right location can mean a bigger return on your investment. For example, buying a house in a cul-de-sac might be more attractive to a potential buyer with children since there’s less traffic on the street. Therefore, you should be able to sell the home for a higher price.
3) Younger home-owners mean a quicker appreciation on your property. If the average age tends to skew older in a community, there’ll be less demand for those homes as opposed to a neighborhood with young people and children.
4) Look at zoning in the area and see if there’s a chance of development nearby — whether it’s a government project or commercial development. Depending on the project, this will determine whether your land will increase or decrease in value.
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