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.