The economic recession has revealed which homes were sound investments and which were not. Owning a recession-proof property will make sure that your capital is protected. A real estate’s resilience mostly depends on the choices you made when you purchased the property. What are these choices? Follow these principles the next time you buy.
Location, location, location:
It’s true. Location matters a lot. Remember, houses are replaceable, but land is not. A good spot will always remain in limelight and will hold its value under pressure. It will always sell faster and for a better price. Location should means more than just views and water frontage. The neighborhood, Schools and safety, Culture and public services, Infrastructure and other factors make up for all the elements of a good location. Buyers give utmost importance to schools and safety. Properties near libraries, parks, hospitals, playgrounds and lively commercial areas are looked at with keen interest and valued. But one should watch out for the noise pollution factor. City sewer and water service, better-maintained streets help hold up the prices. All these factors will contribute in making it a recession proof house.
As they say, better homes raise the values of a not so great house nearby. Be wise and don’t buy the best house on the block.
Single-family homes rule
In a down market, Condominiums lose their value much faster than single-family homes. There can be two factors contributing to these: builders tend to develop too many condos when a market is hot. And most of the buyers prefer single-family homes to condos.
As all real estate is local, so it’s critical to educate yourself about a particular market inside out. Learn what’s selling and why. Apply this knowledge when you buy or build.
Homes supporting the broadest appeal hold their value the best. The homes which are most in-demand are three-bedroom, two-car-garage houses with at least two bathrooms. One should keep this in mind when thinking of remodeling. Attractive bathrooms and kitchen prop up a home’s price. Buyers value well-appointed, updated rooms with good layouts and appliances. The home’s high energy efficiency attracts a buyer’s attention. Invest in highly efficient windows, beefed-up insulation, new siding, and appliances. In the shrinking world of buyers, with falling housing prices and mortgage money scarce, only the recession-proof homes will hold their value best.