May 10, 2021

Real Estate As An Investment

Real Estate should be viewed as in investment just like any other place to put money, however, your principal residence is just that, your home.  Over the long haul, your home if in a good location should appreciate; but in buying any real estate always remember if you buy crap, you will own crap.  So, the rule location, location, location is valid in making any real estate purchase.  Buying in a area with great schools even if you don't have children should be part of the decision.  

If you are buying a home as a rental whether a condo or single family home, ask yourself the question, could I live in this home?  If the answer is no, pass on the purchase.  Don't buy near busy streets, power lines or other eyesores.  Don't buy in a neighborhood where the homes nearby are not well maintained because it will impact the value of your investment.  Single family homes will appreciate more than condos so given the choice a single family home is a better investment.  

Try to buy a home or condo that is 3 bedrooms and at least 2 bathrooms because those will be the most rentable.  Everybody likes open concept so the more open related to the kitchen, living and dining area the better.  An attached two car garage has value.  Indoor laundry has value.  Carpeting in the bedrooms are fine; but most people now prefer hard surfaces like tile or wood flooring in the living areas and bathrooms.  

Remember curb appeal.  Contemporary homes are not as desirable as homes with architectural charm.  The roof matters. Pitched roofs are not only better from an appearance standpoint, they are less likely to leak.  Back yards matter too.  They don't need to be large; but they do need to be large enough for entertaining, since most people like outdoor living when the weather is nice.  Investment real estate currently comes with some nice tax advantages that increase the value of the investment.  But like any investment, choose wisely.  
Paragon Home Resources assists investors with selling and buying homes.   We can help you choose wisely to make your investment pay off in the future.