Whether you’re looking for the home of your dreams or your next great investment, there are a few good reasons why a smaller house can be a great buy. Most people are looking for a great deal, but that’s not the best motivation to guide you in your purchase. It’s important to remember that the house you buy will almost surely someday be the house you must sell, therefore you must consider how your home’s value will look years from now. So is buying the smallest house in the best neighbourhood a good investment to make?
If you purchase a small home with hopes to add to it in size, keep in mind it’s challenging for sellers to recoup the cost of additions, even in great neighbourhoods.
Major renovations are also often subject to unforeseen costs and can delay moving in if you plan to renovate prior to living in the home. If you intend to do major renovations, be sure this is something you’re ready for.
You are safer to buy a small home if a small home fits your lifestyle and family. It’s good to consider if the size of this home will work for you for the next 5 years. A smaller home is most likely going to be not only less expensive to purchase, but also less expensive to maintain. Costs such as hydro, water, gas and even simple repairs will be more affordable in a smaller home. More affordable homes will most likely have a larger market when it comes time to sell. If you do want the responsibility of renovations, consider smaller scale improvements that will help maintain the home in great condition.
You can improve your home, but you can’t improve your neighbourhood.
House hunting brings with it many important considerations, and one fundamental consideration that will never change is the importance of location. Location is most often the main factor in increasing real estate value. The right neighbourhood will hold or even increase the value of your home. When looking at the advice some people offer to purchase an affordable house in a great neighbourhood, this surely doesn’t mean you should be looking for the best neighbourhood in your city.
The old adage to buy the worst house in the best neighbourhood should perhaps be changed to buying a home in a hot neighbourhood. Areas adjacent to great neighbourhoods often have good potential to also become great. Popular businesses and interested buyers often start spilling over to the areas surrounding really good neighborhoods. If you’re nearby an already established neighborhood, you’ll have fairly close access to the amenities and energy that make the established neighborhood hot and trendy.
Having a very experienced agent will be your key to finding the right neighbourhood for you. Hot, up-and-coming areas are not always easy to spot. This task requires access to data and a really deep understanding of your city, which only a real estate agent has. Work with a trustworthy agent closely to decide which neighbourhood is not only going to be great for the value of your next home but one that will fulfill all the needs of you and your family. Understand your financial capabilities and look for a home that suits you well for this next chapter of your life.
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If you are seeking advice on selling a home in the Ottawa area, or have more questions for us, we are happy to provide you with helpful guidance and support. Email us at info@buyandsellottawa.ca or call us at 613-590-3036.