Not every home purchase is meant to be a forever home. Whether you are shopping for a starter home or simply know that you won't be remaining in an area for the rest of your life, it's still important to purchase with care. There are certain things you should look for in these somewhat temporary home purchases to make sure you can easily sell them when the time comes to move on.
Check the real estate history
Not just for the home you are looking at, but for the whole area. If you plan to sell in a few years, then you want a home that is in an area that is on a steady upward trend when it comes to home values. For those planning to move further in the future, such as at retirement, a stable real estate history that shows that the area weathers the normal ups and downs of the market well is a good sign.
Look into the neighborhood's prospects
Purchasing in an area that is just beginning to go through a gentrification process isn't a good idea if you will be moving in a few years, as there is no guarantee that values will go up in the area instead of down. Instead, check out the neighborhood to make sure it is stable and that the citizens are engaged with maintaining the area. Things to look for include:
Tread carefully in transient areas
Some neighborhoods cater to a highly transient population. These are usually in areas near large universities, by military bases, or near large multi-national corporations. Residents buy a home and live in an area for a set amount of time – until they graduate, are reassigned, or are transferred, for example. Houses may sell quickly since the population is constantly in flux, but the value of the homes rises slowly simply because the status and wage level of the new influx of homebuyers is likely stagnant.
Purchasing in a transient area can be a good option if your eventual move is far in the future if the population is stable – in other words the base isn't in danger of closure or the corporation is likely to remain successful. If you will be staying in the home for 10 years or more, for example, the value will increase some due to inflation which means you can have a nice bit of equity in a stable value area. On the other hand, if you are part of the transient population and will be moving in a few years, you won't be able to build sufficient equity and may even end up upside down on the mortgage.
Contact a real estate agent to discuss which homes for sale would best fit your needs.
Share29 September 2016
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