Although proximity to services is important, the quality of the neighborhood is truly at the heart of the old saying, “Location, location, location.”
All markets and the homes in those markets are different, but if you’re looking at a wide range of homes in different locations, here are four different scenarios to think about:
1.Buying the best home in a great area. Getting the best-of-the-best may mean that you will overpay for such a home. Also, keep in mind that although the best home in a great area will probably hold its value, that value may have a ceiling.
2. Buying a fixer-upper or not-so-good home in a great area. This could mean either a house that needs work or a house that's in a less-than-desirable spot—such as facing a busy road—in an otherwise great area. If it’s in the wrong spot, the value may be somewhat diminished, but if it’s a fixer-upper in a great area, you could increase its resale value.
3. Buying the best home in a not-so-great area. Of all the scenarios, this may be the riskiest. If there’s a downturn in the housing market, you may lose home equity if you buy the best home in a not-so-great area. Yes, the area may improve at some point in the future, but the area will have to really turn around for you to gain home equity.
4. Buying a fixer-upper or not-so-good home in a not-so-great area. This option also has risks, although it depends on the condition of the home and how much you invest in it. You may be able to get a decent return on your investment with a fixer-upper in a not-so-great area, but if the area doesn’t improve, the home’s value may decrease.
Once again, the quality of certain areas and the quality of homes in those areas will vary from market to market, but this should at least give you something to consider.
For more than 25 years, Omega Financial has been serving mortgage clients in Massachusetts. Our brokers have approximately 50 years in the mortgage business. You always will receive fast, courteous, and accurate information. Omega Financial, Inc. is a company duly licensed to operate in Massachusetts as a Mortgage Brokerage. We are located in the Town of Norwood, Massachusetts where we have been operating as Omega Financial Incorporated since 1988. Licensed by the Commissioner of Banks - License No. MB2671