Deciding what kind of home to buy is a major decision. Any time you invest in property you need to be sure that you are getting what is right for you and your current situation. Here are some questions that you should be asking yourself to determine what kind of purchase is right for you.
Is Money A Major Factor?
If money is your biggest concern, you may want to go for something like a town home or a condo. These options tend to cost less, but you can still get a good size of square footage. This is because when you purchase you town home, you share the cost of the lot with the other tenants. What would have been one lot to build a single family home on, now has a couple different units that are either connected horizontally with less yard, or are built up with multiple levels. In addition, if you decide to upgrade down the road you can use the condo as rental property and get some investment income.
Another option to save money might be to buy something that is older. Then, over time as you are able to save more, you can make improvements.
Are Neighbors Your Biggest Concern?
If you have young children or a large family you are probably worrying most about the neighbors. It is hard to know definitively if the neighborhood is a good fit for you before you move in, but there are some things that you can do to find good neighborhoods. First, look to the nearby schools. Areas with good schools draw good neighbors. Parents generally choose where to live based on where their children can go to school. Another thing is to visit local churches, community events, and even block parties. Visit a potential neighborhood on a Saturday. Neighbors will be out and you can get to know people before pulling the trigger.
Is Resale Value Important To You?
In some cases you will only be in a house for a short time. If this is the case you need to think about the resale value. When searching for a house make sure you purchase in a hot spot. There are certain cities that turn around real estate really quickly. You should look to these places to buy. In addition, don't make any unique improvements to the home that only you like. Keep everything neutral to avoid spending money on improvements that you are unlikely to get back.
By asking yourself these questions you can determine what the right real estate investment is for you. Speaking to a realtor could also help simplify the process of finding a good home.