Small And Popular Vs. Big And Not
When relocating to a new area, especially a higher priced one, you may be concerned about getting the most home for your money. You may be tempted to opt for a larger home in a less desirable area rather than settling for a smaller home in an affluent community. From an investment standpoint, you could be making the wrong choice.
Home prices in popular and affluent communities tend to increase more rapidly than those in less-sought-after, middle-class neighborhoods. Thatís why real estate professionals frequently advise home buyers to choose a smaller home in a better neighborhood over a larger home elsewhere.
This strategy is particularly useful for home buyers who do not expect to own their home for more than a few years. They may need the likelihood of a higher appreciation rate to help ensure they make a profit and cover selling costs when the time comes to move again.