Worst House - Best Neighbourhood
I read somewhere this week that the best option for someone starting out - and who doesn't mind some sweat-equity - is to buy the WORST house in the BEST neighbourhood he or she can afford. This makes beautiful sense. First of all, every penny you put into the home will increase its value. Next, the neighbours will be so glad to see someone fixing up that property, they'll probably invite you to dinner. Then - when the market increases and the prices of neighbouring homes go up, yours will automatically follow suit. Not only will you enjoy the fruits of your labour, but you will build equity much more quickly than if you'd bought a lovely, move-in ready home.
HOWEVER - if you are not handy or do not have the time or interest in renovating a 'fixer-upper', please don't buy one!! You will be so frustrated, the house will devalue and the neighbours will never invite you to a barbecue.
Before you buy a home, be sure you know what you want and what you can or are willing to do to make it yours. Talk to your REALTOR ®, who knows area and market values. She will be able to help you decide whether your fixer-upper will grow in value. Then, she'll help you with the buying process. BEST OF LUCK AND HAPPY HOME-BUYING!