Choosing the home that will give you the highest return
Now there
are other factors besides money that determines what kind of house you purchase,
but for the purpose of this article, I can only assume money is the only factor,
atleast the only measureable factor.
Simply put, prebuilt homes has been the better investment. They go up in
value faster and there are fewer repair issues.
There are pitfalls to purchasing a prebuilt home, but will discuss these
pitfalls in a future article.
There are two reason that could justify buying a used home.
One reason
is you may choose to purchase a used home is that you need the property
immediately. Perhaps you are renting and so it is better to use your money to
pay off a mortgage than to rent.
Another reason maybe because you know how to fix up houses. Buying
houses in a high demand location that no body wants to live in bring in high returns.
Detach is the best choice. Detach houses go up in value faster because people
prefer to live with getting disruptions from their neighbours. Detach houses,
however, is not good for renting.
If
you want to rent out, probably the best choice is a freehold townhouse. You
won't have to worry about the condo maintaince fee and freeholds are the cheapest to
maintain than detach houses.
However, there has been many people who made millions buying prebuilt condos.
Condos are good choice if you intend to sell them quickly ot rent it out. They
are a poor choice if you want to keep it for a long time. The condo maintaince
fee simply eat out the value of the property.
Location wise speaking, the best location is Toronto area where the subways are
such as Young St. You wil notice terribly run down homes selling at high prices
just because they are on Young St.
In terms of purchase price, you are best off purchasing the median price which is
around $300 000 depending on your city. The higher the value, the fewer the
buyers can afford. Thus, reducing the demand of your house. Similarly, the lower
the value of your house, the less likely people are going to want it.
In terms of property details, people look for the bathroom and kitchen. Make
sure those rooms are well done and your house will sell for higher!
If you have any questions or concerns about these articles or you would like to comment
on them, please post them.
Sep. 9, 2011
Copyright © 2011, F54.com
All rights reserved.
This material is owned by F54.com and protected by copyright law. It may not be reproduced or redistributed without the prior written permission.
Articles are for informational purposes only. We are not liable for any
decisions, losses or gains that may occur.
|
|