Assessing a Property’s Long-Term Potential

You see a home on the market that you like. Should you buy it? Before you make an offer, it’s a good idea to get a sense of the property’s long-term potential. After all, a property is not just a potential home, it’s also an important investment. Here are some things to look for when viewing homes on the market:

• Is the area’s average income increasing? The more affluent a neighborhood becomes, the higher the property values.
• Are employment opportunities growing nearby? If jobs are leaving the area, housing prices will likely decline.
• Are there any nearby housing or community developments that will enhance the quality of life in the area? If a park with a quiet walking trail, or a prestigious golf course, is being built nearby, the value of the neighbourhood will increase.
• Is the crime rate on the rise or decline? This can have a significant impact on future property values.
• Are there public transit lines located nearby? Studies show that housing prices increase in areas where public transit is close and convenient.
• Is the property located in a neighborhood dominated by higher priced homes?
• Does the property have features that will always be valued by home buyers, such as a large kitchen, spacious backyard, and professionally finished basement?
• Are there short-term negatives about the area that will eventually disappear, such as loud construction projects? Once those negatives are gone, house prices will often jump.

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