The type of home you buy strongly influences the resale value. In some areas of the country, townhomes and condos are hot sellers. In other regions, single-family homes may be a better value. Depending on the area you live in, and your lifestyle, each type of home has its pros and cons.
Consider these questions when weighing what type of home is right for you, and before you apply for a mortgage:
• Location is key, regardless of what type of home you choose. Is the house in a desirable location with access to good schools, shopping, recreation and major highways?
• How will your region grow during the time you’ll be in the home? If the number of new families in an area is expected to increase, your single-family starter home might have a higher resale value in a few years. If an area is popular with retirees, a condo might sell well down the road.
• What are existing resales like in your area? Are condos and townhouses slow to sell or speedy? Is there existing high demand for single-family homes similar to the one you’re considering?
• What is the general trend of home prices in the area? Are prices flat and likely to stay that way? On the rise overall? Climbing in specific segments (such as luxury homes) but flat or even declining in others?
Whatever home you decide is right for you, be sure to examine your credit behavior and personal budget to help determine how much of a mortgage payment you can really afford.
Buying a home is a complex process. You not only need to consider what the home is worth right now, but what it might be worth down the road. As buyers, you need to think ahead to the day when you, too, will be sellers – and decide if the home you’re paying so much for now is likely to recoup your investment five, 10, 15 or even more years from now.
This article is provided for general guidance and information. It is not intended as, nor should it be construed to be, legal, financial or other professional advice. Please consult with your attorney or financial advisor to discuss any legal or financial issues involved with credit decisions.
Published by permission from ConsumerInfo.com, Inc. © 2013 ConsumerInfo.com, Inc. All rights reserved.