The real estate market is so tricky these days. In good stable neighborhoods, the quality
homes seem to be holding their own. They
have dropped a bit in value, but compared to how quickly the values rose in the
last eight to ten years, the investment in a quality home, and a good
neighborhood is still paying off for people.
The problem is that when you invest in a home that is over-priced
because of its amenities, you will not get that money back. Price comparisons are always made against
what the other houses, of equal square footage, are selling for in that
designated neighborhood. If this is an
investment, remember the rule: LOCATION,
LOCATION, LOCATION. Also no one wants to
own the fanciest house on the block because you will not, easily, get back what
you put into the place. Some real estate
moguls will tell you that you must upgrade all kitchens and baths, to
substantiate your investment. When all
of the other homes, are standard, people will often pick those homes, and put
their own personal stamp on the upgrades.
For instance, if the house you are investing in has $30,000 worth of the
finest cherry cabinetry, and most buyers want something light and modern, or
want oak to match their furniture; there you are with all that money tied up in
something that does not have mass appeal.
These are my opinions, but I have bought and sold many homes over the
past 25 years, and I have never had a problem recouping my initial investment,
and making a large profit.
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