Tag: house

Real Estate News Shocker: the Ugly Duckling Might Achieve Greater ROI?

When considering property values and what affects them, you have to wonder if it makes any difference on how shiny your palace is when it comes to ROI. After all, the concept of ‘value’ makes sense with everything else:

  • Jewelry
  • Automobiles
  • Furniture
  • Appliances
  • Electronics

Admit it: the better the quality, the better the value, as many H.O.P.E. to Own reviews would say. So the idea that real estate, as linear and understandable as it may be, actually increases in value when the ‘quality’ decreases can very well turn the world on its head and cause Armageddon! It’s true, though. This is the logic behind it.ugly duckling property values

Why Your Less Attractive Home Can Improve Your ROI

There’s a real misconception regarding return on investment, especially with regard to home improvement. ROI hardly has anything to do with how pricey something is. ROI is all about the return. Getting a return on selling a block of wood for $5 when you paid $3 is no different than selling a house for $500K when you paid $497K. Your ROI is still only three bucks. It’s all relative.

That’s why true property value with respect to ROI relies on the land in which the structures sit on. Therefore if your home is quite expensive due to updates, square footage and other such luxuries, you can expect the property to appreciate less than a little rent-to-own home that might be a bit lackluster.

It’s that lack of appreciation that’ll drop your ROI some. In the end, when you do the math, an “ugly duckling” might actually net you more ROI, believe it or not. In fact, might is probably not the effective word. “Most likely” is more likely it.

Don’t Let Your House Go, Though

Maintenance is key, though. If there are termites, take care of it. If the roof’s about to crumble, remedy it. But don’t be too worried about the aesthetics. You might get a lot of interested buyers in the long run, but when it comes to your bottom line, what you’ve invested in the property might be way much more than what you get back when it’s all said and done. Learn more about rent-to-own homes here and home improvement here.

Why the Cul-de-Sac House Can Make for Impressive Property Values

Allow me to elaborate a bit more on how property value’s influenced by location: it’s not just the availability of land that makes sense when it comes to property value. It’s what builders and developers actually do with that land that can influence property value. Location’s a big deal, as we’ve already stipulated, and when considering cul-de-sacs, you have a goldmine, after all —

But Why? Why Are Cul-de-Sacs So Awesome?property value cul-de-sac

Social, cultural and demographic factors play a role when it comes to property value for obvious reasons. Safety, privacy, community: Cul-de-sacs provide just that. Families look for that. Since the demand for that cul-de-sac is so high, property value — and therefore price — can go up. Families will pay top dollar for that cul-de-sac house for obvious reasons, not limited to typical real estate going more on the upscale and high profile.

That’s not to say you should try and pitch for more and more cul-de-sac houses, though. Saturation won’t get you anywhere. The cul-de-sac house is hard to come by in a neighborhood. For every 20 homes, you might get one cul-de-sac house. However, if you’re a home renter, and you come across a particular piece of cul-de-sac real estate that’s rent-to-own, you’ve got an opportunity in your hands to build your credit and maintain some great value, you’re golden. No doubt about that.

It’s All About Strategy

Perhaps you’re newlyweds looking for the right home. A cul-de-sac is appealing. Or maybe you’re opting for safety and security over in Wyoming, Michigan — your service with law enforcement, neighborhood stability and watches will be top notch in a cul-de-sac home. You can’t beat that sort of community feel.

Be prepared, though, for some high demand and competition. As a seller or investor, though, you can relish in this outcome: lots and lots of ROI!