Is your home in Old Town Alexandria a good investment?
Three rules to know when buying a home in Old Town Alexandria VA or any other place for that matter and how to know if your home is a good investment property.
Some locations are better than others and some properties are better than others, so how do you know if the house you want to purchase in Old Town Alexandria VA is a good investment?
If you are like most buyers this question might have crossed your mind. Buying a home is probably one of the largest investments of money that one will ever make, so this doubt crossed their minds, probably more than once. Am I making the right decision?. For some others, it might be that they are already thinking about changing locations after a few years, so they want to know if they can turn this property into a rental once they move away. Either way, the answer is not simple it requires a lot of research, so what would be the easiest way to figure this one out?
If you are already looking at “passive income” in the future then do some research of the rental market in the area, check the vacancy rate and what your estimated ROI (return on investment) will be. For this though, you would have to know what ROI, vacancy rate, depreciation, appreciation, etc mean. If you are not familiar with those terms you might want to learn that first.
Most buyers though buy a property in Old Town Alexandria to live in, At the time they are ready to purchase this property they would probably are not interested or want to do that research nor will they be assured that the researched figures remain the same. So, How do you know if that beautiful house you fall in love with in the Old Town Alexandria will be a good investment in the future?. I started thinking, there must be a rule of thumb or may be a common denominator that would make any property a good (future) rental unit or investment property should you ever decide to rent instead. Sure you can speculate, but that is scary, so this is what I came up with.
1) Look at Schools. Even if you do not have children check the best schools in Old Town Alexandria. Do your research and if you can buy a house in Old Town Alexandria that is fairly close to those schools, chances are prices of the homes near those schools will reflect this fact, but will also help you in the future with your investment. No body knows when you’ll have to sell your property or in this case, rent it. People (with children) will look at these first and will be willing to pay extra for location.
2) Transportation. Being close to major public transportation routes (Metro or buses) is a great plus, but don’t get stuck there, look at how close you are to major roads, is it easy to reach those? How about bike paths? We have all those here in Old Town Alexandria
3) Future development. Go to the local City Planning Commission and find out if there are plans for a shopping mall, hotel or any other major commercial development near by, these usually increase the value of the properties around them. There are a series of major developments here in town in Old Town Alexandria.
So there, my three simple rules. Not saying that these are the only rules but will help you stay focused and in the right direction, but the most important rule of all.
Buy a property in Old Town Alexandria for yourself, think of it as your home, don’t speculate. Do you feel at “home” when you are in it?. Can you afford your monthly payment?
Always check with your financial advisors