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One of the biggest issues when selecting a home is what neighborhood you want to live in. Conventional wisdom says that purchasing the worst house in the best neighborhood will give you all the perks of the best areas without the impressive price tag.
But, is this a good tactic or should you be looking at the best house in the worst neighborhood?
The Worst house in the Best Neighborhood
If you move into the best neighborhood you’ll have the opportunity to rub shoulders with the rich. However, no matter what you do to the house it is unlikely it will shoot up in price. The only way in which this would be possible is if you pumped money into your house and transformed it into something more like your neighbors.
Of course you could use a reputable service like Peter Bracey to transform the outside of your home and perhaps even extend it. But, you’ll always be competing against people that have more money to spend.
Another risk of the best neighborhood is the cost of living is likely to be higher, simply because of the area. In short, you are likely to find your finances stretched in all directions.
If you want to rub shoulders with the rich (and perhaps famous) and you’re not worried about a return on your investment then this may be the right choice for you.
The Best House In The Worst Neighborhood
If you’re looking for a bargain you may be tempted to look at the neighborhoods where others fear to tread.
This is certainly a route to getting your dream home but you’ll need to remember that you can’t move your home.
You may also struggle to sell the property as potential buyers may not be sure about the neighborhood.
In addition to this you are likely to have to deal with the problems that make it a bad neighborhood. This could include the threat of violence and damage to your property; especially if others in the neighborhood see you as better off than them and therefore an easy target.
In many ways this is not a good option unless your worst neighborhood is not actually so bad. You simply need to consider the crime rate of the neighborhood.
It is also unlikely that your home will rise in value; making the best house in the worst neighborhood no better a prospect than the worst house in the best neighborhood.
Make Your Choice
On the face of limited financial gain for either property and the additional risks that come with the worst neighborhoods you would think that the worst house in the best neighborhood is the better choice.
However, you should also consider looking for the worst house in the hottest neighborhood. This doesn’t have to be a good or bad area but one that is rapidly improving in popularity. The result is likely to be a rapid increase in the value of your property and a pleasant place to live.
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