Million Dollar BargainsNovember 13, 2007
There is an age-old secret principle for buying property – don’t buy the most expensive home in the neighborhood. It is a traditional strategy that underlies successful real estate investment, based on the principles of home price appreciation, and it holds true even in the most upscale neighborhoods.
In a well-established area where homes and estates have been custom built with care and maintained with meticulous attention, properties will tend to sustain their value. However, if most homes are worth one to five million dollars and you buy one priced at ten million, your ability to sell it for top dollar may be impinged upon by the lesser value of neighboring homes. Should the market soften or decline, you could lose money if you own the home with the biggest price tag.
A home at the lower end of the price spectrum may end up being a million-dollar bargain. You can remodel or upgrade the property over time, increasing the value of your investment with custom amenities that enhance your lifestyle. When it is time to sell, buyers will be attracted to a competitively priced home in a great neighborhood.