Buying for the Short-Term: Tips on Protecting Your Home’s Value
When most of us buy a home, it’s with the idea that we’re going to settle in and enjoy it for years or even decades to come. But not every home purchase is forever. Thanks to HGTV shows, we all know there are property flippers out there who try to make profit, but there are a whole host of other reasons why someone might buy a home knowing it isn’t the place they’ll stay forever. From personal preferences or major life transitions, to needing to relocate for work, wanting to up- or down-size, or other unexpected changes, life has a way of throwing curveballs at you.
While everyone’s reasons are different, when you hold onto your home for a shorter time than most homeowners— which, according to many industry experts, is once every seven years—the equity you’re investing in your home also has less time to grow. That’s why it’s essential for short-term homeowners to pay even closer attention to the factors that could affect their resale value when deciding which home to buy.
If you’re looking to buy a property for the short-term, the following are a few extra considerations you should keep in mind to find a house that meets your needs now, while protecting your investment when it comes time to sell.Location, location, location
We’ve all heard the adage that the three most important things in real estate are
“location, location, location.” But it’s especially true for people who plan to sell soon.
For example, properties in urban areas that are close to schools, transit, and other amenities are usually easier to sell and hold their value better. So, if you know you’ll be selling soon, it might make sense to opt for something a bit more like a downtown condo rather than a remote countryside estate.
“‘Location, location, location’ is a cliché for a reason,” says Nicole Darbaz, a REALTOR® and owner and founder of the Darbaz Real Estate Group in St. John’s, Newfoundland and Labrador. “But location doesn’t just mean a great neighbourhood. It includes things like avoiding main roads with a lot of traffic, or looking for homes that have a sunny southern exposure in the backyard.”
For Chris Coveny, a REALTOR® and broker with Royal LePage Performance Realty in Ottawa, Ontario, it’s also important to consider the community you’re buying into. “Pick and invest in the best neighbourhood you can afford with the amenities you love,” he says. “Buying the worst house in the best neighbourhood you can afford sounds funny, but neighbourhoods hold appeal, and the lowest entry points will always offer great resale.”
“Another unique consideration is average days on market,” he adds. “If resale is a priority, make sure you purchase in an area that sells quickly.”
Your REALTOR® can help you with getting that information.
Type and age of home
It can also be a good idea to look for a newer home, especially if it’s the kind of home (single family versus a townhome or condo, for instance) that’s most in demand in your area.
Older homes can boast unique features and plenty of charm, but they also require more time and money to maintain. Plus, younger buyers tend to prefer updated homes. So if you choose an older house, it could limit potential buyers, and increase the time it takes to sell.
If you do decide to buy an older home, look for one that already has upgrades to the major systems, like the roof, plumbing, and heating. According to Darbaz, the number of bedrooms and bathrooms can also be a big plus.
“If you want your listing to capture the largest audience possible,” she says, “purchase a home with at least three bedrooms and two bathrooms, even if the second bathroom is a half bath.”