What’s the difference between any home and what is called an “investment home”? Generally speaking, they are properties for sale that are purchased in the expectation that their underlying value will appreciate. Whether you choose to live in an investment home or rent it out, the prospect of growth in its value is the determining factor. (You’d be right to notice that if you can rent it for more than its cost, it’s also a good investment — but kindly forget about logic, we’re talking real estate lingo here).
For purposes of this discussion, an “investment home” is one whose underlying value grows over time. Next question: how do I find one of those?
While there is no fail-safe way to isolate Bainbridge Island properties for sale that will guarantee you can just sit back and watch it increase in value, there are rule-of-thumb characteristics that point to homes and neighborhoods that can help investors predict the direction of future value. Some of them are
- Look at homes in an area that shows steady population growth
- Look for above-average rental prices
- Pay attention to the infrastructure in the area (and avoid properties in under-maintained neighborhoods)
- Avoid homes in the top 10% of the price range
- Build a lasting relationship with a good real estate agent who will ultimately be able to help you decide when to sell
- Choose a home that isn’t in need of major structural repairs
About that last point: when you are searching for properties for sale in Bainbridge Island, you should expect to do some maintenance and renovation work. An investment home’s value can take the biggest leap when a new owner applies a bit of smart fixing-up to enhance its livability while forestalling long-term maintenance issues.
Not all properties for sale in Bainbridge Island are good candidates to qualify as investment homes – even those that would provide excellent accommodations for your family. However, when you target investment value from the start, the financial rewards can be well worth the scrutiny.
So…how else can you find one of those?
Short answer: call me today!