Have You Considered the Investment Value of Portland Real Estate?
If the Portland real estate you are looking to buy is going to be your primary residence, you probably know the features that are important to you. However, in today’s economic environment, the resale, or investment value, of Portland real estate is as important as the practical value of the number of bedrooms or bathrooms and the size of the kitchen.
In the past, a home buyer rarely worried about the resale value of a property because homes were always considered good financial investments. With today’s fluctuating home prices, property values and neighborhood trends are as important for home buyers to understand as they are for real estate investors to understand.
Location and Property Values
Before the housing and mortgage crisis, even if the home that suited you was not in a prime location, it would likely increase in value over time. Now, you want to be sure you research a potential home before purchasing it to be sure:
- The home is in a great neighborhood.
- It’s at the lower end of the market value for that neighborhood.
If you buy a home in a Portland neighborhood that is already considered a lower value area, it’s possible that those prices will not recover as quickly as better areas. Right now the outer east-side areas are appreciating at a faster rate because of the affordability under $250,000. Over the long term though, the lower end home within an inner neighborhood will appreciate at a greater rate than the top end homes for that same neighborhood and at a better rate than the affordable homes in an outer neighborhood that have a much lower value ceiling.
Now more than ever, it’s important to work with a real estate agent who specializes in the neighborhood where you’d like to live. As a specialist in Portland real estate, I can give you the insider’s scoop on that neighborhood. I can provide an investment report that indicates the overall validity of the property from an investment standpoint much like a mutual fund.
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