Should you buy the worst house in the best street?
A very frequent phrase used in the real estate industry is ‘buying the worst house on the best street block’. Reading the phrase for the first time is bound to leave you confused. After all, why would someone buy a bad looking house regardless of the surroundings? Moreover, many people; especially, first time home buyers always dream of a beautiful house. The dream is usually about a well-maintained house with a white picket fence.
However, there is a lot of thought put behind this phrase. Whoever created the phrase was looking at the real estate industry with a different perspective; something others will ignore.
The question is whether the phrase holds any weight and how true it is? Experts say that it is actually a good idea to buy the worst looking house on the best street. Although there are real estate advisors that will disagree with this phrase. Many believe that is a good idea because most buyers will ignore such properties and it is easy to fix a house to match the surroundings. On the other hand, owner occupiers can seek this opportunity put their own mark on the property so that buyers will be paying irrational amounts of money.
Benefits of buying the worst property
- Many buyers will ignore the property and only a few bidders will remain in the end. This increases your chance of owning the property.
- Once you fix the house, the other better-looking houses will cause the value of the property to increase fairly.
- A worse looking property is great opportunity to move into a good neighbourhood. Usually, it is difficult to move into a preferred neighbourhood because it is not affordable. This problem can be solved if you are willing to own a worse looking property and your priority is the surrounding area.
- Your money that goes into fixing the house will not be a waste. Instead, it will be an investment because the house will be able to maintain its new value due to the surrounding nicer looking neighbourhood.
How to make a final decision
Since there is a debate over this topic, so how could a layman decide about such a situation? Following are a few questions that you might need to consider before taking a step further in buying the worst house in the best street.
- It is not necessary that the house is actually ugly looking just because of its outward appearance. A house is way more than it looks.
- You need to question about the architecture and the planning of the house. It might not be that worse if the planning of the house is sound enough to support the renovations you could make.
- Make sure that your renovations are cost effective.
- Estimate the time you can actually live in the house while it takes a time to improve it.
There are always two sides to a story. This matter is no different. Your decision can be impacted by your priorities and financial position.