When you are housing hunting and come across an ad saying the best house in the area or the most decorated house in the area, you will be all excited. You visit it and find a luxurious home with fantastic looking exteriors and the best interiors. It is a great house and you will be tempted to buy it and brag about it with your friend’s circle. All of this sounds great, but you should never buy the best house on the block. Here is why
You might think that you are buying the best house, but actually, you are buying the most expensive house in the neighborhood. Have a look at other houses in the area and see how they fair against this one. If they are in really bad shape, then it is fine to buy this. The fact is that they are only slightly lower in quality than this house. You end up paying a very high premium. So visit many houses as possible and opt for the house with the least amount of compromises instead of looking for a house with no compromise. The idea is to buy a good house and make the best out of it.
2. Bad Investment
Whether you are planning to buy the house for self-occupation or rental, a house is always an investment. So remember when you are buying the most expensive house in an area, you should also sell this house sometime later in your life. It is not easy to sell the costliest house in the block and it will be a long going process and you might end up selling it at a loss. If you are planning to buy this house for investment, it is better to buy 2 houses at this same cost instead of investing all the money in this single property.
3. Scope for Development
No matter how good a house is, you will end up making improvement and renovations to it sooner than later. So even if you pay the highest amount and get the best interiors, you will end up spending more on it.
If we are talking about the best house in the area, it means it will require a very high amount of time, effort and money for maintenance. This will eat into your monthly budget. So please review the estimated maintenance before investing in such a house. If you need help in estimating the complete budget for buying the house, you can refer our previous article How much money will I have to come up with when buying a home.
5. Buy the Worst house in the Best Area
Instead of buying the best house in a normal area and hoping it will increase in valuation, buy the worst house in the best suitable area for a nominal amount and spend money on home improvement. If you plan the home renovation yourself, not only you get the best output but also the cost effective one. This is what most experts recommend.
Whether you take a loan or spend your own hard earned money, don’t consider buying the best house in the area, as it is most likely to fail over time.