This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

How To Buy A Home With Long-term Value





Homebuyers naturally want to purchase a property that will be worth as much -- or more -- tomorrow as it is today. But what characteristics of a home hold their value over years or decades?

Like any prediction, the answer involves a fair amount of guesswork and speculation. Yet some solid data and plenty of anecdotal evidence suggests that certain types of homes are timeless in style and thus more likely to keep their worth, though none is immune to local market conditions or the ups and downs of housing cycles.

6 ways to select a home with long-term value

No. 1: Location. It has been said a million times, location is the most important quality of real estate because location can never be altered, says Brendon DeSimone, a real estate expert and blogger for Zillow.com. A property in a great location is more likely to hold its value.

Location includes proximity to employment opportunity, good schools, public transportation, low crime and attractive, walkable streets.

Proximity to jobs might be especially key, says Jessica Lautz, a survey research manager with the National Association of Realtors (NAR).

As evidence, she cites a recent NAR survey that found 43 percent of buyers ranked the convenience of jobs as a desirable characteristic. Only neighborhood quality ranked higher, deemed important by 61 percent. Even more telling, 46 percent of buyers who had school-aged children ranked convenience of jobs as important, the same proportion that highly valued the quality of schools.

No. 2: Rooms. Apart from location, the next best bet for a value-holding home has to be a single-family home with three bedrooms and two bathrooms.

"That's the most popular type of home purchase, so if we're talking about resale in the future, I would assume -- but I don't know necessarily, jumping seven years ahead -- that that would probably be the most popular type of home purchase at that time as well," Lautz says.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,678.70 +6.10 0.03%
S&P 500 2,057.09 +5.27 0.26%
NASDAQ 4,771.7630 +13.8840 0.29%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs