| Eenie, Meenie, Miney, Moe: Which house did you choose to make your net worth grow? In last month’s issue we showed you four houses: an early 1900's fixer, 1999 new construction, a remodeled 1920's brick Tudor, and a 1960's ranch-style home. Any ideas on what would be your best investment? Let me tell you a little story to get your brain going. |  |
| It just so happens I ventured home to Michigan for the Thanksgiving holiday. We went to downtown Kalamazoo one night to see the annual lighting of the Christmas Trees in the local downtown park. Surrounded by old, majestic churches and a newly refurbished downtown shopping area, it is clear that there is a resurgence of interest in the downtown area. As we drove home, I detoured onto some neighboring downtown streets, which were lined with turn-of-the-century Victorian homes. With so many local colleges and universities, many have been chopped up into duplexes and apartments for college students. I noticed, here and there, however, that some of the homes had been completely renovated, uncovering the beauty that I'm sure was present when these homes were originally built. |  |
| "WOW!" I exclaimed! What a great area to buy in at a low price, fix up the houses, and sell high later! BUT IN REALITY, is this the case? What's drawing people to Kalamazoo that's going to make the real estate market explode in the future? Would it be a good investment even if I could get the house for a song now? |  |
| Fast-forward a couple days later. I'm back home in Nashville, where the real estate market HAS exploded in the last several years. Music, healthcare companies, and major sports franchises--our real estate market has gone wild! Now it's difficult to find anything under $100,000 within a seven-mile perimeter of downtown! For us, if you could get that fixer at a low price in an up-and-coming neighborhood, you'd be in luck! The brick Tudor located three miles from downtown would sell for top dollar, and would be a good investment if you were going to stay awhile and not looking for quick equity. The ranch that's about 15 minutes from downtown is going to be less expensive--you don't have the great architecture--but it might be a good investment if you want to maintain close proximity to the urban sprawl. New construction will tend to be on the outskirts of town--with all the modern amenities, but you may end up being a single person in the midst of a family-oriented neighborhood, far away from all your friends! It all depends on your priorities and your pocketbook. What can you afford? Are you willing to renovate? How long do you plan to stay? A thorough evaluation of your particular situation and your particular city will be crucial in determining what is a good investment for you. I've given you some of the tools to begin your evaluation, so now it's your turn to do the homework! COMING NEXT MONTH: TO USE OR NOT TO USE? The pros and cons of utilizing a real estate professional to work for you when you buy or sell. |  |
| Kimberly Davis is an affiliate broker at |
www.Dishmag.com / Issue 4 - January 2009
