The Dream vs. The Budget
When you start shopping for a home, you probably have a very specific image of what you want. The house itself, sure — but also the neighbourhood around it, the trees, the vibe, the walk to the coffee shop. Every buyer sets out with that picture in their head.
In reality, compromises are often necessary to stay within your budget. You'll have to choose: does the money go toward the house, or toward the neighbourhood it's in?
When You Compromise On The House
There may be certain things that are non-negotiable — the number of bedrooms, a two-car garage, whatever keeps your life working. But as you look at homes within your budget, you may discover you won't get everything on your wish list.
The great thing about owning a home is that you have the power to remodel it at any time. Once you're in, you can renovate or even add on if necessary to create the home you really want. And if you've managed to stay below your budget, you'll have the extra money each month to make some of those changes.
When You Compromise On The Neighbourhood
So you've found the house of your dreams, but the neighbourhood isn't precisely what you were hoping for. Too much traffic, some houses becoming run down, or a dozen other issues can mar the area your house is in.
In most cases, you'll have to accept that you cannot change the neighbourhood. That means you have to decide if the problems are things you can live with or not.
In some cases, buying in a run-down neighbourhood can be a strategic move. If many people are buying up the houses and improving them, your home might one day be worth a lot more. However, you must realize that this is a risk and it might not work out that way.
Another thing to bear in mind: if you choose to buy the nicest house in the neighbourhood, you may have trouble selling it down the line. If other houses in the area are available for less, why would anyone buy your expensive house to get into the area?
So Which Matters More?
In the long run, when it comes down to choosing between the right house and the right neighbourhood, you should choose the right neighbourhood.
While you can change your house for the better, you can't count on your neighbourhood changing — in fact, it might get worse. So choose the best neighbourhood you can afford even if the house there isn't perfect.
If you're weighing your options and want to talk through what your budget can actually do, reach out. We'll help you figure out where your money goes farthest — and where you'll be happiest five years from now.
