Where Should I Buy?

A buyer has a dilemma. They like two homes in two vastly different neighborhoods. Should they buy the upgraded home in an older neighborhood, or, the new home in a newer development?

First, let’s assume you like both homes equally. You would be happy living in either. With both homes being equal in location, schools and other things that are important to you, it comes down to two big questions: 1) how long are you planning to stay in the home, and, 2) how important is appreciation for you?

If you are planning to stay in the home for a long time, appreciation is not as important. If you know you will likely move in a few years, appreciation is very important to you.

The old adage that location is important still holds, especially with waterfront homes and condos, but another important point is often overlooked – what are the most popular or “hot” neighborhoods and developments in the area. Ormond Lakes Homes are located in a newer development with great amenities and lots of small lakes. Tomoka Estates Homes are in a community of newer and older homes without amenities, but many of these homes are on the Tomoka River or canals leading to the river.

These two communities are popular for different reasons. Which one would appreciate more? In general the newer homes in a popular community, with a lot of demand, will appreciate faster than older homes in older neighborhoods. However, waterfront homes, whether river or ocean, will always be in short supply. The short supply creates demand and competition, so riverfront and oceanfront homes should appreciate faster than similar homes in a neighborhood that are not on the river or ocean. Ormond Lakes homes will probably appreciate faster than Tomoka Estates homes that are not on the river or canal. Homes on the river will be more expensive because of the land value.

Another important thing for you to consider is the value of the home compared to the rest of the neighborhood. For appreciation purposes, avoid the most most expensive home in the neighborhood. Why? Because if every other home sold in the neighborhood sells below the value of that home, it’s difficult for people to understand the price and value of the most expensive home. There will be no equal or higher comparisons to help justify the value and price. That being said, you may still want that home. The point to understand is that appreciation may be reduced by the neighborhood, especially at the top end of values.

When we lived in Pennsylvania in the early 1990s, we lived in a 100 year old home with beautiful rich wood throughout located right on Main Street. It was gorgeous and comfortable. Our last two homes in Florida were newly built homes in Halifax Plantation and Mallards Reach. We loved the 100 year old home, but we also loved our new homes.

In the end, it comes down to what you like, but understanding the difference in neighborhoods and developments should be considered.