Our recommendation to all buyers, regardless of their goals, is to only consider properties that will increase in value and be easy to resell if the need arises.

Statistics show that Canadians tend to move fairly often – perhaps more often than they plan to!

Still, there is a certain type of buyer who believes they will find the perfect house, settle down, make roots, and never have to be part of another real estate transaction for as long as they live.

Some property owners are so emotionally attached to their homes that they will straightforwardly say: “When they take me out of here, it will be in a box!” A little morbid, maybe, but decisive, that’s for sure!

Do you identify with this thinking?  Reasons for wanting a house purchase to be a one-and-done experience vary:

• Moving can be a colossal pain in the neck – and it’s expensive.
• Stability, especially for a family, is very appealing.
• Creating a home is an emotional project that can be hard to leave behind.
• If there is no practical reason to uproot, why do it?

For the record, we agree with all of the statements above.  And we know there are other reasons, too – including a buy-and-hold real estate portfolio strategy – that could have a buyer fully convinced that they will never need to worry about resale (or even resale value).

Most real estate is a rock solid investment.  However, some properties are unique to the point of being problematic.  If you find yourself drawn to something like this, please read on before buying.

Property That is Hard to Resell

How can you know what type of property might be difficult to sell?  A good rule of thumb is to consider the things that cannot be changed, or that would be very expensive to remedy.  Here are a few challenges that could make a property hard to sell quickly:

• Poor location.  A single-family residential home that is surrounded by industrial or commercial buildings, highway noise, or other undesirable influences tends to sit on the market longer than average and sells for less. [We are not talking about investing on speculation of future development, as that is something completely different.]
• Poor floor plan.  A home with an odd structural layout may be difficult to sell.  People don’t mind removing walls, even structural ones, in some cases.  But they may be less inclined to move staircases or dig out low basements.  Try to avoid awkward layouts that would not work for the average buyer.
• Lack of parking. In older parts of the city, a number of properties were built without driveways, carports, or garages before parking was a huge concern.  Some have no parking at all.  These properties still sell, but it’s important to know the neighbourhood before you buy one.  Be sure to understand whether this is a deal-breaker for a majority of buyers in the area.
• Mutual driveways.  When two properties are very close together, they may share all or part of a driveway that leads to a rear parking space or garage.  When neighbours are agreeable, this usually doesn’t cause much trouble.  If there are disputes, though, they can get ugly – and some buyers will not even look at a house with a mutual drive.  Again, know your neighbourhood and be sure that this will not make it difficult to sell if you ever need to.
• Stigmatized properties.  In Ontario, there is no law that requires disclosure of things like murder, suicide, or ghosts in the property.  Even a history as a former grow-op may not be mentioned.  Sellers must answer truthfully when asked, though – so we highly recommend that you ask lots of questions to ensure that no stigma is attached to the property that might make it unappealing to a future buyer.

Even if You Never Plan to Move…

A study done by Canadian Association of Accredited Mortgage Professionals found that the average Canadian homeowner moves, on average, every 7 years or so.  We would venture to say that not many of us actually plan to move that often – but circumstances sometimes force the decision.

New relationships, growing families, job relocations, health or financial issues could result in a need to sell – sometimes quickly.  It’s wise to allow room for the possibility of unexpected circumstances.  As Robert Burns said, “the best laid plans…”

Financially speaking, saleable properties also offer the best investment, even if you do succeed in staying as long as you intend to.  Lenders will easily fund a loan against your home’s equity if the property is saleable.  If you ever need to access the cash that is tied up in your house, you’ll be glad you chose wisely.

Your final purchasing decision is always, of course, yours to make.  If your desire is to buy a home that is yours forever, then we would love to help you find that place!  We will just gently advise that you be cautious and have a plan “B,” just in case life has a surprise or two in store for you.