You have a great question and I can understand why you might be a bit confused about what your best decision might be. Take a risk with a property in a questionable area and wait for the appreciation to happen or consider buying something else.
First: It is never a "good bet" to speculate on the future of any area that does not have strong signs of prosperity. This is especially true when you are making such a large purchase. Although the area may end up producing a good return, it sure has not shown any worth while indication of turning so far. Additionally, your best return will never be from a residential property that is near a busy street. When you buy a home, be sure you get all of the "ownership rights" - including the right of quiet enjoyment.
My suggestion is to keep looking. Find a property and a community that shows pride of ownership already exists. Don't bet on any neighborhood turning around. What if it does not turn? Then, what you did is to buy someone elseâ€™s problem. You will know what a problem you have when it becomes your turn to sell.
I would be happy to discuss this further with you if you llike.
Bill Kosena, ABR, CRS, SRES 303-796-0957
RE/MAX Masters, Inc.
I love your request to "give it to you straight" however as Realtors, we have to be careful about making comments that would be considered "steering".
For any of my clients with this type of concern, I would say definitely think about re-sale. Statistics show that homes close to a busy intersection or close to commercial property are going to typically take longer to sell and they will be priced a little lower to compete with other properties that may not have these type of "deal breakers" for buyers.
But on the other hand, I am a firm believer that if you are in love with a home and it fits you, sometimes you compromise things like the location or a busy street. You really have to trust your gut but just know that when it does come time to sell that home and move on to your next, this will be an obstacle to overcome! Some folks like a challenge and this might be one for you!!
Best of luck in finding your next home!!
BUT, being that close to Federal will always be an issue, when prices go up, the price will always be lower on a home that backs to a busy street because other buyers will be thinking the same thing you are...."do I really want to live 40 feet from Federal?"
I think like you, buy now..win later BUT maybe this row home isn't it because Federal ins't moving anytime soon. I would keep looking, there are great deals out there but look at the up sides and down side, the changeables and the unchangeables, and you can find a great mix for you to take a chance on.
I am a huge fan of all of NW Denver, grew up there, lived there off and on, and would be happy to talk to you more about the area.
My advice would have to mirror Mr. Kosena's thoughts. Also, you mention that the home is only one house away from Federal. It is all about location, location, location. Although, areas do boom, you will also notice that homes on the outer edges near major roadways will not necessarily have the same increase. I am not sure if the home you are speaking of backs to Federal or has a visual view of Federal, but those could be factors that could severely impact the value of the home. Many buyers with dogs or kids will stay away from homes too close to major roadways and opt for homes that have more interior locations.
Always think about resale, you don't necessarily want to speculate, but look at the pro's and con's now as they may be very similar in the future.