First-time homebuyers often discover that the process of buying real estate includes a great deal of compromise with regard to their vision of the ideal home. This is especially the case for real estate buyers operating on a budget, and the first aspect of the dream home to be discarded by these buyers is often location-related. In order to purchase a home that meets all of the most pressing and practical needs, the added cost of a picturesque view of a lake, an ocean or a mountain becomes a less realistic desire that is often deferred as something that will have to wait until later in life. While many buyers view this as a simple matter of practicality, there are other options available that allow homebuyers to afford the luxury of an oceanfront home or a home in some other scenic location.
According to Mukesh Valabhji, the problem first-timers and buyers with a relatively limited budget often encounter is the simple fact that the housing that is built at the most visually striking locations tends to be on the upscale side and already holds exceptionally greater value than a similar home built in a less appealing locale. Instead of looking for pre-existing homes, homebuyers should consider expanding their options to include land that has yet to be developed or built upon. While the land will certainly be priced according to its premium nature, Mukesh Valabhji notes that it is often possible to buy the land and build a smaller home that comes in well under budget when compared to the other available options.
Homebuyers who employ this strategy have to make a small initial sacrifice but are able to reap a fairly sizable reward in the long run. With less home-related expenses due to the smaller size of the house, it is quite easy to save money over time to eventually build a bigger home on the same property. With a large, full-size home along with a smaller home on a piece of property in a beautiful location, professionals like Mr. Valabhji believe that there are a variety of ways to generate income that further reduces the cost of living on a picturesque piece of property.
One possibility is to rent out the smaller home on a long-term basis. An excellent location with a beautiful view that also features new construction and an on-site landlord holds a great deal of appeal and should not be difficult to maintain consistent occupancy while charging a fairly significant rate for monthly rent. In certain locations, services in the sharing economy such as airbnb can be utilized to generate a significant supplemental income, though homeowners who prefer a greater degree of privacy may simply choose to utilize the smaller home as a guest home for friends and family who happen to be visiting from out of town.
Any alternative strategy is going to have some drawbacks, but many homebuyers find the idea of securing their dream property before building their dream home to be more appealing and more realistic than the inverse option. As Mr. Valabhji has noted, the location of a home is often the most important factor in determining its potential as a long-term investment, as even the most breathtaking home will not retain the whole of its value if it is located in an undesirable locale. It is for this reason that the small-home strategy is more appealing to those who are able to see the long-term benefits, especially since it removes the possibility that land scarcity will play a role in the ability to secure an ideal piece of real estate in the future.
Of course, it is still more than possible to defer the goal of living in a home that features a beautiful view by opting to invest in real estate poised for consistent growth over the years. With optimal home improvements and a healthy real estate market, eventually the property can be resold in order to purchase that picturesque home residing in the perfect location. Ultimately, it comes down to the kind of sacrifices the homebuyer is willing to make and how they personally value living on a property featuring an appealing view. In determining the ideal course of action, it is important for all prospective homebuyers to consider the full range of the options at their disposal before making a decision to invest in a real estate property.