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Author Topic: How do new businesses affect home value?  (Read 1086 times)

Philociraptor

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How do new businesses affect home value?
« on: October 15, 2015, 07:23:33 AM »
We have a 1970's home in a suburb between 2 large cities, bought for $110k in 2012 and currently valued at $140k. A few years ago they completed a shiny new tollway about 1 mile from our house. A new IKEA is proposed to be built half a mile from my house, along the tollway and half a mile from where it meets another major interstate. What do y'all think this will do to home value and potential rents in the immediate area?
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clarkfan1979

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Re: How do new businesses affect home value?
« Reply #1 on: October 15, 2015, 10:46:56 AM »
Not much. If they build a fortune 500 company headquarters within 10 miles, it will have a large impact. Maybe the house will double in value in 5 years.
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Landslave

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Re: How do new businesses affect home value?
« Reply #2 on: October 17, 2015, 03:01:36 PM »
No impact.  Or slight INCREASE in value.  Good road access just far enough away that Interstate speed traffic can't be heard in the back yard when barbecuing is PERFECT for the perspective buyer.
Different things matter more or less in different areas.  School districts drive home values in many suburbs.  The best advice is to study an area and get to know values in that place so you can sense a good or bad deal.  This helps when buying, but also helps when selling.  Good luck.  If you are ever selling an investment property in order to buy another one (unless inside a self-directed IRA), then don't!  Instead, make a 1031 tax exchange.  It will save you thousands.

Landslave.
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