Some people will tell you to buy the most expensive house you can afford. But a real estate adage offers a corollary: It’s unwise to buy the most expensive home in the neighborhood. Here is a top 10 list of the cheapest entry-level houses in the priciest parts of America.
Sure, the best spread on the block comes with bragging rights. But the cheaper homes in the surrounding area can limit your appreciation potential and could even pull down the value of your house. Any sort of decline in the neighborhood will make your palace more difficult to sell. And even if none of the above actually happens, potential buyers who follow the conventional wisdom will avoid your property.
But purchasing the least expensive home in one of the nicest places — now that’s a smart move.
Expensive neighborhoods are occupied by large, luxurious homes with well-groomed lawns; the streets may be lined with stately old trees; golf clubs, beaches and other amenities are often close by. Wealthy enclaves offer their residents better schools, public services and health care. For all those reasons, there will always be an upwardly mobile someone looking to buy into the neighborhood. And should you update and upgrade your cottage to put it more on par with the surrounding mansions, you can see your home value soar.
But just what does an entry-level home cost in the priciest parts of America?
Here’s the list.