If you have had any expReal Estate Investment - The "Worst" House on the "Best" Streetosure to the real estate industry it is quite possible that you have heard the saying “the worst house in the best street”.

On initial appearance it may appear that this saying is suggesting that you purchase a property in poor condition or one that does not retain much financial value, but in truth what this well-known phrase is really conveying is that a home buyer searches for and purchases a property that has great potential for improvement and financial upside.

This saying is a reminder to buyers of an investment fundamental which has the potential to produce results which can range from good to great.

Sounds Interesting – Tell Me More!

The basic premise of this idea is that a good location will always be that – good.

No matter what may go on in or around that area, once a location reaches a certain level of acclaim, it will most likely never lose that acclaim unless something very unusual happens, such as the building of a nuclear power plant or the establishment of a rubbish dump next door (as we said, very unusual…).

Therefore any property located in these sought after and valued areas should always retain its value and generally will increase in its price year in and year out.

Following on from this, an ideal situation can exist for a certain type of home buyer to purchase a home that is not reaching its full potential in the eyes of the real estate market, and in turn for that buyer to purchase that home and make improvements which should be beneficial to them both personally and financially.

OK, I Get It. So What Should I Be Looking For?

There are a number of tools which can be helpful to you if you decide to use this investment and/or purchase philosophy.

The first is one of that is always recommended, no matter what your real estate intentions are – research.

Intimate knowledge of the area and its house values is a key starting point for this type of endeavour, and it will help you to decide from the outset whether an opportunity is worth proceeding with at all.

The second tool which will be of most use to you is to know your costs.

Apart from the usual fees which are associated with a home purchase, it is quite likely that your “worst house in the best street” may require some alterations or renovations if you hope to achieve some personal or financial success with it.

This is an area of expertise that requires knowledge and research all of its own, and as the related costs can be quite high, home buyers and investors are strongly advised to be extremely well versed and cautious with such matters, and be sure of their financial calculations before they proceed.

If you are looking to make an investment in the Blacktown City area, the team from Hilton Parkes Real Estate are experienced real estate professionals who are happy to show you around the local area, and provide you with their insights into which locations might suit your needs the best.