Buying Home Near Railroad Tracks And Resale Value
This Article Is About Buying Home Near Railroad Tracks
One of the greatest benefits of being a renter versus homeowners is if you do not like the area, you can not renew your lease and move.
- Or you can give a 30-day notice and vacate your rental and get another place to live
- If you do not like your neighbors, you can always move
- If you do not like your neighborhood, you do not have to live there and find another rental
- If you are backing into railroad tracks and the noise bothers you, you can move
- However, that is not the case being a homeowner
- It is not easy to move for homeowners
- It takes time, patience, and there are many costs involved when selling your home and buying another
Rising Home Prices And Home Shortage
Rising Home Prices with very low inventory is creating more and more demand for housing:
- Mortgage rates have been the highest since the 2008 Housing And Mortgage Collapse
- These higher mortgage rates have not slowed down home demand
- The mortgage industry has become very lax and new mortgage products were created and launched
- Self-employed borrowers can now qualify for mortgages with no income tax returns
- Jumbo Mortgages is no longer for perfect credit score borrowers with 25% down payment
Homebuyers no longer have to wait two to four years after bankruptcy and/or foreclosure with non-QM loans.
New Mortgage Programs Creates More Qualified Home Buyers
Gustan Cho Associates has launched the following mortgage programs in 2020:
- Non-QM Loans
- Bank Statement Loans for self-employed borrowers
- 95% LTV Jumbo Loans
- Asset Depletion Loan Programs
- Condotel and Non-Warrantable Condominium Financing
Low Home Inventory Crisis In The United States
With new loan programs available to home buyers and the great economy, home buyers are shopping for homes.
- However, many are getting frustrated with the lack of inventory
- Builders are selling homes before breaking ground and obtaining a building permit
- Builders are scooping land at premium prices
- Many builders are buying land in less than desirable locations such as by railroad tracks, facing busy roads, and homes near apartment communities and commercial zones
Buying Home Near Railroad Tracks is starting to become more and more common for home buyers.
Buying Home Near Railroad Tracks Are Much Cheaper
Home shoppers have a certain amount of budget when buying homes:
- Many instances, shoppers are used to comparable homes they are shopping
- All of a sudden they run into a much luxurious home but prices much lower
- What is the catch?
- What is wrong with it?
- Is it a misprint?
- Nothing in this world is for free
- Buying Home Near Railroad Tracks is much cheaper
- In general, Buying Home Near Railroad Tracks is substantially much more affordable
- However, Buying Home Near Railroad Tracks also has its negatives
- The biggest drawback with Homes Near Railroad Tracks is depressed property values
- Resale Value can be an issue
Also, Homes Near Railroad Tracks can take substantially longer to sell.
Is Buying Home Near Railroad Tracks Considered Bad Investments
In general, Homes Near Railroad Tracks has its drawbacks.
- Not too many people like to live near railroad tracks
- One of the biggest financial drawbacks in buying home near railroad tracks is lower property values
- Most homeowners do not want to live near traffic
- Buying homes near busy roads is a major drawback
- Buying Home Near Railroad Tracks is even worse
- Appreciation of homes near railroad tracks can be dwarfed
Any property that is half a mile and/or close to railroad tracks will tend to see slower appreciation and take much longer to sell.
Buying Home Near Railroad Tracks And Its Negative Noise Problems
Say that you got a deal of a lifetime in buying home near railroad tracks and you are not worried about the resale value to the bargain you got.
- There are other issues you need to consider
- Owing a home near railroad tracks will also come with putting up with the noise levels
- Besides the rumble and tumble of the tracks, trains have powerful horns
- There is no set time when trains runs
- You can have a long-distance train run in the middle of the night that may last over an hour
- Modern commuter trains have limited noise levels
- However, how about freight trains that have several hundred rail cars
Need to think about the noise level for years to come.
Older Homes Affected By Railroad Tracks
This topic applies to older homes built near railroad tracks:
- The constant daily rumbling noise and vibration of tracks can cause damage to homes
- This holds especially true in older homes but can affect newer homes with solid foundations
- Heavy train loads can affect the ground
- More so during winter times and rainy seasons
- As time passes, these vibrations from train tracks can affect the structural makeup of a home especially the home’s foundation
- Windows and doors may not align properly
The closer a home is to train tracks, the more severe the damage can be.
Deals In Buying Home Near Railroad Tracks
Homebuyers can get deals when buying home near railroad tracks where it may not affect their resale value. The closer the tracks are to the subject property, the greater the noise and the fewer chances of appreciation. Homeowners can re-insulate the home to have less track noise. They can replace their windows with thermal windows to minimize noise levels. Freight trains are powered by diesel fuel which can cause much pollution. This can create soot and fumes which often discolor the home’s exteriors. Many communities have placed curfews for trains where they are not allowed to run during certain times of the day. Trains carry toxic materials. Accidents do happen and the whole neighborhood may need to be relocated if a freight train with chemicals derails. There are pros and cons to seriously consider when buying a home near train tracks.