Purchasing a property with the intention of reselling in 5 years versus 25 years is more than a subtle distinction: it calls for two entirely separate strategies.
Buying a short-term home involves a whole other set of decisions than if you’re looking for a more permanent residence. Here are five things to consider.
1. Different Types of Renovations for Opposite Ends
Buying for 5 years means prioritizing renovations that will appeal to as many people as possible. Buying for 25 years leaves you free to tailor your home to your lifestyle, even if some choices are very personal.
For a shorter ownership period, renovations are mainly aimed at increasing resale value and visual impact by focusing on neutral and contemporary styles. When it comes to long-term ownership, renovating is more about improving the property’s comfort and everyday functionality.
The trouble starts when you invest heavily as if you were staying put for a long time… while planning to sell quickly. In this case, you might find it difficult to generate a return when you come to sell.
2. Not Every Property Suits a Five-Year Plan
For short-term ownership, it’s best to focus on:
• a sought-after area
• minimum maintenance
• resale potential
From a quick resale perspective, the property must attract a wide range of potential buyers and provide commonly requested features. Properties that are easy for buyers to understand and that require less maintenance generally sell faster, even under less favourable market conditions.
For long-term ownership, you should look for different things, such as:
• convertibility (family, telework, aging at home)
• a nice yard and neighbourhood
When homeowners plan to stay put for two decades or more, a property ceases to be a mere asset and becomes a living environment. The space’s adaptability and the quality of the surroundings then far outweigh the sector’s current desirability.
3. Not All Compromises Stand the Test of Time
Some compromises seem minor at first:
• lack of storage
• no backyard
• ambient noise
In the short term, these factors may seem tolerable, especially when a buyer has fallen in love with a property or is motivated by its scarcity on the market. However, what feels acceptable for a few years often becomes difficult to live with on a daily basis over time.
Many early resales occur because of poorly considered compromises at the outset, which end up negatively impacting quality of life more than anticipated.
4. Location Matters More Long Term
For a 25-year timeframe, the city or neighbourhood isn’t the only aspect that should be considered but also:
• the street
• sun orientation
• actual noise pollution
• future area developments
These are the factors that determine whether a property will remain pleasant year after year!
5. Each Timeframe Requires a Different Financial Strategy
Short-term home buyers want liquidity and flexibility.
But for a long-term purchase, buyers must plan for:
• cumulative maintenance
• upgrades to meet future standards
• funds to adapt without having to sell
A decades-long real estate project involves anticipating future needs as well as costs that accumulate over the years. Financial planning thus acts as a buffer against the risk of having to make hasty decisions.
It’s more economical to inhabit the same property long term (even if you pay more for it) because you’ll save on moving costs and the fees associated with selling and buying another property.
The Broker’s Advisory Role: Making Sure Your Choices Correspond to Your Timeframe
The real estate broker often works to align the buyer’s intentions with current market conditions. Their role is to avoid mismatches that could prove costly over the medium or long term.
• They help the buyer figure out how long they actually plan to live in the home (not how long they might want to).
• They explain how certain choices will impact resale or ownership duration.
• They suggest options that are consistent with the buyer’s life plan, not just with their budget.
To conclude, failing to establish a clear ownership timeframe may lead to poor real estate decisions. Determining whether a purchase is for the short term or the long term profoundly changes the way you buy… and the outcome.