Wouldn't it be great if you could spot the next up-and-coming neighbourhood before it turns into a highly sought after area? With a little research and by knowing what to look for, you can reap the benefits of buying in a neighborhood on the cusp of revitalization.
?Here are a few clues:
1. Recent renovations
If the local city government is willing to invest money into local infrastructure, it can attract other developers looking to build their next project. When government and developers are all-in on an area, homeowners often become more invested in their own homes and community, as well.
It might be worth taking a trip down to the city building permit counter to see whether staff have input on areas that have seen investment, and what they think the neighborhood might become.
2. Proximity to other popular neighborhoods
Proximity to the desired neighborhood often has positive effects on areas adjacent to it. When rents and home values increase, those closely impacted – like young professionals and families – move outward, seeking more a more affordable cost of living, and the cycle of redevelopment continues.
3. Influx of young families and professionals
The movement of artists, musicians, painters, tastemakers and other creatives can help change the feeling of a location, beautifying and adding character to it. Once they move in, restaurants and bars often follow.
Job growth and quality school boards are typical incentives for home buyers. Professionals starting businesses bring jobs, or at least more business to the area. Their kids go to schools and local businesses can run efficiently as they provide services to families, which can all help create more attractive areas from a home buying perspective.
4. Business expansion
There's also a follow-on effect as a result of trendier shops investing in an area. Larger chain retailers or even independent shops can follow suit when they see a big brand willing to put their money into a given area. It gives them faith that a larger pattern of spending and consuming is on the rise.
Any development in an area that improves access to work is logically connected with housing. If a neighborhood was once unattractive or downtrodden, its convenient proximity to employment centers, public transportation, freeways and bridges can lead to whole-neighborhood remodeling.
Adding transit and transportation to any area will almost always benefit property values. If an area going through transition has plans to implement a transit system, this is a reasonable indication values will go up considering the area is now more accessible to a larger population base.