You want a great deal on a house, but you want to be able sell it for a higher price. It’s part of the American dream. Unfortunately, more often than not real estate can turn, making the phrase “gambling on real estate” all to true. Knowledge is power that you can use to protect yourself. An easy way to get a great deal is to buy in a neighborhood that is on the rise.
The real estate market is full of stories from couples who bought cheap in a little known neighborhood. While living there, the neighborhood turned around – stores popped up, repairs were made, property values rose and when it came time for selling they brought in a hefty profit. Look for these signs to put the odds in your favor in finding an up and coming neighborhood.
Big-box retailers spend millions of dollars in market research to determine where to open their next location. You can use their findings to your advantage. Find out where the new Whole Foods or Starbucks is opening in the area. If they deem an area worthy of their money then they probably got wind of a new trend. It’s worthy of their investments, it’s probably somewhere you should be looking into as well.
If you know where the “hot” neighborhoods are, look next to them for tomorrow’s gold mine. Prices can be as low as 15% lower in the surrounding areas and trends move. The borders of these areas shift and move. Given a few years and you could be in the heart of the “hot” neighborhood and see your property value triple.
The area has to be accessible. If you’re trying to identify the next “It” area, the proximity to public transportation is one of the most revealing factors. Pinpoint your favorite trendy neighborhood and then take the local train or subway one or two stops past it. That’s how you’re most likely to spot emerging areas because they’re already linked to established routes of transit.
Artists are often the first agents of gentrification. A large population of artists tends to mean galleries and restaurants will soon follow suit—which, in turn, attracts more residents and businesses. You can also look for the historic areas. Historically significant styles, in particular, are a good indicator that an area is ready for a renaissance. Neighborhoods that were historically centers of industry tend to be primed for reinvention, as well.
Declining crime rates and days on the market are also indicators of an up and coming neighborhood. There are many factors to consider before making any big purchase. As a buyer, you need a real estate agent with the knowledge of the local areas to help make sure your investment is one that will bring you many returns. Call Helen today at 847.967.0022 or email [email protected].