If you are making your first house purchase but can't afford to live in trendy neighborhoods that are real estate hot spots in your city, you will need to look in less desirable neighborhoods to find something in your budget. However, you can still make a great deal of equity if you are able to buy in a neighborhood that is "up-and-coming." Soon, these developing areas will be just as trendy and desirable as other parts of the city, and you will get in ahead if you know what to look for when you purchase.
Here are some signs of up and coming areas to consider:
1. Decreasing days on the market.
With online tools, you can look at recently sold properties and see how long those properties were on the market before they sold. You can also talk to your realtor about how long a house typically sits before it turns over. If the days before sales are gradually trending down, the market in the area is picking up and becoming desirable.
When looking at houses for sale, make note of physical improvements in the neighborhood. Are many people choosing to put in new windows and siding? Are there newer roofs and nice-looking front doors? Maybe there are some construction crews working on a few houses around town. This gradual facelift is a good sign. It means that the individual properties are going to be worth more and attract buyers looking for move-in-ready properties. Gradually, the value of the street and the safety of the neighborhood will improve drastically.
3. New businesses.
Another sign of a developing neighborhood is the start-up of several new businesses. New businesses in an area that did not have them before means a boost in the economical health of the neighborhood. People with discretionary funding are moving in and supporting a local economy, which can draw even more businesses in. Look for small coffee shops, special restaurants, hobby shops, and other specialized stores that rely on local business support—these are the businesses that can only survive in an up and coming area, instead of a stagnant one.
4. Historic building and interesting features.
Many younger couples are looking for places that are unique and interesting. Historical building offer charm and architectural features that can make an interesting blend of old and new, especially when fixed up. If these building are close to transportation and downtown shopping, the area is often right on the cusp of booming.
For more information, contact a professional in your area like those found at Coldwell Banker.Share