The shrewd homebuyer knows that in order to rake in the highest possible return on their real estate property, they need to spot more than your regular ‘hot neighborhood’: they need to watch out for the upcoming newest kid on the block; a neighborhood that’s getting even hotter.
But the question begs – how can you spot these soon-to-be-hot communities?
Well, the most obvious indicator that can tell you a neighborhood’s popularity is on the up is the local price. However, by the time the prices do shoot up, it’s usually too late to compete with the buyer wave and rake in a good enough profit for yourself.
If you are in search of the next up-and-coming neighborhood, here are some helpful pointers that can aid in your quest before you pour your funds into a white elephant. Bringing yourself up to speed with home commercial developments, renovations, and local crime can be a great start in locating the next hot community.
Search for popular commercial developments
When you see neighborhoods with a fair share of commercial projects under construction, you are most likely looking at an area on the rise. These spots are like trendy coffee shops and they point to a wave of upcoming buyers.
As such, the more ‘Coming Soon’ signs you see hanging around, the more potential there lies for that area to be the next hot property.
Sporadic renovations signal revival
Homes undergoing remodeling en bloc in the midst of older, dilapidated homes, is evidence that the community is poised to witness a bouncing turn-around.
Check for landscaped and manicured lawns, renewed exteriors like siding replacements and a general polished look to a property. Additional features like newly-constructed fences, new mailboxes or new doors are some more clues that a real estate buyer has poured in funds into a property, and soon, more are bound to follow.
Mass transit leads to development
This especially rings true in the case of dense metro areas or big cities. If a large city lays down a brand new metro or puts up a new subway stop in a more derelict area, chances are that the area won’t remain derelict for long – and you can take this to the bank.
The savvy homebuyer will know to snap up properties in the vicinity of a new or upcoming mass transit area while the prices are still reflective of the current conditions of the neighborhood.
Waning crime points to more improvements
Last but not least, waning crime stats can also be indicative of an up-and-coming neighborhood that is in the process of leaving its wretched past behind.
If you see a neighborhood witnessing a decline in crime, as a homebuyer you can assume the residents and city officials are doing a good job improving the quality of life there. Subsequently, this will breathe in higher property values and more homebuyers streaming in. This is especially the case in the densely populated cities where properties are in increasing demand. Check out the history of some neighborhoods with a bad history of crime now turned good.