How To: Spot An Improving Neighbourhood
We’ve heard it all before: buying in a neighbourhood that’s on the upswing is always a great investment. It’s a theory as old as real estate prospecting itself, and rest assured, it holds as true today as ever. But, it often seems hard to be sure if we’re choosing a location that truly has ‘legs,’ or just throwing our money at a bunch of hype.
So – how do we determine if a neighbourhood is actually improving? Other than listening to the ‘word on the street,’ here are a few tell-tale signs to watch for:
- Real Estate Activity. Are there lots of real estate signs in the area? Great… but you’re not done yet! Look carefully. An in-demand area will have many “SOLD” signs on the lawns. An area in decline will have listings that are lingering unsold, resulting in many signs, with few actual sales.
- Landscaping. This one’s easy to spot. Are people taking care of their yards and improving them with gardens and other attractive features? Hmm… could be a good sign!
- Commercial Investors. Have you ever heard of the Starbucks Effect? It broadly states that when the hip coffee retailer first moves into an area, it’s surely time to invest. New corporate inroads by big, reputable retailers into up-and-coming neighbourhoods often mean it’s a great time to invest residentially. For one thing, you can bet they’ve done their research.
- Home Improvements. If contractors are buzzing about, it means that the properties themselves are being upgraded (or at least well-maintained). If that’s the case, you’re almost surely dealing with an area on the rise – a great buy indicator.
All of the above are of course, just hints. The best way to know is to put these clues into consideration along with other hard factors like researching the city’s future plans for the target area. Oh – and using an informed Realtor.
On that note, feel free to call or email me with your questions!
Until next time,
Shaun Nilsson,
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