When you want to find your new home in the next hot neighborhood there are a number of factors to consider including your work commute, school districts, home values and pricing. You want a great neighborhood and you want to get the most out of your investment but how can you know which new area will give you the most bang for your buck? There are a few signs experts say are indicators that an urban area is ready to transform. While it’s not always easy to predict, here are 5 ways to find your dream home in the hottest part of town.
1. Go Downtown. “The lights are much brighter there – you can forget all your troubles, forget all your cares and go downtown…” The 1960’ssong was right about downtown areas. These places are known to have a great vibe and good energy about them. They also have the potential to be the springboard to a new and unique neighborhood. Check on the fringe areas of your downtown. If there is room for growth you may have found a prime spot for a hot new development.
2. Check Next Door. Stan Humphries is the chief economist at the online real estate marketplace Zillow Inc. He’s coined the term “halo effect” to describe the way a value from one hot neighborhood can trickle out into the areas surrounding it – like a halo. Humphries predicts a much higher probability that a neighborhood will improve for the long haul if it is in a halo of an already thriving one.
3. Look at Older Homes and Historic Areas. Homes that are ready for renovations are one of the best indicators of the next hot neighborhood. Because they may also have some unique historic details they offer the potential for a significant increase in value as improvements are made.
4. Don’t Ignore Low-Rent Neighborhoods. If the rental prices are low that could work to your advantage. These areas are usually populated by young adults and new families – some of the hippest and trendiest types. Developers know that when residents are looking for a place to have a fresh start with an appealing atmosphere it’s a prime spot for new businesses.
5. Seek Out Vitality. Attractive housing is critical to the long-term potential of a neighborhood. You want to find an area with good “bones” in order to choose a home that is worth your investment. Property owners in architecturally interesting neighborhoods may also put more money into renovations. Homes in areas like this may never even get listed before they are sold because the neighborhood is so hot.
If you are an aspiring homeowner, finding someone you can trust to help you weed through economic data can pinpoint the next flourishing neighborhood. The numbers don’t lie and are actually the #1 indicator of whether a neighborhood is truly a good investment or just a hyped up area with no potential for the long term.
If you’d like to become the proud owner of a beautiful home in the “Northeast Kingdom”, or any of Vermont’s other beautiful destinations, contact us at PallSpera today. We’d be delighted to help you find the home of your dreams, the home you deserve. Our specialty lies in finding properties that match every buyer’s unique needs and preferences, ensuring that every sale is a perfect match. With over 25 agents on board, our team is ready to begin your quest for the ideal abode.