How to Foretell the Future of a Neighbourhood
Even though you are now at the stage of building a house, every homeowner wants to recoup their investment when selling their property. It’s better to build a house in an upcoming or established neighbourhood rather than one in decline. Land is cheaper in declining neighborhoods but you take the chance of living in tomorrow’s ghetto.
Realtors use several criteria to foretell the future of an area. You can employ the same methods to hone in on the best areas to live.
Shopping – The major shopping chains and upscale stores are located in solid neighbourhoods. These stores depend on middle class shoppers with disposable income and credit cards. Neighbourhoods in decline sport tattoo parlors and charity shops.
Crime – Crime statistics are public information that you can obtain from your local police station.
Property Values – The homes in stable neighbourhoods retain or increase their value over the years. Unstable areas have foreclosure sales, vacant houses, or the properties are selling at a loss.
Appearance – Note if the houses have fresh paint, manicured lawns, sidewalks and curbs in good condition, and underground utilities. If you notice homes with peeling paint or overgrown yards, then check with a local realtor for the percentage of foreclosures and rentals in that area.
Schools – The quality of local schools has a big impact on property values. People pay top dollar to get their kids in the best school districts. Another good choice is in new areas building middle class single-family homes. These neighbourhoods will soon have new schools with the latest of everything.
For Sale Signs – Read the sale signs to see if they say “reduced” or “foreclosure” as both can indicate a struggling neighbourhood. If you see multiple sale signs within a few blocks, consider it a red flag that needs further investigation. For example, a large section of nearby undeveloped land might have had its zoning changed to industrial.