Sometimes it would really come in handy to have a crystal ball. This is especially true when it comes to real estate investing. It would be nice to know in advance which neighborhoods are about to experience a resurgence.
Well, if you’re prepared to do a little digging, you can uncover some clues.
Follow The Artists
One of the earliest signs of a hot neighborhood is the migration of the artistic community within a particular city. Many artists, usually living on low incomes, seek out affordable living space in areas with a cool vibe. Often, they settle near other, more established, hip communities—increasing demand for housing and creating a spillover effect. So keep an eye out for new galleries or pop up art exhibits in the area, and be ready to pounce.
Look For Private Commercial Investments
Take advantage of the market research being done by private commercial firms. That is, be on the lookout for new retail projects targeting certain areas. Is there a new Starbucks or Whole Foods in the offing? That is a good sign that these corporate behemoths feel confident enough to lay down significant investment dollars in a particular area. Housing values are certain to rise so be on the lookout.
Don’t Forget About Public Infrastructure
Local planners have a good sense of a community’s shifting demographics and housing needs. If you see a big outlay of taxpayer dollars for infrastructure—think mass transit or a new public park—that is a harbinger that future housing demand is expected to support it. You know what they say—if you build it, they will come. Seasoned investors should look to snap up homes in the area while they are still affordable.
Declining Crime Statistics
If the city administration is spending money on infrastructure in a certain district, then it may also be that they are putting resources toward reducing crime as well. Contact the local police department for up to date information about crime in the area. You might also want to just stroll through the neighborhood at different hours of the day to take note of any additional patrols on the street and the overall feel. A safer community makes for a more valuable investment.
Found a property in a hot neighborhood? Give us a call to line up financing before the word gets out! Reach out to us at 443.603.0193 or at info@gonavcap.com to discuss the ins and outs of our flexible financing arrangements. To get the ball rolling, fill out the pre-application on our website or, if you already have the house under contract, go ahead and complete the full application to ensure fast approval.