Looking For the Perfect Neighborhood? 5 Tips to Keep in Mind
More and more suburbs are becoming appealing to young homeowners by offering the same type of amenities found in the bigger cities.
Many neighborhoods now brag with a busy nightlife, fancy restaurants, and activities for teenagers and kids to take part in. This makes it difficult for homeowners to determine what they can actually afford.
Will the investment pay off in the long run? Are people constantly moving and out of the area?
These are all questions that you want answered and you'll only find the answers when you walk the beat - and seriously, who has time to do that?
Here are 5 tips to help you when looking for the right neighborhood.
#1 - Understand your budget
This might sound obvious, but given the excitement levels of buying a new house, you might go off the track.
It would be a good idea to work with a bond originator in order to decide on a realistic purchasing and deposit amount. Once you know how much you can spend, decide on the type of investment you want to make. Will this home be long or short term? Are you willing to generate income from it by renting it out? Answering these questions will certainly narrow down the best property for your budget.
#2 - Study local pricing
Working with a real estate agent gives you many advantages, one being that they will be able to provide you with local sets of data that consist of the pricing of the properties in the area.
Use these figures to find out what the average pricing of homes in the neighborhood was as well as the appreciation for recently-sold properties.
You will also be able to see how many properties have been sold over or under the original asking price.
#3 - Search by proximity
Rising home values are often dependent on proximity. People and businesses that have been priced out of one neighborhood will move to the next closest area that they can afford and that offers the same types of amenities.
If you can't afford your dream home in your dream neighborhood, then don't give up just yet.
Consult with your real estate agent and study home prices in neighboring areas that have more or less the same things that you are looking for.
You might just find a new dream home altogether!
#4 - Check for existing neighborhood amenities
One of the major factors for investment should be the property's proximity to public transit whether it be train, bus, or bike lane.
People also want easy access to greenery like neighborhood parks or a waterfront that people can simply walk to.
A strong sense of community is also very important. Community gardens, residential streets, and community corridors are all part of a great investment package.
Neighborhoods that are more affordable might not boast with all of these luxuries, but if there is a nice coffee shop or a beautiful restaurant then it can be a sign of possible development in the future.
#5 - Don't let statistics fool you
If you have found the perfect neighborhood you might be tempted to have a peek at crime statistics.
It is natural for you to safeguard yourself against these external forces, but don't let the numbers fool you. Those statistics aren't always accurate and they certainly aren't the end-all and be-all.
The crime rate may be 60% and your neighbor might never have been a victim of crime in his life.
Ask for local input instead from existing homeowners, businesses, and tenants to get a better picture of what life is really like in the suburb of your choice.
