When it comes to buying a property, experts always advise: location, location, location. Where your home will affect your lifestyle, makes or breaks your sense of safety and security, and says a lot about your social status or reputation. That’s why the first rule of purchasing a property is to search for a home in a hotspot. There is one exception to that rule, though. You can only skip a good neighbourhood if you can find a home in the next, up-and-coming neighbourhood. The challenge, however, is knowing how to spot that next hotspot. You can do that with these clever tactics:
1. Look at homes near the current hotspot
As the hotspot continues to grow popular, prices in the property market in that location will increase. Eventually, people and businesses won’t be able to afford such but will still try to be as close to the hotspot as possible, buying properties near the area, thus allowing that location to flourish as well. This is called the spillover market. The more people flock to the area, the more popular the community becomes. Thus, when looking for the next ‘it’ neighbourhood, look at the areas close to the already-booming locations and invest in a property there. These spillover markets spur the gentrification wave.
2. Go where the schools and offices are emerging
Communities that are close to career and educational opportunities become popular because these are among people’s primary needs. Businesses and schools spend a lot of time and money on assessing a location’s profitability potential, so when you see them constructing properties around an area, it is definitely worth considering that location for your home. Additionally, watch out for big retail companies. If Woolworths and Coles settle on the neighbourhood you’re targeting, then that’s a sign you should keep this location on your list. Eventually, you will notice that the rents in the area will increase substantially, indicating a booming market. You may want to check out the house and land West Melbourne neighbourhoods offer, as these are communities near key establishments.
3. Trust the young, creative people
Track the movement of painters, musicians, foodies, and other creative people, and at the same time, those fresh out of college. Creatives are able to influence the lifestyles, tastes and culture of the district or town they belong to, gearing it toward sophistication and trendiness. On the other hand, new graduates are the ones who are idealistic and brave enough to try out-of-the-box business ideas that pull in tourists and investors, such as co-working spaces, cat cafés, and indoor cycling studios. At the same time, these young people are adept at coping with the fast-changing world, thereby making them versatile to keep their businesses afloat. Hence, remember that the next big ‘it’ neighbourhood is the one where the young and the creative go.
Again, location, location, location matters when it comes to buying homes. But while investing at a property in a good neighbourhood is good, it is equally important to watch out for the up-and-coming communities. Do your homework, remember these tips, and go find the next hot neighbourhood.