The following is a guest post from Michaela Phillips, VP of Mortgage Lending for Guaranteed Rate, Inc. In this article, Michaela discusses the merits of buying a home in an “up and coming” neighborhood and gives some great advice as to how you can tell if an area is on the upswing.
A great tip for any homebuyer is to purchase a home in an “up and coming” neighborhood. This sort of neighborhood used to be less desirable—perhaps it had a higher crime rate, more abandoned buildings, or was just generally economically depressed. The cheaper property rates then attract new residents, creating an interesting cycle:
- Because purchase prices drop so low, artists and musicians become attracted to the area and move in. They start fixing things up and putting their own creative stamp on the neighborhood.
- Other people become attracted to the area’s improvements and begin flocking to it.
- Home values skyrocket.
An up and coming neighborhood is one that is simply back on that upswing (or soon will be), but hasn’t realized its full potential yet. This means that a homebuyer looking to save money on a purchase, but not wishing to live in the wrong part of town, can do very well by buying into this type of neighborhood.
A robust local arts scene, accompanied by active renovations, is always a telltale sign that a neighborhood is on its way back up. Another sign is an increased number of younger adults in the neighborhood’s population. Younger adults typically have a harder time buying into more established neighborhoods (i.e. more expensive). Wherever there is a concentrated population of twenty-somethings, an increase in restaurants, bars, and nightlife is sure to follow.
While there will be some demolition involved for the majority of the property, the old Mess Hall will remain to be repurposed into a brewpub. It will most likely resemble the Home Made Liquids & Solids restaurant at 1555 S. Hover St. in Longmont, CO. Details about the other aspects of the concept plan for the four block area can be found here. One such local neighborhood with serious up and coming potential is NoBo, or the North Boulder neighborhood. Recent plans to convert the Colorado National Guard Armory site into four different blocks featuring housing and arts spaces would bring in that artistic, youthful element that the area would need to begin the rejuvenation process. If all goes according to plan, affordable loft-style housing can be provided specifically to artists. There will also be ample space for an arts pavilion, restaurants, art galleries, and studios.
If you are thinking of purchasing a new home and would like help identifying other possible up and coming neighborhoods, please contact me at firstname.lastname@example.org.
Michaela Phillips entered the mortgage lending industry in 1994. Throughout her 20 years in the business she’s been one of the top producers for every company she’s worked for. As of late 2013, she’s the VP of Mortgage Lending for Guaranteed Rate, Inc., the 8th largest retail mortgage company in the country. Being a VP at Guaranteed Rate offers many advantages to her and her clients, unparalleled customer service, efficiency, and most importantly, competitive rates.
She enjoys teaching her clients the pros and cons of being a Real Estate Investor, and more so, watching them build their Real Estate “Empires,” large or small, but all successful. For more info, visit her website, and follow her on Facebook & Twitter!