5 factors to spot the next trendy neighbourhood

Buying in established neighbourhoods often comes with a hefty price tag. Investing in an up-and-coming area early on, however, can give you better return on investment in the long term. These five steps give you a feel for what to look out for when looking for the next hot spot:

1. Trendy bars and restaurants

A new restaurant that is getting a lot of business will draw other restaurants and shops to the neighbourhood. Rising prices are a sure sign that a restaurant is gaining popularity, and a positive sign for the neighbourhood.

2. Home owners renovating properties

Home renovations are a sign that the home owners have faith in the neighbourhood where they are living. Furthermore, an industrial area may seem like a poor choice at first, but if you notice that the city is investing a lot of resources in renovating abandoned warehouses, that could be a sign that the area is in the process of transforming into a fresh residential space.

3. Lots of young people

Young renters or home buyers generally look for areas with a lot of action. If a lot of young people are moving to a neighbourhood, you can be sure that more trendy establishments will follow them, including apartment complexes with a lot of facilities (a new trend as property developers look to cater to millennials and zoomers entering the market). It’s also a sign that prices in the area are favourable.

4. Proximity to public transport

A neighbourhood close to bus routes has potential, and is thus likely to attract investors.

5. Proximity to other popular neighbourhoods

Development expands with popular neighbourhoods usually serving as ground zero for that expansion. Identify vibrant areas and then investigate what’s happening with surrounding neighbourhoods; they’re likely to become more popular themselves as developers and home buyers seek proximity to trendy areas.

Content by ooba Home Loans. 

For more on home, visit Get It Magazine.