Whether you’re an investor looking to flip property, or a buyer looking to bag your dream home on a budget, you’ve probably considered moving away from the crowd and looking into up-and-coming areas instead. The appeal is definitely there, with a lot of potential just waiting to be unleashed. With that in mind, let’s take a look at what the advantages are for either buying or building a house in up-and-coming areas.
Buying a house in an established area is more expensive because you’re not just paying for the building itself, but also for having access to the amenities that come with the neighborhood. While up-and-coming areas may not have a string of trendy shops and fancy restaurants lining the streets, you will find that they come with more value for money. A 1-bedroom apartment in an established area may end up costing you more than a 3-bedroom home that is not slap-bang in the city center. You have more buying power when looking to buy or build a home in an up-and-coming area, and this can also help stretch your budget further.
Property and Resale Value Will Increase Over Time
The early bird catches the worm, and the early buyer can capitalize on the financial gain from purchasing a home in an up-and-coming area before the prices skyrocket. As real estate trends in the area are picking up, your property will increase in value in five or ten years’ time, and you can find yourself in a very desirable spot where you can sell your home for more than the initial purchase price. If you bought a house rather than build one, renovations will also add to its value in the long run.
Personalized Renovations and Decoration
Because you’re buying your home in an up-and-coming area, you are paying less for it, and you’re left with overhead in terms of money you can use for decorations and renovating. The same applies for building a house, and you might find that you have more freedom from zoning regulations. Not all up-and-coming areas have a Homeowners’ Association, which means you can let your creativity flow when it comes to the design of your house or even the changes you wish to make to an existing building, without having to worry about your neighbors disapproving your choice of color scheme or lawn ornaments. Personalized touches to your home will also make it stand out among others in the neighborhood, making it easier to sell later on.
More Options for Finding Buyers or Tenants
As the area is picking up, more people will start looking into it as well, drawn by the lower housing prices. This is excellent news if you’re looking to flip, but also if you’re considering renting your house or apartment. And as the value of property in up-and-coming area rises, along with their appeal, you will be able to raise the price your home will sell for, and even the rent, accordingly.
Hot Spot for Business Opportunity
The smaller costs associated with up-and-coming areas make them very appealing not just to home buyers and real estate investors, but also businesses looking to branch out and move in on a piece of the action. In fact, one of the best ways to spot an up-and-coming neighborhood is researching which businesses are prospecting them as well. Supermarkets, coffee chains and office buildings are all playing a long game and can bring millions of dollars worth of investments to the area. As a result, you’ll find that you not only found a home at a very affordable price, but also in an area that is growing in terms of job opportunities.
It’s clear to see that there are plenty of advantages when it comes to buying or building a home in an up-and-coming area. However, it’s worth looking at both sides of the story, as there are some disadvantages to keep in mind as well.