Buying In An Up-and-coming Neighborhood

By Author: Thomas Mietzel
Total Articles: 13
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A top consideration, when you are in the market to purchase a home, is getting the most for your money. How can you get the space and amenities you want, without breaking the bank? One way is to think about buying in what is, often euphemistically, called an up-and-coming neighborhood. That is, an area considered less desirable, possibly even dangerous, but which has the prospect of turning around. You would be replacing the tried and true Madison home sales maxim of “location, location, location” with “potential, potential, potential.” And, following the laws of supply and demand, if you buy in a neighborhood where there is less competition from other purchasers, prices will naturally be lower.
Positive signs
A common trend these days is the renaissance of city centers. People once committed to suburban living are now thinking again. They see the appeal of being closer to work, and enjoying the excitement and convenience of a downtown location. As in the rest of the country, Madison home sales are likely to begin reflecting this movement. Get in on the ground floor by looking for signs that your chosen area ...
... is a candidate for revitalization. For example, if City Hall plans to turn an eyesore of a vacant lot into landscaped parkland, adjacent homes will tend to increase in value. Or perhaps a developer has just received permission for a luxury condo project. There goes the neighborhood … in a good way. Finding out about changes in store for the area will take some digging. Another positive sign can be more readily spotted. When artists and musicians move in, trendy little bistros or crafts boutiques start springing up, and gentrification will usually follow.
The downside
Obviously there is a negative side to buying in an up-and-coming area. The neighborhood is likely to be noisier and dirtier than your ideal, with neglected buildings and graffiti on the walls. There may be a high crime rate. It’s important to distinguish between temporary drawbacks, and factors that are not likely to change. For example, a neighborhood next to a busy freeway will continue to suffer from noise pollution no matter who lives there. Consider your family situation; will you be comfortable living in a neighborhood in transition? How will you feel if the area doesn’t turn around as you had hoped?
Who should buy in an up-and-coming neighborhood?
Think long and hard about whether an up-and-coming neighborhood is for you. Don’t be swayed by Madison home sales prices into making a hasty decision. Probably the best profile for a buyer in a changing neighborhood is someone with a spirit of adventure and open mindedness. Newly married couples or empty nesters in early middle age are not in a position to worry about their children’s safety or schooling, at least for the present. If you enjoy challenges and have a secret ambition to change the world, or at least your corner of it, then this type of purchase may be ideal for you.

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