Real estate analysis: How to spot the next hot neighbourhood

Article summary

• Seek advice from an estate agent on up-and-coming neighbourhoods.
• Renovations are a sign that people are investing in the neighbourhood.
• New bars and restaurants can lend additional appeal to a neighbourhood.

Living in an up-and-coming neighbourhood adds a new dimension to your life, as the vibrant energy of the new infuses your everyday living. If you’re looking to rent or purchase a home in an up-and-coming neighbourhood, here are some signs that a particular neighbourhood matches that description.

Signs of an up-and-coming neighbourhood

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. Lots of renovations

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 or railway stations 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.

6. Advice from estate agents

Estate agents are a fountain of knowledge, and a good source for advice on up-and-coming neighbourhoods and property prices.

If you’ve found what you’re looking for…

…and are looking to purchase a property in the desired neighbourhood, bear in mind that ooba Home Loans offers a range of tools that can make the home buying process easier. Start with their Bond Calculator, then use the ooba Home Loans Bond Indicator to determine what you can afford. Finally, when you’re ready, you can apply for a home loan.