Our friends at Credit Canada invited us to guest blog about up-and-coming neighbourhoods this week. Check out our prediction for the next best place to buy in Toronto’s housing market and get the most bang for your hard-earned buck: https://www.creditcanada.com/blog/buying-up-and-coming-neighbourhoods
WHAT IS AN UP-AND-COMING NEIGHBOURHOOD?
Options has a pretty strong track record when it comes to finding neighbourhoods right before they become coveted places to live (think: the Distillery District, the Junction, Lawrence and The Allen, Main and Danforth).
Up-and-coming neighbourhoods are areas that are on the brink of becoming hot spots but are still in transition.
Buying in one of these areas means:
- Great prices. Without high demand, the market responds with lower prices. (Remember that supply and demand curve in economics class?) Options purchasers have saved up to $10,000 on the prices of their homes thanks to the lower land costs these neighbourhoods offer.
- Higher resale values. Building equity for your family’s future can be more pronounced by buying in an up-and-coming area. When others start to notice how great your new neighbourhood is, prices start to climb with the increased demand (there’s that supply and demand curve again).
OUR TOP 5 SECRETS TO SPOTTING AN UP-AND-COMING NEIGHBOURHOOD:
1. FAMILY-RUN BUSINESSES
Do you see a bunch of mom and pop shops? This is an area that has yet to become attractive to high-paying brands. Eclectic retail is a sign that land is still affordable.
2. TRAIN TRACKS
Options developments in the Distillery District, the Junction, Lawrence and The Allen, Main and Danforth, and Weston all have something in common beyond their new-found it-factor (and the fact that we built there before they were cool): train tracks. Land by the tracks is traditionally seen as less desirable, and is often the last to be developed. Finding tracks might lead you to an up-and-coming area – and lower taxes.
3. PROXIMITY TO TRANSIT BUT FURTHER FROM DOWNTOWN
When we built the first three condos in the Distillery District in the ’90s, a 15-minute walk to downtown was “far.” Find an accessible neighbourhood that is perceived as just outside of comfortable reach and still has frequent transit andas the city grows, so too will your equity.
4. LITTLE-KNOWN NEIGHBOURHOODS
When you mention the neighbourhood, do your friends respond with blank stares or “I can’t picture that intersection”? This could be a sign that you’re onto something. Neighbourhoods that aren’t in-demand now could be next on Toronto’s hot neighbourhood list.
Ever chasing inexpensive studio space and inspiration, artists are your people to watch to find up-and-coming neighbourhoods. Not to mention, your new home will be in the middle of a richly-woven cultural fabric.
Whether you’re a first-time buyer or just looking for a great new place to call home at a reasonable price point, an up-and-coming neighbourhood is a great option – and now you know how to spot one. We’re always here to help with your search.