Ask any real estate agent what defines the value of a home, and you will get a range of answers. Despite this, more often than not there are several key factors that they use to determine which parts of a particular town or city will soon become popular. If you are interested in purchasing real estate property and want to find a location that works for you, then you are in luck. Below is a guide to some of the most common ways professionals find neighborhoods and communities that worth investing in.
In To Out Mentality
In the past decade, there has been a growing shift back towards urban living. As many Millenials prefer the city life to the suburbs, cities are again slowly becoming popular again. As this happen, demand and prices scale up in the middle of the city and slowly begin pouring outward. If you are interested in property, then consider this trend in the city or town where you are investing.
When deciding on locations to purchase property, consider major routes into the city. For example, bus routes and train stations often become the most highly priced properties because they provide the smallest amount of transportation time to and from the city proper. In addition, consider commute times to the center of the city as well as to primary community resources like pharmacies and grocery stores. Again, these are the places where new interest and higher prices will come as costs gradually increase and people begin looking for more affordable options.
As A Parent, What Are You Most Concerned With?
Never underestimate how desirable a location can become if it has a good school district. Across the United States, individuals are deciding whether or not to move as their child grows up in order to see if there is a better school district to go to. If you are looking to purchase property and are on the hunt for real estate, then look at the city schools. Go to the state website for education and see the ranking system for schools. In addition to those that may appear at the top of the list, look carefully for schools that are gradually increasing in ranking over time. More often than not, this means that changes within the school are bringing about higher standards.
By keeping your finger on the pulse of educational standards around where you are investing, you can in part predict where future interest and growth will occur. Parents who care about the education of their children will work to find inexpensive places with good school districts in order to send their kids. In addition, they will end up paying more than similar communities in worse fairing school districts. In the end, all you can do is keep this in mind, especially if you are interested in properties advertised towards families.
Taxes Are Always A Worth While Consideration
Consider for a moment that you are moving to a new part of the US. Equal distance from work is two towns. Both are nearly identical except for one important difference. The property tax in one town is much higher than the other. Which town do you choose? Unless you have a deep affinity for the higher tax alternative, the low tax choice will win 9 times out of 10. Consider this when determining what property you are going to buy.
Individuals are more likely to commute longer distances an even agree to lower performing schools if the tax rates are lower and other qualities regarding the area are met. If you want to figure out what the tax rates are like, then you have several options. You can go directly to the assessor and see what they charge for every $100 worth of home value. You can also see what major construction work is occuring if any. Don’t let taxes and their importance pass you buy when you are considering where to hunt for real estate.
Know What Major Project Are Occuring In Your Area
We’ve all driven by major construction. More often than not, unless we live near by, we don’t care what is going on. The truth of the situation is however that major construction and projects can be the biggest signs that an area is going to turn around and increase in popularity. These large scale operations are often planned well in advance, and if they add value to the community then expect land values to go up and get a piece of it before its too late.
One of the first places you should consider going is the building department. They will have any major works on record for you to review as well as changes in roadways. Things like expanding roadways are typically good signs for increased traffic, which means that something may be going on. If nothing else, go to the construction site yourself and ask them what is being constructed. If you believe it is something that is going to bring people in, than you may have a golden opportunity to invest in property now before the area becomes big.
Last But Not Least, Consider Local Pricing
Local pricing for homes can tell you a lot of where communities and home values are going. Consider several years’ worth of data and you can begin building a model of which direction home values are going in. Consider a 10-year plot of data to and sift through for areas that have been seeing marked improvements over time. In addition, look for places that have remained relatively stable and consider investing if some of the criteria listed above are met.
Where Does This Leave Us?
The hunt for real estate property that is going to improve its value is quite the challenge. As seen above however, there are a few techniques that you can use to judge whether or not a particular area is going to become popular. With these tools in mind, good luck with your search!