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:
1.
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.
2. 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.
5. Artists
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.
