Gentrification is the transformative process that turns a low-income neighborhood into a high-income one. Gentrification attracts condemnation and appreciation in both measures so it is good to weigh the pros and cons carefully before investing in a house in such a place. However, here are some of the things that attract people to gentrifying neighborhoods:
High Potential for Property Appreciation
One of the best things of gentrification, at least from an investor's point of view, is that it increases property prices. You may not be an investor, but you will definitely love it if your property value increases. A price appreciation enables you to sell your house at a profit, allowing you to buy another property elsewhere without much difficulty (if that is your wish).
This is an advantage you can enjoy in a gentrifying neighborhood, especially when you move in early enough when the place hasn't been too crowded yet. You can buy a house at a reasonable price, hold on to it for a few years, and sell it after it has been properly transformed into a high-end neighborhood.
High quality of life at reasonable prices
Since a gentrifying neighborhood is in a transitional state, it can give you a taste of the good life at a reasonable price. For example, you may be able to patronize good restaurants, get specialist health care services, use good roads and take your kids to good schools without spending as much money as people usually use for the same goods and services in upmarket locales.
However, you have to get into the place just when the transformation has progressed enough to attract some investors. Otherwise, you will also be exposed to the dangers of low-income neighborhoods, such as crime and unsanitary streets.
Colorful and Vibrant Life
Lastly, if you want a "cool" place to live where you can associate with people from different parts of the country or world, meet the creatives, and be one of the first people to try the latest trends, then gentrification is good for you. Artists, emerging businesses, and hip young people are some of the first to move to gentrifying neighborhoods. Of course, this also means you should avoid such places if you are more of a laid back person and want your neighborhood quiet at all times.
Identifying a truly gentrifying neighborhood isn't easy; some places show early signs of gentrification only to have the gentrification fizzle out with time. Before buying into such a place, talk to a professional real estate agent team like Barefoot Real Estate to help you confirm your expectations.Share