Some neighbourhoods have been on a decline in past years, making them unpopular with just about everyone but bargain-hunters. There are, however, urban renewal initiatives which seek to gentrify such lagging neighbourhoods and even restore them to their former glory. You can ask your agent or the local municipality whether there is any urban renewal planned for the neighbourhood you are looking at. If so, you might still be able to buy cheap, but you can expect the value of your home to rise with the popularity of your street… hopefully at a much faster rate than the market norm, thanks to revitalization plans.
Growing with Your Home
If you’ve found a neighbourhood that you really like, but the nicer homes in it are out of your price range, don’t worry.
You still have the option to purchase one of the cheaper homes, perhaps a home that has not been updated or repaired for a while. Such a home will definitely need some TLC, but at least you’ll be in a great location. The old adage to buy the ‘worst home on the best street’ is certainly wise advice to follow.Similarly, you may find a neighbourhood that is not yet up to par with what you want, but that appears to be up-and-coming, with a lot of development going on. This kind of forward momentum carries with it the intrinsic potential for property value growth.
To Wait or Not to Wait?
Unless you are a first-time buyer (or are buying an investment/income home), don’t worry too much about timing. People who already have a home must usually sell it in order to come up with the money for the down payment for the new home. That means that if you are purchasing your next home during a
depressed market, you will also have to sell in the same depressed market. Similarly, if you want to sell during a boom, you will also have to buy during the same boom.
This may be a little trickier when you are moving a greater geographic distance and the real estate market in your destination area differs from where you are currently located. You will have to decide on your own (based on research and your agent’s advice) whether to wait and, if so, for how long.Now that you know more about your many options, learn how to weed through them with some insightful house-hunting questions