Buying A Home In A "Comeback" Neighborhood? Look For These Qualities
If you're house-hunting on a limited budget, one good strategy is to look for homes in "comeback" neighborhoods. These are neighborhoods that have not been so well off economically over the past few years but are starting to do better, with real estate values beginning to creep back up and average income on the rise. If you decide to house-hunt in a "comeback" neighborhood, make sure the house you choose has these qualities. Doing so will ensure your safety and help ensure your resale value is adequate.
A fenced-in yard.
Though not all "comeback" neighborhoods are unsafe, they do tend to have a bit more crime than, say, a gated community or an upscale suburb. Thus, it's important to choose a home with a fenced-in yard and ideally a locking gate. This reduces the risk of items like your patio furniture and lawnmower being stolen. It also gives you a bit more privacy, so you don't have to worry about potential thieves looking into your yard and watching your moves to plan a break-in.
A convenient location.
This quality will come into play when it comes time for you to sell the house. Even if the neighborhood ends up becoming nicer over the years that you live in the house, if the home is not conveniently located near highway on-ramps, stores, entertainment and public transportation (if it is commonly used in your city), then you might have a hard time finding a buyer or making a profit on your investment.
An exterior that is easy to update.
Homes in neighborhoods that are making comebacks tend to fare better if they are able to easily be updated to look newer and fresher. Chances are, the home you're considering buying does not have a pristine exterior. Ask yourself how much work it would be to make that exterior look better. Does it just need a coat of paint, or is the wooden siding in such bad condition that it needs replacing? If it has a brick façade, is it crumbling, or is it in good condition and just in need of a little more mortar? As the neighborhood around you improves, you want to ensure the look of your home stays on track with that improvement. Otherwise, you might be left trying to sell the last worn-looking house on the street in a few years.
If a home in a "comeback" neighborhood is in a convenient location, has a fenced-in yard, and has an exterior that's easy to improve, then it's likely a good investment. Of course, as in any home purchase, you should always have a home inspector or real estate professional like Gilbert Realty look over the house so you're aware of any additional issues before you make your purchase.