When searching for a new home, buyers often look for houses or land in the best neighborhoods — or, at least, the best neighborhoods that they can afford. And that’s certainly understandable. However, homeowners may be missing out on several advantages by not considering less prestigious or less desirable neighborhoods.
Below are six reasons to build or buy in up-and-coming areas.
#1: Lower price points
It’s natural to want to be in an area in close proximity to popular dining, shopping and entertainment options. Even if you’re buying the home to flip it, you want to own property in a desirable area. “When you buy in the best part of town, you are paying top dollar for the property,” according to Oliver Somoza, CEO of Philadelphia-based Turnkey Property Pro. But when you invest in a less popular neighborhood, your buying power can go much farther.
“Whereas $300,000 might get you a studio apartment in the city center, it could buy you not one but two 3-bedroom houses in a growing neighborhood not too much farther away,” he says.