real estate
Finding a neighborhood like this is perfect. It’s kind of like getting in on the ground floor of a good investment. As the neighborhood grows, so does your property value–much faster than it would by simple appreciation.
An area with a high foreclosure rate could indicate several red flags, as it’s usually indicative of a larger problem. However, if you find a neighborhood with a steadily-reducing foreclosure rate, it can be a very good sign.
Another great indicator of an improving neighborhood is the crime statistics. Obviously, buying an investment property in a high-crime area is much riskier than a similar property in a lower-crime area.
If you find that a certain neighborhood is seeing an increased number of business openings, both small and large, this is a great indicator that property values will soon be increasing rapidly.
Last but not least, it can be very beneficial to speak with someone who’s actually familiar with the neighborhood in question. This could be a real estate agent, property managers, or even business owners in the area.