The two
key questions to ask yourself when considering a new home are ‘where’ and
‘what’. In the previous section we dealt with the “what” part and now we must
decide “where”. A home is not an island and plays a large role in not only
determining your future resale value, but also your day to day quality of life.
Narrow your home search by identifying neighbourhoods that are right for you.
This helps keep your search focused and efficient. You are welcome to use me to
obtain neighbourhood information to guide you in your search.
When evaluating a neighbourhood you should investigate local conditions, as well as surrounding suburbs to get a full picture. Depending on your own particular needs and tastes, some of the following factors may be more important considerations than others:
In considering neighbourhoods use your Agent to find out about ;
Upcoming neighbourhoods: Look for communities that are likely to become "hot neighbourhoods" in the coming years. They can often be discovered on the periphery of the most continuously desirable areas.
Check for planned future development such as additional transit; new community services such as pools and theatres; and chain stores planning to move in. Look for a home in a good neighbourhood that is a bit farther out of the city. If commuting is a concern, purchase a home that is close to public transportation.
Neighbourhood demand: Look at the neighbourhood demand by asking your real estate agent whether multiple offers are being made, whether the gap between the list price and sale price is decreasing and whether there is active community involvement. You can also drive around neighbourhoods and see how many "sale pending" and "sold" signs there are in a particular area. What areas achieve quick sales and are therefore in high demand. Conversely which areas are slow movers and difficult to sell in.
Alternative Ownership: Look into purchasing a sectional title unit or co-op, rather than a house, in a desirable neighbourhood. This way you still may be able to purchase in a prime area that you otherwise could not afford. The profits you make can go toward the next home you buy. Keep a long term view.
SELECTING YOUR NEIGHBOURHOOD Top
Some neighbourhoods speak loud and clear about themselves at first glance. The quality of life is apparent in its streets, parks, buildings, homes and yards. The folks you see will also give you a good idea what can you expect. You get a feel of it or against it just by looking. This makes it more difficult to choose amongst them and you will have to delve a little deeper if you want more information.
Ask your estate agent to assist in providing you with specific details about the community, which are not so obvious at first glance. For example, he or she will tell you:
Inspecting a neighbourhood is as necessary as inspecting the home you may buy. An old real estate maxim says: "The best time to think about selling your home is when you're buying it". That is because location will be the prime factor influencing future buyers when the time comes to sell your home.
SO WHAT MAKES A GOOD LOCATION Top
Other than the obvious issues covered above, you might want to consider the following ;
When purchasing a piece of property, it is important to be aware of any environmental liabilities associated with it. For example, you should find out if there are any registered underground tanks within several miles of the property, any known contaminated properties in the neighbourhood, or any property owners who have been fined by the government for failing to meet environmental safety standards.
Also be aware of any development restrictions that might apply to the neighbourhood because of environmental issues such as protected plant species etc. While a lack of development might suit some who choose a smallholding style life, for others it might be a major investment concern.
When evaluating a neighbourhood you should investigate local conditions, as well as surrounding suburbs to get a full picture. Depending on your own particular needs and tastes, some of the following factors may be more important considerations than others:
- quality of schools
- property values
- traffic
- crime rate
- future construction
- proximity to schools, employment, hospitals, shops, public transportation, prisons, freeways, airports, beaches, parks, stadiums and cultural centres such as museums and theatres
In considering neighbourhoods use your Agent to find out about ;
Upcoming neighbourhoods: Look for communities that are likely to become "hot neighbourhoods" in the coming years. They can often be discovered on the periphery of the most continuously desirable areas.
Check for planned future development such as additional transit; new community services such as pools and theatres; and chain stores planning to move in. Look for a home in a good neighbourhood that is a bit farther out of the city. If commuting is a concern, purchase a home that is close to public transportation.
Neighbourhood demand: Look at the neighbourhood demand by asking your real estate agent whether multiple offers are being made, whether the gap between the list price and sale price is decreasing and whether there is active community involvement. You can also drive around neighbourhoods and see how many "sale pending" and "sold" signs there are in a particular area. What areas achieve quick sales and are therefore in high demand. Conversely which areas are slow movers and difficult to sell in.
Alternative Ownership: Look into purchasing a sectional title unit or co-op, rather than a house, in a desirable neighbourhood. This way you still may be able to purchase in a prime area that you otherwise could not afford. The profits you make can go toward the next home you buy. Keep a long term view.
SELECTING YOUR NEIGHBOURHOOD Top
- Make a list of the activities - movies, health clubs, churches - you engage in regularly and stores you visit frequently. See how far you would have to travel from each neighbourhood you're considering to engage in your most common activities.
- Your most frequent and regular travelling is to work. Will the neighbourhood make that part of your life easier or make it unbearable?
- Consider if you will still have quick access to your friends and family
- Check out the schooling. The education department or the schools themselves can provide information on test scores, class size, percentage of students who attend college, and special enrichment programs. Even if you don't have children, a house in a good schooling area will be easier to sell in the future.
- Check crime. Ask the police department for neighbourhood crime statistics - not only the level of crime, but also the type - burglaries, armed robberies - any trends of increasing or decreasing crime and the location of crime.
- Look for economic stability. Your local city council development office can tell you if income and property values in a neighbourhood are stable, rising or falling, the percentage of homes to apartments. Apartments don't necessarily diminish value, but they can indicate transient populations. Check for vacant or blighted businesses or homes.
- Consider resale value. A local real estate agent or trade association can give you information about price trends, inventories, selling times and other information that can indicate how well your home's value will hold up.
- Hit the streets. Narrow your focus to several neighbourhoods and do a "walk-through" of each. Look for tidy, well maintained homes, quiet streets and other indicators of neighbourhood stability. Children playing freely in the streets, indicates safety and good community.
- While doing a walkthrough. Talk with people at bus stops (ask about commuting schedules and costs) and in shops (chat about where the best stores are). As you chat about everyday issues you will quickly get a feel of the neighbourhood.
- Use your agent to provide you with maximum information
Some neighbourhoods speak loud and clear about themselves at first glance. The quality of life is apparent in its streets, parks, buildings, homes and yards. The folks you see will also give you a good idea what can you expect. You get a feel of it or against it just by looking. This makes it more difficult to choose amongst them and you will have to delve a little deeper if you want more information.
Ask your estate agent to assist in providing you with specific details about the community, which are not so obvious at first glance. For example, he or she will tell you:
- where schools, supermarkets, libraries, hospitals and churches are located;
- the proximity of emergency services such as fire and police
- what zoning regulations apply;
- what community services are available;
- what construction plans are on the agenda;
- what shifts in transportation facilities are occurring;
- whether home values have appreciated or depreciated.
Inspecting a neighbourhood is as necessary as inspecting the home you may buy. An old real estate maxim says: "The best time to think about selling your home is when you're buying it". That is because location will be the prime factor influencing future buyers when the time comes to sell your home.
SO WHAT MAKES A GOOD LOCATION Top
Other than the obvious issues covered above, you might want to consider the following ;
- Cities generally perform better than rural areas,
- Coastal areas generally outperform inland areas
- Within any town or city there are always suburbs recognised as accommodating the rich and carry better values
- Areas with ocean or other panoramic views are always valued higher
- Suburbs closer to amenities generally outperform those on the fringes of development. Consider even, the proximity to airports.
- The combination of good urban planning and natural beauty also result in desirable locations
- Consider growth areas with good access to local facilities and avoid environmental problems such as areas with busy roads
- or noisy factories nearby
- Distinct features can add value, such as a large botanical garden, college or sports ground in the area.
- Ocean front homes are great for lifestyle but you must consider the long term impact of corrosive sea air.
- Are you likely to be bothered by nearby farming or orchard work if you have chosen an outlying suburb for peace and quiet
- In many outlying suburbs you will have to ensure there is a good water supply
- Will you have problems with traffic or noise? How close are you to main arterials and what kind of roads will you have to travel on each day?
When purchasing a piece of property, it is important to be aware of any environmental liabilities associated with it. For example, you should find out if there are any registered underground tanks within several miles of the property, any known contaminated properties in the neighbourhood, or any property owners who have been fined by the government for failing to meet environmental safety standards.
Also be aware of any development restrictions that might apply to the neighbourhood because of environmental issues such as protected plant species etc. While a lack of development might suit some who choose a smallholding style life, for others it might be a major investment concern.
