Monday, October 22, 2018
Real Estate Market Buying and Selling
Did you know that most, if not all, neighbourhoods experience four distinct phases of a life cycle? Some may even go through the cycle more than once, depending on the age of the neighbourhood. Each phase will have an impact on property values as well as demographics. Do you know which of the following four phases your neighbourhood is in?
This is the phase in which a neighbourhood is first being developed. It is becoming popular and building construction is replacing much of the vacant land. New construction includes not only residential housing, but the development of amenities such as schools, plazas, parks, etc.
In this phase the neighbourhood has been completed and has reached the height of its popularity. Property values are at their highest in comparison to other similar neighbourhoods and a full range of amenities are in place.
In this phase a fully developed neighbourhood is losing its appeal and popularity. Properties tend to look less well maintained. Retailers and commercial businesses are either closing or moving away, leaving higher than usual vacancies. Property values tend to decline as compared to other similar neighbourhoods. This phase may be caused by the growth of other neighbourhoods or high unemployment rates.
This is the phase in which a neighbourhood is bouncing back from a period of neglect or decline and which is becoming popular and in demand again. New construction, home renovations and the reappearance of retailers and commercial businesses are evident.
Knowing the phase a neighbourhood is in can make a big difference, especially when purchasing an investment property. For example, if the neighbourhood is in decline, the vacancy rate will probably be high which can translate into lower monthly rental income. If you have school-aged children and you live in an area of decline, your children’s school may close due to declining enrolment.
Contact Me Today to Learn More
I can provide you with advice on when to buy or sell depending on your specific situation and circumstances and can explain the affect each phase could have on your finances and lifestyle.
When you’re ready to buy or sell in the Burlington or Oakville area, or for general real estate advice, please contact me. I can help!