One important tenet of investing in real estate that can not be understated is the importance of neighborhoods. This is especially true in Philadelphia where people choose and identify specific neighborhoods.
You have to know what people are looking for in each neighborhood as well. This is especially important if you are looking to do a rehab project. You definitely want to finish your project with the appliances, flooring, and fixtures that are most likely to appeal to the demographics of the neighborhood.
David Wither shares, Zamir Kazi’s 4 Tips for Investing in Real Estate, and among them is the importance of neighborhoods. While not Philadelphia specific, it goes to show you no matter where you are investing you need to pay attention to the neighborhood.
Neighborhoods Are Products
When you purchase a home, whether you are a 30-something or 40-something, you have certain tastes and preferences you are looking for. Additionally, if you are aiming for tech workers, families or any other kind of real estate demographic, each will come with a certain set of tastes that you need to understand. As you track these traits, you’ll begin to understand the value of various neighborhoods within a city.
For instance, tech employees in LA tend to want to live in Santa Monica or Venice Beach, while people in the entertainment business want to live near West Hollywood or Beverly Hills. Every neighborhood goes through changes, whether it is the stores, restaurants, public art or general culture, and as these change, your demographics will shift interest to new up-and-coming neighborhoods. That is the perfect time to buy property.