If you are looking to estimate the actual market value of your home, just look across the street. Neighbourhood homes, stores, clinics, offices and other facilities play a crucial role in determining the value of your property. ‘Healthy’ neighbourhoods support a steady rise in the capital values of real estate, while ‘ailing’ or ‘weak’ locations tend to see little or no growth in the investment value of homes there.
Here are the six signs that indicate a good neighbourhood to live in:
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As every broker will tell you, neighbourhoods with better accessibility and proximity to means of public transportation are always in demand. Today, the keyword is connectivity. You are better placed if you can reach the train station, airport, hospital or school in as little time as possible. Accessibility makes it much more convenient to deal with the regular necessities of living and raising a family.
Bordering neighbourhoods
The closer you are to an unhealthy neighbourhood, the more likely it is that you’re going to be affected by it. The best residential localities are built around prime areas, and not surrounded by underdeveloped areas with down-market profiles. New home buyers are looking for places that present the opportunity of a friendly environment, preferably close to one of the city’s business hubs.
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Ample opportunities for socialising
Good neighbourhoods offer their residents a lot of incentives to get out of their homes and meet up outside. Parks, branded coffee shops, theatres and art galleries are all places where people can engage in the very vital activity of socialising.
Low ‘DOM’
DOM or ‘Days on Market’ is a metric that indicates how long has a property been on the market. If you are living in a rising neighbourhood, the DOM for properties is low, as families will be eager to join the community. Look for comparable homes in the area that have been put up for sale. If no one has bought them for a considerable while — say six months or longer — it is not a good sign. A good neighbourhood is one where properties that are put on the market sell quickly because a lot of people want to live there.
Low crime rates
A good neighbourhood tends to have a lower crime rate, meaning incidences of thefts, burglaries and other crimes are relatively few. This can be because of various reasons — local law enforcement would be more proactive and efficient, the housing projects there have better security arrangements, the inhabitants of the area are of a higher class not given to petty crimes, etc. It is always preferable to live in a neighbourhood with the minimum crime rates. Safety will always be the prime concern when you are looking to raise a family.
Presence of retailers
Business will only come to a place that has a considerable market, meaning a lot of potential customers are living in the area. If there are enough retail stores around, it is a sign of a busy, thriving community. Further, convenience stores in the neighbourhood make life there more convenient and enjoyable.
The writer is chairman and managing director, Amit Enterprises Housing