Choosing the right neighborhood to invest in a custom luxury home can be trickier than you might think. Unless you are already looking to build in a well-established affluent suburb, you have to be careful what neighborhood you choose to invest your money in. Why? Even some of the most up and coming areas straddle the line between ‘actual’ good location and ‘becoming’ a good location. By avoiding these five bad locations, you can skip a headache of worrying about the long-term value of your home and settle in the right community for you.
Location One: An Area With High Crime
Before anything else, the number one thing homebuyers desire is safety. Even if the neighborhood is trendy, future home buyers want to know they’ll be able to walk to their car or cafe close by safely, during the day or at night. An area with a high crime rate, even in a popular district will deter some home buyers, no matter how beautiful the property is.
Location Two: An Area That’s Depressed Economically
Any contractor will tell you; it doesn’t matter how many improvements you’re home has, it’s value always will mirror those of your neighbors. If you choose to build or remodel in an economically depressed neighborhood, even if it’s as the center of a proposed or existing rehabilitation project, like so many neighborhoods are in Los Angeles, you are still taking a risk.
Location Three: A Commercial or Industrial Area
As cool as mixed commercial/living spaces are; unless they are built in the right neighborhood, living too close to a commercial or industrial district can stall the value of your home. Not everyone will be willing to put up with the traffic or high noise level right outside your door.
Location Four: Close to a Railroad or Freeway
Unless you’re living in a brand new, totally sound-proof highrise, moving by railroads or a major freeway is a bad idea. First off, trains, cars, and trucks all make a lot of noise. They can encourage homebuyers to be wary or pass on your home altogether, even if it’s located in an otherwise desirable area. Second, all machines powered by internal combustion engines are heavy polluters. Expect families with kids to stay away from these areas.
Location Five: Close to Hazards
People rarely spend their time thinking about where the nearest power plant, landfill, or waste disposal facility is located. Once you start to look around, however, you’d be surprised to find out how many facilities there are that house hazardous waste. Making sure that any new home you buy or remodel nowhere near one of these facilities is always a good idea.