Updated: Nov 19, 2019
Imagine a crime infested or deteriorated area that nobody wants to live in. Sometime later this area has been transformed by people that are looking for growth, innovation and prosperity in the area. This process is known as re-gentrification. In other words, this is the process of people buying, fixing and renovating properties, establish new businesses and thus creating value. This is important to know because more than likely the value of properties going through re-gentrification will increase. Also, the rent will increase as there will be influx of businesses and better or newer living conditions. This is good for you, the future property owner or investor. Now the big question is how do you know which area is next hit?
There are two ways to find out. Visit your local MPP offices and keep an eye on neighbourhood conditions. Do a lot of research. Another way is by visiting many neighbourhoods in person. For example, I used to walk around a lot in the Beach area of Toronto. I noticed that this area is one of the nicest areas to live because most homes are quite modern, streets are clean and quiet, and most homes had electric cars on driveway!
My other real estate operations business is in Wallace-Dovercourt neighbourhood of Toronto. This is prime example of gentrification. There had been a time when this area had less residential properties and more industrial properties. Today this has changed. More residential houses are being built along with bars, activity lounges etc. Millenials live for experience. As this area is becoming a nicer neighbourhood with experience amenities, the value keeps going up. Also many properties around this area are going through renovations during summer of 2019. Changes are happening in a good way. Which means one thing, value is going up.
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