Friday, October 2, 2009

PROPERTY TIP: Suburb gentrification takes time

Buying in a rundown suburb sounds like a great idea – think how much money you’ll make once the area gentrifies, right? Look at Paddington - from slum to chi chi in a relatively short time. And St Kilda in Melbourne was once the frowned-upon locale of junkies and prostitutes but now all the well-heeled types want their slice of "inner city grunge", and will pay a nice price for the privilege. But it's not as simple as that. Gentrification can take 20 years or more to occur, so can you put up with the crime, less-than-salubrious surrounds and commute to wait for the price gains? The gentrification process can take two or three boom-to-bust property cycles before it takes hold and starts generating capital price growth.

Related stories:
50 hot home ideas
Cheap kitchen makeovers
How to choose property that will grow in value

Pictures: JohannaEkmark

No comments:

Post a Comment

Thanks for taking the time to chat!

Related Posts with Thumbnails