How can you find the next hot neighborhood that will outpace the real estate market in appreciation over the next five years?
It simple, ask the young waiter/bartender in the new trendy restaurant, a very simple question: Where do you live? Where do your friends live? They always tell you about a neighborhood you never heard of and the reasons they live there. This was true of the Meatpacking District, Williamsburg, East Village and many more. The young, creative community has less money to spend on rent and prefer to use their earnings being out in new restaurants, bars and clubs, they are open to change, they think outside the box and they are willing to room with their friends. Follow these creative packs.
Real estate in established areas never has the appreciation of an undervalued new hot area. If you go to this area during the day you will turn right around and say it's not for me, who would live here. But when you go there during the night, that's when you will see the true character of the neighborhood, young people out and around, and you will see the nightlife. Remember, you are not buying in a neighborhood like this for what it is today, but rather what it will be in five years. Areas around hospitals, universities and creative arts, musicians, artists and fashion are what moves real estate prices upwards faster than the established neighborhoods.